# Capital Region Airport Authority

Lansing, Michigan Proposal Under the Small Community Air Service

Development Program Docket DOT

- OST

- 2010

- 0124

Dun & Brad street DUNS Number 052703345 Two Digit Congressional District Codes: 07 and 08Capital Region International Airport, Lansing, Michigan

Small Communi ty Air Service Development Program Proposal

– 2010 

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## TABLE OF CONTENTS

INTRODUCTORY LETTER

................................ ................................ .................. 4 EXECUTIVE SUMMARY

................................ ................................ ...................... 5 AIR SERVICE OVERVIEW

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

Catchment Area

................................ ................................ ................................ ................................ ..................... 6 Alternate Airports

................................ ................................ ................................ ................................ ................... 6 Current Nonstop Routes and Frequencies

................................ ................................ ................................ ............ 8
Air Service Dev elopment Efforts

................................ ................................ ................................ ............................ 9 

## AIR SERVCE DEVELOPMENT NEEDS AND DEFICIENCIES

.......................... 10
Declining Capacity

................................ ................................ ................................ ................................ .............. 10 Declining Traffic

................................ ................................ ................................ ................................ ................... 13 Leakage

................................ ................................ ................................ ................................ ................................ 15 Rising Fares

................................ ................................ ................................ ................................ ......................... 16 Lansing Far es Versus Fares at Other Michigan Airports

................................ ................................ ..................... 19 

## STRATEGIC PLAN

................................ ................................ ............................ 20

Goals

................................ ................................ ................................ ................................ ................................ .... 20 Target Airline Support

................................ ................................ ................................ ................................ .......... 20 Local Lansing

– Washington Traffic and Revenue

................................ ................................ .............................. 21 Connecting Traffic and Revenue Via United's Washington Dulles Hub

................................ .............................. 27 Proposed Schedule

................................ ................................ ................................ ................................ .............. 29 Alternate Strategies

................................ ................................ ................................ ................................ .............. 30 

## PROJECT IMPLEMENTATION, MONITORING AND FUNDING

....................... 31
Public / Private Partnerships

................................ ................................ ................................ ................................ 31 Lansing Regional Chamber of Commerce

................................ ................................ ................................ ........... 31 Regional Business Travel Trust

................................ ................................ ................................ ........................... 31 Project Funding

................................ ................................ ................................ ................................ .................... 32 Implementation Timeline

................................ ................................ ................................ ................................ ...... 33
Start

- Up Period and Sustainability of the Market

................................ ................................ ................................ . 33 

## PROJE CT MONITORING AND FINANCIAL CONTROL

................................ .... 34

Success Metrics

................................ ................................ ................................ ................................ ................... 34 Legal Sponsor

................................ ................................ ................................ ................................ ...................... 34
Financial Controls

................................ ................................ ................................ ................................ ................ 34Capital Region International Airport, Lansing, Michigan

Small Communi ty Air Service Development Program Proposal

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## APPENDIX A: REQUIRED SUMMARY INFOR MATION

................................ ... 36

A. Applicant Information

................................ ................................ ................................ ................................ .... 36
B. Public/Private Partnerships

................................ ................................ ................................ .......................... 36
C. Project Proposal

................................ ................................ ................................ ................................ ........... 36
D. Existing Landing Aids at Local Airport

................................ ................................ ................................ .......... 37
E. Project Cost

................................ ................................ ................................ ................................ .................. 37
F. Enplanements

................................ ................................ ................................ ................................ ............... 37
G. Is this application subject to review by state under Executive Order 12372 Process?

................................ 37
H. Is this applicant delinquent on any fede ral debt?

................................ ................................ ......................... 38 

## APPENDIX B: COMMUNITY BACKGROUND

................................ .................. 39
Capital Region International Airport

................................ ................................ ................................ ..................... 39 Lansing and the Surrounding Region

................................ ................................ ................................ .................. 40 Select Company Profiles

................................ ................................ ................................ ................................ ...... 45 Higher Education

................................ ................................ ................................ ................................ .................. 47
Points of Interest

................................ ................................ ................................ ................................ .................. 48 

## APPENDIX C: LETTERS OF SUPPORT

................................ .......................... 50 APPENDIX D: 2009 SMALL COMMUNITY AIR SERVICE DEVELOPMENT GRANT COMMUNITY LETTERS OF SUPPORT

................................ ............... 56Capital Region International Airport, Lansing, Michigan

Small Communi ty Air Service Development Program Proposal

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## INTRODUCTORY LETTERCapital Region International Airport, Lansing, Michigan

Small Communi ty Air Service Development Program Proposal

– 2010 

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## EXECUTIVE SUMMARY

Capital Region International Airport is proposing a Small Community Air Service Development Grant in the amount of $1,000,000 to supplement community and airport funding totaling $650,000 to provide a minimum revenue guarantee for service between Lansing and Wash ington Dulles on 50

- seat regional jets operated by a regional airline affiliate of United Airlines.

Capital Region International Airport is the primary airport in a catchment area that includes Lansing and a large geographic region of Central Michigan. Lansing is the state capital of Michigan and home to Michigan State University. The Lansing metropolitan statistical area (MSA) is the third largest MSA in Michigan with a pop ulation of 453,600 residents. Its role as the state capital, home to Michigan St ate and the final assembly plants of General Motor's most popular vehicles produce a strong economy. Although Lansing is the third largest MSA in Michigan, Lansing had the second lowest unemployment rate of the 14 metropolitan areas tracked by the Bureau
of Labor Statistics

. Unfortunately, Lansing 's air service has not faired as well as the local economy. Based on the year

- end first quarter 2010 DOT data, Lansing has lost two

- thirds of the capacity airlines operated in 2005 when capacity peaked. The los t capacity represents 943 seat s per day each way, and five airlines serving Lansing have discontinued service in nine markets. The merger of Northwest and Delta eliminated a competitor from the Lansing market
, and the merger left Lansing with only two com petitors, Delta and United. In addition to eliminating a competitor, the Delta

- Northwest merger had a negative impact on the number of hubs served from Lansing. Since the merger, Delta has discontinued service to both the Cincinnati and Atlanta hubs

. Wh ile Delta continues to serve the Detroit and Minneapolis/St . Paul hubs, capacity is down on each route as service has been downgraded to service on 50

- seat regional jets.

As Lansing lost capacity and competito rs , fares have increased substantially . The average domestic one
- way fare in the year

- end first quarter 2005, when capacity reached its peak, was $133. In the most recent year, the average domestic one
- way fare had increased to $196, and fares continue to rise. First quarter 2010 data
indicates L ansing's average domestic one

- way fare stood at $211, or $422 on a roundtrip basis. The average first quarter 2010 one

- way fare is higher than the average fare in either second or third quarter 2008 when the cost of oil peaked, when most U.S. airports expe rienced peaks in domestic fares.

