## BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON DC
Proposal Under the Small Community

Air Service Development Program DOCKET DOT-OST-2010-0124
Sponsored by TOWN OF MASSENA, NEW YORK Community DUNS Number – 077308237
Submitted August 27, 2010

All communications with respect to this document should be sent to: Joseph D. Gray Supervisor Town of Massena 60 Main Street Massena, New York 13662 Tel: 315-769-3588 Fax: 315-769-7957 Email: supervisor@town.massena.ny.usPage 1 of 18 – Town of Massena SCASDGP – Submitted August 27, 2010 Small Community Air Service Development Program 

### DOCKET DOT-OST-2010-0124 Application from the Town of Massena, New York Submitted August 27, 2010



## GRANT PROPOSAL Background The Town of Massena was the grateful recipient of a $400,000 Small Community Air Service grant in 2005 which was awarded to help the community market the Massena International Airport and to develop sustainable service. For the reasons explained below, the grant was extended for an additional one-year term (for a total of three years), a final report was filed in December of 2009, and the Town has received the full reimbursement of all withheld funds from DOT. Our DOT grant administrator was C. Whitney Mandel. This application is being filed by the Town of Massena as an Essential Air Services (EAS) community that currently receives subsidized air service under the EAS program. This proposal is limited to the marketing and promotion of EAS service at our airport, which may be different than the service we currently have in place. This is because our current EAS service is being rebid by DOT at this time, with three proposals under consideration. The community will use the proceeds of any grant received under the SCASDGP process to market the service that will be provided by the carrier awarded the route by DOT. The community also understands that EAS-subsidized communities such as ours cannot use grant funds to support any new, competing air service, and that no funds will be authorized to support additional flights by EAS carriers or changes to those carriers’ existing schedules, in order to avoid conflict with the EAS program. During the course of the 2005 grant period, the community experienced two serious setbacks that delayed our ability to carry out the purposes of the 2005 grant:

 The EAS carrier serving our region, Big Sky, ceased its services to our airport during the first year into its contract, leaving our airport with no air service at all for eight months, until the replacement carrier, Cape Air, was able to commence service.

 The Seaway International Bridge that connects Massena to Cornwall, Ontario, was unexpectedly closed by a Mohawk protest demonstration for six weeks; this occurred on the day we held our first Canadian marketing event for a campaign which emphasized the easy connections between Cornwall and the Massena Airport, which is “right across the bridge.” These unforeseen difficulties seriously limited and delayed airport marketing efforts, as we had to switch gears to focus on crisis management and attracting a new carrier, and obviously could not market the airport until a new carrier was in place and the bridge was open again.Page 2 of 18 – Town of Massena SCASDGP – Submitted August 27, 2010 Despite these obstacles, a number of key strategies were implemented, which collectively provide a strong foundation for the activities proposed in this grant application:

 We gathered the data needed to demonstrate that Massena had the airport infrastructure, location and catchment area to eventually become a non-EAS airport.

 From our outreach to carriers, we learned we needed to increase our EAS numbers substantially before non-EAS providers would consider bringing sustainable service to our airport.

 We learned how to work with airlines, and recruited a team of community leaders to support air service development and who participated in our first ever market presentation to an airline company.

 We created a new airport website ( www.massenainternationalairport.com ) built relationships with the major travel users in our catchment area, and implemented a marketing campaign to introduce the airport to Canada and to promote it on the U.S. side of the region. Massena is located on the New York/Ontario border. The Canadian portion of our catchment area has a much larger population and these numbers hold the key to being able to increase our ridership numbers to the point where we can attract sustainable service. Unfortunately, we reached the end of the extended 2005 grant award period just when these efforts were beginning to bear fruit. The funding we are requesting in this SCASDGP grant application would be used to build upon the foundation laid in the 2005 grant period and is focused on the requirement that EAS airports must apply for funding only to market their EAS service. That objective is exactly in line with where we need to go next with our airport, as we have identified increasing our EAS ridership, particularly from major travel users on the U.S. side, and from the Cornwall, Ontario market on the Canadian side, as the next step we need to take before a carrier will work with us on sustainable service. With continued U.S. DOT investment, we will:

 Implement a comprehensive and sustained web and media campaign to market and promote Massena’s existing EAS service – thus building on the Massena Airport brand awareness established under the first grant, and “lessons learned” from our first promotional campaign.

 Use creative promotional approaches to attract ridership from the major travel users in our region and key market segments.

 Pursue a cooperative, complimentary airport development approach to encourage Canadians in the Cornwall, Ontario region to use the EAS service at Massena.Page 3 of 18 – Town of Massena SCASDGP – Submitted August 27, 2010 In addition, since we received our first Small Community Air Service grant, Massena has experienced the closure of one of our major employers, a General Motors plant which had operated here for nearly 50 years. Economic development in Massena and Northern New York has long lagged the rest of the state and nation, and this plant closure has been an additional blow. Transportation barriers have been identified as one of the key reasons for the region’s lack of development. With DOT funding to help us launch an aggressive marketing campaign at this time, we will:

 Ensure that the DOT will get the most return for the EAS subsidy dollars it provides to our airport.

