Proposal Under the 

Small Community 

Air Service 

Development 

Program

Docket OST-2011-0119

August 1, 2011

Submitted to:

U.S. Department of 

Transportation

Docket Operations and Media 

Management Division

Submitted by:

San Angelo Regional Airport

City of San Angelo

EIN # 75-60000659

DUNS# 132036653

Texas Congressional District #11

Proposal Under Small Community Air Service Development Program,

Docket OST-2011-0119, San Angelo Regional Airport, August 1, 2011

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TABLE OF CONTENTS

1 Executive Summary .........................................................................................................1

1.1 Introduction................................................................................................................................. 1

2 San Angelo Regional Airport Background .....................................................................2

3 Air Service Development Strategic Plan .........................................................................9

3.1 Introduction................................................................................................................................. 9

3.2 Current Air Service Development............................................................................................... 9

4 Propos ed Funding Reques t...........................................................................................14

Appendix A: Summary Information ......................................................................................18

Appendix B: Letters of Support............................................................................................22
Proposal Under Small Community Air Service Development Program,

Docket OST-2011-0119, San Angelo Regional Airport, August 1, 2011

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1 EXECUTIVE SUMMARY

1.1 INTRODUCTION

The following application for federal funding is being filed in accordance with the requirements of and

pursuant to the Small Community Air Service Development Pilot Program, 49 U.S.C. 41743 et seq. The 

applicant is the San Angelo Regional Airport. The City of San Angelo has agreed to serve as the local 

sponsoring governmental entity for the requested grant.

San Angelo air service has been adversely affected by changes in the airline industry over the past few 

years. Service levels are now clearly deficient. San Angelo has the highest average one-way fare among 

airports in West Texas and service by only one airline to one major hub airport. 

The City of San Angelo, the San Angelo Regional Airport, and the San Angelo Chamber of Commerce 

(who have formed the Coalition for San Angelo Air Service Development) herein request a $500,000 

grant under the terms of the Small Community Air Service Development Program. The federal funds

being requested are being matched by a public/private contribution of $94,000 or 18.8% percent of the 

request amount.

Based on extensive market research, a community survey, leakage analysis, and significant community 

input, the region served by the San Angelo Regional Airport has a critical economic need for additional 

competitive access to a second major hub airport.

This proposal seeks to improve service to and from the San Angelo region by offering revenue 

guarantees, marketing assistance, and operating cost relief for new air service.
Proposal Under Small Community Air Service Development Program,

Docket OST-2011-0119, San Angelo Regional Airport, August 1, 2011

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2 SAN ANGELO REGIONAL AIRPORT BACKGROUND

The San Angelo Regional Airport (SJT) is a Non-Hub Airport, as designated by the FAA, which served

57,256 departing passengers in 2010. SJT ranked 252nd in the United States in terms of domestic O&D 

passengers in 2010.

Exhibit 2-1: San Angelo Regional Airport is Located in Wes t Texas

San Angelo is the trade and services hub of a 13 county area, supported by agriculture, manufacturing, 

education, business and health services, military, tourism, and retirement. Vibrant, growing businesses are 

located in San Angelo including Goodfellow Air Force Base, Ethicon (Johnson & Johnson), Sitel, 

Verizon, and the Shannon Health System.

Exhibit 2-2: San Angelo Overview

Metro Area Population 111,823

U.S. Population Rank 362nd

U.S. Domestic Travel Rank 252nd

Median Household Income 40,791 (2009)

Unemployment Rate 6.6%

5-Year Forecast Population Growth 0.5%

Source: US Census, Bureau of Labor Statistics, Woods & Poole

Dallas/

Ft. Worth

Houston

IAH

SJT
Proposal Under Small Community Air Service Development Program,

Docket OST-2011-0119, San Angelo Regional Airport, August 1, 2011

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The Airport serves the 13-county Concho Valley with a passenger catchment area of almost 384 thousand

within a two-hour drive time radius. 

