# August 27, 2010 An Integrated Program of New Service Development via: Start-Up Cost Offsets, Advertising/ Marketing, and Revenue Guarantees In Support of New Scheduled Air Service to/from Boston

Sponsor: Auburn-Lewiston Municipal Airport Auburn-Lewiston, Maine Rick Cloutier, Airport Director Congressional Code: ME-002 Dun & Bradstreet Number: 093631935 

# AUBURN-LEWISTON MUNICIPAL AIRPORT, MAINE
Proposal Under the Small Community Air Service Development Program Docket: DOT-OST-2010-0124 Before the Office of the Secretary of Transportation US Department of TransportationAuburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 2 TABLE OF CONTENTS

Section Page

Introductory Letters of Support 3 Summary Information 6
Introduction 9 Primary Objectives of Proposal 10 Executive Summary 11 Detailed Explanation of Proposal 16 Expected Results 19 Letters of Support 23
Potential for Air Service 32
Air Service Deficiencies 36 Extenuating Factors Affecting Air Service 38 Availability of Alternate Airports 41
Use of Local/Federal Funds 42 Public/Private Partnerships 43 Implementation Timeline 45 Air Service Advisory Groups 46 Local Air Service Development Efforts 47 In-kind Services from the Community 48
Performance Measures 49 Legal Sponsor 50
Financial Controls 51
Return on Investment 52 DOT Exit Strategy 53
Alternate Plan 54 Airport Information 55 Community Profile 56
Conclusions 57Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 3 INTRODUCTORY LETTERS OF SUPPORTAuburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 4Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 5Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 6 SUMMARY INFORMATION

Small Community Air Service Development Program Docket DOT-OST-2010-0124



### A. Applicant Information

Not a Consortium Community now receives EAS subsidy Interstate Consortium Intrastate Consortium Community previously received a Small Community Grant If previous recipient, date of Grant: ________________________________ expiration date of Grant: _______________________



### B. Public/Private Partnership

Public:

1. Auburn-Lewiston Municipal Airport 2. City of Lewiston 3. City of Auburn 4. Androscoggin County 5. Androscoggin Valley Council of Governments (AVCOG)

Private:

1. Androscoggin County Chamber of Commerce 2. Lewiston-Auburn Economic Growth Council 3. Bates College 4. L/A ArtsAuburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 7 C. Project Proposal

Marketing Upgrade Aircraft New Route Personnel Increased Frequency Low Fare Service Travel Bank Service Restoration Subsidy Surface Transportation Regional Service Other (Specify)
Revenue Guarantee Launch New Carrier Start Up Cost Offset First Competitive Service Study Secure Additional Carrier



### D. Existing Landing Aids at Airport

Full ILS Outer/Middle Marker Published Instrument Approach Localizer Other:



### E. Project Cost

1. Federal amount requested: $ 500,000
2. State cash financial contribution: $ 0
3. Local cash financial contribution: $ 50,000 3a. Airport cash funds: $ 25,000 3b. Non-Airport cash funds: $ 25,000
3c. Total local cash funds: $ 50,000
4. TOTAL CASH FUNDING: $ 550,000
5. Local funds contributed from already existing Programs of projects included in line 3c: $ 0
6. Local funds contributed from new commitments Or new resources included in line 3c: $ 50,000
7. Airport In-Kind contribution: $ Various Description: Fee waivers: One year without landing and terminal fees
8. Other In-Kind contribution: $ Various Description: Advertising and marketing match money
9. TOTAL IN-KIND CONTRIBUTION: $ Undetermined
10. TOTAL PROJECT COST: $ 550,000Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 8 F. Enplanements at Airport

2000: 0
2001: 0
2002: 0
2003: 0
2004: 0
2005: 0
2006: 0
2007: 0
2008: 0
2009: 0



### G. Is Application Subject to Review by State Under Executive Order 12372 Process?

This application was made available to the State on ______. Program is subject to review, but has not been selected by the State. Program is not covered.



### H. Is Applicant Delinquent on any Federal Debt?

NoAuburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 9 INTRODUCTION

The Auburn-Lewiston Municipal Airport is at the center of the largest area in the states of Maine, New Hampshire, and Vermont with no current scheduled air service. The Airport’s catchment area is home to almost 300,000 people, and is an hour’s drive away – on a toll road – from its nearest access point to the nation al air transportation system.
Two years ago, city leaders in both Auburn and Lewiston came together with the Airport, with the idea of bringing local air service to the region for the first time in more than 20 years. They realized this air service would be the key to continued economic development. One City leader went as far as to say the whole future of the community rests on the ability to bring an air carrier to the Auburn-Lewiston Municipal Airport.
The Airport commissioned a wide-sca le market research project. An August 2010 update to the study shows that residents of the Auburn-Lewis ton Municipal Airport catchment area currently take 455,000 annual airline trips. The study is conclusive: there is sufficient local demand to support a local airline.
In order to provide Auburn-Lewis ton with its first access to the national air transportation system, the Auburn-Lewiston Municipal Airport must work to overcome the challenge of being an unproven and currently unserved market. This challenge is greater than most realize, due to the fact airline modeling software relies on historical data to produce conclusions about how future service will perform. With no historical data , Auburn-Lewiston does not forecast – at all.
With this reality in mind, the Airport must find a partner in the Department of Transportation for local air service to become a reality. The Airport believes the right kind of new service can help grow the region’s economy, and can compliment current service at Portland. The numbers show there is sufficient local support for air serv ice. Now the community just needs a partner in the Small Community Air Service Development Prog ram, developing a risk mitigation program in support of a new airline. This risk mitigation w ill include both local and federal funding sources, offering a revenue guaran tee to a carrier willing to take a risk in the Auburn-Lewiston market.
The best option for local air service will be a ro ute that is not currently offered at Portland’s Jetport, but to a northeast hub, connecting Auburn-Lewiston’s biggest demand sources. This best option is service to Boston – service th at can become a realit y with federal support. 

## “Residents... currently

take 455,000 annual airline trips...”Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 10 PRIMARY OBJECTIVES OF PROPOSAL

Objectives for Program:

 Bring commercial air serv ice to Auburn-Lewiston

 Provide sufficient air service for a large section of Maine without current service

 Allow for convenient worldwide connections

 Connect Auburn-Lewiston to the nation air transportation system

 Decrease inefficient and expensive leakage to Portland

Means to Achieve Objectives:

 Recruit an airline to Auburn-Lewiston to provide service on a route to Boston, or on a route to another major northeast hub

 Provide incentives to ensure success on the new route

 Develop a comprehensive local marketin g campaign to increase awareness about local air service in the Auburn-Lewiston market

Course of Action to Support Means:

 Provide a new carrier with start-up cost offsets

 Make a revenue guarantee available to the new carrier

 Initiate a marketing and advertising ca mpaign in the region to increase awareness about service and to ensure travelers use locally provided serviceAuburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 11 EXECUTIVE SUMMARY

The Auburn-Lewiston Municipal Airport has the pote ntial to serve as a more efficient, and better positioned, gateway for much of the central section of Maine – all the way from the Atlantic coast to the mountains in the north. Auburn-Lew iston is a hub for the new economy, with large recent investments from companies such as Deutsch Lufthansa, TD Banknorth, Procter and Gamble, LL Bean, Nestle, and General Electric. But for too long – more than 20 years – the Auburn-Lewiston metropolitan area has been without access to the national air transportation system. The only access the region now has to air se rvice is at Portland, which lies an hour’s drive away on a tollway.

The immediate Auburn-Lewiston catchment area includes only the area where the local airport would be a better option than any other commercially served airports. This area doesn’t include anyone more than a 45 minute drive from the Auburn-Lewiston Municipal Airport (see Figure 1).

As of the latest US Census estimates,168,000 people lived in the AuburnLewiston Municipal Airport immediate catchment area (see Figure 1). The catchment area has grown by 4.1% since 2000. This growth rate outpaced much of the rest of the northeast for the same period.
The Auburn-Lewiston Municipal Airport also has the potential to be the major gateway to a much larger section of east central Maine – all the way to the Canadian border. This extended catchment area includes all the communities from Bath in the south, along the coast, to the Canadian border (see Figure 2). This catchment area follows the natural cultural connections of this section of Maine, and the current roadway system means that all airline 

### FIGURE 1: Auburn

‐ Lewiston Municipal Airport’s Immediate catchment areaAuburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 12 passengers from this area are current driving ri ght past the Auburn-Lewiston Municipal Airport to get on a toll road to access air service in Portland.
As of the latest US Census estimates, 278,000 people lived in the Auburn-Lewiston Municipal Airport extended catchment area (see Figure 2). The extended catchment area has grown by 3.5% since 2000. This growth rate added 9,730 people to the area in the last nine
years.
The population of the region is sufficient to support local air service. Many other similarly sized markets throughout the US support current air service. Despite this selling point, the Auburn-Lewiston Municipal Airport has been unable to recruit and retain significant air service due to the proximity of Portland’s Jetport. It will take some kind of risk mitigation to convince an airline the local Auburn-Lewiston travelers will forgo the drive to Portland and use locally provided service instead.
With local community support, and a desire by the City Councils in both Auburn and Lewiston to support local air service, the Airport embarked upon an in-depth market study process. The study found that the Auburn-Lewiston area makes up more than 28% of the current Portland Jetport catchment area (see Figure 3).
Auburn-Lewiston’s extended catchment area is home to a large portion of the region’s population. Moreover, the Auburn-Lewiston Municipal Airport would serve as a better access point for to the national air transportation system for almost all the residents of its catchment

area. 

