# 1 Proposal Under the Small Community Air Service Development Program

Docket: DOT

DOT

– OST

– 2012

– 0069

Sponsoring Entity: Asheville Regional Airport

Submitted on behalf of the WNC Air Service Development Coalition

Dun & Bradstreet Number: 03

- 854

- 7154

EIN Number: 56

- 1270991

2

- digit Congressional District Code: 11

June 8, 2012

# 2

Contents:

Community’s air service needs & deficiencies

................................ .......... 3
Strategic plan

................................ ................................ ............................ 6

Long

- te rm sustainability

................................ ................................ ......... 10
Plan implementation & funding

................................ .............................. 1 2

Administration & measurement

................................ ............................. 1 8
Appendix A: Required Summary Information

................................ ........ 1 9
Appendix B: L etters of Support

......................... See separate attachment

# 3

Summary & Background 

## Community’s air service needs / deficiencies

Overview

Asheville Regional Airport (AVL) is the primary airport that serves all of Western North Carolina, with an
eleven

- county core service area. The region is growing at a steady rate, and is home to a vibrant a nd diversified business community, including major manufacturers (such as Evergreen, Linamar, GE, Kimberly

- Clark, Meritor, Continental Teves, Wilson Art, Borg Warner and Thermo Fisher Scientific), as well as a thriving tourism industry. The region is home to one of the largest concentration of summer residential camps in the nation, with campers from around the globe. Last, a large number of activ e retirees reside in the region and are big users of air service.

Air Service

As the nation was experiencing an economic recession during the past few years, Asheville Regional Airport continued to serve large numbers of passengers

– a record number were served in 2010. Air service options grew, and air fares declined.

However, Asheville was one of the few citi es negatively impacted by Southwest’s acquisition of AirTran, and all AirTran service was pulled from AVL in late 2011 and early 2012, which accounted for ten percent
of the total air service at AVL.

Additionally, the legacy carriers’ national trend of r educed capacity and frequency has affected air service at AVL, and we are experiencing a 16

- 20% decline (on average) in seats compared to last year.

AVL worked with an air service consultant to conduct a leakage study, and to review data after
Southwe st entered the greater market to determine their impact on utilization at AVL. The good news is

(5,000) 0 5,000 10,000 15,000 20,000 25,000

June July Aug Sept Oct Nov Dec 2012 8,523 18,474 16,924 7,852 8,238 8,388 7,788
2011 11,436 23,976 23,976 9,356 9,406 9,185 8,044
% Diff -25% -22.95 -29.41 -16% -12% -9% -3% Seats 

# YoY Seat Capacity Comparisons

Source: Diio Mi Schedule Compare

# 4

that marketing efforts focusing on the competitive fares and air service offerings at AVL contributed to positive utilization trends

– an expected and projecte d 10% decline in utilization was not realized (showing that our marketing is effective and market travelers prefer to use AVL ) . Instead, one year after the entry of Southwest into the greater market, AVL has experienced relatively flat utilization year ov er
year

. However, some recent declines in utilization seem to correlate partially to increases in airfare.

AirTran exited the Western North Carolina market completely in January 2012. Since then, air fares
have risen , with sharp increases noted recently. For the first time in many years, we have noted fares
twice as h igh as identical offerings at competing airports. A large spike in fare differential s was noted in May 2012, and the trend line continues to move in the wrong direction for our community.

Asheville Regional Airport has made great strides in its growth in the past few years, matching the growth of the region. The recent declines in service and increases in fares have definitely shifted the airport and community’s strategy regarding ai r service, and a plan is in place to: (a) stabilize existing service; (b) foster a competitive market place to improve fares; and (c) attract new air service that will support the direction of growth the region is experiencing.

