Proposal Under the: Small Community Air Service Development Program Docket

Tax ID Number: 23

2-digit Congressional District Code:

Charles R. Everett, Jr

Lehigh

Proposal Under the: Small Community Air Service Development Program Docket

OST-2012-0069

Duns Number: 045140415

Tax ID Number: 23-6002608

digit Congressional District Code: PA-005

Legal Sponsor:

Charles R. Everett, Jr., Executive Director

Lehigh-Northampton Airport Authority

3311 Airport Road

Allentown, PA 18109

Tel: (610) 266-6001

Fax: (610) 264-0115

E-mail: ceverett@lnaa.com

Proposal Under the: Small Community Air Service Development Program Docket
Lehigh

~ -Northampton 

(AIRPORT AUTHORITY\ Lehigh Valley International Airport Queen City Airport Braden Airpark 

June 11,2012 

Aloha Ley 

Associate Director 

Department of Transportation 

1200 New Jersey Ave, S.E. 

Washington, DC 20590 

3311 Airport Road, Allentown, PA 18109 610.266.6001 Fax. 610.264.0115 www.llylvia.com 

Subj ect: Small Community Air Service Development Program - Docket OST-2012-0069 

Application for the Lehigh-Northampton Airport Authority - Lehigh Valley 

International Airport (ABE) 

Dear Associate Director Ley, 

On behalf of the Lehigh-Northampton Airport Authority, operator of the Lehigh Valley 

International Airport, I am pleased to submit for your consideration our 2012 grant application to 

the Small Community Air Service Development Program. This application, if chosen, will help 

move the Airport one step closer to its goal of increasing access to the national aviation system 

for all residents ofNortheastern Pennsylvania and Western New Jersey. 

The Lehigh Valley International Airport, which serves a catchment area of over 1.8 million 

people, as well as the third largest metropolitan area in Pennsylvania, has very limited air service 

to the west coast with high fare service to Detroit and Chicago. 

The authority has an ongoing partnership with many of the region's stakeholders including 

Discover Lehigh Valley, Greater Lehigh Valley Chamber of Commerce and the Lehigh Valley 

Economic Development Corporation to ensure that new air service at Lehigh Valley 

International Airport is a success. This application requests $300,000 from the Department to 

fund a revenue guarantee program to attract this new service which will not only increase access 

to the national aviation system but also to reduce leakage to Newark Liberty International 

Airport and Philadelphia International Airport thereby reducing congestion at those airports. 

If you have any questions or concerns regarding this application, please contact me, the 

designated legal sponsor at ( 61 0) 266-6001. 

Thank you in advance for your consideration. 

Very Truly Y out;L, .JJ ~Jt.~rtr:' r· ~S!!~~tor 
June 6, 2012 

Aloha ley 

Associate Director 

Department of Transportation 

Small Community Program, W86-310 

1200 New Jersey Ave, SE 

Washington, DC 20590 

Dear Associate Director Ley: 

Frontier Airlines, Inc. 

Frontier Center One 

7001 Tower Road 

Denver, co 80249 

p 720.374.4200 

F 720.374.4375 

frontierairlines.com 

Frontier Airlines is pleased to support the application of Lehigh Valley International Airport 

(ABE) for a SCASDG aimed at attracting new low fare nonstop service to Denver. 

While Frontier can provide no assurances regarding future service at Lehigh Valley, the 

availability of SCASDG funds will definitely factor positively in our evaluation of the market. This is 

important given the challenges facing the u.s. domestic airline industry resulting from costs 

associated with new market development, the perpetual uncertainty surrounding oil prices and the 

risk associated with flying a route of over 1,500 miles. 

For these reasons, Frontier Airlines supports the SCASDG application of Lehigh Valley 

International Airport (ABE) and asks that you give it favorable consideration. Please feel free to 

contact me should you have any questions. 

Sincerely, 

G eg Aretakis 

Vice President, Network and Revenue 

Frontier Airlines 
I. Lehigh Valley International Airport Air Service Opportunities

The Lehigh Valley International Airport (ABE) catchment area encompasses a 

large portion of northeastern Pennsylvania and western New Jersey that boasts a 

population of approximately 1.8 million people. Despite this large population base, 

the Airport is without service from a low cost carrier to the west coast. This has 

led to airfares that are higher than the national and regional averages. As the region

continues to grow, the need for more air service at ABE becomes increasingly 

necessary.

Presently, a vast majority of the Lehigh Valley International Airport’s air service is

leaking to Philadelphia International Airport and Newark International Airport. In 

fact, 78% of the travelers who live within the Airport’s catchment area choose 

those two airports over their hometown airport. Therefore, Lehigh Valley 

International Airport only captures 22% of the travelers who reside within its 40 

mile catchment area. 