 Reach the next milestone in our efforts to transition out of the EAS system.

 Tackle one of the key transportation barriers holding our region back.

 Provide Massena with a rallying point for promoting the community at a difficult economic time.

 Use air service as a catalyst for initiating new economic development strategies for Massena as a Canadian border community.



## “Gateway of the St. Lawrence Valley”Page 4 of 18 – Town of Massena SCASDGP – Submitted August 27, 2010 

### About Massena, New York The Town of Massena, New York is located in St. Lawrence County on the New York/Ontario, Canada border, in the heart of the state’s sprawling, rural and geographically isolated “North Country”. Sandwiched between the Adirondack Park to the south and the St. Lawrence River to the North, Massena is located in the center of a six-county area that is one of the few regions of the U.S. without a four-lane highway. There is also no major airport; instead, Massena operates one of five small airports situated throughout the region which operate under EAS subsidies. Economic growth has been strongest at the edges of the region, which are home to the only communities that have been able to grow to the size of cities – Watertown to the west, and Plattsburgh to the east. In between, Massena is one of over 200 towns and villages which have small, “no growth” economies supported by agriculture, higher education, health care, or government services. Economic sectors that are beginning to grow include gaming activities at the adjacent St. Regis Mohawk Akwesasne reservation, where a casino expansion is underway, and outdoor recreation/heritage tourism, as the region learns how to capitalize on its rivers and lakes, undeveloped land, and colonial history. A variety of resource-based industries, such as mining and forestry, as well as manufacturing and retail services, are also scattered throughout the region. Massena, which is home to the region’s only shopping mall and the oldest Alcoa facility in North America, has built its economy on being a retail and industrial center. Unfortunately, these economic sectors are both in serious decline, and this has begun to take a toll on the community and region.

EMPLOYMENT STATUS In labor force 57.9% Not in labor force 42.1% OCCUPATION Management/professional 25.5% Service occupations 22.2% Sales and office occupations 24.8% Manufacturing 17.4% Retail trade 16.65% Educ./health/social services 24.7% Government workers 17.3% INCOME Median household income $31,391 Median family income $38,696 Per capita income $18,111

Massena NY 2000 Census DataPage 5 of 18 – Town of Massena SCASDGP – Submitted August 27, 2010 

### Needs and Opportunities to be Met by Marketing Massena’s EAS Service Insufficient transportation infrastructure is a major contributor to the region’s lack of progress, as documented in two different transportation studies – a March 2002 North Country Transportation Study implemented by the Development Authority of the North Country with $1.5 M in funding secured by former Congressman John McHugh, and a 2008 Northern Tier Expressway Study prepared by Wilbur Smith Associates for the NYS DOT and the Federal Highway Administration. Findings in these studies related to air service concluded, among other things, that consolidating service at one or more regional airport(s) would lead to improved service and increased benefits for the region, and that poor transportation negatively impacts potential student enrollment in the region’s colleges and universities, and is a major detriment to student recruitment. A lack of transportation infrastructure, however, does not translate into a lack of travel needs and opportunities. The main drivers in these areas include: Current air service travel needs

 With a border location on a major waterway, Massena is a strategic operations center for state and federal power and security agencies that employ large numbers of workers who must maintain relationships with offices in other parts of the state and nation.

 The multi-national Alcoa Corporation has operated a manufacturing facility in Massena for over 100 years; a recently signed contract assures the plant’s operation for the foreseeable future. The largest employer in the area, Alcoa provides a consistent base of air travelers

 Additional major employers in the Massena area include four colleges and universities located in the nearby communities of Canton and Potsdam; their financial stability depends upon being able to attract students from outside the region to reach their enrollment goals.

 A northern climate and an aging population create a substantial “snowbird” traveling public in winter months when traveling to larger cities for flights south is difficult and dangerous. Key air service opportunities

 Professional consultant efforts, funded by the 2005 SCASDGP grant, confirmed that the Massena Airport’s location, and its capacity for expansion, made it the best candidate in the North Country to attract and sustain non-subsidized service in the future. While intrigued by Massena’s potential, carriers were interested in seeing increased growth in EAS-funded travel before they would consider bringing sustainable service to the community.