Summary of air service acti vities employed during the past three years

Air service development highlights from the past three years (2009

– 2011) :

Air service gains

 AirTran Airways

– AVL’s first low fare carrier

– implemented weekly (3

- 4 days/week) service to Orlando, year

- round , followed by weekly (3

- 4 days/week) seasonal service to Tampa, all on 

## ($100) ($50) $0 $50 $100 $150 $200 $250

6/1/2011 7/1/2011 8/1/2011 9/1/2011 10/1/2011 11/1/2011 12/1/2011 1/1/2012 2/1/2012 3/1/2012 4/1/2012 5/1/2012 Amount

Week 

## AVL Average Airfare Differences 21 Day Advance Purchase, 3 Day Stay Source: FareAnalyzer / Black line = AVL fares Trend lines = difference in average fares compared to AVL

ATL CLT GSP TRI

Linear (ATL) Linear (CLT) Linear (GSP) Linear (TRI) Average difference of $45

- $225 per ticket at AVL than at competing airports

– a spike noted in the rising airfare differential trend

# 5

Boeing 717s. Airport incentives were utilized to offset start

- up costs and to market the service
, which grew to represent 10% of total air service market in WNC

.

 United

– Implemented t wice

- daily service to Chicago on 50

- seat CRJs. Airport incentives were utilized to offset start

- up costs and to market the service. This service is still in place and heavily utilized by market travelers.

 American Airlines

– implemented limited seasonal service (once daily in summer months) to Dallas/Ft. Worth.

 US Airways

– implemented daily service to LaGuardia , competing with Delta/LGA

. Also, implemented once daily service to Philadelphia, and to Washington, D.C. (DCA). No incentives were requested.

 Vision Airlines

– implemented twice weekly service to Ft. Walton Beach in the spring and summer of 2011. Partial incentives were utilized.

 Allegiant Travel Company

– implemented twice weekly service to Orlando/Sanford on 150

- seat MD 80s. Airport incenti ves were utilized to offset start

- up costs and to market the service.

Air service losses:

 AirTran Airways

– Orlando (MCO) and Tampa (TPA) pulled from the market in late 2011 and early 2012 due to the acquisition by Southwest Airlines, now located at a com peting airport in South Carolina (GSP).

 American Airlines

– will not return for the 2012 summer season due to bankruptcy.

 US Airways

– ceased LaGuardia service less than a year after implementation, due to oversaturation in the market. Delta already ser ves this market from AVL.

 Vision Airlines

– served AVL for one season, and continues to find viable markets for its service.

Summary of current air service

AVL has service to n ine cities, with the most frequency into three major hubs: Atlanta, Charlotte and Chicago. In addition, Allegiant Travel Company began service in mid

- November 2011 to Orlando/Sanford after AirTran ceased service to MCO.

# 6

Challenges

After many years of building air service, attracting a low

- cost carrier and advocating for compet itive airfares, AVL is facing a back

- slide in market perception and utilization. As noted previously, AVL and
Western North Carolina have enjoyed strong air service, especially frequency to major hubs and competitive air fares until the last year, when c uts in frequency, capacity and loss of service (American Airlines/DFW

– seasonal, US Airways/LGA, Vision/VPS, and AirTran Airways /MCO and TPA) have affected fares and ultimately utilization

.

Seat capacity has also declined compared to 2011 due to trends in the airline ind ustry toward more stringent capacity management.

The new reality

Adaptation to decreased seat capacity, less frequency and higher air fares is the new reality for AVL. However, just as real is the targeted business development and tou rism growth that continues to occur in WNC, which helps shape a focus for air service development. With business and tourism growing in WNC, AVL is poised to continue to attract the air service needed by this region, so we have developed a strategic plan to tackle our air service challenges and spur a growth trend again.



## The strategic plan

Asheville Regional Airport and WNC’s strategic plan to continue to provide needed air service to the region includes the following:

1. Attract non - stop service to Denver . Specifically, Frontier Airlines is targeted; also, AVL will present the case for Denver service to other interested airlines. While our preference is a low

cost air carrier (to help make fares more competitive in our market), service to Denver on any

c arrier will have a positive effect , as it will fill a hole in our route map that makes sense for our
market area

. 2. Market the new non

- stop route to the primary market area s . Also, market the airport more aggressively to the region, focusing on the premis e that “flying local” will strengthen the economic vitality of the region.
3. Strengthen the existing travel advisory group , and more fully engage businesses and tourism organizations with links to Denver and the west.