Because capacity is at its lowest point in at least the last 10 years and because fares are at their highest point ever, Capital Region International Airport retains just 37% of the traffic generated in its catchment area. Traffic
has declined from 6 57,780 domestic and international origin and destination passengers in the year

- end first quarter 2005 to just 241,650 domestic and international origin and destination passengers in the year

- end first quarter 2010

– a decline of 416,130 origin and destination passengers. To put the decline in perspective, 2005 traffic generated 901 passengers per day each way (PDEW)

– equivalent to the capacity 18 50

- seat regional jets.Capital Region International Airport, Lansing, Michigan

Small Communi ty Air Service Development Program Proposal

– 2010 

### 6 In th e most recent year, Lansing's traffic had decline d to just 331 PDEW

– equivalent to the capacity of just under

seven 50

- seat regional jets.



## AIR SERVICE OVERVIEW

Catchment Area

Capital Region International Airport is the primary airport serving an area of mid

- Michigan with a population of 1,075,000 reside nts. The Airport's catchment area has grown 6.1%, or by 61,500 new residents, over the last five years. This represents the largest growth of any area in Michigan. The catchment area includes communities
within a 60

- minute drive of the airport, making La nsing the most convenient option of airports in the region.

Exhibit 1: Primary Catchment Area of Capital Region International Airport



## Alternate AirportsCapital Region International Airport, Lansing, Michigan

Small Communi ty Air Service Development Program Proposal

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### 7 Capital Region International Airport is the primary airport for travelers in the Lansing area. Th ere are other airports on the lower peninsula of Michigan Lansing area travelers may choose for their travel if they prefer nonstop service to their final destination or when low fares are not available at Lansing.

Exhibit 2 : Location of Lansing Capital R egion International Airport Relative to Other Airports in the Region, Distances and Drive Times from Lansing to Other AirportsCapital Region International Airport, Lansing, Michigan

Small Communi ty Air Service Development Program Proposal

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## Current Nonstop Routes and Frequencies

Lansing is currently served by Delta/Delta Connection with regional jet service to De troit and Minneapolis/St. Paul and by United/United Express with regional jet service to Chicago O'Hare

. In November 2010, Delta will operate 7 3/7 flights per day to Detroit and one to Minneapolis/St Paul. United will operate four roundtrips to Chicago. All service will be operated with 50

- seat regional jets.

Exhibit 3 : Current Routes Operated from Capital Region International Airport

Exhibit 4: Departures per Day, Seats per Depart ure and Seats pe r Day by Market and Carrier at Lansing

– No vember 20 10Capital Region International Airport, Lansing, Michigan

Small Communi ty Air Service Development Program Proposal

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## Air Service Development Efforts

Capi tal Region International Airport aggressively pursues new and enhanced air service. The Airport Director and the Director of Market Development meet with both incumbent and prospective airlines on a regular basis to
discuss Lansing's air service needs

. Over the last year, the Airport has met with no less than 15 airlines at their headquarters or at air service development conferences :

1. Ae roMexico 2. AirTran 3. American 4. American Eagle 5. Continental 6. Delta 7. ExpressJet 8. Frontie r 9. JetBlue 10. Mexicana 11. Southwest 12. Sun Country 13. United 14. US Airways 15. Virgin America
Capital Region International Airport markets the airport in both Lansing and other areas in Mid

- Michigan. The Airport's marketing and promotional efforts include advertising campai gns using print, television, rad io, and

v a r i o u s t r a v e l

- r e l a t e d interne t s i t e s

. In addition to advertising, Capital Region International Airport also p r o m o t e s i t s s e r v i c e w i t h sponsorship s of sporting events, festivals a n d o t h e r e v e n t s i n M i d

- M i c h i g a n

.Capital Region International Airport, Lansing, Michigan

Small Communi ty Air Service Development Program Proposal

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## AIR SERVCE DEVELOPMENT NEEDS AND DEFICIENCIES

Declining Capacity

La nsing has lost nearly two

- thirds of the capacity airlines serving the market operated in 2005. In the year

- end first quarter 2010 airlines operated 567 seats per day each way, decline of 943 se ats per day or 62.4%. Going back over the last ten years, Lan sing's capacity declined slightly between year

- end first quarter 2001 and 2002 and increased 455 seats per day, or 43.1% by 2005.

Exhibit 5 : Seats per Day Each Way (All Carriers) at Capital Region International Airport

– Year

- End First Quarter 2001

- 2010 (DOT T

- 100 data)

- This Section Continued on Next PageCapital Region International Airport, Lansing, Michigan

Small Communi ty Air Service Development Program Proposal

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### 11 As illustrated in Exhibit 6
, Lansing's capacity grew from 2002 through 2005 as Delta/Northwest, United, Allegiant, Independence Air and other carriers (including Continental, Midwest and US Airways) added capacity in the market. Beg inning with the simultaneous bankruptcies of Delta and Northwest in September 2005, and followed by the bankruptcy o f Independence Air later in the year , Lansing's capacity began to fall. Continental, US Airways
and Midwest exited the market. Delta and N orthwest reduced capacity further even further after the y merge d by discontinuing service to Cincinnati, Atlanta and Minneapolis/St. Paul ( the Minneapolis /St. Paul service has since been reinstated) and by operating smaller aircraft in remaining markets. Allegiant exited the Lansing market in early 2009, leaving Lansing with service only from Delta and United.

Exhibit 6 : Seats per Day Each Way by Carrier (All Carriers) at Capital Region International Airport

– Year

- End First Quarter 2001

- 2010 (DOT T

- 100 data)

This Section Continued on Next PageCapital Region International Airport, Lansing, Michigan

Small Communi ty Air Service Development Program Proposal

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### 12 Since 2001, airlines serving Lansing have discontinued service to 14 destinations. Lansing is no longer served by Allegiant, American, ATA (American Trans Air), Continental, Independence Air, Midwest (which has been merged into Frontier) or US Airways. While Northwest was acquired by Delta, and the merged company still serves Lansing, the routes operated by the merged company are former Northwest routes. Cincinnati and Atlanta service was operated on the Delta code by Delta regional airline a ffiliates prior to the merger and the service in these markets was discontinued after Delta acquired Northwest.

Exhibit 7 : Lansing Service Discontinued Since 2001 by Year, Carrier and Destination

*Continental discontinued Lansing

- Cleveland service in bo th 2001 and 2004Capital Region International Airport, Lansing, Michigan

Small Communi ty Air Service Development Program Proposal

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## Declining Traffic

As Lansing has lost capacity, traffic has also declined. As shown in Exhibit 8
, Lansing's traffic has declined 63.3% since the peak in year

- end first quarter 2005. Domestic O&D traffic is down by 412,980 O&D passenge rs or 65.7% to 215,719 passengers. International traffic is down much less

– 10.8%

– to 25,940 O&D passengers in the most recent year.