Exhibit 2-3: Catchment Area Map

Source: SH&E Analysis

Currently, the San Angelo Regional Airport has limited nonstop service and high average one-way fares. 

San Angelo Regional Airport seeks to gain additional air service to a second major hub in order to 

increase the travel opportunities for the community and lower the cost of travel. The financial support of 

the Small Community Air Service Development Program will increase significantly the Airport’s chances 

of successfully securing additional service operated by a new entrant airline. 

San Angelo’s existing service pattern consists of three daily round-trip nonstop flights to Dallas/Ft. Worth 

(DFW). This route is served by American Airlines’ regional subsidiary American Eagle using a 64-seat 

ATR-72 with 2,688 weekly seats (departing plus arriving). 

Drive Time Area Cumulative

(hours) Population Population

0-1 122,878 122,878

1-2 261,000 383,878

2-3 609,288 993,166

3-4 5,211,738 6,204,904
Proposal Under Small Community Air Service Development Program,

Docket OST-2011-0119, San Angelo Regional Airport, August 1, 2011

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Exhibit 2-4: Current Nons top Service at San Angelo, J uly 2011

Source: OAG airline schedules

In addition to (and likely because of) low levels of air service, San Angelo has the highest average oneway fare in West Texas. San Angelo’s average one-way fare of $243 is 9.5% higher than the State 

average of $222. Both are factors in the proliferation of the current negative impact San Angelo’s air 

service has on economic development and the cost of securing air travel because of limited access and 

choices. It is the goal of San Angelo Regional Airport to utilize the Small Community Air Service Grant 

program in conjunction with the Airport’s innovative community partnerships to try and secure new 

additional air service to address one or all of these air service issues. 

Exhibit 2-5: Average One-Way Fares at Wes t Texas Airports , CY 2010

Note: Houston includes both HOU and IAH. Source: US DOT, O&D Survey

July 2011

Depart Arrive

Direction Market Time Time

To SJT DFW 9:30 10:40

DFW 13:40 14:50

DFW 20:35 21:50

From SJT DFW 7:30 8:50

DFW 11:10 12:30

DFW 15:20 16:45

Average Fares

Washington/ Las Los All

Rank Airport Code O&D Psgrs Revenue (000s) Population Baltimore Dallas Houston Vegas Angeles Orlando Markets

1 El Paso ELP 2,795,040 $521,894 800,647 $198 $143 $161 $129 $134 $157 $187

2 Lubbock LBB 993,870 $156,534 284,890 $195 $95 $122 $131 $161 $155 $157

3 Midland Odessa MAF 875,720 $142,881 274,002 $222 $86 $138 $136 $171 $169 $163

4 Amarillo AMA 776,760 $124,539 249,881 $209 $87 $142 $134 $180 $168 $160

5 Abilene ABI 141,910 $34,290 165,252 $244 $97 $157 $215 $270 $195 $242

6 San Angelo SJT 105,750 $25,720 111,823 $267 $101 $149 $240 $234 $209 $243

W. Texas Total 5,677,200 $1,004,219 1,886,495 $204 $105 $142 $134 $147 $162 $177

Texas Total 61,362,970 $13,592,867 25,145,561 $201 $111 $117 $152 $186 $142 $222

National Total 478,052,720 $92,646,607 308,745,538 $157 $167 $172 $154 $197 $124 $194

CY 2010
Proposal Under Small Community Air Service Development Program,

Docket OST-2011-0119, San Angelo Regional Airport, August 1, 2011

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In the last ten years, San Angelo’s nonstop service has undergone significant changes. The overall 

service level has fallen twice, once following September 11th, 2001 and again in 2008 due to high fuel 

prices. Both falls in service involved the loss of a second carrier (Continental) and access to a second hub 

(Houston Intercontinental).

Exhibit 2-6: His torical Scheduled Daily Departures from San Angelo, 2001-2011

Note: Sun Country offered 1 weekly flight using a narrowbody in 2009. Source: OAG airline schedules; Service levels shown for August of each year.