AVL understands that a rebound from the slippery slope of lost utilization and reduced service is difficult, and a solid strategy is needed to stay on course. Looking to stabilize existing air service (through increased marketing to support continued utilization), as well as add ing service to support regional air travel needs and a competitive fare environment , AVL is requesting a $ 3 0 0 ,000 Small Community Air Service Development grant. These funds would be used in addition to matched funds (cash and in

- kind) from community sources, as well as cash from airport reserves . Specifically, $ 1 80 ,000 

### Asheville identified by the Wall Street Journal

... as a place where growth is happening



# . * Bill Swelbar, Research Engineer, MIT International Center for Air Transportation

# 7

of cash from the WNC Air Service Development Coalition, $1 5 0 ,000 of airport marketing funds and $ 7 0 ,000 of in

- kind commitments will be the baseline community support for the grant.

Key prog ram objective #1: Securing a n air carrier to implement a non

- stop route to Denver

When analyzing top O&D markets from AVL, the expected markets rise to the top: Florida, New York, Chicago and Washington, D.C. What might not be expected is the consistent presence of Denver in the top ten markets from AVL

.

Upon further evaluation, a link between WNC and Colorado is apparent:

1. Businesses located in WNC are either headquartered in Colorado, or travel regularly to DEN.
2. New business growth has occurred in WNC by Colorado

- based businesses. Specifically, a
defined cluster

– the beer industry

– has taken WNC by storm, and major east coast expansions are locating in our region from the west : New Belgium Brewing (third largest craft brewery in
the U.S. and based i n Colorado), Oskar Blues (also headquartered in Colorado), and Sierra Nevada (headquartered in California).
3. Existing businesses travel frequently between AVL, DEN and the west (National Climatic Data
Ce nter, Thermo Fisher Scientific, AVL Technologies, and many others).
4. A leisure link has been noted between AVL and DEN. According to passenger survey statistics, 5% of inbound travelers reside in Colorado. Extrapolated data shows that visits by these passengers equates to $1.2 million of annual economic impa ct to the region. A non

- stop route would stimulate the market further.
5. The closest non

- stop route to DEN is more than 2 hours away (Charlotte, NC or Knoxville, TN.)
AVL is the most centrally located airport to the greater region, is easily accessible and co uld fill
an air service need for passengers in W NC, the fringe regions of upstate South Carolina, and
eastern Tennessee.
6. There is significant connection traffic to cities west of Denver on a daily basis to and from AVL

– approximately 15 0 per day each way, or approximately one fifth of our total passenger traffic.

# 8

While there is a strong case to be made fo r service to Orlando and Tampa (the AirTran routes that were proven over time at AVL ), these routes are not the primary focus of this strateg y and grant application. AVL believes that the Florida routes will be implemented by airlines with whom discussions are already taking place, most likely without the need for significant risk abatement funds. Denver is the focus

– an unproven market, but one with significant promise and positive indicators in the WNC market.

D e nver is a top O&D market from AVL

– and would fill a “ west bound ” gap in our flight map

Top 10 O&D from AVL Pax/day based on

7 days/week average Orlando Area 77.96 New York (LGA/EWR) 72.51 Tampa 57.54 Chicago 41.41 Fort Lauderdale/Miami/Palm Beach 34.61 DC/Baltimore 33.96
San Francisco

– WESTERN ROUTE 23.42
Denver

– NO NON

- STOP ROUTE 22.86
Los Angeles

– WESTERN ROUTE 21.42 Dallas/Ft. Worth

– WESTERN ROUTE 19.80 

## Natural pat h between WNC & Denver & the west

# 9

Key elements of the plan:

1. Solidify agreement with a n air carrier for DEN/AVL service

. We have had initial conversations
with Frontier and United about the service.
2. Provide risk abatement during the first 24 months of service , to include a revenue guarantee

.

Key program objective #2: Market the new non

- stop route to the O&D m arket area s , as well as focus on the premise that “flying local” will strengthen the economic vitality of the region.

While AVL commits advertising funds to make its market travelers aware of services and offerings, the
addition of a new non

- stop route an d a new carrier requires additional marketing efforts. Also, marketing in the DEN market would be part of the strategy to support a successful start

- up to lead to long

- term sustainability.