Exhibit 8 : Annual D omestic and International Origin and Destination (O&D) Passengers at Capital Region International Airport

– Year

- End First Quarter 2001

- 2010 ( DB1B data)

This Section Continued on Next PageCapital Region International Airport, Lansing, Michigan

Small Communi ty Air Service Development Program Proposal

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### 14 Translated to passengers per day each way (PDEW) in Exhibit 9 , Lansing generated 859 domestic PDEW in the
year
- end first quarter 2005; in the year

- end first quarter 2010, Lansing generated just 295 domestic PDEW

– a decline of 564 PDEW.

Exhibit 9 : Annual Domestic and International Passengers per Day Each Way (PDEW) at Capital Region International Airport

– Year

- End First Quarter 2001

- 2010 (DB1B data)Capital Region International Airport, Lansing, Michigan

Small Communi ty Air Service Development Program Proposal

– 2010 

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## Leakage

Although capacity and traffic have declined at Capital Region International Airport, demand for air service has not declined. Based on a leakage study completed in January 2010, Lansing's catchment area generates 1,196 PDEW, but Capital Region International Airport retains only 37% of th e traffic in its catchment area

– 63% of the traffic leaks to other airports. 45.0% of catchment area traffic leaks to Detroit, 8.0% leaks to Grand Rapids and
7.6% of the traffic leaks to Flint.

While the average domestic fare at Detroit was $149 in the year
- end first quarter 2010 and Lansing's average domestic fare was $196 in the same period, traffic in Lansing's catchment area leaking to Detroit paid just $12 less than the average Lansing fare. While some traffic obviously leaked to Detroit for a low er fare, the small disparity between fares of passengers in the catchment area paid when flying from Lansing versus Detroit is likely a strong indication a large portion of the traffic leaked to Detroit because the amount of capacity operated from Lansing to hub airports was insufficient.

Exhibit 10 : Airport Origin for Lansing Catchment Area Traffic (January 2010 Leakage Study)Capital Region International Airport, Lansing, Michigan

Small Communi ty Air Service Development Program Proposal

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## R ising Fares

As Lansing has lost capacity and traffic d eclined, fares have increased (Exhibit 11 ). Since 2005, when capacit y and traffic reached its peak, the average domestic fare has increased 47% or $63 to $196. Even as most markets experienced a decline in fares between year

- end first quarter 2009 and year

- end first quarter 2010, Lansing's average domestic fare increased from $183 to $196.

Exhibit 11 : Seats per Day Each Way and Average Domestic Fare at Capital Region International Airport

– Year

- End First Quarter 2001

- 2010 (DOT T

- 100 and DB1B data)

This Section Continued on Next PageCapital Region International Airport, Lansing, Michigan

Small Communi ty Air Service Development Program Proposal

– 2010 

### 17 Among the airports surrounding La nsing

– Detroit, Grand Rapids, Kalamazoo, Saginaw and Flint

– only Kalamazoo's average domestic fare, at $216, was higher than Lansing's fare of $196 in year

- e n d first quarter 2010 (Exhibit 12 ).

Exhibit 12 : Average Domestic Fare at Lansing and Airports S urrounding Lansing

– Year

- End First Quarter 2010 (DB1B data)

This Section Continued on Next PageCapital Region International Airport, Lansing, Michigan

Small Communi ty Air Service Development Program Proposal

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### 18 Quarterly data indicates Lansing's average domestic fare rose from $186 to $211 in first quarter 2010 versus 2009 as capacity fell to just 541 seats per d ay each way. Versus first quarter 2008 , the average domestic fare is up from $172, an increase of 23% as capacity declined by 291 seats per day or 52.3%.

Exhibit 13 : Seats per Day Each Way and Average Domestic Fare at Capital Region International Airport

– Quarterly Data

– First Quarter 2008 through F irst Quarter 2010 (DOT T

- 100 and DB1B data)Capital Region International Airport, Lansing, Michigan

Small Communi ty Air Service Development Program Proposal

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## Lansing Fares Versus Fares at Other Michigan Airports

Among Lansing's 30 largest domestic markets in the year

- end first quarter 2010, Lansing had a lower fa re than Detroit or Grand Rapids (the two largest alternate airports to Lansing) in only one market

– Minneapolis/St. Paul. The difference between Lansing's average one
- way fare ranged as high as $125 each way in the Chicago market and $12 9 each way in the San Antonio market. The average difference between the lowest fare at Detroit or Grand Rapids versus Lansing's average fare was $44 each way in the year
- end first quarter 2010

.

Exhib it 14 : PDEW and Average One

- Way Fare in Lansing's 30 Largest Markets Ve rsus Average Fare in Detroit and Grand Rapids

– Year

- End First Quarter 2010 (DB1B data)Capital Region International Airport, Lansing, Michigan

Small Communi ty Air Service Development Program Proposal

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## STRATEGIC PLAN

Goals

Lansing has three goals with its Small Community Air Service Development Grant proposal for service to Washington Dulles on United:

 Lower fare s in the local market and connect markets served via United's Dulles hub

 Reverse the decline in Lansing's origin and destination traffic

 Recapture catchment area traffic leaked to other airports 

## Target Airline Support

United Airlines has expressed interes t in operating the proposed service from Lansing to Washington Dulles. While United cannot commit to operating the service if Capital Region International Airport receives a Small Community Air Service Development grant, United has indicated a minimum rev enue guarantee will reduce its financial risk and move Lansing

- Washington Dulles above other regional jet new route opportunities without a minimum revenue guarantee. United supports Lansing's proposal for a small community air s ervice development grant a nd has indicated a letter of support will be written

. SkyWest Airlines, a regional airline operating as a United Express code share partner has also expressed interest in operating the proposed service and has indicated it plans to support this proposal wi th a letter of support.Capital Region International Airport, Lansing, Michigan

Small Communi ty Air Service Development Program Proposal

– 2010 

### 21 

## Local Lansing

– Washington Traffic and Revenue

The Lansing market size of the combined three airports in the Washingto n/Baltimore area was 37.8 PDEW in the
year
- end first quarter 2010, making the Washington/Baltimore market Lansi ng's largest O&D market. The Washington market generated almost twice as much traffic as Lansing's second largest market, New
York/Newark (19.8 PDEW)

. As the state capital of Michigan, there is significant traffic between Lansing and the Washington/Balti more airports and a significant need for nonstop service in the market. Among the ten largest states, only Michigan and Illinois do not have service connecting their state capital with at least one airport serving the nation's capital. In addition to gov ernment

- related travel between Lansing and Washington, there is also a significant amount of Michigan State University business travel between Lansing and Washington.

