# --

Dun & Brad street DUNS Number : 066980194 Tax Identification Number: 042553520 Two

- Digit Congres sional District Code: 02 

# Westover Metropolitan Airport Chicopee, Massachusetts

Proposal u nder the Small Community Air Service Development Program

Docket DOT

- OST

- 2011

- 0119 

# CEFWestover Metropolitan Airport

Westover Metropolitan Airport; Chicopee, Massachusetts Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 2011

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## TABLE OF CONTENTS

INTRODUCTORY LETTER

................................ ................................ ................................ .................... 3
EXECUTIVE SUMMARY

................................ ................................ ................................ ........................ 4
AIR SERVICE OVERVIEW

................................ ................................ ................................ ..................... 6 Catchment Area and Alternate Airp orts

................................ ................................ ................................ ................. 6 Westover Currently Has No Scheduled Air Service

................................ ................................ ............................... 7 Air Service Development Efforts

................................ ................................ ................................ ............................ 8 

### AIR SERVCE DEVELOPMENT NEEDS AND DEFICIENCIES

................................ ............................... 9
Hartfor d Capacity, Domestic Traffic and Domestic Fare Trends

................................ ................................ ........... 9
Hartford

- Florida Traffic and Fare Trends

................................ ................................ ................................ ............. 10
Southwest's Hartford

- Florida Traffic and Fare Trends

................................ ................................ ......................... 11 

### STRATEGIC PLAN

................................ ................................ ................................ .............................. 12 Proposed Use of SCASD Funding

................................ ................................ ................................ ....................... 12 Objective

................................ ................................ ................................ ................................ .............................. 12 Grant Amendments/Alternate Strategies

................................ ................................ ................................ ............. 12 

### PROJECT IMPLEMENTATION, MONITORING AND FUNDING

................................ .......................... 13 Public / Private Partnerships

................................ ................................ ................................ ................................ 13
Sources and Allocations of Project Funding

................................ ................................ ................................ ........ 14 Project Timeline

................................ ................................ ................................ ................................ ................... 14 Continuation of Project Activities Beyond the Grant Timeline

................................ ................................ ............. 15 

### PROJECT MONITORING AND FINANCIAL CONTROL

................................ ................................ ...... 15 Project Monit oring

................................ ................................ ................................ ................................ ................ 15 Legal Sponsor

................................ ................................ ................................ ................................ ...................... 16
Financial Controls

................................ ................................ ................................ ................................ ................ 16 

### APPENDIX A: REQUIRED SUMMARY INFORMATION

................................ ................................ ..... 17

A. Applicant Information

................................ ................................ ................................ ................................ .... 17
B. Public/Private Partnerships

................................ ................................ ................................ .......................... 17
C. Project Proposal

................................ ................................ ................................ ................................ ........... 17
D. Existing Landing Aids at Local Airport

................................ ................................ ................................ .......... 18
E. Project Cost

................................ ................................ ................................ ................................ .................. 18
F. In

- Kind Contributions**

................................ ................................ ................................ ................................ . 18
G. Is this application subject to review by state under Executive Order 12372 Process?

................................ 18
H. Is this applicant delinquent on any federal debt?

................................ ................................ ......................... 19Westover Metropolitan Airport

Westover Metropolitan Airport; Chicopee, Massachusetts Proposal Under the Small Community Air Service Development Program; Docket DOT

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### INTRODUCTORY LETTERWestover Metropolitan Airport

Westover Metropolitan Airport; Chicopee, Massachusetts Proposal Under the Small Community Air Service Development Program; Docket DOT

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### EXECUTIVE SUMMARY

Westover Metropolitan Airport is request ing a Small Community Air Service Development (SCASD) Grant in the
amount of $200 ,000 . SCASD fund ing would be supplemented with community funding totaling $50,000 in cash to

ma rket and advertise daily or less

- than

- daily (LTD) service to one or more leisure destinations from Westover. I n

a d d i t i o n , t h e A i r p or t w o u l d p r o v i d e i nc e n t i v e s , i n t h e f o r m o f f e e w a i v e r s , v a l u e d a t u p t o $ 3 7 4
, 0 0 0 o v e r t w o y e a r s

.