 The St. Regis Mohawk Akwesasne community, which straddles the border and is adjacent to Massena, has made a substantial investment in its casino/gaming operations, both of which are increasing visitors to the region. Like the colleges and universities in the region, the Mohawks currently base their promotional strategies on a driving market, but all have an interest in expanding their markets if air service continues to improve in Massena.Page 6 of 18 – Town of Massena SCASDGP – Submitted August 27, 2010  Massena is located directly across the St. Lawrence River from the Canadian city of Cornwall, Ontario, with each community anchoring one end of an international bridge. Cornwall’s airport is smaller than Massena’s and has no commercial service. The population of Cornwall and its immediate surrounding area is 65,000, and 80,000 including outlying regions. Cornwall-area Canadians patronize our restaurants, entertainment and shopping venues, and travel to Syracuse, Plattsburgh or Burlington for affordable U.S. flights, particularly to points south. A 2008-09 Retention and Expansion Study by the Cornwall Economic Development Department revealed that 71% of respondents from the city’s manufacturing sector travel out of the region on business; 41% utilized air for some of these travel needs, with the majority using Montreal or Ottawa as departure points. U.S. travel destinations accounted for 40% of travel needs, with east coast destinations accounting for 20% of that total. Increasing the number of Canadians using Massena’s EAS service to reach U.S. destinations is a key part of this funding request; they are willing to cross the border to access U.S. services, and are our airport’s largest untapped market.

 Massena has long been the manufacturing and retail center of the region, these two economic drivers, however, are in serious decline. General Motors closed its 50-year old Massena plant, which employed nearly 500 workers, in 2009. Massena’s St. Lawrence Centre, the only mall in the center of the region, is struggling with a high vacancy rate. Currently, St. Lawrence County’s unemployment rate is the second highest in the state (New York City is first). Historically, one of Massena’s strongest economic development assets was its status as one of the only communities in the central counties of the North County to have low-cost, municipal power; this long-time advantage, however, is now under threat as efforts to offer low public power rates throughout the region pick up momentum. Massena is in urgent need of developing new economic drivers. The Massena Airport has been identified as a key asset for spurring development in Massena, the Greater Massena/Cornwall market, and surrounding county areas. Massena International Airport Catchment AreaPage 7 of 18 – Town of Massena SCASDGP – Submitted August 27, 2010 

### Description of Existing Air Service

 Carrier – Massena is currently served by Cape Air, an employee-owned company founded in 1989 that has been recognized by the FAA with a Diamond Award for Aircraft Maintenance. Cape Air partners with at least 20 major airlines and has codeshares with Continental, Jet Blue and American Airlines. The third EAS provider to serve Massena over the last six years, Cape Air is widely credited for restoring confidence at Massena and the four other airports it serves in the North Country under the EAS program, following a period in which all communities endured very poor service from Big Sky Airlines, and then no service at all when that airline ceased operations nine months into its EAS contract.

 Service frequency – Cape Air runs three flights daily, seven days a week (21 weekly departures). Flights are staggered to accommodate arrivals and departures at different times – flights leave at 6:48 AM, 12:20 PM or 4:55 PM; return flights arrive at 11:50 AM, 3:00 PM or 7:30 PM.

 Nonstop destinations – Cape Air provides non-stop service between Massena and Albany. Albany is a destination that has been requested by air travelers in the region since 2004. Cape Air is the first EAS carrier to make this interest the basis for their EAS proposal.

 Fares – Cape Air offers a $59.50 one-way fare, and runs periodic $99 round trip ticket specials; they also offer discount pricing for those purchasing books of tickets for frequent travel needs.

 Equipment types – Cape Air operates Cessna 402s, which fits with the airline’s focus on serving island communities and small EAS markets. While area travelers understand the size of the aircraft is adequate for short flights to Albany, many have expressed a preference for larger planes in the future. 

## Massena International Airport Welcomes You!
With direct access from St. Lawrence and Franklin Counties, minutes from Cornwall and the St. Lawrence Seaway Valley, three quarters of an hour to Montreal's West Island and a mere hour's drive from Ottawa, Massena International Airport is truly the St. Lawrence Seaway Valley's number one choice for air travel!Page 8 of 18 – Town of Massena SCASDGP – Submitted August 27, 2010 

### Synopsis of the History of Air Service in Massena Service to Massena has historically required an EAS subsidy. Through 2006, Massena was served by US Airways Express (MESA Airlines), which operated weekday, small turboprop services to Pittsburgh with stops in Massena, Ogdensburg, and Watertown. This service was acceptable at the time that Alcoa’s operations required frequent travel to Pittsburgh, and when US Airways operated a connecting hub there. As both of these elements were eliminated, Pittsburgh fell out of favor as destination by local air travelers, who had also become increasingly intolerant of the up-and-down nature of the flight that had three stops in the North Country to communities people could reach faster by car. In the early part of the 2000 decade, local elected officials began to lobby MESA and DOT to eliminate the three-stop schedule, and to make Albany the destination for flights out of Massena. To support their efforts, officials commissioned a survey in 2002 by the Merwin Rural Services Institute of SUNY Potsdam to document the travel destination interests of local air travelers. A total of 82 businesses and institutions in St. Lawrence County provided these responses:

 Nearly 70% would be more likely to use local air service if the destination hub were changed from Pittsburgh to Albany.

 Nearly 75% were currently traveling out of the region, to Syracuse or Canada, to board flights, despite the higher taxes and fees involved that make the cost of Canadian air travel very steep.

 72% identified Albany as one of their top three regular travel destinations.

 Less than 30% indicated that they utilized local air service at any level; for the majority, an out-of-county airport was used in order to reach another destination than Pittsburgh.