The Airport realizes the best way to reverse the passenger leakage, is for fares in 

the catchment area to be on par with the fares found at Philadelphia and Newark, 

as well as, better air service to properly support all of the regional demand for 

nationwide connectivity. 

Currently, ABE has high airfares and limited air service to hub airports that offer 

connections to multiple destinations going to the west coast. For example, United

is the only carrier providing service for the airport with its daily flights to Chicago. 

Despite United’s service to the Chicago hub, the number of destinations available 

via its Chicago hub is not enough service to properly support all of the regional 

demand. 

The proposal being presented outlines a comprehensive program that will cure this 

air service deficiency by attracting another carrier like Frontier Airlines to offer 

more comprehensive nationwide connectivity via its Denver hub thereby 

effectively increasing ABE’s access to the national and international air 

transportation systems and serving as a further catalyst for economic growth in this 

already rapidly expanding region. It is expected that the potential destination(s) to 

be served by this new carrier will provide ABE with air service and connecting 
Lehigh-Northampton Airport Authority – Lehigh Valley International Airport

Small Community Air Service Development Program Grant Application

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options to parts of the country that currently are difficult to access via United’s 

Chicago service, thereby limiting the level of competition between the carriers. 

This level of geographic separation should ensure that this SCASDP grant money 

is not used to subsidize a competitor to ABE’s current air service.

In 2010, the Airport and the community joined together and crafted an innovative 

community outreach program. This group, known as the Lehigh Valley 

International Airport’s Air Service Focus Group worked diligently in trying to 

recruit Southwest Airlines to continue their service to Orlando International 

Airport and specifically add service to Chicago/Midway, Atlanta Hartsfield 

International Airport and Ft. Lauderdale International Airport. While this effort 

was not successful, it did bring the community together and focused on the 

necessity to not only support the airport but to grow air service at ABE. 

The strength of ABE’s current and projected demographics, along with its 

expanding tourism industry and the relative difficulty that both the community and 

inbound travelers face in accessing convenient air service to and from the region,

suggests that ABE presents a viable commercial opportunity for the right airline 

with the right equipment in the right market. 

The Airport has had discussions with several airlines and consequently has found 

many potential suitors to provide new air service; however, due to current 

economic conditions these suitors find new air service to ABE or any new location

to be a risky proposition that requires some sort of financial assistance to offset the

risks associated with the new service. To address these concerns, the Airport has

developed a strong community support package that includes assistance with startup costs, and a comprehensive marketing and advertising program. The Airport is 

requesting a $300,000 grant to fund this program while the Airport will provide 

$138,000 worth of marketing and additional landing fee waivers for up to one year 

to assist in mitigating startup costs. The Lehigh-Northampton Airport Authority is 

confident that, with the help of a Small Community Air Service Development 

Program grant, it will be in a strong position to attract another new hub service by 

a network carrier such as Frontier to Denver, thereby providing new access to a 

low cost network airline hub for passengers throughout the ABE catchment area.
II. The Lehigh Valley Market

A Region in Need of Convenient Air Service Options

Situated in the northeastern part

Airport’s primary catchment area

Northampton, Montgomery, Monroe, 

which are Hunterdon and Warren counties

region have easier access to 

International to the south or N

 Location of 

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Market

Convenient Air Service Options

northeastern part of Pennsylvania, Lehigh Valley

catchment area includes eight counties: Berks, Bucks

Montgomery, Monroe, and the western portions of 

which are Hunterdon and Warren counties. Over 1.8 million people 

region have easier access to Lehigh Valley International than either Philadelphia 

or Newark Liberty International to the east.

Location of Lehigh Valley International Airport

Lehigh Valley International Airport

Program Grant Application

of Pennsylvania, Lehigh Valley International 

Bucks, Lehigh, 

of New Jersey 

people living in this 

either Philadelphia 

.
Review of Local Demographics Shows Demand for Lehigh Valley Service

Lehigh Valley

Primary Catchment (identified in the darker green or 20 

Total Number of Households

Average Household Income

Total Catchment (identified in the light green or 40 miles 

Total Number of Households

Average Household Income

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Demographics Shows Demand for Lehigh Valley Service

Lehigh Valley Catchment Area

Primary Catchment (identified in the darker green or 20 

miles from ABE):

Total Population

787,194

Total Number of Households

299,915

Average Household Income

$46,434

Total Catchment (identified in the light green or 40 miles 

from ABE):