Several airlines , such as Allegiant, Direct Air and Vision, provide service exclusively to
leisure destinations at what are often secondary airpor ts near larger airports in
Florida

. For the airlines flying to these secondary airports, the airports are often
lower

- cost alternatives to the primary airport serving a leisure destination and are more
attractive than the larger airport for low

- cost
servi ce becau se airport costs are lower.
A irlines specializing in this particular kind of air service have expressed interest in serving the Westover/Chicopee area, and each
carrie r has indicated a need for Westover Metropolitan Airport to bear some of the ri sk of potential service by marketing and advertising any service the airline would begin to a leisure destination.

E ight leisure destinations and four airlines
have been identified for potential service from Westover Metropolitan Airport. Seven of the
destinations are in Florida

– West Palm Beach, Ft. Lauderdale, Punta Gord a, St. Petersburg, Lakeland, Sanford/ Orlando and Destin/Ft. Walton Beach. Myrtle Beach, in South Carolina
, has also been identified as a potential ma rket for service, and Direct Air's new service to San Juan from several mainland markets makes San Juan a target for service from Westover

. Westover is targeting four airlines as candidates for service to these destinations: Allegiant, Direct Air, Spirit and
Vision . The se carriers ( Direc t Air is actually an indirect air carrier providing public charter air flights) currentlyWestover Metropolitan Airport

Westover Metropolitan Airport; Chicopee, Massachusetts Proposal Under the Small Community Air Service Development Program; Docket DOT

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Midwest.Westover Metropolitan Airport

Westover Metropolitan Airport; Chicopee, Massachusetts Proposal Under the Small Community Air Service Development Program; Docket DOT

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### AIR SERVICE OVERVIEW

Catchment Area and Alternate Airports

Westover M etropolitan A irport is located in the heavily populated Northeast Corridor and is located within reasonably short drives of large population centers. 643,000 residents li ve within a 30 minute drive, 1.7 million
live within a 60

- minute drive and 4.2 million live within a 90

- minute drive of the airport

. Most of the Hartford metropolitan area is located within the 60

- minute drive time and, many of the western suburbs of Boston are
within a 90

- minute drive of the airport.

Bradley International Airport in Hartford (BDL) is located approximately 26 miles from Westover, the a irport in
Worc ester (ORH) is located approximately 60 mile s from Westover, and Boston Logan International Airport (BOS) is located approx imately 100 miles from Westover.

Exhibit 1: 30, 60 and 90

- Minute Drive T imes from Westover Metropolitan AirportWestover Metropolitan Airport

Westover Metropolitan Airport; Chicopee, Massachusetts Proposal Under the Small Community Air Service Development Program; Docket DOT

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### Westover Currently Has No Scheduled Air Service

Westover Metropolitan Airport has no commercial airline service today. Westover's last airline service was operated by Skyb us Airline s between July 2007 and A p r i l 2008 with one daily roundtrip to Columbus, Ohio

. Service to Greensboro, North Carolina was added in January 2008. Bot h markets were operated with narrowbody Airbus A319 aircraft. The service ended when SkyBus discontinued operations and shut

- down.
Over the e ight months Skybus r e p o r t e d d a t a f o r i t s o p e r a t i o n s a t Westover, more than 24,000 passengers w ere enplaned on S kybus flights, a strong i ndication Westover can generate significant traffic when low

- cost airline
service is available.

Exhibit 2: Skybus Enplaned Passengers at Westover Metropolitan Airport

– July 2007 through February 2008 (DOT T

- 100 Data) S k y b u s o p e r a t e d a t W e s t o v e r t h r o u g h A p r i l 2 0 0 8
, b u t r e p o r t e d d a t a o n l y t h r o u g h F e b r u a r y 2 0 0 8

.Westover Metropolitan Airport

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### Air Service Development Efforts

Westover Metropolitan Airport met with Direct Air
, S k y K i n g and Vision Airlines in October 2010 in Myrtle Beach to
discuss service t o destinations in Florida. A l l t h r e e airlines indicated the need for the Airport to share some of the risk by providing funds to market an d advertis e a n y n e w a i r s e r v i c e , and a l l t h r e e airlines indicated the amount would need to be app roximately $100,000 per route.Westover Metropolitan Airport