 Additional traffic leakage from the St. Lawrence catchment area occurred due to travelers choosing to drive, rather than fly, to their destinations; the lack of flights to Albany left travelers with no other option than driving for meetings and business in the state capital. Armed with this data, officials in Massena and surrounding areas solicited letters of support to change the destination for Massena flights to Albany. Letters were received from leading industries, institutions of higher education and officials at all levels of government, as well as from the region’s state and federal elected representatives. The switch in hubs was also supported by the St. Regis Mohawk Tribe, General Motors Powertrain Group and the New York Power Authority. Despite having this ammunition, the community was unsuccessful in lobbying to change the destination to Albany in the 2003 EAS bidding round. As a result, MESA continued to fly planes that were largely empty, while local travelers incurred the added costs, frustration and time to drive to airports or destinations that they could not reach from their own local airport.Page 9 of 18 – Town of Massena SCASDGP – Submitted August 27, 2010 Frustration with MESA, as well as the efforts of a local entrepreneur, eventually led to a more organized, aggressive and collaborative effort to improve air service in Massena. Efforts were given a significant boost in July 2004, when the entrepreneur used his personal connections with Bombardier to bring a small jet into Massena which was used to take community leaders from throughout St. Lawrence County on a round trip flight to Binghamton; this “consciousness raising” effort woke up the region to the possibility that better air service could be had, and led directly to the founding of the St. Lawrence Valley Air Task Force. Co-chaired by the Business Development Corporation for a Greater Massena and the St. Lawrence County Chamber of Commerce, the Air Task Force eventually numbered 20 and included representation from multiple local governments, county interests, educational institutions, unions, travel agencies and economic development agencies. The Air Task Force operated from 2004 to 2009, and initiated a number of air service development efforts, which are summarized in the next section. Most importantly, the Task Force served as the coordinating entity for joint meetings of all five EAS airports in the region to work together in transitioning EAS service in the region from MESA’s requirement to servePittsburgh to a different, more favored destination. In the next round of EAS bidding, the EASserved communities in the region jointly backed Big Sky Airlines and its proposal to service Boston. Big Sky began offering four roundtrip flights to Boston with connecting service through Delta, on Beechcraft 1900D turboprops, from Massena and the four other EAS airports in the region in April of 2007. Big Sky’s arrival was well received – the official launch event in Massena drew a standing room only crowd, and ticket sales at the introductory price of $99 were strong. Unfortunately, there were also early indicators that Big Sky had bitten off more than it could chew in expanding into the northeast – its relationship with Delta proved to be problematic, and internal changes at Big Sky, including the loss of key personnel, soon began to impact customer service. Air Task Force members met as early as late May to resolve concerns, but the problems continued to grow throughout the summer and fall. By the end of the year, financial difficulties, weather problems in Boston, difficulty in booking flights through Delta’s reservation system, customer complaints, political fallout, and negative media coverage all combined to create a “perfect storm” that shut down Big Sky’s northeast service offerings in December of 2007. Air Task Force organizers mobilized over the year-end holidays to advocate for affected passengers, keep the community informed, and coordinate region-wide efforts between staff members of federal elected officials, NYS DOT, all affected airport owners, and the U.S. DOT to secure a new provider. Cape Air was retained as the new EAS carrier in March of 2008, and began phasing in their service at all airports in the North Country region. For Massena, this meant a start date of September, 2008. After eight months without any flights at all, local residents were welcoming, especially due to Cape Air’s decision to finally provide travelers out of Massena with their destination of choice, by offering direct flights to Albany. After the negative experience with Big Sky, travelers were also more willing to accept Cape Air’s 9-seat planes, even though this was a smaller craft than many travelers preferred.Page 10 of 18 – Town of Massena SCASDGP – Submitted August 27, 2010 Enplanement data for Massena from January of 2000 to July of 2010 reflects the fluctuating numbers experienced at the end of the MESA years, the positive and negative response of the community to Big Sky at the start and finish of its service to Massena, and the growth in enplanement numbers that the Albany destination, reliable service, and good customer service of Cape Air have generated. MONTHLY PASSENGER ENPLANEMENT REPORT (2000 compared to 2003 - 2010) MASSENA INTERNATIONAL AIRPORT, MASSENA, NY MESA No Srvc. MESA MESA MESA MESA MESA Big Sky Cape Air Cape Air Cape Air 2000 2003 2004 2005 2006 2007 2008 2009 2010 January 300 220 238 312 252 197 0 270 260 February 293 187 271 317 240 177 0 267 234 March 318 204 270 372 274 193 0 285 269 1st QTR 911 611 779 1001 766 567 0 822 763 April 262 226 265 369 224 164 0 274 296 May 306 195 258 372 281 245 0 257 269 June 291 197 262 305 272 237 0 217 261 2nd QTR 859 618 785 1046 777 646 0 748 826 July 282 295 307 359 323 194 0 286 291 August 350 240 340 332 361 198 0 272 September 291 246 325 300 290 197 113 246 3rd QTR 923 781 972 991 974 589 113 804 291 October 373 318 374 308 264 192 303 324 November 333 238 356 299 232 138 305 335 December 271 234 321 247 172 73 296 284 4th QTR 977 790 1051 854 668 403 904 943 0
Total Pax 3670 2800 3587 3892 3185 2205 1017 3317 1880
As Cape Air began providing service under an emergency order, the EAS contract for Massena, as well as the other EAS served airports in the North Country, is now being rebid. Cape Air and Gulfstream have both submitted proposals. While Cape Air’s enplanements remain strong, and its customer satisfaction rates and reliability are high, Gulfstream’s offer to provide service to Boston, on larger planes, while maintaining Albany flights at a nearby EAS airport, was seen by a variety of community leaders and local residents as a means to move air service in Massena to the next level. Ultimately, the Massena Town Board voted 4-1 in favor of Gulfstream’s proposal, while acknowledging some reservations about the airline’s financial condition, and while recognizing the role Cape Air played in restoring confidence in Massena’s airport after Big Sky folded. No matter which provider is approved, Massena will work with the carrier to increase EAS enplanements to a level that will demonstrate to carriers that the community has a sufficient base of air travelers to warrant their consideration for non-EAS service.Page 11 of 18 – Town of Massena SCASDGP – Submitted August 27, 2010 