### FIGURE 2: Auburn

‐ Lewiston Municipal Airport’s Extended catchment areaAuburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 13 The Auburn-Lewiston Municipal Airport’s extended catchment area population, of 278,200, makes up 28% of the region’s total population – a larger share than either of the current served airports in Augusta or Rockland (see Figure 4) . Augusta makes up just 16% of the regional population, while Rockland is even smaller, with just 10% of the region’s population. The case can be made that there is more of a market for local air service in Auburn-Lewiston than there is in either Augusta or Rockland – both of which currently have local air service.
The Portland catchment area still makes up the larger part of the region’s population, with 461,700 residents, or a 47% share of the regional population (see Figure 4). However, it can be argued that the residents of the larger region would be better served if air service were split between Portland and Auburn-Lewiston, reducing the amount of time spent on local tollways, and increasing overall access to the national air transportation system.
The Airport’s most recent market recent study pulled a sample of more than 7,000 local tickets. When meshed with US Department of Transportation data from the other airports in the region, it showed the Auburn-Lewiston extended catchment area produces more than 455,000 annual passengers, which equals 596 passengers per day each way (see
Figure 5). The study showed more than 75% of those passengers currently fly from Portland International Jetport – the closest airport with current air service. 

### FIGURE 3: Auburn

‐ Lewiston Municipal Airport’s Position in the region

FIGURE 4: Auburn

‐ Lewiston Municipal Airport’s Share of the regional populationAuburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 14 Orlando ranks as the Auburn-Lewiston area’s top passenger market, as de termined by a recent update to the Airport’s study, with more than 33,000 annual passengers, or 45.6 passengers per day each way (see Figure 5). Other top passenger markets include Baltimore, with 38.2 passengers per day each way; New York Kennedy, with 32.8 passengers per day each way; New York LaGuardia, with 20.1 passengers per da y each way; and Atlanta, with 23.5 passengers per day each way.

While Boston doesn’t appear as one of the Aubu rn-Lewiston market’s top origin and destination cities in the study’s analysis, that doesn’t mean there isn’t demand for travel. There is no current non-stop air service between Portland and Boston , which makes the trip almost impossible by air from the Auburn-Lewiston and Portland areas. The Auburn-Lewiston Municipal Airport believes 33,274 27,864 23,976 17,127 14,845 14,688 14,496 14,048 12,581 11,777 8,989 8,848 8,431 7,944 7,375 7,105 6,616 6,521 6,419 6,262 6,215 5,911 5,738 5,473 5,146 45.6 38.2 32.8 23.5 20.3 20.1 19.9 19.2 17.2 16.1 12.3 12.1 11.5 10.9 10.1 9.7 9.1 8.9 8.8 8.6 8.5 8.1 7.9 7.5 7.0

0.00 5,000.00 10,000.00 15,000.00 20,000.00 25,000.00 30,000.00 Orlando Baltimore New York Kennedy Atlanta Tampa New York LaGuardia Philadelphia Washington National Chicago O'Hare Charlotte

Newark Ft. Lauderdale Denver Ft. Myers San Francisco

Los Angeles Raleigh-Durham Seattle Jacksonville

Las Vegas Washington Dulles Phoenix West Palm Beach San Diego Pittsburgh Annual Passengers PDEW 

### FIGURE 5: Auburn

‐ Lewiston Municipal Airport’s Top True Markets, Updated August 2010Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 15 Boston service, offered at LEW, would provide complementary service to that offered in Portland, thus improving air service for the whol e region, and not just for Auburn-Lewiston.
The Airport also believes almost all traveler s from the Auburn-Lewiston and Portland areas headed to Boston right now travel by car, even though the trip takes more than three hours, not taking into account rush hour traffic. A non-stop service from Auburn-Lewiston to Boston would draw many passengers off the road, and into the air, with people from as far away as Portland using the Auburn-Lewiston Municipal Airport to begin their journeys.

Service from Auburn-Lewiston to Boston also serves another purpose – to best connect Auburn-Lewiston passengers with their final, one-stop destinations. Of Auburn-Lew iston’s top 25 markets identified by its latest study, 17 are on the east coast (see Figure 5). If Auburn-Lewiston is to have its own air service, and that service is to be successful, it must – fir st and foremost – connect to as many east coast destinations as possible. Boston does exactly this, especially with a service on a carrier with wide-ranging interline and codeshare agreements. Boston’s current service connects to 24 of Auburn-Lewiston’s top 25 projected passenger markets.
With this reality in mind, the Airport must find a partner in the Department of Transportation for local air service to become a reality. The Airport believes the right kind of new service can help grow the region’s economy, and can compliment current service at Portland. The numbers show there is sufficient local support for air serv ice. Now the community just needs a partner in the Small Community Air Service Development Program. 

## “The Airport must find a partner in the Department of

Transportation for local air service to become a reality.”Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 16 DETAILED EXPLANATION OF PROPOSAL

In order to provide Auburn-Lewiston with its first access to the national air transportation system, the Auburn-Lewiston Municipal Airport must work to overcome the challenge of being an unproven and currently unserved market. This challenge is greater than most realize, due to the fact airline modeling software relies on historical data to produce conclusions about how future service will perform. With no historical data , Auburn-Lewiston does not forecast – at all.
The Airport, and the community, has invested in an air service study and in an in-depth look at the potential for successful local air service. Now, armed with good data, it has begun the process of meeting with airlines. Those airlines have one message: they must see some kind of risk mitigation and revenue guarantee program if they’re going to take a chance on a market with no re cent historical air service.
The Airport proposes to offer Grant funding, in the form of start-up cost abatements, fee waivers, marketing support, and revenue guarantees to Cape Air for at least three daily flights to Boston (see Figure 6). This service is not duplicated at Portland, and offers connectivity to the widest possible collection of interline destinations.

The route from Auburn-Lewiston to Boston is short, can be served at low cost, and requires a much smaller investment than other service options with aircraft up to and including regional jets. The LEW-BOS route covers 122 miles, and could be flown by a 9-seat Cape Air Cessna 402 twin-engine aircraft, with an average flying time of 30 minutes at an average groundspeed of 250 miles per hour.
The Airport proposes the flights be timed to meet the morning outbound bank at Boston on Cape Air’s codeshare airlines, je tBlue and Continental, and all other interline carriers. The service would connect to omni-directional destinat ions from the hub. Th e Airport also proposes a late evening return, connecting those same cities back into Auburn-Lewiston during the last bank of the night (see Figure 7). Boston Auburn-Lewiston 

### FIGURE 6: The Proposed Auburn

‐ Lewiston To Boston RouteAuburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 17 Cape Air service from Au burn-Lewiston to Boston would open 55 one-stop destinations over the Boston hub. Flights timed on the proposed schedule would connect

to 24 of Auburn-Lewiston’s top 25 identified destinations from the Airport’s study (see Figure 8).
Moreover, there are multiple options for air service to Boston. Should Cape Air not be interested in serving the route, or should the community decide to pursue service on a larger aircraft by raising more local money for the project, Auburn-Lewiston could work with Colgan Air for the launch of service on the route. Colgan has operations throughout the northeast from Boston on 34-seat S aab 340 aircraft. These aircraft would also be well-suited for the Auburn-Lewiston –
Boston route, and the flight times would not change appreciably by changing the carrier and aircraft type. It is also likely most connections beyond Boston would remain unchanged with either airline operating the service. 9000 BOS-LEW 9:15AM 10;05AM VARIOUS

9002 BOS-LEW 4:00PM 4:50PM VARIOUS

9004 BOS-LEW 9:30PM 10:20PM VARIOUS 122 Miles Block Time: 0:50 Flight Time: 0:30 Flight Number Routing Departs Arrives Aircraft 9001 LEW-BOS 6:30AM 7:20AM VARIOUS

9003 LEW-BOS 10:30AM 11:20AM VARIOUS

9005 LEW-BOS 5:15PM 6:05PM VARIOUS 122 Miles Block Time: 0:50 Flight Time: 0:30 Flight Number Routing Departs Arrives Aircraft 

### FIGURE 7: The Proposed Auburn

‐ Lewiston To Boston Flight Schedule

FIGURE 8: Connections Beyond Boston On Cape AirAuburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 18 The Auburn-Lewiston Municipal Airp ort proposes that a relatively small portion of the cost of starting the new service be supported up-front with federal funds from the Small Community Air Service Development Program. Of the total project cost of $550,000, only $50,000 will be used for marketing and advertising projects. Another $50,000 will be used to cover start-up costs for the airline entering the market. The federal share of this project will be $500,000, of which $450,000 will be used as a revenue guarantee.
The Airport projects that the bulk of the grant money be available to provide insurance in case the new carrier needs help getting through its first full year of service in Auburn-Lewiston. With demand for the service in the Auburn-Lewiston market, the Airport projects the new flights will be profitable in their second year of operation. However, the Airport expects the new carrier to incur some losses at the launch of service, as the market becomes more accustomed to having local air service, and as leakage slowly decreases.
The objective of the proposal is clear. The AuburnLewiston Municipal Airport seeks its first access to the national air transportation syst em in more than 20 years. The community has identified air service as its top economic development priority. But in order to achieve its goal, it will have to have a partne rship with the DOT in the form of the Small Community Air Service Development Program.