Analysis of historical data indicates Lansing

- Washington has been a large market for at l east the last ten years. In fact, Independence Air and Northwest briefly operated nonstop service to Dulles and to Reagan between 2004 and early 2006 on 50

- seat regional jets . When Independence Air and Northwest operated the nonstop service,
the market s ize increased to more than 120 PDEW with the majority of traffic flowing to Dulles. The average fare among the three Washington airports fell from $146 to $115 when traffic peaked, and increased once Independence Air and Northwest discontinued Lansing

- Was hington service.

This Section Continued on Next PageCapital Region International Airport, Lansing, Michigan

Small Communi ty Air Service Development Program Proposal

– 2010 

### 22 More recently, Lansing generated 37.8 PDEW to the Washington/Baltimore area in the year

- end first quarter 2010 at an average fare of $136. Quarterly data shows Lansing generated 31.5 PDEW in the Wash ington/Baltimore
market at an average fare of $163 in first quarter 2010. In fact, fares in the market have increased in each of the last three quarters.

Exhibit 15 : Lansing

– Combined Washington Area Airports (DCA, BWI, IAD) PDEW and Average Fare

– Yea r
- End First Quarter ( DB1B data)

This Section Continued on Next PageCapital Region International Airport, Lansing, Michigan

Small Communi ty Air Service Development Program Proposal

– 2010 

### 23 Historically, and in the most recent year, the majority of traffic to the Washington airports has flowed to Washington Reagan, but Dulles was the primary airport when the nonstop ser vice was offered, and the Airport believes Dulles would become the preferred airport for Lansing area Washington/Baltimore travels if the
convenience of a n onstop were available to Dulles just as it was when Independence Air and Northwest operated Lansing

- Dulles service.

Exhibit 16 : Lansing

– Washington Area Airports (DCA, BWI, IAD) PDEW by Airport

– Year

- End First Quarter (DB1B data)

This Section Continued on Next PageCapital Region International Airport, Lansing, Michigan

Small Communi ty Air Service Development Program Proposal

– 2010 

### 24 With the exception of a spike in the average Baltimore fare in 2006, t here is not significant variation in average fares from Lansing to each of the airports in the Washington area

. Dulles fares trend to be slightly lower than Reagan or Baltimore fares since 2006. The fare at all three airports generally trends in the same direction. The
year
- end first quarter data indicates fares to all three airports have been reasonable over the past six years.

Exhibit 17 : Lansing

– Washington Area Airports (DCA, BWI, IAD) Average One

- Way Fare by Airport

– Year

- End First Quarter (DB1B data)

This Section Continued on Next PageCapital Region International Airport, Lansing, Michigan

Small Communi ty Air Service Development Program Proposal

– 2010 

### 25 While Lansing

- Washington fares have been at a reasonable level over the past several years, the average fare of $163 in first quarter 2010 was a level not seen since 2002, and traffic declined to a ten

- year low. Capital Regional International Airport believes nonstop service would stimulate the market size, and the nonstop service would put competitive pressure on fares. In the most recent year, Delta captured 84.2% of the share in the market, and United captured the rem aining 15.8% of the share. Delta's average fare was $137 and United's average fare was $130.

Exhibit 18 : Lansing

– Combined Washington Area Airports (DCA, BWI, IAD) PDEW and Average Fare

-- Quarterly Data

– First Quarter 2008 through First Quarter 201 0 (DB1B data)

This Section Continued on Next PageCapital Region International Airport, Lansing, Michigan

Small Communi ty Air Service Development Program Proposal

– 2010 

### 26 Relative to other markets in the U.S. under 500 miles from Washington (500 miles is well within the economical range of a 50

- seat regional jet), Lansing is the second largest market without nonstop serv ice to one of the three Washington/Baltimore airports . With 42.7 PDEW, t he Augusta, Georgia

– Washington market is the only market larger than Lansing

- Washington without nonstop service, and this should make Lansing

- Washington Dulles an attractive regiona l jet opportunity for United.

Exhibit 19 : Washington Area Airports (DCA, IAD, BWI) PDEW , Yield, Rev enue per Day Each Way, Distance and Nonstop Service Indication in Markets Under 500 Miles

– Year

- End First Quarter 2010 Data ( DB1B data)Capital Region International Airport, Lansing, Michigan

Small Communi ty Air Service Development Program Proposal

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### 27 

## Connecting T

ra ffic and Revenue Via United 's Washington Dulles Hub

Not only would Lansing

- Washington Dulles service connect Lansing with its largest O&D market and connect Washington with its second largest market without nonstop service under 500 miles , but service on United to Dulles would provide access to United's Dulles hub

. Lansing travelers could connect to markets along the East
Coast and the international markets United and its Star Alliance partners serve from Dulles. In fact, Lansing
travelers could connect with at least 55 markets United serves from Dulles. The 30 largest Lansing markets United could serve with Dulles service generated 146 PDEW at an average fare of $196 in the year

- end first quarter 2010.

Exhibit 20 : Non

- Circuitous Markets United Could S erve with Lansing

– Washington Dulles ServiceCapital Region International Airport, Lansing, Michigan

Small Communi ty Air Service Development Program Proposal

– 2010 

### 28 The 30 largest markets United could serve with Lansing

– Washington Dulles service generated 137 passengers per day each way at an average one
- way fare of $179 in the year

- end first quarter 2010. All market s that could
flow via Washington Dulles on United generated 142 PDEW at an average one
- way fare of $186. The size of the local market, plus the cumulative size of connecting markets via Washington Dulles at the high average fare s should make Lansing

– Wa shington Dulles an attractive opportunity for regional jet service on United

.

Exhibit 21 : Annual O&D Passengers, Passengers per Day Each Way (PDEW) and Average One

- Way Fares in the 30 Largest Markets United Could Serve with Lansing

– Washington Dulles Service

– Year

- End First Quarter 2010 ( DB1B data)Capital Region International Airport, Lansing, Michigan

Small Communi ty Air Service Development Program Proposal

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## Proposed Schedule

The Airport believes a schedule with two roundtrips timed to connect with both United domestic and international flights at Dulles will maximize United's revenue and minimize paymen ts under the proposed minimum revenue guarantee

.