### Local Air Service Development Efforts and Results, 2004 to 2009 The St. Lawrence Valley Air Task Force was founded in August of 2004 to “establish affordable, convenient and sustainable air service in Massena to serve the St. Lawrence County, Franklin County, Akwesasne, and Canadian markets.” The Air Task Force was formed by a Steering Committee whose members included the Town of Massena, the Business Development Corporation for a Greater Massena (BDC), the Greater Massena Chamber of Commerce, the St. Lawrence County Board of Legislators, St. Lawrence County Chamber of Commerce – Economic Development Committee, St. Lawrence County IDA, the Merwin Rural Services Institute of SUNY Potsdam, the St. Regis Mohawk Tribe, and community member air service advocates. The BDC and County Chamber agreed to co-chair the Task Force, with the BDC providing staffing services. Eventually, the Air Task Force grew to 20 individuals, with representatives from St. Lawrence University, SUNY Canton, the Canton Office of Economic Development, the Town and Village of Malone, and an area labor union representative and travel agent joining during the time period the Task Force facilitated airport development efforts for Massena. In addition to facilitating the transition in EAS service providers from MESA to Cape Air, and managing the crisis caused by the shut down of Big Sky Airlines, the Air Task Force completed the following air service development efforts between August 2004 and September 2009:

 Retained a technical consultant to issue an RFP for air service development efforts, to evaluate responses to the RFP, and to recommend the best professional firm for the community.

 Contracted with Innova Aviation to conduct a market survey, to make the case for concentrating air travel in Massena, and to write and administer a U.S. DOT Small Community Air Service Development Program grant to advance airport development efforts.

 Secured and implemented the $400,000 SCASDGP grant to pursue sustainable, nonsubsidized air service for the Massena International Airport, to conduct outreach with carriers on behalf of the community, and to initiate a marketing effort for the airport.

 Contributed $150,000 in cash investment and $250,000 in in-kind services to advance the goals of the grant.

 Established the relationships that led to the formation of the North Country Airport Alliance – this is a group of EAS-served airports working together on EAS issues and common airport concerns.

 Orchestrated a “sales pitch” luncheon event with the President of Big Sky, while customer services were being addressed behind the scenes, to encourage the airline to move beyond EAS service; participants included Alcoa, the New York Power Authority, all four colleges and universities, Massena Memorial Hospital, and Cornwall economic development and tourism officials This was a good dress rehearsal for additional market presentations to be made in the future with more solid candidates.Page 12 of 18 – Town of Massena SCASDGP – Submitted August 27, 2010  Educated major travel users, such as the colleges and universities, on the benefits of concentrating their air travel at the Massena International Airport, in order to increase its enplanement numbers to a level that will facilitate transition out of the EAS system

 Developed working relationships with Canadian and Mohawk economic development, tourism and chamber representatives, by using the BDC-led pilot effort to establish an international economic development partnership as a platform for generating regional interest and support for using Massena’s airport as an economic development tool to advance the border region.

 Developed professional promotional materials and launched a major, introductory advertising/marketing effort for the Massena International Airport in Canada, Northern New York communities, Akwesasne, and with major travel users such as the colleges. Efforts included the development of a new airport logo, website, rack cards, banners, events for Canadian travel professionals, media campaigns, and promotion of the Massena Airport at consumer and business shows.

 Facilitated the introduction of Cape Air to the region, helping it to establish its brand, and relationships with key market segments and community leaders. 