If, for some unforeseen reason, service is not commenced in a timely manner by either Cape Air or Colgan Air on the Boston route, the Airpor t proposes to use federal grant money awarded under the Small Community Air Service Develo pment Program to recruit another carrier interested in beginning service to the community, as long as that carrier provides access to a hub. Among the additional target airlines would be a United Express carrier with service to the Washington Dulles hub, a Continental Connection carrier with service to the Newark hub, a US Airways Express carrier with service to the Philadelphia hub, or a Delta Connection carrier with service to the New York Kennedy hub. All of th ese hubs can connect Auburn-Lewiston with most of its passenger demand to cities on the east coast. 

## “The Auburn-Lewiston Municipal Airport seeks its first access to the national air transportation system in more than 20 years.”Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 19 EXPECTED RESULTS

Route Specific Data: Auburn-Lewiston – Boston

The Auburn-Lewiston market is estimated to cu rrently generate 622 origin and destination passengers per day each way to destinations th at naturally connect over Boston on current service. It is believed these passengers are currently flying out of other airports in the region – with as much as 75% flying from Portland. Th e Auburn-Lewiston Municipal Airport’s market study estimates the catchment area currently produces 455,008 total origin and destination passengers that would flow over Boston as of th e year ended first quarte r 2010 (see Figure 9).

In all, the market study shows the Auburn-Lewiston – Boston route has the potential to capture 78% of the current passengers flying in and out of Auburn-Lewiston (see Figure 9). These are current passengers, flying from other airports, not “generated” passengers expected to be created with new local air service. At the same time, flights flowing to destinations over Boston could capture 68% of the current revenue generated in the Auburn-Lewiston market.

It is estimated that markets flowing over Boston to current non-stop destinations could capture a portion of the $49.9 million in annual airline revenue the Auburn-Lewisto n market generates to Boston

78% Other Hubs 22%

Boston 68% Other Hubs 32%

Auburn-Lewiston O&D Revenue $73,860,360 100% Revenue Flowing Over Boston $49,917,930 68% Auburn-Lewiston O&D Passengers 454,087 100%

Passengers Flowing Over Boston 354,591 78% 

### FIGURE 9: Auburn

‐ Lewiston Passengers and Revenue Flowing Over Boston On Cape Air and Codeshare Airlines, YE1Q10Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 20those cities, or some of the $68,381 in revenue per day each way (RDEW) to and from AuburnLewiston (see Figure 9).

With multiple Cape Air interlining airlines serv ing Boston, to 55 non-stop destinations, flights between Auburn-Lewiston and Boston have potential to capture large portions of traffic in 24 of Auburn-Lewiston’s 25 largest origin and destination markets. Boston is especially well positioned to capture traffic traveling to the east coast, where most Auburn-Lewiston passengers have been demonstrated to travel – including large ma rkets such as Orlando, which is estimated to generate 45.6 passen gers per day each way (PDEW) to and from Auburn-Lewiston; Baltimore/Washington, which is estimated to ge nerate 65.9 PDEW; New York/Newark, which is estimated to generate 65.3 PDEW; South Florida, which is estimated to generate 23.8 PDEW; and Atlanta, which is estimated to generate 23.5 PDEW (see Figure 10).

48,127 47,653 33,274 17,378 17,127 14,845 14,496 12,770 11,777 9,419 9,327 8,431 7,944 6,615 6,521 6,419 6,262 5,911 5,473 5,253 65.9
65.3
45.6
23.8
23.5
20.3
19.9
17.5
16.1
12.9
12.8
11.5
10.9
9.1
8.9
8.8
8.6
8.1
7.5
7.2

0.00 5,000.00 10,000.00 15,000.00 20,000.00 25,000.00 30,000.00 35,000.00 40,000.00 45,000.00 Washington/Baltimore - 1
New York/Newark - 2
Orlando/Sanford Area - 3
South Florida Area - 4
Atlanta - 5
West Florida Area - 6 Philadelphia - 7 Chicago Area - 8
Charlotte - 9 Los Angeles Basin - 10 San Francisco Bay Area - 11
Denver - 12 Fort Myers - 13 Raleigh/Durham - 14
Seattle/Tacoma - 15
Jacksonville - 16

Las Vegas - 17
Phoenix/Mesa Area - 18 San Diego - 19
Houston Area - 20 Annual Passengers PDEW 

### FIGURE 10: Auburn

‐ Lewiston’s Top 20 Passenger Markets Over Boston on Cape Air, YE1Q10Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 21 Auburn-Lewiston’s top 11 revenue markets that would flow over Boston each produce more than $2,000 in revenue per day each way (see Figure 11). The top potential Auburn-Lewiston revenue market over Boston is Washington/Baltimore, which produces more than $8,300 in revenue per day each way (RDEW) that is currentl y flying through other airports in the region. New York/Newark ranks as Auburn-Lewiston’s seco nd-largest revenue market that an airline would access with service to the Boston hub, generating more than $6,600 in RDEW.

The Airport believes there is suffic ient passenger traffic and revenu e that would flow over Boston to make local air service profitable. The airlin e serving the Auburn-Lewiston – Boston route would not be forced to offer rock-bottom fares to be co mpetitive – even fares slightly higher than those $6,094,675 $4,824,819 $3,941,455 $2,554,002 $2,469,898 $2,439,330 $2,391,025 $1,769,642 $1,752,612 $1,727,146 $1,479,724 $1,445,666 $1,174,381 $1,092,050 $1,033,703 $1,022,379 $1,002,745 $939,168 $899,519 $856,992 $8,349 $6,609 $5,399 $3,499 $3,383 $3,342 $3,275 $2,424 $2,401 $2,366 $2,027 $1,980 $1,609 $1,496 $1,416 $1,401 $1,374 $1,287 $1,232 $1,174

0.00 1,000,000.00 2,000,000.00 3,000,000.00 4,000,000.00 5,000,000.00 6,000,000.00 Washington/Baltimore - 1
New York/Newark - 2
Orlando/Sanford Area - 3
Atlanta - 4 Philadelphia - 5
South Florida Area - 6 Chicago Area - 7 Los Angeles Basin - 8 San Francisco Bay Area - 9
West Florida Area - 10
Charlotte - 11

Denver - 12
Seattle/Tacoma - 13 Fort Myers - 14 Las Vegas - 15 San Diego - 16
Phoenix/Mesa Area - 17 Minneapolis - 18
Houston Area - 19
Detroit - 20 Annual Passengers PDEW 

### FIGURE 11: Auburn

‐ Lewiston’s Top 20 Revenue Markets Over Boston on Cape Air, YE1Q10Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 22 found in other nearby markets, such as Portland and Manchester, would be worth support for the convenience of local service for Auburn-Lewiston travelers. The Auburn-Lewiston Municipal Airport believes in the local market, and must develop a risk mitigation package to ensure an airline partner can enter the market without major up-front investments.Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 23 LETTERS OF SUPPORTAuburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 24Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 25Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 26Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 27Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 28Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 29Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 30Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 31Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 32 POTENTIAL FOR AIR SERVIC E IN AUBURN-LEWISTON

The Auburn-Lewiston area is at the center of the largest region in Maine without any commercial airline service. It is, in fact, much larger than many other areas in the State that have service, such as Rockland, Bar Harbor, and Augusta. The community believes in order to grow its economy – it is, after all, the fastest growing metropolitan area in the northeast – it will have to have commercial air service. With that in mind, The Auburn-Lewiston Municipal Airport was charged with generating and developing credible information that could be used to evaluate current air service in the region and identify opportunities for local air service. The Airport’s Ticket Lift Survey/True Market Study provides objective information on air travel in the region that cannot be acquired economically from other sources.
Air carriers spend very little time analyzing sma ller markets, and specific information on smaller communities is limited. Ticket Lift Survey information provides objective background data for evaluating and analyzing service gaps and opportunit ies. The primary objective of the Ticket Lift Survey is to develop information on the travel patterns of local airline passengers that reside in the geographic area that would likely be served by the Auburn-Lewiston Municipal Airport.