Exhibit 2-7: His torical Weekly Departing Seats from San Angelo Regional Airport

Note: September of each year shown. Source: OAG airline schedules

0

1

2

3

4

5

6

7

8

9

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Turboprop

Regional 

Jet

Jet

Daily 

Departures

0

500

1,000

1,500

2,000

2,500

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

DFW

IAH

Weekly

Seats
Proposal Under Small Community Air Service Development Program,

Docket OST-2011-0119, San Angelo Regional Airport, August 1, 2011

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Following the trends in air service, passenger traffic at SJT has also fluctuated. As a result of the service 

cutbacks, and the increase in average fares, San Angelo has not been able to sustain a prolonged period of 

passenger growth. 

Exhibit 2-8: His torical Pas s enger Traffic at San Angelo, 2000-2011E

Source: USDOT O&D Survey; San Angelo Regional Airport

Note: 2011 is annualized based on Jan-June 2011 airport data growth rates applied to 2010 USDOT data. Fare used for 2011 is 1Q 2011.

Continental first started San Angelo-Houston (IAH) service in April 2000 stimulating total O&D 

passengers to grow 22.7% in 2000 and average fares to drop by 8.1%. Passengers fell in 2001 by 6.6% 

following the withdrawal of Continental service in November 2001. With the re-entry of Continental 

service to Houston in September 2003, O&D passengers grew 9.7% annually (on average) from 2003 to 

2007. During the same period, average fares grew only 2.4% annually. In October 2008, Continental 

exited the San Angelo-Houston market causing annual airport passengers to drop 14.7% and average fares 

to rise by 21.0% compared to 2007.

Passengers from San Angelo travel to destinations across the US and abroad. Twenty-seven percent of 

the market travels to/from the Southwestern United States (with 20.6 % of the traffic remaining in Texas).

0

20

40

60

80

100

120

140

160

$0

$50

$100

$150

$200

$250

$300

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011E

O&D Passengers

(thousands) Average 

Fare
Proposal Under Small Community Air Service Development Program,

Docket OST-2011-0119, San Angelo Regional Airport, August 1, 2011

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Exhibit 2-9: San Angelo Domes tic O&D by Region, CY 2010

Source: US DOT, O&D Survey

Many of the top O&D destinations are themselves major hubs. Fifteen percent of the market is 

local traffic on the San Angelo-Dallas/Ft. Worth route.

Northeast

15%

Pacific

17%

Mountain

4%

Great Lakes

9%

Central

6%

Southwest

27%

Southeast

15%

Florida

8%

San

Angelo
Proposal Under Small Community Air Service Development Program,

Docket OST-2011-0119, San Angelo Regional Airport, August 1, 2011

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Exhibit 2-10: Top 10 O&D Markets

Source: US DOT, O&D Survey

In order to assist the San Angelo community in flying to these destinations, San Angelo Regional Airport

has begun an air service development program which has focused on obtaining service to additional major 

hub airports.

2010 O&D Share CAGR

Rank Market 2000 2010 2000 2010 '00-'10

1 Dallas/Fort Worth 17,100 16,100 18.0% 15.2% -0.6%

2 Washington/Baltimore 3,890 4,880 4.1% 4.6% 2.3%

3 Houston 9,180 3,120 9.7% 3.0% -10.2%

4 Las Vegas 2,370 3,000 2.5% 2.8% 2.4%

5 Orlando 1,330 2,530 1.4% 2.4% 6.6%

6 New York 2,990 2,330 3.2% 2.2% -2.5%

7 Atlanta 3,220 2,070 3.4% 2.0% -4.3%

8 Los Angeles 1,770 1,980 1.9% 1.9% 1.1%

9 Chicago 2,030 1,930 2.1% 1.8% -0.5%

10 Laughlin - 1,880 0.0% 1.8% -

Subtotal Top 10 43,880 39,820 46.3% 37.7% -1.0%

Other Domestic 46,960 60,280 49.5% 57.0% 2.5%

Other International 3,980 5,650 4.2% 5.3% 3.6%

Total 94,820 105,750 100% 100% 1.1%

Passengers
Proposal Under Small Community Air Service Development Program,

Docket OST-2011-0119, San Angelo Regional Airport, August 1, 2011

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3 AIR SERVICE DEVELOPMENT

STRATEGIC PLAN

3.1 INTRODUCTION

San Angelo Regional Airport is continually trying to address air service deficiencies and provide all 