Exhibit 22 : Proposed Lansing

- Washington Dulles SchedulesCapital Region International Airport, Lansing, Michigan

Small Communi ty Air Service Development Program Proposal

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### 30 

## Alternate Strategies

In the event United is not able to launch nonstop regional jet service on a capacity purchase basis between Lansing and Wa shington Dulles, Capital Region Internat ional Airport would approach one of the companies operating as a United Express affiliate carrier to operate Lansing

- Washington Dulles service. Airlines including SkyWest and ExpressJet operate some of their servic e under the United Express brand on a pro

- rate agreement with United. Unlike capacity purchase service where U nited pays regional operators a fee per departure and an hourly block hour rate, pro

- rate service is operated at the financial risk of the region al airline without the fee per departure and hourly block hour payments from United. The Airport believes service on the United code is most practical for Washington service because United already serves Lansing with Chicago service and could leverage
its presence at the Airport without the expense of opening a new station. Service to Dulles would make service on the United code less dependent on local Lansing

- Washington traffic because Lansing travelers could connect to destinations beyond the Dulles hub . Furthermore, United's presence in Lansing means United has an established base of frequent flier program members in United's catchment area, most of whom would likely chose United when traveling to the Washington area.

Capital Region International Airpo rt would discuss service Lansing

- Washington Reagan service with US Airways and US Airways Express regional affiliate carriers a n d D e l t a A i r L i n e s a n d D e l t a C o n n e c t i o n c a r r i e r s in the event United or a United Express regional affiliate carrier could not begin service in the Lansing

- Washington Dulles
market

. While United service is favored by the community because it links Lansing with its largest O&D
destination and maximizes connecting opportunities beyond Washington , U S Airways o r D e l t a service t o W a s h i n g t o n R e a g a n would connect Lansing with the preferred airport in the Washington/Ba ltimore area, but it would provide less connectivity than the connectivity offered by United's Dulles hub.Capital Region International Airport, Lansing, Michigan

Small Communi ty Air Service Development Program Proposal

– 2010 

### 31 

## PROJECT IMPLEMENTATION, MONITORING AND FUNDING Public / Private Partnerships

Lansing Regional Chamber of Commerce

The Lansing Regional Chamber of Commerce is t the pre

- eminent business advocacy organization in the Greater Lansing region and collaborates for economic growth, creates new business opportunities for its members and upholds pro
- business ideals through the advancement of sound public p olicy.



## Regional Business Travel Trust

The Regional Business Travel Trust (RBTT) is an organization of over 200 local companies, organizations and individuals created in 2004. The mission of the Regional Business Travel Trust is to support existing se rvice and improve air service at Capital Region International Airport. The goals of the organization are to:

 Consolidate regional business & industry buying power.

 Negotiate air service improvements.

 Air fare improvements /stability.

 Flight schedule im provements.

 Customer quality control involvement.

 Encourage expanded community support of their airport servicesCapital Region International Airport, Lansing, Michigan

Small Communi ty Air Service Development Program Proposal

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### 32 

## Project Funding

In addition to the Small Comm unity Air Servi ce Development Grant of $1,000,000 requested from the Department, organizations in the community are willing to provide cash of $ 1 50,000 and in

- kind funding valued at $ 2 00,000 for local media company advertising placement . The A irport will provide cash of $1 00,000 for marketing
and estimates the value of its in

- kind contributions from waived fees valued at $200,000 over the two year life of the project . The total value of cash and in

- kind contributions from the community and the airport is valued at $650,000 , or 39.4 % of the total project cost

. The total cost of the proposed project is $1,650,000.

Exhibit 22: Summary of Sources and Types of Project Funding

.Capital Region International Airport, Lansing, Michigan

Small Communi ty Air Service Development Program Proposal

– 2010 

### 33 

## Implementation Timeline

Our proposed implementation timeline for the project assumes the Department will award Small Community Grant Funding in December 2010. Once the award is announced
, Capital Region International Airport will begin discussions with United to begin service. Based on airline planning lead times and the need for advance bookings, we assume United would not be able to begin service until at least June 2011. The first two milestones on the Airport's timeline are to execute the grant agreement with the Department and the minimum revenue guarantee agreement with Uni ted. Once service is announced and schedules are published, the Airport would begin marketing the new route and working with United to monitor advance bookings. The Airport will continue its marketing program and continue to work with United to monitor t he route once service begins. The Airport will submit grant status reports on a quarterly basis to the Department throughout the proposed two year term of the minimum revenue guarantee.

Exhibit 23 : Proposed Project Timeline (assumes grant announcements i n December 2010 and service launch in June 2011)



## Start

- Up Period and Sustainability of the Market

The Airport will aggressively market the new service to business and leisure travelers in the catchment area. A benefit of beginning service in June 2011 is to capture the peak of traffic seasonality in the U.S. domestic and international air travel market. Beginning service in the summer will provide a strong start for the service and provide two

- and

- a
- half to three months to build business traffic in th e market before leisure traffic demand falls in
mid

- August to early Septembe r. B usiness travel will become more important for the success of the route as leisure travel declines in the Fall. The Airport expects the route to be self

- sustaining within the first two years of

ser vice and will include Washington as part of its on

- going marketing and promotional campaigns of the airport.Capital Region International Airport, Lansing, Michigan

Small Communi ty Air Service Development Program Proposal

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### 34 

## PROJECT MONITORING AND FINANCIAL CONTROL
Success Metrics

The s u ccess of th e progra m will be based on achieving the objective s of the program . The Airport will continuously monitor the performance of the route. Even before service begins we will communicate with United on a weekly basis to monitor advance bookings and week

- over
- week of advance bookings. Marketing and promotio nal activities can be adjusted if advance bookings are weak or are not booking at a rate comparable to
other United Dulles markets.

Project Goals Success Metric

 Lower fares in the local market and connect markets served via United's Dulles hub  Lower quar terly year

- over
- year fares in the markets United serves via Washington Dulles (including fares in the local Washington market)

 Reverse the decline in Lansing's origin and destination traffic  Increased quarterly year

- over
- year origin and destination traffi c

 Recapture catchment area traffic leaked to other airports  Less leakage in the local market and the markets served via Washington Dulles

Once service begins, the Airport will rely on traffic and revenue data provided directly by the airline and the

a mount of reimbursements requested by the airline as indications of project success. T

- 100 data and DB1B data will also be analyzed to compare year

- over
- year market size growth on a quarterly basis. In addition, the airport will analyze leakage once the s ervice has operated for a full year to determine the trend in leakage to other airports. The Airport will report its success metrics in the quarterly grant reports to the Department. 