In order to estimate the size of the total market and the number of air passengers traveling to each destination, passenger leakage data normally is mathematically combined with U.S. Department of Transportation (DOT) airline report information. However, in the case of AuburnLewiston, where there is no local passenger market , Sixel Consulting Group, the firm hired to do the work, had to make further analyses. Portland, Augusta, and Rockland enplanement information was multiplied by Auburn-Lewiston’ s share of the catchment area for all three airports, resulting in an estimate of local enplaned passengers.
The percentage of total trips initiated locally is multiplied by the estimated Auburn-Lewiston enplanements to generate an estimate for loca lly originated passenge rs. This number is multiplied by each market’s share of traffic from the ticket lift to estima te local enplanements by destination. The ratio of local enplanements at Portland, Augusta, and Rockland, versus the number of trips generated to Portland, Augusta, and Rockland, is calculated and applied to 

## “The Auburn-Lewiston Municipal Airport was charged with generating and developing credible information that could be used... to identify opportunities for local air service.”Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 33 each market pair. The sum of these two results provides an estimate of the total passenger volume generated between the Auburn-Lewiston area and each domestic and international market pair.
The study results were updated in August 2010 in support of this application. The "true market" estimate for the Auburn-Lewiston Municipal Airport for 2010 is approximately 455,000 passengers (enplaned plus deplaned). While this number represents the projected total number of passengers per year from the area, it does not ne cessarily indicate the total demand for local airservice at LEW. It is assumed service at AuburnLewiston itself would capture only a small portion of the total number of potential passengers.
Leakage occurs primarily because of service availability and pricing competition in the local community versus altern ate, larger regional airports. While the airport will continue to lose a share of its market due to competition, it is reasonable to expect passenger activity could increase significantly with local air service provided in Auburn-Lewiston.

It must be noted, ticket lift data did not include any tickets booked directly through theSouthwest Airlines website for travel to/from Manchester. It is believed that travel by AuburnLewiston area residents, on Southwest at Manchester, is underrepresented in this survey. It is also believed that this lack of true data from Southwest has caused the survey to under represent demand to/from leisure destinations, such as Orlando, from Auburn-Lewiston.

Potential Passenger Traffic in Auburn-Lewiston
The True Market Study found that the Auburn-Lewis ton market is likely to produce as many as 455,000 total origin and destination airline trips per year, or 623 passengers per day each way. While it is unlikely all of these passengers woul d use the Auburn-Lewiston Municipal Airport, it is likely the level of passenger traffic in the mark et will support commercial air service. Other highlights of the study include: 

## “The ‘true market’ estimate for the Auburn-Lewiston Municipal Airport for 2010 is approximately 455,000 passengers.”Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 34 • The LEW catchment area is projected to produce a total of $90 million in annual airline revenue, or $123,300 in revenue per day each way.

• 15 of Auburn-Lewiston’s top 20 projected true passenger markets are located on the east
coast.

• 13 of Auburn-Lewiston’s top 20 projected true revenue markets are on the east coast.

• Only 29% of current passengers from the Aubu rn-Lewiston catchment area fly non-stop to their destinations – 71% of passengers connect, at least once, in reaching their destination.

Due to the distribution of the top destinations from the market, it is likely the most successful service will be to an east coast hub, connecting to most major destinations. Among other regional travel highlights from the study, it was found:

• Almost three-quarters of projected passe ngers from the Auburn-Lewiston Municipal Airport (LEW) catchment area – 72% – fly to destinations on the east coast.

• East coast passengers from the Auburn-Lewiston area represent a projected 351,000 trips per year, or 481 passengers per day each way.

• More than two-thirds – 69% – of the projected airline revenue created in the AuburnLewiston catchment area goes to destinations on the east coast.

• East coast revenue from the Auburn-Lewiston area represents a projected $62.3 million in airline ticket purchases per year, or $85,400 in revenue per day each way.

• With such a high percentage of Auburn-L ewiston passengers and revenue flowing to destinations on the immediate east coast, it is essential that any air service to/from LEW be able to connect to each of these high volume destinations.

• The most successful air service at Auburn-Lew iston will connect to a hub along the east coast – preferably in the northeast – that offers a wide range of one-stop destinations from New York to Florida.

• Service to hubs not on the immediate east coast, or not in the northeast, will not be able to draw as many local Auburn-Lewiston passengers, as connections would require “backtracking.”

The True Market Study shows th at the Auburn-Lewiston area does produce significant travel demand – most of which is being captured by the Portland International Jetport. It is believed local air service, at LEW, would capture, at least, a small portion of this local traffic, providing a convenient alternative – especially for the region’s business travelers.Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 35 AIR SERVICE DEFICIENCIES IN AUBURN-LEWISTON

With no current scheduled air service, or local access to the national air transportation system, Auburn-Lewiston area businesses, and travelers, are at a distinct disadvantage when compared to other communities in the northeast. Moreover, when car travel and expense is taken into account for each trip, the cost of traveling for Auburn-Lewiston catchment area residents – while flying from other airports – is significantly higher than from othe r airport catchment areas in the northeast.
Almost 75% of all passengers originating from the Auburn-Lewiston catchment area fly from the Portland International Jetport (see Figure 12). Roughly 18% of traveler s from Auburn-Lewiston drive all the way to Boston’s Logan Airport to access the national air transportation system – a drive of three hours without traffic. All other airp orts account for the remainder of tickets sold to Auburn-Lewiston area travelers.

Obviously, with no local air service, the Auburn-Lewiston Municipal Airport’s passenger leakage is 100% (see Figure 12). Auburn-Lewiston’s competitive standing is greatly diminished within the
northeast with no local air service. The drive to Portland isn’t quick – at about an hour. Moreover, the drive has to be made on a toll road, adding considerable time stopping at booths, not to mention considerable expense on a roundtrip. The drive to Boston’s airport is even more time consuming – at more than three hours, not taking rush hour traffic into account. 

### FIGURE 12: Airport Used by Auburn

‐ Lewiston Passengers Source: Auburn

‐ Lewiston Municipal Airport True Market Study

Portland, ME 75% Boston, MA

18% Manchester, NH 5% Bangor, ME 1% All Others 1%Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 36 Auburn-Lewiston travelers are used to connecting flights at major hubs. A somewhat surprising statistic from the Airport’s recent market study is the fact that, de spite non-stop flight options in Boston, very few Auburn - Lewiston passengers drive to Boston to get those non-stops. The study shows Auburn-Lewiston passengers prefer to fly from an airport closer to home, even if that means they’ll have to spend more time in connecting airports (see Figure 13).
While the largest proportion of Auburn-Lewiston passengers travel non-stop to their destinations, 29.6%, that still means the majority, or 70.4%, connect at a hub on the way to their final destination (see Figure 13). This statistic illust rates the fact that non-stop convenience is not as important to Auburn-Lewiston travelers as is the co nvenience of being able to fly from an airport that is closer to home.

The Airport’s market study also found that no one hub is significantly more popular than any other. While a larger proportion of Auburn-Lewiston passengers fl y through the US Airways hub at Philadelphia, it still drew just 13.7% of the sa mple (see Figure 13). The only other hub gaining more than 5% of the sample of tickets was Detroit, with 7.4%.

There were seven hubs that drew between 4% and 5% of Auburn-Lewiston passengers, according to the Airport’s market study (see Figure 13). Those hubs included United at Washington Dulles, Delta and jetBlue at New York Kennedy, US Airways at New York LaGuardia, US Airways at Washington National, United and American at Chicago O’Hare, Delta and AirTran at Atlanta, and Delta at Cincinnati. Non-stop 30%

Philadelphia, PA 14% Detroit, MI

7% Washington Dulles, DC 5% New York Kennedy 5% New York La Guardia 5% Washington National, DC 5% Chicago O'Hare, IL 4% Atlanta, GA 4% Cincinnati, OH 4% New York Newark 4% Others 13% 

### FIGURE 13: Connection Point for Auburn

‐ Lewiston Passengers Source: Auburn

‐ Lewiston Municipal Airport True Market StudyAuburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 37 In all, Auburn-Lewiston passengers bought tick ets connecting through more than 15 different hubs during 2008 (see Figure 13). The fact that there is no preferred hub means that there is no preferred airline. This will help a new airline in building brand loyalty when it launches service at the Auburn-Lewiston Municipal Airport.
The Auburn-Lewiston Municipal Airport has designed this Grant-supported project to reduce the burden of connecting through multiple hubs, and to further reduce the di stance that must be traveled to access the national air transportation system. The project eliminates a new airline’s barrier to entry by providing a revenue guarantee to cover losses in the start-up phase of the service. The Airport’s project also eliminates the carrier’s burden to pay landing fees, terminal rent, and parking fees for the first year of service. Additionally, with the Airport providing start-up cost offsets, that airline will not have to supply equipment – items including computers, signage, and ground handling vehicles will all be provided by the Airport.

The Airport must develop aggressive incentive programs to recruit its first air service, and to reduce leakage to other airports. Leakage costs a comm unity significant money – in time, wasted fuel, and wear and tear on personal and company ve hicles. The Airport aims to eliminate these inefficiencies by adding airline service. 

## “Leakage costs a community significant money... the Airport aims to eliminate... inefficiencies by adding airline service.”Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 38 EXTENUATING FACTORS AFFECTING AIR SERVICE

A major extenuating factor affecting air service in the northeast, and throughout the country, has been the loss of available seats at airports with current service over the last two years. With the airlines in financial crisis mode, nearly ever y market has seen a loss of flights and seats – and airports in Maine have been no exception.

While Auburn-Lewiston residents have no direct access to the national air transportation system, they rely on the air service at Portland, Maine, for mobility. But over the last two years, airlines have cut almost a third of Portland’s available seats. Since just the summer of 2009, Portland’s Jetport has lost an average of 10.7 flights per day each way - 20% of Portland’s total daily flights (see Figure 14). In that same time period, airlines have cut 1,074 daily departing seats from the Portland market, cutting Portland from 3,941 daily departing seats in the summer of 2009 to 2,867 daily departing seats in April of 2010 – a loss of 27% of Portland’s available airline seats.