Westover Metropolitan Airport; Chicopee, Massachusetts Proposal Under the Small Community Air Service Development Program; Docket DOT

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### AIR SERVCE DEVELOPMENT NEEDS AND DEFICIENCIES

Hartford Capacity, Domestic Traffic and Domestic Fare Trend s

Westover Metropolitan Airport has no commercial airline service, and Bradley International Airport
, near Hartford
, is the closest airport to Westover with commercial airline service. Most residents and travelers within a 30 minute drive of Westover Metrop olitan Airport use Bradley when they travel; however, fares at Bradley have risen over the last ten years as airline capacity at Bradley has trended down. Over the last ten years, Bradley's capacity peaked in 2005 at just over 14,000 seats per day each wa y. Since 2005, capacity has declined 34.4%, and the average domestic fare has increased 31.4% or $41 eac h way to $172

.
Exhibit 7 : Bradley International Airport Seats per Day Each Way, Domestic Passengers per Day Each Way (PDEW) a nd Average Domestic One

- W ay Fare

– 2001

- 2010 ( DB1B and DOT T

- 100 data)

This Section Continued on Next Page

-Westover Metropolitan Airport

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### Hartford

- Florida Traffic and Fare Trends

Because Westover Metropolitan Airport is requesting SCASD funding to assist airlines in advertising and marketing service to one or more leisure destinations, primary destinations in Florida, it is important to understand the trend in fares between Bradley International Airport and markets in Florida . Despite low

- cost carriers such as Southwest and JetBlue operating nonstop ser vice from Bradley to destinations in Florida including Orlando, Tampa and Ft. Lauderdale, the average Bradley

- Florida one

- way fare stood at $142 in 2010. The average fare in 2010, was just $2 lower than the ten

- year peak of $144 in 2008. Over the last t en years, the average Bradley

Florida fare increased 43.1% or $43 each way from $99 in 2001 to $142 in 2010. Nonstop service from Westover to one or more destinations in Florida would likely generate a lower average fare than the average fare at Bradley.
As the average Bradley

- Florida fare increased since 2005, traffic has fallen. Traffic from Bradley to destinations in Florida peaked in 2005 at 2,548 PDEW, but fell 36.3% to 1,624 PDEW in 2010.

Exhibit 8 : Southwest Airlines Hartford

- Florida Passengers per Day Each Way (PDEW) and Average One

- Way Fare

– 2001

- 2010 ( DB1B data)Westover Metropolitan Airport

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### Southwest's Hartford

- Florida Traffic and Fare Trends

Analysis of Southwest's Hartford

- Florida traffic and fares indicates even Southwest's average Florida fare has increased substantially over the last ten years. In fact, Southwest's average Hartford

- Florida fare increased at a greater rate than t he average fare for all industry traffic in Hartford

- Florida markets. Southwest's average fare was $138 in 2010 and increased to this level from $93 in 2001, a 48% increase or an increase of $45 in each
direction.

.
Exhibit 8 : Southwest Airlines Hartford

- Florida Passengers per Day Each Way (PDEW) and Average One

- Way Fare

– 2001

- 2010 ( DB1B data)Westover Metropolitan Airport

Westover Metropolitan Airport; Chicopee, Massachusetts Proposal Under the Small Community Air Service Development Program; Docket DOT

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### STRATEGIC PLAN

Proposed Use of SCASD Funding

Westover Metropolitan Airport is requesting SCASD funding of $250,000 to market and advertise service to one
or more leisure destinations on a low

- cost carrier such as Allegiant, Direct Air, Spirit or Vision. SCASD funding will be supplemented with $50,000 of cash provided b y partner s in the community. The Airport would like the option to pay the proposed grant amount directly to the airline over a period of two years at a rate of up to $100,000 per route per year. In addition to the cash, in

- kind support from the Airport, in the for m of fee waivers
, is
valued at $187 ,000 over a period of two years.