## Legal Sponsor

Capital Region Airport Authority is the legal sponsor res ponsible for administering the program. Capital Region Airport Authority is a government entity.
Capital Region Airport Authority
4100 Capital City Boulevard
Lansing, MI 48906 Robert F. Selig, Airport Director

517

- 886

- 3711 

## Financial Controls

As the spons or, Capital Region Airport Authority and its governing body, Lansing Airport Commission, will be the responsible partie s for all fiscal matters and the Department's reporting requirements. The Commission is established as a public governing body. As a pu blic entity
, the Department can be assured that proper financialCapital Region International Airport, Lansing, Michigan

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### 35 controls are in place to guarantee that the Department ’s Grant will be used in accordance with any subsequent agreement. The Lansing Airport Commission understands that the Grant is a reimbu rsable grant, meaning the Airport is responsible for program expenditures and will submit invoices to the Department for reimbursement, based on a percentage of the total grant request.Capital Region International Airport, Lansing, Michigan

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### 36 

## APPENDIX A: REQUIRED SUMMARY INFORMATION
A. Applicant Information

Not a Consortium

Interstate Consortium

Intrastate Consortium
Community now receives EAS subsidy
Community (or Consortium member) previously received a Small Com munity Grant
If previous recipient: Date of Grant: ____________________ Expiration Date of Grant: ____________________



## B. Public/Private Partnerships

Public

 Capital Region Airport Authority

 City of Lansing

 County of Ingham, Michigan

Private

 Lansing Regio nal Chamber of Commerce

 Regional Business Travel Trust



## C. Project Proposal

Marketing Upgrade Aircraft New Route Personnel Increase Frequency Low Fare Service Travel Bank Service Restoration Subsidy Surface Transportation Regional Service Other (specify) Reve nue Guarantee Launch New Service Start

- Up Cost Offset First Service Study Secure Additional CarrierCapital Region International Airport, Lansing, Michigan

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### 37 

## D. Existing Landing Aids at Local Airport

Full ILS Outer/Middle Marker Published Instrument Approach Localizer Other (specify)



## E. Project Cost

1. Federal amount requested: $1,000,000 2. State cash financial contribut ion: 3. Local cash financial contribution: $250,000 3a. Airport cash funds: $100,000 3b. Non

- airport cash funds: $150,000 3c. Total local cash funds (3a + 3b): $250,000 4. TOTAL CASH FUNDING (1 + 2 + 3c): $1,250,000 5. Local funds contributed from alread y - existing programs or projects included in line 3c amount: $100,000
6. Local funds contributed from new commitments
or new resources included in line 3c amount: $150,000
7. Airport in

- kind contribution: ( waived landing fees ) $200,000
8. Other in

- kind contribut ion: (amount & description) $200,000
9. TOTAL IN

- KIND CONTRIBUTION (7 + 8): $400,000 10. TOTAL PROJECT COST (4 + 9): $1, 6 50,000



## F. Enplanements

2000 331,363 2004 329,598 2008 217,138 2001 265,199 2005 310,924 2009 134,746 2002 260,190 2006 284,755 200 3 271,161 2007 253,162



## 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. 12372Capital Region International Airport, Lansing, Michigan

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### 38 

## H. Is this applicant delinquent on any federal debt?

No
Yes ( explain)Capital Region International Airport, Lansing, Michigan

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### 39 

## APPENDIX B : COMMUNITY BACKGROUND Capital Region International Airport

Capital Region International Airport serves as the primary airport for the Lansing area and Central Michigan. As such, the Airport is equipped with a primary runway of 8,00 1 x 150 feet, including dual instrument landing system approaches

– which can handle virtually any aircraft in virtually any weather conditions. The Airport also features one crosswind runway, once which is 5,001 x 150 feet and is used primarily for gener al aviation traffic.

The Airport’s main terminal is almost 161,500 square feet, with 11,942 square feet in the ticketing lobby and baggage claim area (landside), and almost 28,212 square feet of space beyond security on the airside concourse.
The airline concourse features nine gates

– with gate space available immediately. The Airport also has ticket counter and baggage make

- up space immediately available for a new airline (although United would simply use its existing facilities at the airport for new Washington service).

The Airport’s air carrier apron is 60,070 square yards, with parking space for as many as eight regional jet aircraft and five mainline aircraft. The Airport has overnight apron space available immediately for an additional a ir
carrier.Capital Region International Airport, Lansing, Michigan

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### 40 

## Lansing and the Surrounding Region

The Lansing Region is comprised of Ingham, Eaton and Clinton Counties with the capital city of Lansing sitting at the center. With an MSA population of about 454,000, the area's residents are well distribut ed among unique urban, suburban and rural settings. The region is strategically located within 90 minutes of 90% of Michigan's population. Located in the heart of Michigan, the Lansing region is a hub of commerce, culture and government.

The lively sta te capitol, the picturesque setting of Michigan State University, the vigorous industrial base of General Motors and bountiful agriculture make the region among the most stable and diverse economies in Michigan. The Lansing region is a leading
force in au tomotive manufacturing, scientific research, technological development, warehousing and distribution. In the past decade, industries such as healthcare, bio

- technology,

information technology and insurance and financial services have
added to the diversit y of the economy. Situated within a one

- day drive of 55% of the US population and 65% of the Canadian GNP, the Lansing Region's central location makes it an essential player in the North American market. The healthy economic climate of the region is furt her strengthened by excellent schools, higher education, affordable housing, a qualified diverse workforce and a low cost of living.

Cultural events and attractions are plentiful in the region and enrich the lives of its residents. The Lansing Region
host s music and art festivals, cultural celebrations, Broadway productions and Big Ten Sports. Museums, historical sites, nature preserves and golf are just a few more of the numerous attractions in the region.

The Lansing Region was recently awarded the "Fiv e Star Quality of Life Quotient" rating by Expansion Management Magazine and is the only area in Michigan receiving this top rating. The region is home to a thriving and stable economy, a dynamic and capable workforce and abundant cultural events and attr actions. The region is a hub for commerce and recreation, and ideal location for business.

Demographic and Economic Overview

The Capital Region International Airport Catchment Area (ACA) is home to 1.1 million people within its immediate
catchment area an d 6.1 million people within 75 miles of the airport. The median family income in the Lansing area was more than $56,223 a year in 2010, but that income translated to the purchasing power of almost $59,000 due to the low cost of living. Lansing’s cost of living is low due to the fact that its median home price is $63,060

– more than $120,000 less than the current national average. Lansing’s median family income ranks as The State of Michigan Capitol Building and the skyline of Lansing, MichiganCapital Region International Airport, Lansing, Michigan

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### 41 the fourth highest among MSAs surrounding Lansing and is 12.5% higher than the weighte d average family income in the region.

Although Michigan has been hit especially hard by the recession in the United States, Lansing has the second lowest unemployment rate in the state; only Ann Arbor had a lower unemployment rate. In June 2010 , the

un employment rate of the Lansing MSA was 10.6 % versus Michigan’s sta tewide unemployment rate of 13.1 %.

Exhibit 2 3 : U.S., Michigan and Michigan MSA Unemployment Rates

– June 2010 (Bureau of Labor Statistics data)

The Economy of Lansing and Mid

- Michigan

The Greater Lansing Region is in the midst of an economic renaissance , as its economy shifts away from auto and other heavy manufacturing and towards health care and high

- tech. In the last two years , Greater Lansing has surpassed all other Michigan regions i n job creation, adding more than 3,000 new jobs . In that same time period, new and existing Businesses have invested nearly 3⁄4 billion dollars in the Lansing regional economy

.