airlines serving the SJT market the support required to ensure both short- and long-term success.

The proposed new incentive package to airlines provides an effective amount of marketing support and 

airport operational cost abatements for the first two years of new service. The strategic plan for meeting 

the community’s needs through the Small Community Air Service Development Program involves a 

public private partnership between San Angelo Regional Airport, the City of San Angelo, the City of San 

Angelo Development Corporation (COSADC), and the San Angelo Chamber of Commerce. These 

groups have formed the Coalition for San Angelo Air Service Development (“the Coalition”) which also 

includes prominent businesses from the community.

The Coalition was formed to complement the Airport’s efforts in marketing the airport to prospective 

airlines, local and regional businesses, visitors, and other users of the airport. Each member organization 

has provided resources to ensure that new air service opportunities are pursued quickly and jointly. 

The following section explains what steps the Coalition has taken so far in pursuing its goals and an 

action plan for attracting new hub service.

3.2 CURRENT AIR SERVICE DEVELOPMENT

In the spring of 2011, San Angelo Regional Airport implemented an air service development action plan 

after learning that its current, sole carrier American Airlines would be removing another flight from the 

daily schedule. The overarching goal of this plan was to attract service to another major US hub airport in 

order to enable the community to reach its desired destinations as well as provide easy connections for 

those traveling to San Angelo from across the United States. 

In order to reach this goal, the Airport defined the following steps:

1. Determine community priorities in air service

2. Define a goal for pursuing new or expanded service

3. Engage the community around a common goal

4. Gauge airline interest in San Angelo

5. Pursue service from target airlines

In order to pursue these objectives, the Airport hired outside consultants, ICF SH&E, to both conduct a 

community survey and aid in defining a strategy.
Proposal Under Small Community Air Service Development Program,

Docket OST-2011-0119, San Angelo Regional Airport, August 1, 2011

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Community Survey

In the first step, four surveys were completed for the San Angelo community:

 A passenger intercept survey

 Interviews of local business owners

 An online survey of community business travelers

 An online survey of community leisure travelers

This survey initiative was the first joint effort of the Coalition for San Angelo Air Service Development. 

Links to the online surveys were distributed via the City of San Angelo’s website, the City’s Facebook 

page, an e-mail from the Chamber of Commerce to its membership, and via personal emails from 

COSADC and city council members as well as local business owners. The Airport conducted the 

passenger intercept survey itself handing out surveys to passengers waiting in the departure lounge. The 

Chamber of Commerce provided contact information for the local business interviews.

The surveys were very successful: the online surveys received 311 responses; 114 passenger intercept 

surveys were collected, and 17 local businesses were interviewed. Not all responses were from residents 

of the greater San Angelo area, some inbound travelers responded as well. In all, 73% of the responses 

were collected from local residents reflecting a 92.3% confidence level, making certain that the surveys 

were representative of the community. 

The surveys revealed how local travelers and businesses currently use the airport as well as their priorities 

for new service. Major insights from the surveys are shown on the following pages.

Many passengers currently use alternative, regional airports due to lack of service at SJT.

Exhibit 3-1: Dis tribution of San Angelo Area Pas s engers by Airport Us ed

Source: San Angelo Regional Community Survey

San Angelo 

(SJT)

71%

Dallas/Ft. 