Key elements of the marketing portion of the plan:

Fund an enhanc ed marketing effort in both the AVL and DEN markets:

a. Targeted on

- line advertising , including behaviorally

- targeted interact ive advertising, geographically

- targeted advertising and social media advertising
b. FAM tour in both markets, introducing travel agent s and tourism professionals to the leisure offerings in both markets

– capitalizing on an already

- developed campaign about WNC in place in other areas of the country, and managed by the Asheville Convention and V isitors Bureau

c. Public relations campaig n in the DEN market
d. Public relations campaign in the AVL market

e. Traditional advertising: primarily outdoor , print, television and radio

Key program objective #3 : Strengthen the existing travel advisory group, and more fully engage
businesses and touris m organizations with links to Denver and the west.

For the first time in AVL’s history, a formal travel advisory group exists (formed in 2011). The group consists of corporate leaders from key manufacturing companies, other large corporations, small
busin esses, the travel and tourism industry and economic development. The purpose of the group is to provide connection for the airport to regional air travel needs

– current and future. This group also stays educated about air service trends, issues faced by WNC, and acts as liaisons to others in the region

– a key strategic element to communicating the “fly local” message.

This group has the potential to grow and mature, and to continue to provide balanced information critical to air service development. A small portion of the grant funds would be used to strategically strengthen this group and its long

- term impact on stable air service in Western North Carolina.

# 1 0 Key elements of the travel advisory group plan:

1. Fund additional outreach and marketing

– with a focus on engaging corporate or travel industry leaders with specific ties to Denver and the western United States;
2. Development of collateral to be used by the airport and the travel advisory group to educate others about air service development and the imp ortance of AVL to the communities served.

Alternative plan

The airport reserves the right to alter the marketing plan as the needs of the market and/or new opportunities arise that would lead to a more efficient and effective use of funds to achieve the sa me result. The alternative plan will support the strategic objectives put forth in this application.



## Long

- term sustainability

There are numerous indicators already in place that suggest successful long

- term sustainability of a
Denver route:

1. DEN is in the top ten Origin and Destination markets from AVL

– even without a non

- stop in place;
2. There are significant business and leisure links between the two markets;
3. History of new service implementation at AVL shows that, in general, market traffic is stimulated by 150%

- 300% with the installation of a non

- stop route ; 4. Significant travel to western United States cities occurs each day from AVL;
5. WNC market travelers are loyal to AVL, and 85% prefer AVL to any other airport for their travel s ( passenger survey data, 2012 );
6. Denver is a top requested route, as indicated by a 2012 corporate travel survey conducted in the
WNC market.

Additionally, the marketing plan proposed in this application will support a strong start

- up and long

term sustainability:

1. Marketing plan

– implemented collabora tively by AVL and the Tourism and Development
Authorities

– will support a strong start

- up. 2. On

- going marketing by AVL will support sustainability.
3. Strengthening of the travel advisory group will keep the “fly local” and “Denver” messag es strong in the region.

Market analyses show positive indicators for success

Western North Carolina market

– WNC is centrally

- located to a greater region that is without a non

stop to Denver within a 2

- hour radius of AVL. The airport is conveniently located immediately after

# 1
1 exiting Interstate

- 26, which travels through upstate South Carolina, through Western North Carolina,
where it merges with Interstate

- 40, a major Ea st/West route. North/South traffic is easily connected
wi th secondary highways that join Western North Carolina ’ s highway system.

Population and demographic highlights of Western North Carolina and Denver (2010 Census & City

data.com) show that b oth are as ha ve a high percentage of people wh o fit the “ air traveler ” targeted demographics of high income, the right age, and college education :

Western North Caroli na Denver National Median HH Income $58,182

- $60,334 $56,602

– $ 62, 042 $55, 970 Median Age 42.6 35.7 36.8 % C ollege degree 38.4% 40.10% 30.4%

A note about collaboration:

This strategic plan to attract non

- stop service to Denver is definitely a collaborative effort by the airport and region to grow air service in WNC in a meaningful direction. The most tangible evidence of the
collaboration is the formation of the WNC Air Service Development Coalition , set up by a collaborative group of businesses, organizations and community leaders interested in strategically supporting air service development

. Buncombe County, North C arolina has already committed $150,000 to the effort
to attract Denver service. Also, because of the significant business and leisure link between WNC and Colorado, collaboration is being fostered by the Buncombe County Economic Development Coalition,

# 1 2 and other economic development agencies throughout the region. Simultaneously, the leisure link is also significant. All interested parties understand that t he addition of a non

- stop route to Denver would
have far

- reaching impact to travelers in the greater WNC region.