As Michigan’s capital city , Lansing is the center for governmental Business, hi gh

- tech investment, health care, and corporate headquarters in Central Michigan. Inc. Magazine has recognized several Lansing regional companies on the magazine’s list of the 5,000 fastest growing companies based on revenue growth . Those companies recogni zed include; Liquid Web, Top Flite Financial, Axiom Group, ICS Marketing Support Services, TechSmith and Fincor Holdings. Entrepreneur Magazine has named Michigan State University and the City of East Lansing as one of the Ten Best College Towns to start a business . The Federal Bureau of EconomicCapital Region International Airport, Lansing, Michigan

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### 42 Analysis recently reported that the Lansing Metropolitan Statistical Area ranked second in the state of Michiga n for GDP growth between 2005 and 2008.

Exhibit 2 4 : Distribution of Lansing Area Employment by Indust ryCapital Region International Airport, Lansing, Michigan

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### 43 Largest Employers in the Region

Led by the State of Michigan and Michigan State University, each with over 10,000 employees, the 25 largest employers in the Lansing area employ over 65,000 employees ( Exhibit 2 5 ).

Exhibit 2 5 : 25 Largest Employer s in the Lansing MSA and Number of EmployeesCapital Region International Airport, Lansing, Michigan

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### 44 The Auto Industry

General Motors announced in December 2009 it will operate its Lansing Delta Township Assembly Plant on three shifts as
demand for its line

- up of crossover vehicles increases. This will
in clude 2,928 hourly and 265 salaried employees (before the future addition of the third shift). The Chevrolet Traverse, Buick Enclave and
GMC Acadia will all be assembled here. December 2009 sales of the Traverse increased 92%; Acadia increased 49% and En clave increased 37%.

In addition to the Delta Township Assembly Plant, Lansing is also home to the Grand River Assembly Plant. This
includes 1,800 hourly and 200 salaried employees. The Cadillac STS, SRX and CTS are assembled here.
Cadillac sales were u p 7% in December 2009, driven by a 357% increase in the SRX to 4,880 units.

The Insurance Industry

Lans ing
is
the insurance capital of the Midwest with headquarters of two of the largest insurers in the United States, along with eight major insurance companies operating large corporate offices in the area. Auto

- Owners Insurance, headquartered in Lansing and ranked 465 on the Fortune 500 list. Auto

- Owners is planning a new $105.3 million expansion of its headquarters that would create 800 new jobs . Aut o
- Owners has offices in twelve markets that Southwest flies to out of Chicago Midway.

Jackson National Life Insurance employs almost 1,400 people at its headquarters in Lansing , with other major operations in Chicago , Denver, Santa Monica, and Tampa. Othe r major insurance companies with regional headquarters in Lansing include Farm Bureau
, Blue Cross/Blue Shield
, Delta Dental
, Michigan Millers
, Accident Fund of Michigan and AP Capital. Insurance Companies employ close to 8,000 people in the region, with mo re than $100 billion in total assets.

IBM Computer Center Brings Jobs to East Lansing

In support of the regions technology corridor, IBM is opening a Global Delivery Center for Application Services The center is expected to immediately bring 100 jobs to E ast Lansing, and possibly as many as 1,500 over the next five years . The center is the first of its kind in the U.S. for IBM. The center will provide innovative application development and support services to modernize IT systems for state government, uni versities, health care and telecommunication business sectors.Capital Region International Airport, Lansing, Michigan

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### 45 Accident Fund Expansion to Create up to 500 New Jobs in Lansing

Accident Fund Insurance Company of America is in the middle of a $182 million expansion of its corporate headquarters . Accident Fund’s campus headquarters is anchoring several new riverfront developments in downtown Lansing. The fast

- growing company, a subsidiary of BCBSM, will be creating up to 500 new jobs and has chosen the Board of Water and Light’s historic Ottawa Street pow er station to accommodate the growth.

Nuclear Physics Research Project Boosts Local Economy

The U.S. Department of Energy awarded Michigan State University the Facility for Rare Isotope Beams (FRIB). The $550 million research project is estimated to brin g 400 jobs to Michigan . The facility will enable researchers from around the world to address leading edge questions in nuclear structure and astrophysics. As an economic development accelerator, the FRIB will result in an estimated $1
billion in new econo mic activity.

Lansing is Home Some of the World’s Most Advanced Manufacturing

General Motors Corporation recently said it w ould close 14 plants nationwide, but GM has committed to increasing production at its two assembly plants in Lansing . This reflects the positive union

- labor relationship in our region and the strong manufacturing skills set of our region’s work force. Demmer Corporation is a key supplier to the U.S. Aerospace and Defense Industries. Dowding Machining develops new technologies that

co uld revolutionize the alternative energy industry. Spartan Chassis , supplies custom chassis for emergency rescue vehicles and many military vehicles. WJG Enterprises manufactures high

- tech medical devices. 

## Select Company Profiles

Neogen Corporation

N eogen Corporation is an international food and animal safety company headquartered in Lansing. Neogen was named to Forbes Magazine’s annual list of the 200 best Small Companies in America for the 8th time in the last 10 years. Neogen currently has distribu tion in over 100 countries with 40% of its revenues coming from international markets.

Emergent BIOSolutions
Emergent BIOSolutions is an international biopharmaceutical company that maintains significant operations in Lansing. The company is developin g an arrayCapital Region International Airport, Lansing, Michigan

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### 46 of biodefense and commercial products and currently manufactures the only FDA approved anthrax vaccine at its Lansing operation.

TechSmith Corporation
TechSmith Corporation is located just outside Lansing, and is the world’s leading provide r of screen capture and recording software for computing.

Niowave

Niowave is a high tech manufacturing company producing parts and equipment for the superconducting particle accelerators

Drath’s Corporation

Drath’s Corporation founded in 2005 as a M ichigan State University technology commercialization company plans a $41 million headquarters, research and pilot manufacturing facility in the Lansing region. Drath’s is expected to create up to 200 new jobs with the expansion.Capital Region International Airport, Lansing, Michigan

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### 47 

## Higher Education

The La nsing Region boasts a strong educational presence in the state of Michigan. Michigan State University,
with its Land Grant tradition of multi

- disciplinary offerings, hosts nearly 47,000 students on its park

- like campus of about 2,000 contiguous acres. An additional 5,000 acres of research farms and woodlots are connected to the south of the main campus. MSU has a well renowned presence in the fields of business, education, engineering, high

- energy physics, agriculture and life sciences (including three m edical schools). Students from over 100 countries are enrolled, reflecting the university's ever

- expanding global presence. Lansing Community College, with over 20,000 students, provides applied programs, many of which work in concert with the labor dem and of area employers. Cooley Law School is the nation's third largest law school. Along with these major institutions, many of the state's seventeen public universities, including the University of Michigan, are also represented in the Lansing Region and offer graduate

- level programs.