Worth (DFW)

13%

Midland 

(MAF)

9%

San Antonio 

(SAT)

5%

Austin (AUS)

2%
Proposal Under Small Community Air Service Development Program,

Docket OST-2011-0119, San Angelo Regional Airport, August 1, 2011

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Airfare cost is the most important factor in deciding which airport travelers use.

Exhibit 3-2: Ranking of Reas ons for Us ing Alternative Airports

Question: Rank the importance of the following factors 

in determining which airport you fly from

(Most Important = 6, Least Important = 1)

Source: San Angelo Regional Community Survey

2.25

3.21

3.38

3.94

4.09

4.67

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5

Parking cost

Availability of carrier choices

Airport convenience

Availability of flight times

Closest airport

Airfare cost

Average Rank
Proposal Under Small Community Air Service Development Program,

Docket OST-2011-0119, San Angelo Regional Airport, August 1, 2011

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Increased service frequency and more carriers are the main areas that survey respondents would like 

San Angelo Regional Airport to improve.

Exhibit 3-3: Community Priorities

Source: San Angelo Regional Community Survey

Defining a Goal

The results from the survey initiative clearly demonstrated that the community would like a wider variety 

of airlines and nonstop service to choose from. San Angelo Regional Airport and the City of San Angelo 

then conducted an analysis (via outside consultants) of O&D passenger data to determine which hubs 

would enable the most San Angelo residents to reach their final destination. This analysis revealed 

several potential hubs including (but not limited to): Houston Intercontinental (IAH), Denver (DEN), 

Atlanta (ATL), Memphis (MEM), and Phoenix (PHX) among others. The Airport then defined its goal as 

obtaining affordable, self-sustaining service to a second major hub airport.

Engaging the Community

The Airport has been working to generate community support around the issue of air service 

development. Airport officials have submitted op-eds to the local newspaper, been interviewed on the 

local news, and presented their air service development strategy at City Council meetings. In addition, 

the Airport has generated support for its pursuit of new service through meetings with the Chamber of 

Commerce and prominent local businessmen.

76.2%

63.2%

47.5%

26.1%

20.1% 17.5% 17.0% 16.2% 13.3%

6.0% 1.8% 0.5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Share of 

Responses
Proposal Under Small Community Air Service Development Program,

Docket OST-2011-0119, San Angelo Regional Airport, August 1, 2011

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Such meetings led to the formation of a coalition together with the City and the Chamber of Commerce in 

order to encourage community dialogue regarding airport issues. The success of any new air service 

introduced at the airport will depend on community support. 

Gauging Airline Interes t

In order to gauge airline interest in serving San Angelo, the Airport traveled to the annual Jumpstart 

Conference in June 2011. The Airport met with five different airlines to present San Angelo as a possible 

destination for their service. Overall, the meetings were successful and helped the Airport to narrow 

down its list of target carriers based on perceived carrier interest.

Purs uing Service from Target Airlines

San Angelo Regional Airport is now pursuing leads generated from the Jumpstart conference including a 

meeting with United Airlines scheduled for August 5th. In addition, the Airport has kept an open dialogue 

with the existing carrier, American Airlines, regarding the potential for expanded service. 

The Airport has created a program to help carriers begin new service to San Angelo Regional Airport. It 

is this program that would benefit the most from the SCASDP grant. Grant funds would be use to offset 

an airline’s cost of operating at San Angelo Regional Airport, including landing fees and ground 

handling. Without the grant, the Airport will not be able to offer the full benefits of the program to 

airlines.

The next section describes the Airport’s grant request.
Proposal Under Small Community Air Service Development Program,

Docket OST-2011-0119, San Angelo Regional Airport, August 1, 2011

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4 PROPOSED FUNDING REQUEST

The San Angelo Regional Airport, under the direction of the Airport’s Director, will have responsibility 

for development and management of this program on the local level. The City of San Angelo will be 

designated as the legal sponsor that will accept program reimbursements.