Total Population

1,844,491

Total Number of Households

698,982

Average Household Income

$50,083

Lehigh Valley International Airport

Program Grant Application

Demographics Shows Demand for Lehigh Valley Service

Primary Catchment (identified in the darker green or 20 

Total Catchment (identified in the light green or 40 miles 
Leakage to other Airports within ABE’s

PHL captures 24% of the 

EWR captures 20% and JFK captures 17%

• ABE captures

• NYC combined captures 45%

Source: U.S. DOT O&D Passenger Survey & Adjusted MIDT Passenger Booking Data (YE 2Q 2011)

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Leakage to other Airports within ABE’s Total Catchment Area:

PHL captures 24% of the bookings made in the catchment area 

EWR captures 20% and JFK captures 17%

ABE captures only 22% 

NYC combined captures 45%

ABE Total O&D

22%

PHL

24%

EWR

20%

JFK

17%

LGA

8%

BWI

7%

MDT

1%

AVP,ACY,LNS

1%

Source: U.S. DOT O&D Passenger Survey & Adjusted MIDT Passenger Booking Data (YE 2Q 2011)

Lehigh Valley International Airport

Program Grant Application

bookings made in the catchment area 

Source: U.S. DOT O&D Passenger Survey & Adjusted MIDT Passenger Booking Data (YE 2Q 2011)
Catchment Area Leakage 

Due to high local fares that are not competitive with fares found at Philadelphia 

and Newark, ABE struggles to draw passengers from each and every community in 

the Lehigh Valley Region. While the Airport’s most recent passenger 

retention/leakage study shows that the majority 

the primary catchment area, the Airport retains just 22% of the market. Nearly all 

of the travelers chose to fly from Philadelphia (24%) and Newark (20%) instead of 

the airport in their own backyard. Therefore 

traffic within their primary catchment area

Reading

Leakage

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Catchment Area Leakage Concentrations

es that are not competitive with fares found at Philadelphia 

and Newark, ABE struggles to draw passengers from each and every community in 

the Lehigh Valley Region. While the Airport’s most recent passenger 

retention/leakage study shows that the majority of the travelers are coming from 

the primary catchment area, the Airport retains just 22% of the market. Nearly all 

of the travelers chose to fly from Philadelphia (24%) and Newark (20%) instead of 

the airport in their own backyard. Therefore ABE is losing 44% of the potential 

traffic within their primary catchment area to just those two competing airports

Lehigh Valley

Leakage

Northern Philadelphia 

Lehigh Valley International Airport

Program Grant Application

es that are not competitive with fares found at Philadelphia 

and Newark, ABE struggles to draw passengers from each and every community in 

the Lehigh Valley Region. While the Airport’s most recent passenger 

of the travelers are coming from 

the primary catchment area, the Airport retains just 22% of the market. Nearly all 

of the travelers chose to fly from Philadelphia (24%) and Newark (20%) instead of 

ng 44% of the potential 

to just those two competing airports.

Lehigh Valley

Leakage

Northern Philadelphia 

Suburb Leakage
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The passenger leakage from ABE will only continue as long as the number of seats 

available at the Airport continues to decline, and as long as average fares found at 

Philadelphia and Newark are significantly less than the average fares at ABE. The 

Airport must continue to strategize to recruit a low cost carrier to serve west coast 

markets to the Lehigh Valley Region to bring down fares and reduce the leakage to 

other airports within its catchment area. 
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The Lehigh Valley’s Economic Base is strong and businesses continue to relocate 

to the region because of the following:

 Diverse business clusters focused on services and technology

 Affordable labor pool

 Friendly regulatory environment

 Sizable investments in business development

 Better cost of living, affordable real estate, lower taxes

 Migration of NY, NJ & Philadelphia businesses along with new start-ups

 41,000 net new jobs created between 1996- 4Q2009

These are all factors that create a favorable economic environment for sustainable 

new air service at ABE.

One of the many factors driving the Lehigh Valley area’s growth is a migration of 

residents from the Philadelphia Metropolitan and New York City Areas. They are 

attracted by the lower cost of living in and around the Lehigh Valley and the 

relatively easy commute to Philadelphia and New York City. The demographic 

changes occurring in the region are part of a larger trend of migration from the 

congested high cost areas in and around Philadelphia to less expensive suburban 

areas. In fact some of the fastest growing counties in Pennsylvania are Lehigh & 

Northampton counties. The region is the third largest metropolitan region in the 

state.