Michigan State University
Michigan State University (MSU), home of the Spartans, is a research university located in East Lansing. MSU plays a significant role in the economy of the region.

Enrollment was 46,648 in the 200 8

- 2009 academic year, with 4,509 international students and 3,100 students studying abroad in 60 countries. MSU is the largest university in Michigan, and is the eighth largest university in the United States. The university has gained an international re putation for research and its sponsored funding tops $300 million. MSU’s travel budget for the 2008

- 2009 academic year was over $7 million for air travel.

MSU is also a center for athletics, with more than 30 programs competing in the Big Ten Conference. The campus is home to Spartan Stadium, a huge football facility seating 75,000 fans

– which sells out every home football game. The Breslin Center area seats close to 15,000 fans for basketball

– MSU’s men’s team sells ou t more than 25 dates per year.

Ex hibit X: Spartan Stadium at Michigan State UniversityCapital Region International Airport, Lansing, Michigan

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### 48 

## Points of Interest

Potter Park Zoo
The historic Potter Park Zoo, located along the Red Cedar River in Lansing, has more than 400 animals and
numerous programs and events for children and famili es. With annual attendance increasing every year since
2006 (137,236 in 2008 compared to 110,167 in 2006) there are $667,100 in capital improvements planned for
2009 including a giant walk

- in aviary and a new female tiger. This is in addition to $1.3 milli on spent on capital
improvements in 2008.

The Arts
Lansing is lucky enough to have more than its share of the cultura l arts. The Greater Lansing Ballet Company is an award

- winning ballet and dance company. The Lansing Symphony Orchestra has been ente rtaining generations of Lansing area residents since 1929. The Kresge Art Museum, the MSU Museum, and the Abrams Planetarium are highly acclaimed cultural destinations located on the campus of Michigan State University in East Lansing. The Lansing
JazzFe st and the Old Town BluesFest host leading musicians, and are two of the larger music festivals held each year in the State. The Riverwalk Theatre, the Lansing Civic Players, and the BoarsHead Theater are all located
downtown. The Wharton Center for Perf orming Arts recently began a 24,000 sq/ft expansion having already spent over $1.3 million in 2008.Many Broadway shows come to The Wharton Center before making it to theaters in larger places such as Chicago.

Farmers' Markets
Lansing has several farmers' markets throughout the city in the summer
months. These markets include the Allen Street Farmer's Market on the city's eastside, the Old Town Farmer's Market, and the year

- round historic Lansing City Market located near downtown. The Lansing City Market i s building a brand new $1.6 million facility on the riverfront in downtown Lansing where it will continue its year round operations providing specialty items in addition to regular groceries from over 30 vendors.Capital Region International Airport, Lansing, Michigan

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### 49 Festivals and Events

Both the resident a nd the visitor benefit from the numerous festivals and events held in Lansing throughout the year. The Common Ground Festival is a musical event held over a week every July at the Adado Riverfront Park in downtown Lansing pulling in crowds over 90,000 for the week. It has wide range of musical acts. The Old Town Festival of the Moon and Sun is a two day festival full of food
and live music. Old Town Oktoberfest is a two

- day event drawing hundreds to the Old Town neighborhood for live polka music, authent ic German food and of course world renowned German

- style beer.

Museums and Libraries
Lansing is home to a wealth of museums and libraries. The Impression 5 Science Center is a children's museum located in a historic wagon works factory on the Grand R iver. The Michigan Women's Hall of Fame, is a museum dedicated to the historical accomplishments and achievements of women in Michigan. The R.E. Olds Transportation Museum is named for Ransom E. Olds, founder of Oldsmobile. It is one of the top

- rated

au tomotive museums in the United States, and the museum is dedicated to the education of Lansing's role in the development of transportation, particularly the automobile. The final Oldsmobile, a dark cherry metallic "Final 500 Collector's Edition" (#500 of 500) Alero sedan, was donated to the museum on April 29, 2004. The Turner

- Dodge House, is a museum dedicated to Lansing's early pioneers. The museum sits in the
Classical Revival

- styled Turner

- Dodge Mansion, built in 1858. It is on the National Register of Historic Places.

The Library of Michigan and Historical Center is a highly regarded state library and research center. The library is one of the top five genealogical research facilities in the United States. The Capital Area District Library has 13 br anches within Ingham County, some of these include: The Main library downtown, the Foster Library on the east side, and the South Lansing Library on the south side.Capital Region International Airport, Lansing, Michigan

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### 50 

## APPENDIX C : LETTERS OF SUPPORTCapital Region International Airport, Lansing, Michigan

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### 51Capital Region International Airport, Lansing, Michigan

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### 52Capital Region International Airport, Lansing, Michigan

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### 53Capital Region International Airport, Lansing, Michigan

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### 54 August 23, 2010

Honorable Ray LaHood Sec retary of Transportation U.S. Department of Transportation 400 Seventh Street, SW Washington, DC 20590

Re: Docket DOT

- OST

- 2010

- 0124

Dear Secretary LaHood:
Please accept this letter of support for the Small Community Air Service Development Program appli cation submitted by Capital Region International Airport (CRIA). The $1,000,000 grant will help fund a plan to establish essential direct air service between Lansing and United Airlines’ hub at Washington Dulles International Airport.
Lansing is the home of Michigan’s state government, Michigan State University, several major insurance companies, hundreds of state associations and a vibrant corporate community whose needs for air service far exceed the commitment currently being demonstrated by the airline s serving the Greater Lansing region. Despite the fact that Washington DC is the number one destination for business travelers in the region, Lansing is without direct service to the nation’s capital.
In addition to providing much needed direct flights to Washington DC, the proposed new air service will also offer travelers in central Michigan connectivity throughout the Eastern United States, as well as international destinations.
I am confident that the CRIA proposal will be carefully reviewed and that its merit will be readily apparent. Our community looks forward to the opportunity to benefit from critical direct air service to Washington DC. Thank you in advance for your time and consideration.
Sincerely,

Tim Daman President & CEO Lansing Regional Chamber of CommerceCapital Region International Airport, Lansing, Michigan

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### 55Capital Region International Airport, Lansing, Michigan

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### 56 

## A P P E N D I X D : 2 0 0 9 S M

A L L C O M

M U N I T Y A I R S E R V I C E D E V E L O P M E N T G R A N T C O M

M U N I T Y L E T T E R S O F S U

P P O R TCapital Region International Airport, Lansing, Michigan

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