The San Angelo Regional Airport herein requests a $500,000 grant under the terms of the Small 

Community Air Service Development Program to attempt to secure affordable, self-sustaining, nonstop 

service to a second major U.S. hub airport. The Airport is pursuing several airlines that could operate 

such service: United Airlines to Houston Intercontinental (IAH) or Denver (DEN), Delta Airlines to 

Atlanta (ATL) or Memphis (MEM), Allegiant to Las Vegas (LAS)1

The $500,000 of requested federal money is being matched by public/private contributions of $94,000 or 

18.8% of the federal funds requested.

, and U.S. Airways to Phoenix (PHX).

Through discussions that the Airport has had with target airlines, the Airport has identified three major 

factors that heavily influence an airline’s decision to serve San Angelo:

1. Revenue potential (route economics)

2. Airport operating costs (landing fees, ground handling charges, etc.)

3. Public awareness costs (marketing and promotion)

The first year of a new service is critical to an airline being successful in a new market. A SCASDP grant 

would help San Angelo Regional Airport to share the start-up risk of new service; without this grant, the 

community would be unable to share as much of the risk and thus decrease the likelihood of a new carrier 

entering the market. The federal funds would be used to provide a revenue safety net and offset the 

airline’s operating costs. 

Approximately $425,000 of the grant would be used to provide revenue guarantees to a carrier providing 

service to U.S. hub. The airline would be able to draw on these funds to cover any revenue short-fall that 

may occur in the first year of service. The details of the payment terms to the airline will be negotiated 

with the prospective airline once San Angelo has received notice from the Department of Transportation 

that it has been awarded its requested grant.

In order to take advantage of the revenue guarantee funds, the participating airline will have to make the 

following commitments:

 Provide a schedule of at least 2 daily departures to its hub with timely connections to 

connecting banks

 

1 Although Allegiant does not operate LAS as a connecting hub, service to Las Vegas would allow San Angelo residents to 

interline onto one of Las Vegas’ 450 daily departing flights.
Proposal Under Small Community Air Service Development Program,

Docket OST-2011-0119, San Angelo Regional Airport, August 1, 2011

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 The airline must agree to serve the Airport for at least one year

 The airline must meet operational reliability and schedule standards

 The airline must provide fares that are comparable to fares charged from similar West Texas 

communities on their system

Exhibit 4-1: Program Funding Reques t Breakdown

The Coalition is confident that once new service is started and extensively promoted to the public, it will 

become self-sustainable and the revenue guarantees will no longer be needed. The community has 

demonstrated considerable interest in new service and if fares similar to those charged at other West 

Texas airports are charged for flights from San Angelo (as will be required in the payment terms 

negotiated with the entrant airline), the Airport is confident that revenue will be high enough to cover the 

airline’s costs. If at the end of the first year of service, any portion of the revenue guarantee funds were to 

remain unused, the Airport may request from the Department of Transportation the option to continue to 

provide revenue guarantees in the second year of service to the same carrier or to provide revenue 

guarantees to another entrant carrier. If the revenue guarantee funds expire before the end of the grant 

term, the Coalition may seek funds from the City of San Angelo Development Corporation (COSADC) in 

order to continue the air service until it is self-sustainable. It is the goal of the Coalition to convert new 

service to self-sustaining as soon as possible.

In the first year of operation, the Airport will contribute $34,000 of in-kind funds by waiving landing fees 

(approximately $22,000) and providing fuel for ground support equipment (GSE) free-of-charge 

(approximately $12,000). In addition, the Airport will reimburse the carrier up to $20,000 for aircraft turn 

costs (i.e. ground handling). This $20,000 will be comprised of $5,000 from the City and $15,000 from 

the grant. In the second year of operation, these operating costs will be covered by $54,000 from the 

grant.