## Plan Implementation and Funding

First, a note about fiscal responsibility at Asheville Regional Airport

Core to the management of AVL is a principle of fiscal responsibility. AVL understands that there must be a balance between the provisi on of quality facilities and services and the costs associated with providing services at the airport. For many years, AVL has managed to keep costs per enplanement low

– benchmarking well compared to other airports in our region and airports our size.

$5.40 $5.60 $5.80 $6.00 $6.20 $6.40 $6.60 $6.80 $7.00

FY07 FY08 FY09 FY10 FY11 FY12 CPE $5.95 $6.52 $6.83 $6.26 $6.15 $6.08 Cost Per Enplanement 

# CPE Trend is Positive at AVL

# 1 3 AVL continually market s the airport and the services provided in meaningful and cost

- effective ways. Some examples include:

 Art in the Airport

 Inaugural flight events

 Runway 5K + Healthy Fun Day

 Radio and social media pr omotions and contests

 Tenant ap preciation events

 Advertising trades and sponsorships

 Free wifi

 Free business center for travelers

 Guest Services Center $6.26 $6.27 $12.63

$9.50 $9.55 $9.52

$7.32 $9.62

$3.33 $8.19 $9.66

$4.09

$0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 Cost per Enplaned passenger

Benchmark Airports 

## Airline Cost per Enplanement

CPEP
Avg=$7.99

CHA 1 = Current CHA 2 = Cost Recovery

# 1
4 Examples of recent advertising in the WNC market :

Even more important, we manage in a fiscally conservative manner, achieving growth without passing huge costs along to our airport tenants. Examples include:

 Award

- winning innovative fill project that utilizes coal combustion by

- product from nearby Progress Energy

– at no cost to the airport, and resulting in 20+ additional acres of buildable
land for aeronautical use.

 Utilizing grant funds to replace diesel

- powered belt loaders with more efficient electric models.

# 1
5 Funding Overview

The total budget for the proposed risk abatement and marketing program is $ 7 0 0 ,000

. Of that, $ 1 80 ,000 will be funded by community contributions, the majority from the WNC Air Service Development Coalition Fund managed by the Buncombe County Economic Development Coalition and $ 150,000 from airport operating funds earmarked for new air service marketing. Marketing will also be supported by $ 7 0,000 of in

- kind contributions from WNC media sources in the form of value

- added advertising. The addition of the requested $300,000 from the Small Community Air Service Development Grant program brings the total budget to $ 7 0 0 ,000. (*Of note: regional businesses have begun to express their intended travel, utilizing a non

- stop to Denver. One in particula r
– New Belgium Brewing

– has included a letter of support in this packet estimating 350 annual ticket purchases for non

- stop flights on an AVL/DEN route. While thi s in

- kind support is substantial, the budg et below does not reflect this kind of contribution.)

Fu nd Uses Community

CASH Community

In

- kind Airport

CASH DOT

Grant Funds TOTAL

Revenue Guarantee $ 1 50,000 $0 $200 ,000 $ 3 50,000 Marketing $ 30,000 $ 7 0,000 $150,000 $ 85,000 $ 335 ,000 Travel Advisory Group $0 $0 $ 15,000 $ 1 5,000

GRAND TOTAL $ 1 80 ,000 $ 7 0,000 $150,000 $300,000 $ 7 0 0 ,000

Use of Funds / Timeline

AVL is ready to implement this plan immediately upon grant approval. Following is the general timeline
for use of funds , partially contingent upon timing of secured air service to Denv er . We would like the flexibility to offer differing levels of revenue guarantee and marketing support, depending on airline preference, but within total budget (and revenue guarantee not to exceed the amount indicated in this plan).