### Objective

As discussed, t he primary objective of Westover's proposal is to secure air service to at least one leisure
destination on one or more a irlines. A combination of nine destinations on four airlines has been identified as potential targets for the type of service Westover is seeking, and the airline/destination combinations are:

 Allegiant

– Myrtle Beach, Punta Gorda, St. Petersburg, Sanford/Orlando

 Direct Air

– Lakeland , Myrtle Beach, Punta Gorda, San Juan, West Palm Beach

 Spirit

– Ft. Lauderdale, Myrtle Beach

 Vision

– Ft. Walton Beach



### Grant Amendments/

Alternate Strategies

Funds to market, advertise and promote air s ervice from Westover to a leisure destination is the objective o f the requested Small Community Ai r Service Development grant

.

If the Department awards Westover Metropolitan Airport the grant fund i n g r e q u e s t e d , but the Airport is not successful in securing service to one of the targeted leisur e destinations, the Airport would request an amendment to the grant from t h e Department to reallocate funding for another type of air service development project . This would include a minimum revenue guarante e ( M R G ) for service to a leisure or other type of
destination if the interested carrier is not interested in utilizing the grant funding to market, advertise or promote
service.Westover Metropolitan Airport

Westover Metropolitan Airport; Chicopee, Massachusetts Proposal Under the Small Community Air Service Development Program; Docket DOT

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

Westover Metropolitan Development Corporation owns and operates Westover Metropolitan Airport and is the project sponsor . Westover Metropolitan Development Corporation is a public entity. The Westover Metropolita n Development Corporation and the Economic Development Council of Western Massachusetts (EDC ) have partner ed in the proposal for Small Community Air Service Development funding.

Westover Metropolitan Development Corporation

Westover Metropolitan Development Corporation was created in 1974 by the Commonwealth of Massa chusetts

as a non
- profit 501 (c)( 4 ) corporation for economic development of portions of the former Westover Air Force Base. Westover Metropolitan Development Corporation operates the airport under a joint use ag reement with the Department of D efense.

Economic Development Council of Western Massachusetts

The Economic Development Counci l of Western Massachusetts (EDC) is a private, non

- profit corporation
that provides resources and information to businesses operating in or entering the region by aiding i n expansion, relocation and networking. The mission of the EDC is to deliver the services and business resources that enab le companies to do business in Weste rn Massachusetts grow the region's economy through the creation of quality jobs and enhanced publi c and private investment.

EDC accomplish es its goals through its own efforts and the coordinated efforts of eight affiliated partner organizations: the Affiliated Chambers of Commerce, Greater Springfield Convention and Visitors Bureau, Regional Technolo gy Corporation, Westfield Business Improvement District, Northampton Business Improvement District, Springfield Business Improvement District, Westmass Area Development Corporation and the Westover Metropolitan Airport.Westover Metropolitan Airport

Westover Metropolitan Airport; Chicopee, Massachusetts Proposal Under the Small Community Air Service Development Program; Docket DOT

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### Sources and Allocations of Projec t Funding

The total cost of the project is $ 6 2 4 ,000 to include the amounts of the requested grant, community

- provided cash
and the value of in

- kind airport incentives. The requested amount of the grant is $200,000, and community cash funding is $50,000. The Airport will be able to waive landing fees, a ircraft parking/apron fees, terminal use fees and fuel flowage fees. The total value of the in

- kind incentive s offered by the Airport is $ 1 8 7 ,000 per year based
f o r t w o y e a r s on an assumption of four flights per week op erated with a 150

- seat aircraft (737

- 300, MD

- 80 or A320) over a 12 month period

. T h e v a l u e o f t h e A i r p o r t ' s i n
- k i n d i n c e n t i v e s o v e r t w o y e a r s i s $ 3 7 4
, 0 0 0

.

Ex hibit 22: Sources and Types of Proposed Project Funding



### Project Timeline

Westover Metropolitan Airport intends to continue its discussions with airlines within a few weeks of learning the proposed funding is awarded. Business cases will be presented to the four airlines identified as targets for the proposed service: Allegiant, Direct Air, Spirit and Vision. Since airline planning cycles are dependent on factors

to include aircraft availability and require time for bookings to build, we anticipate the earliest possible date service could begin to be March or April 2012 and c ould extend beyond these dates. A timeline has been developed based on SCASD award announcem ents made in September 2011 with service beginning in April
2012.