Airport Public Private Private Federal Funds

Year Category In Kind Dollars In Kind Dollars Requested

1 Airline Revenue Guarantee $ 425,000

1 Airline's Airport Operating Costs $34,000 $ 5,000 $ 15,000

2 Airline's Airport Operating Costs $ 54,000

1 Marketing Support $ 5,000 $15,000 $10,000

2 Marketing Support $25,000 $ 6,000

Total Program Funding $34,000 $35,000 $15,000 $10,000 $ 500,000

Total Federal Funds Requested by San Angelo $ 500,000

Total Matching Public and Private Funds/Contributions $ 94,000
Proposal Under Small Community Air Service Development Program,

Docket OST-2011-0119, San Angelo Regional Airport, August 1, 2011

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During both the first and second years of operation, approximately $30,000 will be spent on a marketing 

campaign from funds provided by the City and the Chamber of Commerce. The campaign will be 

targeted both toward informing the residents of San Angelo regarding the new service offering as well as 

residents of nearby towns who may use an alternative airport today. The marketing campaign is expected 

to include a combination of TV, newspaper, radio, billboard, and community project (e.g. movie theaters 

and ball parks) advertisements. The Chamber of Commerce would be responsible for much of the 

marketing and plans to place advertisements in Texas Monthly, Family Circle, Texas Highways, inserts 

and publications of the Texas Tourism Industry Association, regional newspapers, and publications that 

target nature tourism, historic tourism, and hunting.

In addition to the public and private funds described above, the Airport will use any other means feasible 

and within budget to promote and support any new service. As the designated legal sponsor, the City of 

San Angelo has requested its private community partner, the Chamber of Commerce, to submit its 

contribution plan (see the letter of support from the Chamber in Appendix B). In order to ensure that is 

own funding contribution is spent in the manner proposed, the city will also require its partners (both the

Airport and the Chamber) to provide a paper trail of invoices and advertising tear sheets (proof of 

placement of advertisements). In addition, the Airport will brief the City and the Chamber on a monthly 

basis via City Council meetings or meetings of the City of San Angelo Development Corporation 

(COSADC). The amount of money remaining in the revenue guarantee fund will serve as a metric to be 

monitored and reported. 

The City will set a project goal of securing the targeted new service within 24 months from the date of 

receiving a commitment of funds from the Department of Transportation. Within this period, there are 

several milestones, as shown in the table below.

Number Milestone Timing (Goal)

1 Initiation of hub service by a new airline 3 months from grant commitment

2 Initial evaluation of new service 6 months from initiation of service

3 Second evaluation of new service 12 months from initiation of service

4 Project completion 24 months from grant commitment

The first milestone occurs three months following the grant signing; by this point the Coalition plans to 

have negotiated a contract with a carrier to bring hub service to San Angelo Regional Airport in return for 

the incentive package. If after three months, such a contract has not been executed the Coalition will 

evaluate progress and re-evaluate the strategy timing.

The second milestone will occur six months following the initiation of new air service. The Coalition 

will assess the amount of the revenue guarantee funds that have been paid to the airline and evaluate the 

potential for the service to be self-sustaining at the end of its first year of operation.

The third milestone occurs at the end of the first year of new service. At this point, the level of resources 

remaining in the revenue guarantee fund will be identified. If all of the funds have been exhausted (i.e. 
Proposal Under Small Community Air Service Development Program,

Docket OST-2011-0119, San Angelo Regional Airport, August 1, 2011

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the service is not self-sustaining), the Coalition will decide if it will continue to provide revenue 

guarantees from its own funds. If funds remain, the Coalition will request the option to apply these funds 

towards another entrant carrier offering hub service.

The fourth and final milestone will occur at 24 months from commitment of the grant funds. At this 

point, if any grant funds remain, the Coalition may petition the DOT to extend the grant term in order to 

utilize the unused funds.

On an as needed basis, the Airport will provide status reports to the DOT on how negotiations are 

progressing. If it looks as if the objective of obtaining service to a second hub within 24 months will not 

be reached, the City would like the option to request an extension to the grant terms. 