Fund Uses Cash In

- Kin d 1 Q YR1 (depen dent upon start date of service

– Spring 2013 targeted) 2 Q YR1 3 Q YR1 4 Q YR 1 YEAR 2

Revenue Guarantee $ 3 50,000 $ 6 0,000* $ 6 0,000* $ 5 0,000* $ 5 0,000* $ 1 30 ,000* (if needed) Marketing $ 265 ,000 $ 7 0,000 $ 125,000 $ 100,000 $ 60 ,000 $ 5 0,000 $0**

# 1 6 Travel Advisory Group $ 15,000 $ 5,000 $ 5,000 $ 5,000 $ 0 $0

GRAND TOTAL $ 6 30 ,000 $ 7 0,000 $1 9 0 ,000 $1 65 ,000 $1 1 5,000 $ 10 0,000 $ 1 30 ,000 *Estimates. Revenue guarantee will be contingent upon restrictions in place based on uti lization and agreed upon thresholds prior to implementation with an airline , and will not exceed the total amount identified

.

**Year One start

- up will be supported with additional marketing for successful start

- up; Year Two will be supported by routine mar keting, as part of airport operations.



## Specific use of funds

– a note about marketing

It is important to note that the WNC market will be easier to penetrate with messaging, yet it is also important to stimulate 2

- way traffic for the long

- term sustainabil ity of the new route. The marketing plan for the start

- up of new Denver service, as well as the “fly local” message in the WNC market, will follow the following general guideline for use of funds:

1. On

- line advertising

– behaviorally, geographically and de mographically targeted ads (Yahoo behaviorally targeted ads, The Asheville Citizen

- Times and Blue Ridge Now in the WNC market, and The Denver Post in the DEN market) will be purchased in the originating AVL market, as well
as in the destination market of D EN. Approximately $100,000 will be used for this strategy, as it is the most targeted and cost effective means of reaching a large percentage of the targeted
audience in both markets , and we have experienced excellent results from its use in other
marketi ng strategies

. 2. Outdoor

– Outdoor advertising is widely effective in the WNC market, and approximately $50,000 of the marketing dollars will be utilized in the WNC market for outdoor

– including $40,000 of the in

- kind marketing contribution. Lamar Advertis ing will provide value

- added exposure on billboards throughout the WNC region in the form of “bonused” billboards. A 6

- month outdoor campaign will canvas the region and increase awareness of the new Denver

route and the “fly local” message

. 3. Print

– The As heville CVB has developed, with their agency Lucky and Company, a campaign that
markets Western North Carolina to leisure travelers. We plan to work with the CVB to place key print ads co

- branded with tourism and air carrier information in the DEN market, most likely regional magazine exposure. Approximately $50,000 will be used for this effort, timed to occur during the start

- up year, but also to capture leisure travelers in summer and fall.
4. Television

– We plan to purchase interview segments in the WNC ABC news programming titled “Carolina Spotlight.” We will also plan to purchase short, targeted flights of introductory ads in
the DEN market

– and will utilize existing creative materials provided by the new carrier’s marketing department, edited to incl ude the new AVL destination. A targeted and condensed flight of advertising will provide an infusion of awareness into a dense population of potential travelers. Approximately $65,000 will be used for this effort.

# 1
7 5. Radio

– We plan to utilize a portion of the funds to provide travel vouchers in exchange for sweepstakes and contesting in both markets. We will designate approximately $15,000 of the cash budget, and a pproximately $ 30,000 is estimated in donated promotional value for this
effort. We will util ize Clear Channel Radio outlets in both markets, as we have an established relationship and reach to our targeted markets is positive.
6. PR Campaign

– The remaining $25,000 will be used to conduct a targeted PR campaign in both markets, to include key travel leader and media visits to both markets. The goal of the campaign will be to infuse publicity about both markets for an on

- going period of time through
traditional media and social media.



## Specific use of funds

– a note about the travel advisory group

Th e existing travel advisory group will be strengthened through targeted group meetings, development of collateral that explains the importance of a community coalition focused on long

- term air service development as it pertains to the region served, and tar geted travel to network with and learn from other successful community coalitions. A small portion of the grant funding will support this effort ($15,000 ).



## This proposed project differs from a previous SCASDP funded project in the WNC region

AVL was awar ded a SCASDP grant in the amount of $500,000 in September, 2002 , to be used within three years . The purpose of the funds was to:

1. Retain Continental service to Newark via marketing efforts;
2. Increase ridership from AVL overall; and
3. Recruit new jet service t o a major airline hub not served from Asheville.