3,941 3,926

3,460 3,326

2,915
2,663 2,596 2,380 2,670 2,867 3,223 3,309

2,634 2,682

2,097 1,921
1,675 1,810 2,154 2,215

1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500

2009/07 2009/08 2009/09 2009/10 2009/11 2009/12 2010/01 2010/02 2010/03 2010/04 Available SDEW Onboard PDEW Flights Per DEW 52.6 52.3

46.9 45.5
42.4 39.8 38.8
35.7 40.3 41.9 

### FIGURE 14: Available Seats Per Day, Passengers Per Day, and Departures Per Day At Portland Jetport (PWM), July 2009

– April 2010, Source: T100 DataAuburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 39 These seat cuts have a huge impact not only on Portland, itself, but also a large swath of Maine that has no current airline service. Auburn-Lewiston would serve as the access point to the national air transportation network for much of the area that is now forced to drive to Portland for service. In the last two years, it has become increasingly difficult to find available seats in Portland, as airlines have continued to cut.

The average airline load factor at Portland – the percentage of seats filled on scheduled airline service – is up an average of five points since the same time last year. Between July of 2009 and April of 2010, Portland averaged a load factor over 70% in all but one month (see Figure 15). The average load factor since last summer at Portland has been 77.1% for all airlines.

When load factors begin to top 70%, typically an airline will start to sell-out of seats on the heaviest travel days, such as Sunday, Monday, an d Friday. This has likely been the case in Portland over the last year. For Auburn-Lewiston travelers, it has become increasingly difficult to find available airline seats on the most in-demand travel days. The Auburn-Lewiston area has not been adequately served by an airline for more than 20 years, but air service access has 81.8% 84.3%

76.1% 80.6%

71.9% 72.1%

64.5% 76.0% 80.7% 77.2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

2009-07 2009-08 2009-09 2009-10 2009-11 2009-12 2010-01 2010-02 2010-03 2010-04 Load Factor 

### Average PWM Load Factor: 77.1% FIGURE 15: Average Load Factor at Portland Jetport (PWM), July 2009

– April 2010, Source: T100 DataAuburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 40 become even more difficult in the last two yea rs as Portland has had seats pulled, and as Portland’s load factors increase. The best argume nt for replacing these seats is to distribute a small number of seats to the Auburn-Lewiston Municipal Airport, so that those better served by their local airport can avoid the drive and expensive of traveling to Portland first.Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 41 AVAILABILITY OF ALTERNATE AIRPORTS

While the Auburn-Lewiston Municipal Airport catchm ent area is surrounded by alternate airports, none of the alternate options are particularly co nvenient, and all have some cost barrier that travelers must overcome. The closest alternate airport to Auburn-Lewiston is Portland’s Jetport, however it lies an hour drive away on a toll road (see Figure 16). This situation requires passengers to pay tolls just to get to a point where they can access the national air transportation system.

The major alternate to Auburn-Lewiston is Boston’s Logan Airport, which offers non-stops to 73cities around the world (see Figure 16). However, Logan is a three hour drive from AuburnLewiston, without hitting rush hour traffic. Very few Auburn-Lewiston passengers make the drive to Boston for this very reason – as Boston captures just 18% of Auburn-Lewiston travelers. 

### FIGURE 16: Alternate Airports in the Auburn

‐ Lewiston RegionAuburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 42 USE OF LOCAL FEDERAL FUNDS

Marketing and Advertising

The Auburn-Lewiston Municipal Airport proposes to spend $50,000 in funds on marketing and advertising promotions in support of new service. The goal is to capture local enplanements and usage through targeted regional campaigns.



### Revenue Guarantee

The Airport proposes to make available at least $500,000 in funds for a revenue guarantee to the new carrier, to cover start-up losses that may occu r during the first twelve months of service. Subject to negotiation, payments will be made to the new carrier quarterly, when income derived from passengers and cargo is less than agreed expenses on the route. Revenue generated that exceeds expenses will be carried forward and tapped before any grant funds are used.



### Startup Cost Offsets

The Airport proposes to use a sma ll portion of the funding provided under this proposal to pay for start-up costs in support of new service introduc tions. Money will be reimbursed to the new carrier, from the revenue guarantee portion of this proposal, as invoices are submitted detailing the work performed to offset the acquisition of necessary equipment to begin service (items include carts, tugs, power units, computer equipment, cabling, software, etc.).



### Additional Costs

As part of this program, the Airport understands that additional expenses will be incurred, such as monitoring the results of the program and reporting those results back to the US DOT. In addition, the Auburn-Lewiston Municipal Airport expects to incur some expenses in the recruitment of a new airline. These additional costs will come from the revenue guarantee portion of the funding.Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 43 PUBLIC/PRIVATE PARTNERSHIPS

A number of local partners will be working with the Auburn-Lewiston Municipal Airport to promote, support, and market the new service. Contacts will be made to all Auburn-Lewiston members of chambers of commerce and similar or ganizations, and those with an interest in growing the economic base of the community thro ugh local business grow th, attraction of new businesses and the promotion of tourism and visitor traffic via the airport.

Cities of Auburn and Lewiston
The City Councils of both Auburn and Lewiston ar e some of the biggest supporters of bringing air service to the local Airport, as they realize how vital the Airport is to the growth of the entire region that it serves. As the joint owners and operators of the Auburn-Lewiston Municipal Airport, City leaders continually work with to develop and support new service initiatives. The Cities also manage the Airport’s budget, and will oversee how the Small Community Air Service Development Grant is spent.

Androscoggin Valley Council of Governments (AVCOG)
The Androscoggin Valley Council of Governments (AVCOG) is the major government entity overseeing the cooperation of all cities and counties in the Auburn-Lewiston sphere of influence. AVCOG addresses issues of mutual concern for the region, in addition to satisfying federal and state planning/program mandates. The agency se rves as a forum for planning/discussion of area wide issues, preparing regional plans an d programs, serving as a regional agency for federal and state programs, and addressing othe r area-wide issues as mutually desired.
AVCOG is also responsible for the development of an efficient and effective multi-modal transportation system for mobility and maximizing state and federal funding. AVCOG is an important public partner in the effort to bring air service to Auburn-Lewiston.Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 44 Androscoggin County Chamber of Commerce
The Androscoggin County Chamber of Commerce is a totally independent non-profit corporation (not affiliated with government or an y other agency) that is uniquely able to serve the needs of the business community in Auburn-Lewiston. The Chamber is dedicated to just one goal: the economic health of the area and the prosperity of its members.
The Chamber’s philosophy is simple: more business is good for existing business and an attractive and viable city will attract more business activity. The Chamber also believes additional economic activity will benefit every business pe rson and resident in th e region. The Chamber’s work toward implementing this philosophy has been successful because of a powerful combination of active, motivated volunteer busi ness leaders supported by a highly regarded professional staff. Together, the volunteer leaders and the professional staff do what no service club, government agency nor individual business could do: enhance and promote AuburnLewiston as a place to do business and enjoy l ife. Moreover, the Chamber believes enhanced air service is essential to the interconnectivity of businesses, and is an essential part of any community’s plan for economic growth.

Lewiston-Auburn Economic Growth Council

The Lewiston-Auburn Economic Growth Council is a private partner in this application. The Growth Council provides a number of in-kind serv ices. Growth Council funding will commit to a program of viral marketing through e-mail blasts to all members and word-of-mouth advertising. The Growth Council also contribu tes mailers to area businesses ex plaining the benefits of new and additional air service. The Growth Coun cil will have a financial stake, by providing matching funds, for any new air service in the region.Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 45 IMPLEMENTATION TIMELINE

The proposed implementation timeline for the project assumes the Department of Transportation will award Small Community Grant Funding in De cember 2010. Once the award is announced, Auburn-Lewiston Municipal Airport will conduct additional airline meetings to secure a new service that is mutually beneficial. Based on airline planning lead times and the need for advance bookings, we assume the new carrier would not be able to begin service until at least March of 2012.

The first three milestones on the Airport's timeline are to execute the grant agreement with the Department of Transportation, meet with prospect ive airlines to negotiate for service, and sign the minimum revenue guarantee agreement with the appropriate airline partner. Once service is announced and schedules are published, th e Airport would begin marketing the new route and working with the new carrier to monitor adva nce bookings. The Airport will continue its marketing program and continue to work with th e new carrier to monitor the route once service begins. The Airport would submit grant status reports on a quarterly basis to the Department throughout the proposed two year term of the minimum revenue guarantee.

While the estimated dates are targets, it is possible service could be secured and launched on a more aggressive timeline once Grant funding is aw arded. It is also possible that new service could slip to 2013 should an airline require addition al risk mitigation, beyond that included in this proposal, from the community.