Exhibit 4-2: Project Timeline

Once the new service is secured and the Department of Transportation has authorized funds, the Airport 

will keep the Department advised on the success of obtaining new service via such reports as the 

Department may require. In addition, the Airport will ask for an evaluation report from any entrant airline 

of the effectiveness of the program.

Task 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Carrier Negotiations

New Service Operated

Revenue Guarantee Availability

Marketing Campaign

Waiver of Landing Fees

GSE Fuel Provided Free-of-Charge

Ground Handling Reimbursement

Status Reports to Community

Months from Commitment of Grant Funds
Appendix A:

Summary 

Information
Proposal Under Small Community Air Service Development Program,

Docket OST-2011-0119, San Angelo Regional Airport, August 1, 2011

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SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT-OST-20110119

All applicants 

SUMMARY INFORMATION

must

A. APPLICANT INFORMATION: (CHECK ALL THAT APPLY)

submit this information with their proposal, along with a completed form 

SF424 on http://www.grants.gov.

Not a Consortium Interstate Consortium Intrastate Consortium

Community now receives EAS Subsidy

Community (or Consortium member) previously received a Small Community Grant

If a previous recipient: Date of grant: ____ Expiration date of grant:

B. PUBLIC/PRIVATE PARTNERSHIPS: (LIST ORGANIZATION NAMES)

____ 

PUBLIC PRIVATE

1.San Angelo Regional Airport 1. San Angelo Chamber of Commerce

2.City of San Angelo 2.

3.City of San Angelo Development 

Corporation

3.

4. 4.

5. 5.

C. PROJECT PROPOSAL: (CHECK ALL THAT APPLY)

Marketing Upgrade Aircraft New Route

Travel Bank Service Restoration Subsidy

Surface Transportation Regional Service Revenue Guarantee

Launch New Carrier Start-up Cost Offset First Service

Study Secure Additional Service Other (explain below)

___________________________________________________________________________________

___________________________________________________________________________________
Proposal Under Small Community Air Service Development Program,

Docket OST-2011-0119, San Angelo Regional Airport, August 1, 2011

20

D. EXISTING LANDING AIDS AT LOCAL AIRPORT

Full ILS Outer/Middle Marker Published Instrument Approach

Localizer Other (specify)

E. PROJECT COST: DO NOT ENTER TEXT IN SHADED AREA

LINE DESCRIPTION SUBTOTAL TOTAL AMOUNT

1 Federal amount requested $500,000.00

2 State cash financial contributions $0.00

Local cash financial contribution

3a Airport cash funds $0.00

3b Non-airport cash funds $45,000.00

3 Total local cash funds (3a + 3b) $45,000.00

4 TOTAL CASH FUNDING (1+2+3) $545,000.00

In-Kind contribution

5a Airport In-Kind contribution** $34,000.00

5b Other In-Kind contribution** $15,000.00

5 TOTAL IN-KIND CONTRIBUTION

(7a +7b)

$49,000.00

6 TOTAL PROJECT COST (4+8) $594,000.00

F. IN-KIND CONTRIBUTIONS**

For funds in lines 7a (Airport In-Kind contribution) and 7b (Other In-Kind contribution), 

please describe the source(s) of fund(s) for each.

Airport In-Kind contributions will be in the form of waived landing fees and free ground service 

equipment fuel. Other In-Kind contributions will be provided by the San Angelo Chamber of 

Commerce and will include marketing and promotion of new air service.
Proposal Under Small Community Air Service Development Program,

Docket OST-2011-0119, San Angelo Regional Airport, August 1, 2011

21

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

PROCESS?

a. This application was made available to the State under the Executive Order 12372 

Process for review on (date) ________.

b. Program is subject to E.O. 12372, but has not been selected by the State for 

review.

c. Program is not covered by E.O. 12372.

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

EXPLANATION)

No Yes (explain)

___________________________________________________________________________

___________________________________________________________________________
Proposal Under Small Community Air Service Development Program,

Docket OST-2011-0119, San Angelo Regional Airport, August 1, 2011

22

Appendix B:

Letters of Support