Working closely with the Lehigh Valley Economic Development Corporation, the 

Lehigh Valley Partnership is a committee of business people in the Lehigh Valley 

organized to mobilize both private and public resources to respond to the needs of 

the community. The mission is to promote selected initiatives which will improve 

the quality of life and the economic prospects for the people of the Lehigh Valley.
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Small Community Air Service Development Program Grant Application

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The region also has a large national and international presence of companies based 

in the Lehigh Valley. To name a few, they include, Air Products & Chemicals, 

Amazon.com, Crayola LLC, Buckeye Partners, Heidelberg Cement, Just Born, 

Lutron Electronics, Mack Trucks, Olympus Corporation USA, PPL Corporation, 

Rodale Press, Synchronoss Technologies and many others.

The Lehigh Valley has a favorable business climate:
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Since July of 2010, the top employers in the region formed the Air Service Focus 

Group. This is a hardworking group of dedicated employees of these corporations 

that are working with Lehigh Valley International Airport to understand and 

support the airport’s vision to provide for the current and future air transportation 

needs of the greater region. This group consists of representatives from the area’s 

major corporations, health networks, colleges and universities, the Chamber of 

Commerce, Convention and Visitors’ Bureaus, as well as, representatives from 

ABE. These members were assigned their position on the Air Service Focus 

Group by their organization’s CEO or President.

The Group meets on a monthly basis to discuss current initiatives, ABE operational 

updates and identifying future initiatives. 

The Air Service Focus Group Mission Statement is the following:

To: 

Support the LVIA vision to provide for the current and future air transportation 

needs of the greater Lehigh Valley Region in a safe, efficient and cost effective 

manner.

By: 

Sharing current and future corporate and transient travel patterns and needs to jointly 

attract and grow airline service.

So That: 

Lehigh Valley business and community travel requirements and LVIA future 

initiatives are aligned.
The Air Service Focus Group demonstrates the commitment and cohesiveness of 

the entire Lehigh Valley community towards ensuring th

business and community travel requirements and Lehigh Valley International 

Airport future initiatives are aligned and working for the benefit of all involved.

Air Service Focus Group

Despite ABE strong economic connection to tourism

The Air Service Focus Group Members 

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Small Community Air Service Development Program Grant Application

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he Air Service Focus Group demonstrates the commitment and cohesiveness of 

the entire Lehigh Valley community towards ensuring that the Lehigh Valley 

business and community travel requirements and Lehigh Valley International 

initiatives are aligned and working for the benefit of all involved.

strong economic connection to tourism, the ABE

Air Service Focus Group Members Represent

Lehigh Valley International Airport

Program Grant Application

he Air Service Focus Group demonstrates the commitment and cohesiveness of 

at the Lehigh Valley 

business and community travel requirements and Lehigh Valley International 

initiatives are aligned and working for the benefit of all involved.

Represent:
The Lehigh Valley is also a popular entertainment setting for cultural enthusiasts, 

filled with art museums and galleries, historical sites, and scenic covered bridges 

not to mention the recent tourism growth from the Sands Casino Resort & 

Entertainment Center in Bethlehem. 

Major Attractions and Events include:

 ArtsQuest Campus –

square foot arts & entertainment center.

 Musikfest – 10 day music festival, with over 1 million visitors each year, 

hosted by ArtsQuest.

 The Sands Casino

 NASCAR Pocono Raceway

 Trump National Golf Course

 The Lehigh Valley IronPigs AAA Minor League Baseball 

 New Ice Hockey Arena in Downtown Allentown

• 8,000

• 200,000 sq. ft. convention & event center

• Targeted for 2013

• $100,000 million

 The Sands Casino & Resort is growing

• 50,000 square feet

• Opened Spring 2012

• Outlet Shopping

Lehigh-Northampton Authority – Lehigh Valley International Airport

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The Lehigh Valley is also a popular entertainment setting for cultural enthusiasts, 

filled with art museums and galleries, historical sites, and scenic covered bridges 

not to mention the recent tourism growth from the Sands Casino Resort & 

nter in Bethlehem. 

vents include:

Formerly Bethlehem Steel plant site, features a 65,000 

square foot arts & entertainment center.

10 day music festival, with over 1 million visitors each year, 

NASCAR Pocono Raceway

Trump National Golf Course

The Lehigh Valley IronPigs AAA Minor League Baseball 

New Ice Hockey Arena in Downtown Allentown

– 10,000 seat arena

200,000 sq. ft. convention & event center

Targeted for 2013

$100,000 million-plus investment

The Sands Casino & Resort is growing

50,000 square feet

Opened Spring 2012

Outlet Shopping

Lehigh Valley International Airport

Program Grant Application

The Lehigh Valley is also a popular entertainment setting for cultural enthusiasts, 

filled with art museums and galleries, historical sites, and scenic covered bridges 

not to mention the recent tourism growth from the Sands Casino Resort & 

Formerly Bethlehem Steel plant site, features a 65,000 

10 day music festival, with over 1 million visitors each year, 
Lehigh-Northampton Authority – Lehigh Valley International Airport

Small Community Air Service Development Program Grant Application

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Current Options: LVIA Scheduled Airline Service:

 TOTAL 27 1,628

Current Options for Lehigh Valley Passengers:

Carrier Airport Daily Flights Daily Seats

Air

Canada Toronto 2 38

AirTran Orlando Int’l 2 274

Allegiant Orlando/Sanford 4/week 86 (Avg.)