### Activity/Project Milestone Estimated Date
SCASD Grant Award Announcement December 2010 Executive Grant Agreement with DOT January 2011 Meet With Prospective Airlines February - June 2011 Negotiate Minimum Revenue Guarantee (MRG) With Airline July/August 2011 Announce Service December 2011 Publish Schedule December 2011 Begin Marketing of New Route January 2012 Monitor Advance Bookings January - March 2012 Service Launch March 2012 MRG Available for Service March 2012 - March 2014 Monitor Route Performance March 2012 - March 2014 Submit Grant Status Reports to DOT Quarterly Q1 2011 - Q1 2014 Close Grant April 2014Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 46 AIR SERVICE ADVISORY GROUPS

The Auburn-Lewiston Municipal Airport is govern ed by the Auburn-Lewiston Municipal Airport Board of Directors. This committee is made up of a number of community leaders from different Auburn-Lewiston government bodies and major bu siness organizations. The Airport Board of Directors oversaw the development of this gran t application, and will oversee and administer the funds awarded.Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 47 LOCAL AIR SERVICE DEVELOPMENT EFFORTS

The administration of the Auburn-Lewiston Muni cipal Airport has been extremely active in working to add air service to the community. As community leaders expressed their desire to do whatever it takes to being air carrier service to their local Airport, Airport leaders commissioned an air service study, and have since been meeting, one-on-one, with potential airlines. These meetings have included both Cape Air, and Colg an Air, both airlines specifically mentioned in this application. The Airport ha s also met with ExpressJet, Repu blic, and other regional carriers with major airline codeshares in the last four months.
The next step in the Airport’s air service development program is the development of funding for a risk mitigation program. The Airport’s meetings with various airlines have yielded a specific plan for risk mitigation. This Small Community Air Service Development Grant is a key to that risk mitigation program.Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 48 IN-KIND SERVICES FROM COMMUNITY

The following organizations will help promote the new service through their various membership groups. There is no estimated value to these services.

 City of Lewiston

 City of Auburn

 Androscoggin County Chamber of Commerce

 Androscoggin County

 Androscoggin Valley Council of Governments (AVCOG)

 Lewiston-Auburn Economic Growth Council

 Bates College

 L/A ArtsAuburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 49 PERFORMANCE MEASURES

The success of the program will be based on three variables. The first measure of success will be the recruitment and retention of an airline to provide new service. When new service is initiated, the first measure of success will be met. The Airport will judge the second measure of success by the number of enplanements. Finally, the third measure of success will be based on average airfares in the community. The measurement of enplanements will include a monthly comparison, once the program begins. The measur ement of airfares will be derived from US DOT OD1A reports.Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 50 LEGAL SPONSOR

The Auburn-Lewiston Municipal Airport is the le gal sponsor responsible for administering the program. The Auburn-Lewiston Munici pal Airport is a government entity.

Auburn-Lewiston Municipal Airport 80 Airport Drive Auburn, Maine 04210 Rick Cloutier, Airport Director 207.786.0631 manager@flytome.comAuburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 51 FINANCIAL CONTROLS

As the sponsor, the Auburn-Lewiston Municipal Airp ort will be the responsible party for all fiscal matters and DOT reporting requirements. The group is established as an Airport Board of Directors, which is a public governing body. As a public entity the DOT can be assured that proper financial controls are in place to gu arantee that the DOT’s grant will be used in accordance with any subsequent agreement. The Airport understands that the grant is a reimbursable grant, meaning the Airport is responsible for program expenditures and will submit invoices to the DOT for reimbursement, based on a percentage of the total grant request.Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 52 RETURN ON INVESTMENT

The Airport has developed a cost effective an d achievable strategy to add new service, increase enplanements, and lower airfares at the airport. The proposal uses proven methods of achieving air service improvements, allowing the DOT to be comfortable with choosing this proposal. The establishment of local competition by adding new airline service is in line with the major goal of the Small Community Ai r Service Development Program.

Approximately $50,000 of the $550,000 in cash is committed to being spent. The remaining $500,000 in cash available for the revenue guarantee portion of the grant may never be expensed.Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 53 DOT EXIT STRATEGY

The Auburn-Lewiston Municipal Airport has develope d this proposal as a one-time grant. While the initial startup costs will be paid for out of other airport funds, the advertising and marketing program will commence a few months before service starts and last for at least twelve months. The revenue guarantee program will also be in place for twelve months, with two additional twelve-month periods available for ne gotiation. It is projected that the service will be financially self-sustaining within the second twelve months of service.Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 54 ALTERNATE PLAN

If, for some unforeseen reason, service is not commenced in a timely manner by either Cape Air or Colgan Air on the Boston route, the Airpor t proposes to use federal grant money awarded under the Small Community Air Service Develo pment Program to recruit another carrier interested in beginning service to the community, as long as that carrier provides access to a hub. Among the additional target airlines would be a United Express carrier with service to the Washington Dulles hub, a Continental Connection carrier with service to the Newark hub, a US Airways Express carrier with service to the Philadelphia hub, or a Delta Connection carrier with service to the New York Kennedy hub. All of th ese hubs can connect Auburn-Lewiston with most of its passenger demand to cities on the east coast.Auburn-Lewiston Municipal Airport – Small Communi ty Air Service Development Grant – August 2010 

## 55 AIRPORT INFORMATION

The Auburn-Lewiston Municipal Airport is located on 547 acres in Auburn , Maine. The airport supports local and regional gene ral aviation, flight training, cargo, and a large volume of corporate activity. The Cites of Auburn and Le wiston own and operate the airport and it is strongly supported by the Androscoggin Valley Coun ty of Governments. The airport also has 200 developable acres, a foreign trade zone and customs clearance at the inter-modal freight facility.
The Auburn-Lewiston Municipal Airport has been in operation since 1935. Currently, The AuburnLewiston Municipal Airport handles regional jet-sized aircraft freque ntly, with hundreds of annual charters by area businesses, and by Bates College.
The Airport features a main runway, 4-22, that is 5,001 feet

in length, with a full, all-weather ILS approach. AuburnLewiston’s general aviation runway, 17-35, is 2,750 feet in length. The Airport has a brand new taxiway that is parallel to the main runway, certified to handle large jets. The Airport also has a brand new ramp, built for the Lufthansa Technik operation, which can handle virtually any kind of aircraft. The Airport can have its small, former air carrier terminal ready for new commercial airline service within months – including a TSA and rescue plan. 

### FIGURE 17: Auburn

‐ Lewiston Municipal AirportAuburn-Lewiston Municipal Airport – Small Communi ty Air Service Development Grant – August 2010 

## 56 COMMUNITY PROFILE

Half of the urban "Cities of the Androscoggin," Lewiston lies on the eastern banks of the Androscoggin River. An early manu facturing center, Lewi ston still lives and breathes with the sights and sounds of modern productivity. Brimming with modern conveniences, Lewiston, and her sister town of Auburn, sit between the clean and natural settings of Maine's western lakes and mountains, and intermittent shorefront beaches an d rocky coastlines.

Auburn and Lewiston serve as a source of resources and entertainment not only for those coming into the state, but also for the local inhabita nts, many of whom travel 40 minutes to an hour and a half from the rural settings, for a taste of 21st century resources.
The Auburn-Lewiston Municipal Airport service area is home to almost 300,000 people. As of 2010, Lewiston-Auburn Metro Area's population itself is 107,031 people. Since 2000, it has had a population growth of 3.15 percent. The median household income is $45,455, but that income translated to a much higher purchasing power due to the low cost of living. The median home cost in Lewiston-Auburn Metro Area is $125,530. Compared to the rest of the country, Lewiston-Aub urn Metro Area's cost of living is 7.40% lower than the U.S. average.
Auburn-Lewiston has continually posted strong ec onomic growth in the last decade, despite the lagging economy, with total job gr owth of 8.9% between 2000 and 2008

. The Auburn-Lewiston area’s residents do not often drive long distances to access services, such as air transportation, as evidenced by the average commute time of just 7.3 minutes, and by the fact that 10% of residents bike or walk to work (the national av erage is 3%). Auburn-Lewiston residents spend an average of $6,300 on vacation each year.Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 57 What’s New in Auburn-Lewiston
Auburn-Lewiston centers of excellence include health care, high-precision manufacturing, printing/graphics, transportation & logistics, an d telecommunications. Nearly 50 percent of the state's population is located within a 30-mile radi us of Auburn-Lewiston. The area is home to some of the state's most successful companies, including Tambrands (a Procter & Gamble company), L.L. Bean's Telemarketing Center, General Electric, Formed Fiber Technologies (Toyota), Elmet Technologies, TD Banknorth Operatio ns Center, VIP Parts, Tires, & Service, Geiger, and a Wal-Mart Food Distribution Center. Auburn-L ewiston is home to the national office of the Forum Francophone des Affaires, an international trade group of French-speaking nations. Auburn-Lewiston is also home to the Maine International Trade Center. The Bates Mill Complex is at the heart of downtown Lewiston. Auburn-Lew iston is also home to four colleges including Bates College, which U.S. News and World Report ra tes one of the top libera l arts schools in the country, two world-class hospit als and a Foreign Trade Zone.

o Auburn-Lewiston leads the state in economic development expansions and investments. Among the recent major development projects in the Twin Cities include the completion of Phase 2 of WalMart’s Food Distribution Center estimated at $40 million. In addition, a $24 million campus expansion at Bates College, a $7 million investment in back-office operations by TD Banknorth at the Bates Mill Complex, and a spate of restaurants and retail projects, like the $6.7 million Kohl’s store.