Exhibit 23 : Proposed Project Timeline (Assumes SCASD Awards Are Announced in September 2011)Westover Metropolitan Airport

Westover Metropolitan Airport; Chicopee, Massachusetts Proposal Under the Small Community Air Service Development Program; Docket DOT

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### Continuation of Project Activities Beyond the Grant Timeline

The project sponsors are confident the proposed service will be successful, and additional service will be added once the initial service ope rates for a period of time. This optimism is based on the experience of Skybus service at Westover, and the amount of traffic carried from the region to lei sure destinations and increasingly higher fare
trend s among the airlines provi ding service from other airports in the region
, such as Hartford. A true low

- cost alternative to the fare levels at Hartford in particular, will drive traffic t o the proposed service at Westover.

Given the fragile state of the economy, the volatility of fuel costs and other factors beyond the control of the airline industry , the success of the proposed service cannot be assured. The Airport will work closely wit h the airline or airlines operating the proposed service throughout the grant period
, and beyond the two

- year grant period
, to monitor both the amount of traffic and the average fares are sufficient to sustain the service. In the event the
service is not meeting the carrier's expectations, both the Westover Metropolitan Airport and the Economic Development Council of Western Massachusetts are prepared to work with the carrier to address the carrier's

concer ns. Both project sponsors may be able to provide additional incentives and may be able to provide additional advertising and marketing, depending on the carrier's needs.



### PROJECT MONITORING AND FINANCIAL CONTROL Project Monitoring

The primary goal of Westover's proposal is to secure low

- cost airline service to one or more leisure destinations by providing marketing and advertising for an airline or airlines that agree to operate the targeted service. The success metric for the prop osed grant funding is simple: securing and sustaining service to one or more
destinations in Florida
, Myrtle Beach or San Juan beyond expiration of the grant period.Westover Metropolitan Airport

Westover Metropolitan Airport; Chicopee, Massachusetts Proposal Under the Small Community Air Service Development Program; Docket DOT

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### Legal Sponsor

The Westover Metropolitan Development Corporation is the legal sponsor responsible for administering th e proposed program , and the Westover Metropolitan Development Corporation is a government entity.

Westover Metropolitan Development Corporation
Westover Metropolitan Airport

Michael W. Bolton

Director of Civil Aviation

255 Padgette St.
Chicopee, MA 01022

413

- 593

- 5 5 4 4 (office)


### Financial Controls

As the sponsor, the Westover Metropolitan Development Corporation and its governing body, the Westover Metropolitan Development Corporation Board , will be the responsible partie s fo r all fiscal matters and the Department's reporti ng requirements. The Metropolitan Development Corporation Board is established as a non
profit 501(c)(3) corporation and is a public governing body. As a public entity
, the Department can be assured that proper financial controls are in place to guarantee that the Department ’s Grant will be used in accordance with any subsequent agreement. The Westover Metropolitan Development Corporation Board understands that
the Grant is a reimbur s able grant, meaning the Board is responsible for program expenditures and will submit
invoices to the Department for reimbursement, based on a percen tage of the total grant request.Westover Metropolitan Airport

Westover Metropolitan Airport; Chicopee, Massachusetts Proposal Under the Small Community Air Service Development Program; Docket DOT

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### APPENDIX A: REQUIRED SUMMARY INFORMATION

A. Applicant Information

Not a Consortium

Interstate Consortium

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



### B. Public/Private Partnerships

Public

 Westover Metropolitan Development Corporation

Private

 Economic Development Council of Western Massachusetts



### C. Project Proposal

Marketing Upgrade Aircraft New Route Travel Bank Service Restoration Subsidy S urface Transportation Regional Service Revenue Guarantee Launch New Carrier Start

- up Cost Offset First Service Study S ecure Additional Service Other (explain below)

Westover Metropolitan Airport is requesting SCASD funding to support marketing and advertising low

- cost commercial airline service to one or more leisure destinations.Westover Metropolitan Airport