## Air Service Development at Massena International Airport Key Results – 2004-2010

 

### Secured flights to Albany, a top destination for local air travelers

 

### Gained a foothold in the Canadian market

 

### Increased awareness among community leaders and major travel users of how to work with the air service industry

 

### Developed a cooperative, rather than confrontational, relationship with EAS carriers

 

### Restored public confidence after eight months without any service

 

### Secured the highest level of enplanements among all EAS airports in the region

 

### Enplanements by Cape Air have increased by 10% over 2009 numbers to datePage 13 of 18 – Town of Massena SCASDGP – Submitted August 27, 2010 

### Description of Local Air Service Needs/Deficiencies The work done by the St. Lawrence Valley Air Task Force, with guidance from professional air industry consultants under the 2005 U.S. DOT grant, identified six major needs and deficiencies which would be positively impacted by increasing enplanement numbers for EAS service: 1. Massena’s airport needs a runway extension to attract jet service; greater enplanement numbers will help to attract a jet carrier and to justify federal investment to lengthen the runway. 2. Massena is currently serving less than 10% of the enplanements in the total extended catchment area. While the catchment area is large enough to maintain a sustainable air service market, non-EAS carriers want to see higher enplanement figures before they will invest in the community. 3. The existing nine-seat plane service is seen as adequate, but not ideal, especially by passengers not comfortable with flying in smaller aircraft with a single pilot on board; the best way to convince the current EAS provider to bring in larger craft, or to retain a carrier offering larger planes, is by filling as many seats as possible. 4. Improved air service will allow major drivers for economic development, that are now dependent on a “driving” market, to increase their impact on the local and regional economy; continual contacts and promotional efforts are needed to encourage major travel users to concentrate their air traffic at the Massena Airport so that the sustainable service level can be reached. 5. While Massena’s “hassle free” airport experience and lower fares are attractive to Canadian travelers, they need to be sold on supporting the existing EAS service as a first step to attracting larger planes making direct flights to vacation destinations or a major hub.
6. Massena will need to secure the support and cooperation of Canadian and Mohawk leaders in order to achieve its goal of sustainable service. Based on our experience with the major travel users on the U.S. side, positioning air service in Massena as a regional economic development tool, and incorporating support for the EAS service into regional economic development strategies, is the best way to achieve this.Page 14 of 18 – Town of Massena SCASDGP – Submitted August 27, 2010 The Strategic Plan we have developed to address these needs and deficiencies is based upon reaching or surpassing a level of 5,000 annual enplanements, to be achieved by increasing enplanements by 10-12% per year, over a three-year period. This calculation is based on the following:

 Cape Air’s load factor in 2009 was about 33.7%, based on 3 daily flights 7 days per week.

 MESA achieved 3,892 enplanements on a 19-seater aircraft in 2005, the year in which US Airways substantially de-hubbed Pittsburgh, transferring many of its flights to Philadelphia International Airport.

 Traffic in the following years at Massena declined to 3,185 enplanements in 2006, then to 2,205 in 2007, and was discontinued altogether with the demise of Big Sky Airlines in January of 2008 (having only commenced service in the second quarter of 2007).

 Since beginning service in September of 2008, Cape Air achieved enplanements of 1,017 in its first five start-up months, and in its first full calendar year of operation, 2009, brought enplanements back up to 3,317. Service in 2010 is running at approximately 10% above 2009 levels (year over year).

 Accordingly, if Cape Air (or its successor) continues to grow at a rate of 10 to 12% per year over the next three years, it is reasonable to assume that enplanements could reach a level of approximately 5,000 enplanements during that period, if an active promotion and marketing effort is put into place. To help develop marketing and promotion messages for specific markets, and to measure the results and effectiveness of the campaign, there is also a significant need for research and data collection. Specific information needs include:

 More detailed data and analysis of the air service needs, interests, destinations, and airport choice of those in the Massena catchment area, particularly those on the Canadian side.

 Cost comparisons between Massena and other airports, based on the findings above.

 How best to market the existing EAS service to passengers on both sides of the border within the catchment area, as measured by data development and analysis.Page 15 of 18 – Town of Massena SCASDGP – Submitted August 27, 2010 

### Strategic Plan for Increasing EAS Enplanements
Goal: Massena will implement a three-year “Fly Massena” Campaign to meet or exceed 5,000 EAS enplanements annually, through a 10 to 12% increase, per year, over a three-year period. Project Components: Year 1 – Region-wide Marketing

 Develop and launch three year marketing campaign in U.S./Mohawk/Canadian media

 Upgrade airport website and implement viral marketing campaign Year 2 – Targeted Promotions to Key Market Segments

 Implement “Fly Massena” events/promotions in these primary target markets: 1. Massena community 2. Four colleges/universities – St. Lawrence, Clarkson, SUNY Potsdam, SUNY Canton 3. City of Cornwall, Ontario and immediate surrounding areas 4. St. Regis Mohawk Akwesasne community 5. Malone/Northern Franklin County/Northern St. Lawrence County communities

 Adapt marketing campaign to link with “Fly Massena” events/promotions as they are developed Year 3 – Economic Development Promotions and Expansion of Marketing into Outlying Areas