o Lewiston-Auburn has made the top 100 list of Inc. Magazine’s “Best Places for Doing Business in America.”Inc. examined 274 populati on centers looking for such criteria as job creation and sustained growth. Lewiston-Auburn, Maine, was ranked 38th in the “small cities” category. The article notes, “Our assumption is that job growth is the best measure of a region’s economic vitality especially as it applies to entrepreneurs. What’s more, strong job growth suggests that a region ’s economy is expanding. That means new demand and new op portunities.”Auburn-Lewiston Municipal Airport – Small Communi ty Air Service Development Grant – August 2010 

## 58 o TD Banknorth, one of the area’s largest employers, expects to hire 250 more workers for its newest call center that opened in July 2010. The 250 workers taking calls Friday had moved recently to their new space in Lewiston. Officials said in July that they plan on doubling the number of workers at the call center in 2011. The new state-of-t he-art 60,000-square-foot facility is divided into four quadrants, each color-coded and dotted with computer-equipped work stations. Workers take incoming calls from customers needing assistance. Maine's governor and two U.S. senators, cheered th e announcement of new jobs coming to Maine. TD Bank will have nearly 3,000 workers in Maine by 2011, with more than one-third of them working in the Twin Cities. They'll field roughly 25,000 calls a day, seven days a week. The bank is also community-minded as well, as evidenced by a recent $5,000 donation presented to the local St. Mary's Food Pantry. “We have the capital and desire to grow here in Maine,” he said. The opening of the call center is a reflection of the growth of the bank's customer base,” said Bharat Masrani, president and CEO of TD Bank. “TD Bank has strong ties in Maine and were are committed to strengthening our presence here
even more.”

o In a global study comparing the costs of locating business operations, Lewiston faredbetter than any other New England community studied. KPMG International’s eightmonth project analyzed and compared 17 industry sectors in Canada, France, Germany, Italy, Japan, the Netherlands, Singapore, the United Kingdom, and the U.S. Lewiston was ranked as having more of a cost advantage than its New England counterparts Boston; Burlington, Vermont; Hartford, Connecticut; and Providence, Rhode Island.Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 59 Auburn-Lewiston Economic Overview
Auburn-Lewiston has become one of Maine's busiest distribution and logistics hubs. The area is served by the Saint Lawrence & Atlantic Railroad and northern New England's only double-stack freight container service, along wi th an intermodal transportation facility. Auburn became a U.S. Customs Port of Entry in 2002. In 2004, Auburn received approval to establish a Foreign Trade Zone encompassing 760 acres (3.1 km2). A number of distribution centers are located in the area, including the state's largest facility, a Wal-Mart food distribution center serving New England Wal-Mart Supercenters.
An innovative healthcare, high precision manufact uring, financial services and printing center, Lewiston-Auburn is home to excellent companies, colleges and institutions. Some of the state's most prestigious companies are located in Au burn-Lewiston includin g Procter & Gamble's Tambrands, Inc., General Electric and L.L. Bean 's Telemarketing Center. An independent study by KPMG International recently ranked the cost of doing business in Auburn-Lewiston nearly two percentage points below the U.S. benchmark. Th e Twin Cities is centrally located and offers access to nearly 50 percent of Maine' s population within a 30-mile radius.
Auburn-Lewiston has a current unemployment ra te of 8.1% (May 2010), lower than the nationwide average of 9.5%. Future job growth over the next ten years is predicted to be 22.56%.Auburn-Lewiston Municipal Airport – Small Communi ty Air Service Development Grant – August 2010 

## 60 Advantage Business Services, Auburn Auburn Shoe, Auburn Andover College, Lewiston Bates College, Lewiston Central Maine Community College, Auburn Central Maine Medical Center, Lewiston Dingley Press, Lisbon Elmet Technologies, Lewiston Gates Formed Fiber Technologies, Auburn Geiger Brothers, Lewiston General Electric, Auburn Hebron Academy, Hebron ICT Group, Wilton Irving Forest Products, Dixfield Keiser Industries, Oxford L.L. Bean Telephone Oper. Center, Lewiston LePage Bakeries, Lewiston Liberty Mutual, Lewiston Maine Machine Products, So Paris McKesson, Lewiston New Page Paper, Rumford Pioneer Plastics, Auburn Poland Spring Nestle, Poland Saddleback Ski Area, Rangeley Sisters of Charity Health Care Systems, Lewiston State of Maine, DHS, Lewiston Sugarloaf Ski Resort, Carrabassett Valley Sunday River Ski Resort, Newry Tambrands Inc. (Div.of Proctor&Gamble), Auburn TD Banknorth, Lewiston University of Maine Farmington University of Southern Maine VERSO Paper, Jay Wal-Mart Distribution Center, Lewiston White Rock Distilleries, Lewiston 

### FIGURE 18: Auburn

‐ Lewiston Employers with More Than 100 Employees, 2010; Source: Lewiston

‐ Auburn Economic Growth CouncilAuburn-Lewiston Municipal Airport – Small Communi ty Air Service Development Grant – August 2010 

## 61 Select Economic Profiles

Bates Mill
The Bates Mill, located in the heart of downtown Lewiston, is symbolic of the cultural identity, economic evolution and perseverance of the community. As the birthplace of Maine's industrial revolution, the Bates Mill Complex is of great econom ic and historic value to the City of Lewiston. Plans are well under way to convert the complex into modern uses.
The Bates Mill Complex was constructed between 1852 and 1919. It consists of nine major buildings containing approximately 1.2 million square feet of floor space on a five acre parcel. Today the Bates Mill Complex, as it is now known, is home to several companies including TD Banknorth, Affiliated Computer Services and Androscoggin Bank. The mi ll tenants collectively employ over 1,000 people.
It is the developer's objective to create in the Bates Mill a multi-use complex consisting of a compatible mix of manufacturing, retail, office, commercial and cultural uses. Building No. 1 will soon house a brewery. The Baxter Brewing Co., the first package brewery in the Twin Cities run by Auburn native Luke Livingston, 25, said opening a brewery in the Twin Cities is a way of giving back to the community where he was raised. "W e want to incorporate as many Maine products into our beers at possible," he said. That could mean Maine maple syrup as well as locally grown hops or oats in future brews.
The Lofts at Bates Mill, 52 apartments would mix low low-income and market-rate units in Bates Mill No. 2., and would include on-site laundry, access to a community room with computers, fitness and media rooms and free wi-fi. There’s also a food court planned for levels one and two.. At full build out, the collective employment in the Complex is projected to exceed 2,500 people. The former weaving shed, kn ow n as Building No. 5, also has a bright future. The city has received federal grants to create a master plan for the area.Auburn-Lewiston Municipal Airport – Small Communi ty Air Service Development Grant – August 2010 

## 62 Tambrands, Inc.
Tambrands has been located in Auburn for 39 years. The company currently contributes $75 million annually to the Maine economy through payroll, taxes, and purchasing of goods and services. The expansion is a $25.5 million investment and will be used to accommodate additional production lines and warehouse space for the company. “This investment shows a commitment to ensuring that these jobs stay in Maine,” the Governor said. The Aubu rn facility was one of three being considered for an expansion by Proctor & Gamble. A sourci ng study was done to determine which site could best meet performance criteria. Proctor & Gamble chose Auburn because of the work force, Maine’s elimination of the business equipment tax, and the incentives contained in the Pine Tree Development Zones program.

White Rock Distilleries
Since 1937, White Rock’s growth and success ha s been a story of commitment to innovation, strategic marketing and national leadership in sales and distri bution. In 1971, Ray Coulombe recognized this potential, and purchased the small distillery on Maine’s Androscoggin River, located 25 miles inland from the Maine coast. At that time, White Rock had three employees, a 10,000-square-foot plant and was selling just 25,000 cases a year.

Over the next three-plus decades, Ray and his son, Paul, built White Rock into a major force. Through strategic acquisition and development of new technologies, the Coulombe’s have expanded into 50 states and more than 20 countries. Their sales have grown from 25,000 cases a year to over three million, worldwide. Today, as White Rock continues to thrive, a third generation has come on board, Vice President of Florida Sales, Michelle Coulombe is working to build on the legacy of her gran dfather and father. Like Maine, White Rock’s steady success is a product of character, tradition and quality.Auburn-Lewiston Municipal Airport – Small Communi ty Air Service Development Grant – August 2010 

## 63 Higher Education in the Auburn-Lewiston Area
Auburn-Lewiston’s pretigious colleges and universities enroll more than 9,200 Full-Time Students from all 50 states and more than 40 foreign countries. Convenient and efficient travel is important for this academic area, both for faculty- related business travel, as well as student and family travel to and from the colleges.

Bates College
Auburn-Lewiston most well-known institution is Bates College, which was founded in 1855 and is the oldest continuously operating coed college in New England. Bates is continually listed among the top liberal arts colleges in the countr y by US News and World Report. The Princeton Review named Bates the No. 1 "Best Value College" in the United States in its 2005 ranking. Bates' 109-acre (44 ha) campus includes the George and Helen Ladd Library; the Olin Arts Center, which houses a concert hall, the Bates College Museum of Art; and the Edmund S. Muskie Archives and Special Collections Library.