St. Petersburg 2/week 43 (Avg.)

Myrtle Beach 2/week 43 (Avg.)

Delta Atlanta 4 200

Detroit 4 200

Frontier Orlando Int’l. 2/week 38 (Avg.)

United Washington Dulles 4 136

Chicago 3 150

USAirways Charlotte 3 196

Philadelphia 5 224
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With limited access to airline hubs from ABE today, recent studies indicate that 

roughly 78% of the ABE air traveler market utilizes either Philadelphia 

International Airport or Newark Liberty International Airport for their air travel 

needs. The close distances between the ABE area and the Philadelphia and 

Newark airports are not a reason to deny ABE air service. Looking at distance 

alone ignores the reality that the roads between ABE and both Philadelphia and 

Newark airports are highly congested, a situation that will only worsen due to the 

population shift to the Lehigh Valley Region that will create increased commuter 

traffic. The road situation – at certain times of day is near gridlock.

Because many ABE area residents often keep their jobs in the Philadelphia and 

New York City areas, congestion on the main routes between the cities is 

increasing. Philadelphia is by far the closest large airport to ABE (66 miles) while 

Newark airport (78 miles) and New York metro traffic can cause large delays the 

closer to Newark airport one gets. These distances require travelers to allow close 

to three hours of time before their flight for travel to Philadelphia and at least two 

hours of drive time for Newark. Often additional buffer time must be built-in for 

potential gridlock during rush hour times. The ability to avoid this drive to 

Philadelphia or Newark would be a strong selling point for local residents to use 

new direct service from ABE and would be an even stronger selling point for 

inbound tourists who are unfamiliar with the area thereby making the drive all the 

more inconvenient and cumbersome. In fact, it is safe to assume that a certain 

portion of potential ABE tourists never travel to the region simply because of this 

hassle and with proper air service at Lehigh Valley International Airport those 

tourists may finally choose to visit the area.

Based on the information already presented in this application it is obvious that the 

Lehigh Valley and Philadelphia have a symbiotic relationship. As a suburb to 

Philadelphia, the Lehigh Valley area represents nearly 20% of the population of the 

Philadelphia DMA. With the assistance of this air service development grant, and

the incentive package created to entice Frontier Airlines to operate new service to 

Denver from ABE, it could serve as the catalyst that brings other airlines to ABE

for the same purpose. Eventually a large portion of the ABE centric passengers 

who currently use Philadelphia International will now be able to use ABE thereby 

decreasing some of Philadelphia’s air traffic and easing the congestion burden the 

airport faces.
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ABE lacks low cost network carrier hub service to the west coast that provides 

access to hundreds of cities across America. As depicted below, airfares are on the 

rise at ABE. The carriers that have been attracted to ABE over the past years are 

all low cost carriers that are focused on Florida service. The business plan that 

low-cost carriers follow makes ABE more attractive to these types of carriers, but 

less attractive to higher cost network carriers that prefer to use small regional 

equipment to serve new markets such as ABE. This air service grant will enable 

ABE to attract a type of air service the region lacks and create a more competitive 

environment for airfares.

Domestic Fares are on the Rise.
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III. Successful Air Service for Lehigh Valley International Airport

As previously stated in this application, the community’s objective is to establish 

air service that consumers – both locally and those coming to ABE from around 

the nation – will be sure to use. The Airport and the community understand that 

for this air service at ABE to be successful it must meet the following criteria:

 Robust Local Market Demand & Strong Connectivity. ABE presents a 

viable commercial opportunity for the right carrier, operating the right 

equipment, in the right market. To maximize the likelihood of success, 

service should be offered in a market with both a large pool of local demand 

as well as excellent connectivity to destinations across the U.S. and the rest 

of the world via the carrier’s own network and those of its partners. 

 High Quality of Service. It is especially important that air service meets or 

surpasses certain basic passenger expectation levels (i.e. good operational 

reliability and adequate aircraft comfort) so that customers will be willing to 

utilize the service and not seek other options.