At the time of this grant award, AVL had no low

- fare carrier, and competition was needed in the market to increase connectivity. $10 5 ,000 in matching community funds was obtained, and airport revenue

was ut ilized for marketing initiatives. This grant cycle helped AVL take steps to stabilize and grow its air service, and was successful. AVL is still served by the Newark route (now United), and non

- stop to LaGuardia (Delta) and Houston (Continental

– now Uni ted) were both implemented during the grant period, and are still in place today

. Now, a decade later, the region has grown and developed in new ways, and different challenges are being faced. Current funding assistance is needed to grow air service
in a strategic direction for WNC , and to foster a competitive fare environment that is eroding due to the
extraction of AirTran from the market.

# 1 8 Administration of the program

AVL will be the legal sponsor and coordinator of the grant application . The publ ic/private partnership
cash funds will be held in escrow by the Buncombe County Economic Development Coalition, and will be
titled the WNC Air Service Development fund. Revenue guarantee funds will be distributed directly to the airline when appropriate
, and per stringent contractual thresholds

. AVL will assist in successful
coordination.



## Measure of Success

The program’s success will be measured in the following manner:

1. Successful implementation of a non

- stop route to Denver
2. Positive load factors wit hin the first year of operation
3. Growth of community participation in the travel advisory group

# 1 9 APPENDIX A

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT

- 0ST

- 2012

- 0069

SUMMARY INFORMATION

A. 

## APPLICANT INFORMATION: (CHECK ALL THAT APPLY)

X 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 : Date of grant: 0 9/20/2002 Expiratio n date of grant: 09/2005

Federal Funds Requested : $500,000

Carrier(s) Service Obtained : Goals included increased enplanements as a result of marketing ridership, retaining Continental Newark service, and recruitment of new jet service to a major hub n ot served.

Destination(s) Served : A decade later, Continental/Newark (now United) still operates at AVL; enplanements increased and the trend has moved up in the past decade; at the time, jet service increased (now RJ’s used more often, due to industry trends), and the route map grew during the grant period to include non

- stop service on Continental (now United) to IAH, and Delta non

- stop service to LGA. These routes are still in service at AVL.



## B. PUBLIC/PRIVATE PARTNERSHIPS: (LIST OF ORGANIZATION NA MES)

Public:
1. Asheville Regional Airport

Private:
1. WNC Air Service Development Coalition (comprised of members of the travel advisory group, regional economic development agencies and government entities, such as the County of Buncombe, North Carolina, p rivate businesses)

C. PROJECT PROPOSAL

X Marketing

___ Upgrade Aircraft X New Route

___ Travel Bank

___ Service Restoration

___ Subsidy

# 2 0 ___ Surface Transportation

___ Regional Service X Revenue Guarantee

X Launch New Carrier

___ Start

- up Cost Offset

___ First Service

___ Study

___ Secure Added Serv

___ Other (explain below)



## D. EXISTING LANDING AIDS AT LOCAL AIRPORT

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

X Localizer

___ Other ( specify)



## E. PROJECT COST

Line Description Sub Total Total Amount
1 Federal Amount Requested $300,000
2 State cash financial contribution $0 Local cash financial contribution 3a Airport Cash Funds $150,00 0 3b Non

- airport Cash Funds $180,000
3 Total local cash funds $330,000
4 TOTAL CASH FUNDING (1+2+3) $630,000
In

- Kind contribution 5a Airport in

- kind contribution** $0 5b Other in

- kind contribution $70,000
5 TOTAL IN

- KIND CONTRIBUTION $ 70,000 6 TOTAL PROJECT COST (4+5) $700,000



## F. IN

- KIND CONTRIBUTIONS**

For funds in lines 5a (Airport In

- Kind contribution) and 5b (Other in

- Kind contribution), please describe the source(s) of fund( s) for each. Media promoti on
– value added to media buys for outdoor advertising and radio promotions.



## 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.

# 2
1 X c. Program is not covered by E.O. 12372.



## H. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT? (If “ yes , ” provide explanation)

X N o

___ Y e s (explain)