Andover College
Bates is joined in the Auburn-Lewiston area by Andover College, which specializes in business programs for young professionals. In 1967, the Andover Institute of Business opened in Portland , Maine. In 1977, the State Board of Education granted Andover Institute approval to change it s name to Andover College. By 1998, Andover College became the first school of its kind in Maine to receive accreditation from the New England Association of Schools and Colleges (NEASC). In 2004, the Lewiston campus enrolled its first class. In the beginning of 2005, Ando ver College was purchased by Kaplan Higher Education Corporation (KHE), to be a part of its Kaplan Higher Education Campuses (KHEC) division. By joining such a prestigious company, Andover College has been given the support to continue the same excellent education for which it is known.Auburn-Lewiston Municipal Airport – Small Communi ty Air Service Development Grant – August 2010 

## 64 University of Southern Maine
The area is also home to a University’s of Southern Maine campus, which offers a full range of liberal arts undergraduate program s. The University of Southern Maine (USM) is a multi-campus public urban comprehensive university and part of the University of Maine System. USM's three primary campuses are located in Portland, Gorham, and Lewiston. Originally founded as two separate universities (Gorham Normal School, University of Maine at Portland), the two state universities were combined in 1970 to help streamline the public university system in Maine and eventually expanded by adding the Lewiston campus in 1988. The university is committed to being a national leader in interdisciplinary education, serving as a resource for the community, provid ing an outstanding educational experience for its students through degree programs that are re sponsive to changing cultural and workplace demands and that are available to a no n-traditional and diverse student body.

Central Maine Community College
Central Maine Community College draws students from all of New England to its two-year college prep programs. Founded in 1963 as An droscoggin State Vocational Institute, later changed to Central Maine Vocational Technical Institute. Its name was changed to Central Maine Technical College in 1989. As part of a statewide name change of the technical college system, on July 1, 2003 it became Central Maine Community College. The college is located in Auburn, Maine, in the south central region of Maine. The 135-acre campus overlooks Lake Auburn.Auburn-Lewiston Municipal Airport – Small Communi ty Air Service Development Grant – August 2010 

## 65 Auburn-Lewiston Tourism

Arts and Culture
With the cooperative spirit that now characterizes the relationship between Auburn and Lewiston, the two cities formed L/A Arts in 1973 in order to increase the number of cultural amenities in the area. In cooperation with local educational institutions and community organizations, the group sponsors hundreds of perf ormances a year by artists, authors, actors, and others in the community and the schools. Nati onally recognized artist s regularly perform at the Olin Arts Center on the Bates College campus.
The Androscoggin Chorale was formed as a comm unity chorus in 1972. In 1991, the Chorale joined with the Maine Chamber Ensemble to fo rm the Maine Music Society. The society has since offered several successful years of performa nces throughout the state, including operatic performances, classical music concerts, and holiday performances. The Lewiston-Auburn College/USM Atrium Gallery presents exhibitions of paintings, sculptures, and photography from artists across the state. It also hosts the annual Area Artists Exhibition and annual L/A Arts Exhibit and Auction. The Bates College Museum of Art at Olin Arts Center is home to one of the region's finest collections of masterworks on paper, in cluding the Marsden Hartley Memorial collection. More than 40,000 square feet of space at the Creative Photographic Art Center of Maine in the historic Bates Mill Complex is dedicated to photography and other related arts. Genealogical literature, historical exhibits on the Native American culture and Civil War artifacts are on display at the Andr oscoggin Historical Society Library and Museum. The Public Theatre, a fully professional Equity operation which has presented comedic and dramatic performances to the community for more than 10 years, was recently voted the best theatre company in Maine for the second year in a row. Since 1940, Auburn's Community Little Theatre has been producing musicals, dramas, come dies, and benefit concerts each year in the Great Falls Performing Arts Center. The Pleasant Note Coffeehouse is a combination restaurant and concert venue that presents a variety of artists ranging from up-and-coming locals to internationally known folk and jazz performers. Because of all these activities, the LewistonAuburn area has been designated as one of the best small arts towns in America.Auburn-Lewiston Municipal Airport – Small Communi ty Air Service Development Grant – August 2010 

## 66 Festivals and Holidays
Summer is festival time in Lewiston-Auburn; the season is inaugurated by the Maine State Parade, the largest such event in the state, held each May in Lewiston. In June, the Great Falls Canoe Race highlights the Androscoggin River. The Libe rty Festival on July 4th draws thousands of visitors for live en tertainment, food, and a fireworks display. Lewiston celebrates its French-Canadian heritage each summer with the Festival de Joie, a celebration of traditional food and music from all around the world. In mid-August, the skies over Auburn and Lewiston fill with the colorful sights of th e Great Falls Balloon Festiv al; 45 balloonists from across the Northeast take part in the event.

Outdoor Activities

A wealth of summer and winter recreational activities is available in and around Auburn and Lewiston. The proximity to mountains, forests, an d lakes offers opportunities to skiers, skaters, campers, boaters, hikers, and anglers. Bicycle tours of the back roads of the region are very popular. Just north of Lewiston is the Hebron-t o-Canton Rail Trail, an abandoned railroad bed turn ed pedestrian and bike route—a 36 mile round trip overall. For watersports enthusiasts, Lewiston plays host to the Great Falls Canoe Race each June.
The Twin Cities maintain dozens of parks and play grounds, a supervised be ach, skating rinks, and ball fields and courts. The Ingersoll Arena in Au burn is available for public skating, skating instruction, and hockey from early October to mid-March. Sunday River Mountain Bike Park in Bethel is served by two ski lifts, and offers sixty miles of marked and patrolled trails. The Lost Valley ski area features downhill and cross-country skiing in the winter and mountain bi ke trails and paintball facilities in the summer. A number of golfing faciliti es are also located in or near Lewiston.Auburn-Lewiston Municipal Airport – Small Communi ty Air Service Development Grant – August 2010 

## 67 Shopping and Dining

The downtown areas of Auburn and Lewiston lost most of their retail trade to shopping centers in th e 1980s but made a comeback as significant commercial centers in the late 1990s. Both Auburn and Lewiston have shopping malls, featuring major department stores, and Freeport—home of L.L. Bean, the outdoors outfitters—is about 30 minutes away from Lewiston. Nutcracker Sweet s is an old-fashioned candy shop featuring handcrafted chocolates, and Orphan Annie's Antiques in Auburn offers a large selection of Art Deco, Art Nouveau, Tiffany, Steuben, and other prominent Fr ench and American art glass.

Sightseeing
A stroll through the 109-acre campus of Bates College offers the sightseer a view of lawns, gardens, and ivy-covered buildings; one path le ads to the summit of Mt. David, providing an aerial view of the Twin Cities and sometimes a glimpse of the White Mountains 50 miles to the west. Lewiston Falls and Dam are best viewed from North Bridge. Bird fanciers visiting the area may wish to explore Thorn-crag Bird Sanctuary, a 310-acre wildlife pres erve for birds and small animals. The Mt. Apatite recreation area in Auburn features beautiful wooded hiking through an area once known for tourmaline mining.Auburn-Lewiston Municipal Airport – Small Community Air Service Development Grant – August 2010 

## 68 CONCLUSIONS

The Auburn-Lewiston market has been proven to be unique and totally unserved by the nation’s airlines. The region the Airport serves – from th e Atlantic Ocean to the border with Canada – has had no access to the national air transportation system for more than 20 years. The Cities of Auburn and Lewiston recognize the disadvantage this poses in working to develop the economy, and they have put significant money into the project to correct this problem.
The Airport’s market research shows the Auburn-Lewiston catchment area currently produces 623 passengers per day each way, as of August of 2010 – all flying out of other airports in the region. Most Auburn-Lewiston passengers use Portland’s Jetport, despite an hour drive on a toll road. They simply have no other choice than to pay extra to access flights. They are tired of this inconvenience – this econ omic barrier – and are working with the Airport to secure local flights.
Air service at Portland is becoming increasingly expensive, and planes are full. Capacity must be added in central Maine. The question is: should that capacity be added at an airport that’s already near full, or would the area be better served by the DOT partnering to add service at a reliever airport in a separate community? Moreover, the service proposed at Auburn-Lewiston is not duplicated at Portland – as Portland has no current non-stops to Boston.
The Auburn-Lewiston Municipal Airport has designed this Grant-supported project to reduce the burden of connecting through multiple hubs, and to further reduce the di stance that must be traveled to access the national air transportation system. The project eliminates a new airline’s barrier to entry by providing a revenue guarantee to cover losses in the start-up phase of the service. The Airport’s project also eliminates the carrier’s burden to pay landing fees, terminal rent, and parking fees for the first year of service. Additionally, with the Airport providing start-up cost offsets, that airline will not have to supply equipment – items including computers, signage, and ground handling vehicles will all be provided by the Airport.

The Airport must develop aggressive incentive programs to recruit its first air service, and to reduce leakage to other airports. 

## “Capacity must be added in central Maine. The question is... would the area be better served by the DOT partnering to add service ... in a separate community?”