 Frequency of Service. Due to the frequent services available at competing 

airports any service at ABE must offer scheduled frequency that allows 

reasonable convenience.

The Proposed Service

The objective of this grant is to secure funds that will encourage an airline, by 

eliminating all or a portion of a carrier’s risk of financial loss, to begin new 

nonstop air service at ABE to a hub airport not presently served from ABE where 

the carrier currently operates a connecting hub complex or flies in partnership with 

a carrier that operates a connecting hub complex at that airport. 

The goal of such service is to provide ABE with quality, affordable and reliable 

airline service that offers nationwide connectivity to significantly increase the 

number of destinations available to those passengers who choose to use ABE. It is 

the belief of the Authority that the existence and eventual long term financial 

viability of this new air service will serve as a vehicle for increasing the region’s
accessibility by air and act as a catalyst to promote future airline service expansion 

to additional destinations. The diagram

services.

Potential Hub Airport Services

Frontier Airlines has indicated their

Airport’s grant application as 

planning horizons, it is quite feasible that new airline service could be secured as 

 ABE-DEN

 Beyond DEN

 Total

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Small Community Air Service Development Program Grant Application

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by air and act as a catalyst to promote future airline service expansion 

The diagram below depicts a map of potential new hub 

Potential Hub Airport Services

indicated their support of Lehigh Valley International 

as indicated by their letter of support. Based on airline 

it is quite feasible that new airline service could be secured as 

YE 3Q 2011 ABE

Passenger Pool

 O&D PDEW Avg. Fare

DEN 11,360 16 $182.55

Beyond DEN 153,620 210 $205.26

164,980 226 $203.70

Lehigh Valley International Airport

Program Grant Application

by air and act as a catalyst to promote future airline service expansion 

below depicts a map of potential new hub 

Lehigh Valley International 

. Based on airline 

it is quite feasible that new airline service could be secured as 
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Small Community Air Service Development Program Grant Application

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early as May 2013 since new services such as these tend to be started at the 

beginning of the busy spring/summer travel season.

One of the most attractive aspects of our pursuit of the specific markets in this 

application is their similarity to Harrisburg International Airport. Furthermore, the 

geographic location of these points allows Lehigh Valley International Airport to 

have circuitous access to the most potential connecting destinations as possible. 

Past Experience Shows ABE Will Support Service

ABE’s ability to support new air service is shown by its past history experience 

with the AirTran to Orlando International Airport. At its peak, AirTran offered 

two daily nonstop flights to its Orlando hub along with connectivity to Jamaica, 

San Juan, and Montego Bay. The diagram below shows ABE’s market history 

with Denver. 

IV. Program Goals, Structure, & Administration
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Goals

The Lehigh-Northampton Airport Authority’s overriding objective is to establish a

connection to the national and international air transportation system via the hub of 

a low cost carrier on a long-term, self-sustaining basis that provides increased 

connectivity to the west coast for more destinations than the airport’s current 

system. The Airport believes that service to one of the proposed airline hubs 

shown in diagram above presents the greatest opportunity for success; however, 

the Airport realizes that other viable opportunities may be presented by airlines and 

all potential markets will be reviewed. The Lehigh Valley is a growing community 

whose residents and visitors are today forced to make long drives on congested 

roadways in order to access air service. This new proposed air service directly 

from ABE will save significant amounts of driving time and reduce hassle for the 

region’s air travelers. Convenient air transportation will also serve as a further 

catalyst for the region’s economic development by increasing the Lehigh Valley’s

attractiveness to companies and potential new residents and tourists alike. The

program’s goal is not only to attract new hub airline service but also to create

maximum community and tourism awareness of the new air service in order to 

increase its likelihood of success both during the period covered by the grant and 

in the long-term. The plan for achieving these goals is outlined below.

Structure

This year, the Airport is requesting $300,000 to fund a revenue guarantee to 

support the new air service for its initial twelve months of operation. The Airport 

will provide $138,000 to fund a comprehensive marketing plan, plus an additional 

$50,000 from Discover Lehigh Valley for inbound marketing to the Lehigh Valley 

Region, as well as $75,000 worth of fee waivers from the Lehigh-Northampton

Airport Authority. Details of the marketing plan that would be supported by grant 

funds are provided in the section below entitled, “Marketing Plan.”

While effective marketing will be crucial to the success of service at Lehigh Valley 

International Airport, it is just one part of an overall support program jointly 

developed and funded by the Airport and the community. In accordance with the 

criteria for priority consideration under the Small Community Program, this 

structure features a public-private partnership as well as funding by local; nonairport-revenue sources:
Lehigh-Northampton Authority – Lehigh Valley International Airport

Small Community Air Service Development Program Grant Application

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 Funding Elements of the ABE Proposal.