Westover Metropolitan Airport; Chicopee, Massachusetts Proposal Under the Small Community Air Service Development Program; Docket DOT

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### D. Existing Landing Aids at Local Airport

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



### E. Project Cost

F. In

- Kind Contributions**

For funds in lines 5 a (Airport In

- Kind contribution) and 5 b (Other In

- Kind contribution), please describe the source(s) of fund(s) for each.
(5a) Westover Metropolitan Airport will waive landing, aircraft parking, apron, fuel flowage, terminal use and office space fees for a period of one year from the date the new service begins. These fees are estimated to be approximately $187,000 p e r y e a r based on an a ssumption of four weekly flights operated with a narrowbody aircraft such as a Boeing 737 or MD

- 80 with 135 to 150 seats uploading 2,000 gallons of fuel per departure. T h i s i n c e n t i v e w o u l d b e o f f e r e d f o r t w o y e a r s , a n d b r i n g t h e t o t a l v a l u e o f t h e i n c e n t i v e t o $ 3 7 4
, 0 0 0

. 

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

a. This application was made available to the State under the Executive Order 12372 Process for review on (date):
b. Program is subject to E.O. 12372, but has not been selected by the State for review.
c. Program is not covered by E.O. 12372Westover Metropolitan Airport

Westover Metropolitan Airport; Chicopee, Massachusetts Proposal Under the Small Community Air Service Development Program; Docket DOT

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

No Yes (explain)COMMITTEE ON WAYS AND MEANS
SECOND DISTR ICT
, MASSACHUS ETTS

RICHARD E. NEAL

RANKING MEMBER
, SUBCOMMITTEE ON SE L ECT REVENUE MEASURES A r LARGE WHIP DEMOCRATIC LEADE R
, FR IENDS OF IRELAND CAUCUS 

# Otnngrells of t4e mutfell**~tates ~OUll£**  

# of**~pr£5£ntatiuell** 

# masqingtolt , IDQt 

# 20515 August 2, 20 II

The Honorable Ray LaHood Secretary of Transportation US Department of Transportation 400**7~1** Street SW Washington, DC 20590

.
De.,

# S<C"**Od,** 

# R 0tJ
,
I'm writing in support of the a ((;i ication for grant funds under the Small Conununity Air Service Development Program submitted by the Westover Metropolitan Airport, Chicopee, Massachusetts.

Westover lost daily airline service to Columbus, Ohio and Greensboro, North Carolina in 2008 due to the cosi of crude oil at $1401bbl. The service was very successful with substantial passenger load factors in the first nine months of operations. The passengers flew for business, pleasure and college aged young adults attended a variety of institutes of higher education located in the Knowledge Corridor.

.

The airline locally employed approximately 45 in a variety of capacities including ticket counter, baggage handling, security, and fueling along with airport operations.

One easy solution for overcrowded conunercial airports is the use of underutilized airports hke Westover. Not only is the overcrowding eliminated but fees are less expensive fees, encouraging airlines to open new routes and markets to the public.

As Westover is a joint-use facility, with the Air Force playing a major role in our nation's security, the military operations is known as a first class leader in both its facilities and personnel. This year the Air Force received $60 million dollars for airfield improvements, Similarly, our civilian component seeks to provide a first class operation to the public by providing airline service that further enhances Westover.

Westover is a gateway to Springfield, Central & Western Massachusetts, Northern Connecticut and the Pioneer Valley, Airline service boosted the local economy with increased revenues from rental cars, hotel stays , restaurants, retail sales and tourist attractions,

The return of airline service is an important function to our conununity and local citizens in our region, Please give Westover Metropolitan Airport's proposal consideration in your selection process,
Sincerely,

Richard E
, Neal Member of Congress 2208 RAYBURN H OUSE**OFF~E** B U I LDING 300 STAT E STREET 2 C ONGRESS STREET WASHINGTON
, DC 20515 SUITE 200 POS T OFFICE BUI L DING (202) 225-560 1 SPRINGFIELD
, MA 01 105 MI LFORD
, MA 017 57 (413) 785-0325 (508) 634

- 8198

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