 Joint Massena/Cornwall event, hosted by the American Chamber of Commerce in Canada, focused on integrated development of the Massena and Cornwall airports, and the ways in which boosting EAS numbers at Massena can enhance economic development border strategies

 Develop joint Massena BDC/St. Lawrence County IDA economic development events/promotions that include a focus on the Massena airport/EAS service offered

 Expand marketing to include penetration into the Ottawa/Montreal areas included in or which have influence on the Cornwall/surrounding Ontario communities segment of our catchment area
Years 1-3 – Research and Data Collection

 Data/analysis of air service needs, interests, destinations, and airport choices of those in the Massena catchment area, especially on the Canadian side

 Cost comparisons between Massena and other airports, based on the findings above

 Data development and analysis to determine best methods for marketing existing EAS service on both sides of the border within the catchment area The unanticipated difficulties experienced during our 2005 SCASDGP grant reduced the amount of time and money allocated for marketing; we did not get beyond introducing the Massena Airport to Canadian travelers, and periodic promotions to major U.S. travel users. Promotion was seriously deterred by the customer service problems and eventual closure of Big Sky Airlines, the time lag before a replacement carrier began service, and the temporary closure of the Seaway International Bridge. This application requests funds for a multi-year “Fly Massena” marketing effort which will build on the activities most successful in the past, to introduce marketing elements outside the scope of our initial grant, such as creative college/community events and producing materials in French for Canadian market segments, and to conduct the market research/data collection efforts to design an effective campaign and to document results.Page 16 of 18 – Town of Massena SCASDGP – Submitted August 27, 2010 

### Public/Private Partnership Involvement While the Air Task Force concluded its operation with the end of the 2005 DOT grant, the relationships forged, and doors opened, during the grant period provide a strong foundation for the marketing objectives in this grant. The following 10 organizations and institutions were all members of the St. Lawrence Valley Air Task Force or involved in promotions under our 2005 DOT grant; all have agreed to work with us on Massena EAS marketing promotions as they relate to their area of interest: 1. Business Development Corporation for a Greater Massena 2. Clarkson University 3. Greater Massena Chamber of Commerce 4. Malone Chamber of Commerce 5. St. Lawrence County Chamber of Commerce 6. St. Lawrence County Industrial Development Agency 7. St. Regis Mohawk Tribe Office of Economic Development 8. SUNY Canton 9. SUNY Potsdam 10. Village of Massena Each of the above will be submitting an individual letter of support to U.S. DOT, confirming their interest in being part of the partnership aspects of our EAS marketing campaign. Partnership involvement will consist of:

 Assistance in planning events/promotions in support of existing EAS service

 Input into marketing materials for the target markets they are associated with

 Guidance and assistance, as appropriate, for data collection and market research efforts A key focal point will be promotions on all four college/university campuses – three of the region’s educational institutions have already committed to working with us; the fourth, St. Lawrence University, was unable to commit by the grant deadline due to the start of the school year but will be discussing their involvement with the project with us in September. Creative promotional strategies will especially be targeted to the college/university audiences; our starting list of ideas includes a student film competition using an EAS plane as a setting; “Fly with a Future Star” , a chance for students enrolled at SUNY Potsdam’s Crane School of Music to win a private flight; and an “Art in the Air” competition for arts students to create a plane exterior design. College or community-based promotions could also be done as benefits, such as a “Shakes on a Plane” promotion in which we would try to fill an entire plane with milkshake cups; cups (unused!) would be donated by area fast food restaurants, one for each milkshake purchased over a set period, with a portion of the cost donated to local charities; we would also speak with the EAS carrier about donating ticket as prizes for events/promotions.Page 17 of 18 – Town of Massena SCASDGP – Submitted August 27, 2010 In addition, we have recruited an 11 th and new partner, the American Chamber of Commerce in Canada, which will be assisting with the promotions in Canada, particularly the joint Massena/Cornwall economic development event focusing on increasing enplanements in Massena, and improving the Cornwall airport for Canadian destinations. The “AmCham” will also be sending a letter of support confirming their involvement. At the point grant funding is awarded, we will act upon our initial outreach to the City of Cornwall, and the Canadian members of the international economic development group that met during the first grant period. Again, Canadian marketing numbers are the key to the enplanement thresholds we are working to reach, and a “win-win” approach will, over time, provide air travelers in the region with two great airports, going to different destinations in the U.S. from Massena and in Canada from Cornwall, that will enhance the economic development of both communities and the international border region where we are located. 