Item Airport Grant Total

Marketing $138,000 $138,000

Revenue Guarantee $300,000 $300,000

Start-Up Expenses $75,000 $75,000

Total $213,000 $300,000 $513,000

The total value of the support program is $513,000. 

This support plan will form the basis of an aggressive recruitment campaign 

directed at different carriers to obtain frequent hub service utilizing regional

equipment. As indicated earlier in this application, strides have already been made 

as the Airport has attended many positive meetings with the prospective carriers at 

their headquarters or during route development conferences.

Marketing Plan

Airline service cannot be successful without extensive community awareness. The 

Airport proposes to launch a multi-faceted pre- and post-launch marketing program 

at a total cost of $238,000.

Proposed Marketing Program Budget.

Advertising $138,000

InKind $49,000

Public Relations $50,000

Total Budget $238,000

The marketing campaign would begin the moment the service is announced and 

continue throughout the first year of service.

Focusing on ABE and its neighboring communities as the primary service area, the 

following market segments have been identified as core target audiences:

 Business travelers – Convenience oriented and receptive to time-saving/ease 

of use benefits;
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Small Community Air Service Development Program Grant Application

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 Leisure travelers – Price sensitive travelers who are looking for the best 

value and are receptive to unique cost-saving benefits;

 Sands Casino Resort & Event Center – Many tourists rely on the property to 

provide recommendations for transportation. The Sands can either 

recommend the new air service to customers or pre-purchase blocks of 

tickets to resell to customers. 

 Travel agents – Receptive to benefits that will save their customers time 

and/or money and who can encourage prospective travelers to utilize Lehigh 

Valley International Airport.

It takes more than one exposure to win a customer, so ensuring consistent, repeated 

messages that are visible across all media formats will establish and solidify the 

new carrier’s position as one of the community’s air carriers. 

Advertising Campaign

The purpose of the advertising campaign is to increase public awareness of Lehigh 

Valley International Airport and the new air service. In support of the new service, 

the Airport intends to use a strategy involving print, broadcast, and outdoor 

advertising to inform the public of the new service and encourage its patronage. 

Print

Print advertising is still an efficient way to reach a broad, general consumer base 

within a defined geographical area, while delivering an abundance of information 

at the same time. Print advertisements will be written and produced for local 

publications promoting the new service and emphasizing the ABE advantage, 

including a convenient location (compared to other airports within the region) and 

features such as easy access parking, full service restaurant and bar, and no 

congestion.

The Airport will pursue print advertising not only in general audience editions, 

such as local daily newspapers and tourism publications, but also member-specific 

publications, such as Chamber of Commerce newsletters and Convention and 

Visitor Bureau publications. Advertisements will also be placed in publications 

focused on specific groups, including frequent gamers and senior citizens.
Lehigh-Northampton Authority – Lehigh Valley International Airport

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Telephone directories, although not typically considered members of the media, 

are an important part of any print advertising campaign. We will ensure accurate 

information about the new carrier and Lehigh Valley International Airport is 

readily accessible in all community phone books, including service carrier and 

third-party directories. 

Television

This medium allows the Airport to reach out to its entire market in one advertising 

campaign. Also, it has the capability to complement a print advertising campaign. 

Television can be used in a limited, cost-effective manner during selective seasons. 

Cable and commercial television provide for successful outlets to remind the 

market about the new air service and Lehigh Valley International Airport.

Radio

This medium has the ability to achieve the highest message frequency among the 

primary target groups since so many who live within the catchment area spend a 

large sum of time commuting to and from work in Philadelphia. Radio will greatly

enhance the overall campaign, particularly when used in combination with the 

print and television advertisements. Stations will be selected that are the most 

effective in reaching the target groups. The schedule design will be pulsed to 

increase weight during important travel periods. Additional value-added incentives 

including events, sponsorships, and contests will be negotiated, as well. The goal 

of the radio campaign is to complement the print and television campaigns and

raise awareness among the local community. Advertisements for a variety of local 

radio stations will be written and produced to expand awareness among the target 

markets. 

Outdoor

Advertising on billboards, transit buses, and bus shelters/benches will be used to 

reach the general public, including each target market, with a high number of 

repeat exposures. The goal of this campaign is to expand awareness and promote 

the new service, in turn enhancing top-of-mind awareness. Advertisements for 

outdoor displays in proximity to the Airport, on-board transit, billboards, and bus 

shelters will be prepared to expand awareness among the target markets. 
Lehigh-Northampton Authority – Lehigh Valley International Airport

Small Community Air Service Development Program Grant Application

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Promotions Campaign

The goal of the promotions campaign is to communicate to the public the 

convenience and cost advantages associated with flying on this new air service

from Lehigh Valley International Airport on an ongoing basis so that when the 

need for travel arises, passengers turn to us. The promotional strategy will focus 

on the subtle, sometimes indirect, exposures that the target markets receive on a 

recurring basis, including messages they hear while on-hold at the Airport, the 

information they find while surfing the Internet, and a postcard on the refrigerator 

listing the local sports schedule. The promotions campaign also includes travel 

agent contests, to ensure they think of ABE whenever they research and book 

travel for their clients. 

Internet

In this electronic age, the widespread use of the Internet for both researching and 

purchasing air travel must play a key role in the promotion of this new air service. 

The Airport’s web site will include promotional information about the new service. 

News, fare comparisons, travel agent contests, and other timely content will be 

added and updated frequently to keep the information fresh for repeat visitors. The 

Airport’s newsletter is also available on the web site, and is available via e-mail to 

reach an extended subscriber base. Social Media will also play a large role in 

promoting the service.

A direct link will be provided to the carrier’s web site for online travel planning 

and booking, as well as links to other relevant resources such as local lodging, 

ground transportation, key destinations, and tourism resources. 

Direct Mail

Direct mail is a low-cost, high-impact method of advertising. Several direct mail 

campaigns will be developed targeting different market segments and their unique 

motivators.

Travel Agents

A database listing travel agencies and individual agents has already been 

developed, and a series of postcards promoting the Airport’s convenience and the 

new flight schedule and competitive fares will be mailed out once service is 

announced. The goal is to encourage travel agents within both the Airport’s 

primary service areas to book passengers via ABE. 
Lehigh-Northampton Authority – Lehigh Valley International Airport

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In addition to the postcards, promotional giveaway items will be designed, 

purchased, and distributed to travel agents and gaming properties to promote the 

airport and maintain top-of-mind presence. These items will accompany contest 

notification mailings to ensure they get noticed.

Chamber Members

A database listing Chamber of Commerce members within the catchment area will 

be obtained and a series of postcards promoting the Airport’s convenience and 

competitive fares will be distributed. 

Public Relations Campaign

Public relations is a multi-faceted function, incorporating activities such as 

corporate communications, public affairs, and even advertising. The unifying 

element is the development of a positive image for the Airport and the new air 

service within the community. The public relations campaign will include the 

following strategies: media releases, articles in the trade or industry press, trade 

shows, media kits, newsletters, and speaker’s bureau. The goal for the overall 

public relations campaign is to increase public awareness and support of the 

Airport.

Media Releases and Feature Articles

A major aspect in generating publicity is to attract the interest of news reporters 

who can tell the Airport’s story to the public in an editorial forum. The key 

ingredient for a successful press release is to include a “news peg” or a hook to 

capture the reporter or editor’s attention. 

Start-up Expenses

The carrier selected will be provided with landing fee, terminal rent & terminal fee 

waivers during the first year of operations at Lehigh Valley International Airport. 

These funds can be utilized towards ticket counter and gate furnishings, installing 

communication lines and computer equipment, acquiring ground service 

equipment or any other applicable cost of starting service at the Airport. The cost 

of setting up a new station can be quite costly and the Airport would like to 

minimize such barriers to entry at ABE. Should the carrier not wish to base staff at 

the Airport, affordable ground service contractor options will be presented to the 

carrier.
Lehigh-Northampton Authority – Lehigh Valley International Airport

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Monitoring Project Progress

Executive Director Charles R. Everett, Jr. will prepare quarterly briefs for the 

DOT, discussing progress, outcomes, and milestones. The Airport will also 

monitor the performance of the new flights on a monthly basis via statistical 

reports provided by the carrier. This will enable the DOT to measure the success 

of its investment in ABE.

Contingency Plan 

Since the Airport has many potential carriers in mind for these funds the chances 

of not attracting one of them are slim; however, should these carriers not show an 

interest in ABE even with these funds, the Airport will continue to pursue other 

airlines for similar hub access to the national transportation system and focus on 

those which would provide service a logical market based on network strength and 

the availability of suitable aircraft types.

Designation of Legal Sponsor

Charles R. Everett, Jr., Executive Director for the Lehigh-Northampton Airport

Authority will act as the designated legal sponsor for this application. As the 

program’s legal sponsor, Mr. Everett will be responsible for ensuring that any 

spending on behalf of the Airport, Authority or local community is done as 

prescribed in this grant application.