### Project Budget and Funding Sources The Town of Massena is seeking $300,000 in federal funding and will provide $100,000 in local, cash match support, for a total project budget of $400,000. Budget dollars are allocated as follows: Media/web marketing campaign $150,000 Outreach events to key target markets $50,000 Joint economic development promotions $50,000 Market research/data collection/marketing firm $100,000 Local coordinator services/grant administration $50,000 Total $400,000 The Town’s contribution will be provided by “gaming compact” monies collected and administered by New York State, which, by law must be used for community marketing and economic development purposes. This is a stable source of funding which the Town intends to commit annually to continue the marketing, events and economic development approaches undertaken under this grant which prove to be the most successful. The Town of Massena, as the government entity which owns the Massena International Airport, will be the legal sponsor for administering our SCASDGP grant project. Expenses will be monitored to document that Town and DOT funds are being expended in the manner proposed. Project activities will be managed by a Local Coordinator and advised by an air service consultant. A marketing firm will be retained to develop a marketing plan, based on the project components in our Strategic Plan, which will include milestones to be achieved and the time frame for meeting them; in particular, enplanement numbers will be monitored closely to monitor progress toward achieving the annual percentage increases and 5,000 level by the end of the grant period.Page 18 of 18 – Town of Massena SCASDGP – Submitted August 27, 2010 

### Conclusion The Town of Massena is excited about the prospect of continuing to market and promote the Essential Air Service offered at the Massena International Airport. We are pleased by the traction we have made in enplanement numbers under our current EAS carrier. It is our firm belief that with support from our private partners, and new funding from the Small Community Air Service Development Grant Program, we will be able to reach enplanement levels that will more nearly fill the aircraft operated by our EAS provider. Our long-term goal is to achieve the levels of enplanements needed to, at some reasonable point to in the future, eventually seek out and secure sustainable service that will meet the needs and interests of the air travelers we serve, and which will be a catalyst for the economic growth of our community and region.Application from the Town of Massena, New York Submitted August 27, 2010

APPENDIX B Page 1 SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM DOCKET DOT-OST-2010-0124

SUMMARY INFORMATION All applicants must submit this information with their proposal, along with a completed form SF424 on http://www.grants. gov. A. APPLICANT INFORMATION: (CHECK ALL THAT APPLY)

 Not a Consortium Interstate Consortium  Intrastate Consortium XX Community now receives EAS subsidy XX Community (or Consortium member) previously received a Small Community Grant If previous recipient: Date of grant: September 13, 2005 Expiration date of grant: September 12, 2009 B. PUBLIC/PRIVATE PARTNERSHIPS: (LIST ORGANIZATION NAMES)
Public Private 1. Town of Massena 1. Bus. Dev. Corp. for a Greater Massena 2. 2. Greater Massena Chamber of Commerce 3. 3. Village of Massena 4. 4. St. Lawrence County IDA 5. 5. St. Lawrence County Chamber 6. St. Regis Mohawk Tribe Econ. Dev. Office 7. Clarkson University 8. SUNY Canton 9. SUNY Potsdam 10. Malone Chamber of Commerce 11. American Chamber of Commerce in Canada

C. PROJECT PROPOSAL: (CHECK ALL THAT APPLY)

XXMarketing Upgrade Aircraft New Route

Personnel Increase Frequency Low Fare Service Travel Bank Service Restoration SubsidyAPPENDIX B Page 2 Surface Transportation Regional Service Other (specify Revenue Guarantee Launch New Carrier

____________________ Start Up Cost Offset First Service

____________________ Subsidy Secure Additional Carrier

___________ D. EXISTING LANDING AIDS AT LOCAL AIRPORT : XXFull ILS XX Outer/Middle Marker XXPublished Instrument Approach

XX Localizer Other (specify)
E. PROJECT COST: 1. Federal amount requested: $300,000
2. State cash financial contribution: 3. Local cash financial contribution... 3a. Airport cash funds: 3b. Non-airport cash funds: $100,000 3c. Total local cash funds (3a. -I- 3b.): $100,000 4. TOTAL CASH FUNDING (1. + 2. + 3c.): $400,000 5. Local funds contributed from already-existing programs or projects included in line 3c. amount: 6. Local funds contributed from new commitments or new resources included in line 3c. amount: $100,000 7. Airport In-Kind contribution: (amount & description) 8. Other In-Kind contribution: (amount & description) 9. TOTAL IN-KIND CONTRIBUTION (7. + 8.): $0 10. TOTAL PROJECT COST (4. + 9.): $400,000 Note: We will look for ways we can leverage other dollars throughout the grant period, such as advertising promotions that include additional ads at no cost for certain package and, in-kind contributions for events from our project partners (refreshments, printing, etc.). We will also approach our EAS carrier to invest in these efforts as well (free tickets for drawings, etc.) We will include information on the value of any additional investment leveraged in our DOT reports.APPENDIX B Page 3
F. ENPLANEMENTS:
2000 3,670 2004 3,587 2008 1,017 * 2001 3,019 2005 3,892 2009 3,317 2002 2,689 2006 3,185 2003 2,823 2007 2,205 *September-December figures only; due to the shut down of the carrier providing EAS service, there were no flights from January-August of 2008.

G. IS APPLICATION SUBJECT TO REVIEW BY STATE UNDER EXEC. 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.
XXc. Program is not covered by E.O. 12372.

H. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT? (IF "YES", EXPLAIN)
XX No Yes (explain) _______________________________________