Proposal Under the 

Small Community Air Service 

Development Program 

Date: August 27, 2010 

Applicants: Wilkes-Barre/Scranton International Airport 

 Luzerne County, PA; Lackawanna County, PA

DUNS Number: 042623728 

+4 Number: 7531 

Congressional Districts: 10, 11 

Contact: Barry J. Centini 

 Wilkes-Barre/Scranton International Airport 

 100 Terminal Drive, Suite 1 

 Avoca, PA 18641 

 Phone: (570) 602-2000 

 E-mail: airport@flyavp.com 

Docket #: DOT-OST-2010-0124 
Page 2 of 28 

I. EXECUTIVE SUMMARY 

The Wilkes-Barre/Scranton International Airport and the Counties of Luzerne 

and Lackawanna are submitting this application for grant funds available under 

the Small Community Air Service Development Program to address the 

deficiencies in the Airport’s air service, including high fares and an insufficient 

level of service. These deficiencies are the result of the unique characteristics 

of the air transportation system in the Greater Northeastern Pennsylvania 

region. 

Air travelers using the Wilkes-Barre/Scranton International Airport (AVP) pay 

among the highest fares of any similar sized airport in the country. AVP has 

aggressively recruited both legacy and low cost airlines to enter its market for 

many years, but few carriers are willing to enter even AVP’s top O&D markets. 

This is in part because there are multiple airports served by low cost carriers, as 

well as legacy carriers with more flights, which surround the WilkesBarre/Scranton International Airport. As a result, AVP’s fares are not only high, 

but they are not competitive with the other airports. The lower fares and 

increased number of flights at the surrounding airports are sufficient to lure 

passengers from Wilkes-Barre/Scranton International Airport to airports more 

than 100 miles away, but these airports are not close enough to genuinely offer 

convenient service. 

Successful attraction of a low cost air carrier to AVP’s key markets has a track 

record of improving the cost differential in some AVP markets. However, 

successfully retaining those low cost carriers long-term has proven difficult. 

Maintaining legacy air carrier service to other AVP key markets has improved 

cost differentials in those markets. However, the number of seats on the 

legacy carriers has been steadily decreasing, which is forcing Northeastern 

Pennsylvania travelers to travel to another airport for their travel needs. Our 

described program is designed to address these concerns. 

With this in mind, the Airport continues to provide exceptional service to its 

community, while having no control or responsibility over the main variable in 

air travel – the customer. Currently, AVP has five legacy carriers, and three of 

those are handled by one airline. While airlines have in the past been more 

prone to provide their own employees for ground handling and customer 

support positions, the last few years have put that in jeopardy as airlines 

consolidate their employees at smaller airports. 

For several years, the U.S. airline industry has been struggling to control costs. 

Controllable costs have been dropping over the last half-decade, with carriers 

using methods, such as reducing airline employee wages and the actual 
Page 3 of 28 

outsourcing of on-airport jobs. Many carriers are opting not to start additional 

markets without the Airport and community picking up the charges for those 

start-up costs. Also, many carriers that have service at airports are decreasing 

their flights dramatically to control costs. 

The current trend is a continued increase in the AVP passenger market leaking 

to alternative airports and a serious imbalance in Pennsylvania’s airport system. 

With no air carriers operating in some of AVP’s top O&D markets, there is a 

significant gap between the demand for service and the level of service being 

provided. Past experience in these markets has proven they can be operated 

successfully and profitably, however, current carriers at AVP have chosen not to 

seek operating to those markets from AVP. 

The results of past efforts utilizing Air Service Development funds have been 

positive. Delta Connection’s (formerly Northwest Airlink’s) nonstop Detroit 

service, which began in April 2005, continues to provide a good destination to 

business travelers, with acceptable fares. 

Wilkes-Barre/Scranton International Airport and its supporting communities 

have continually been engaged in marketing the airport and look forward to 

improving the air service at AVP with the additional support of the DOT Small 

Community Air Service Development Program. 

II. SERVICE DESCRIPTIONS 

A. Wilkes-Barre/Scranton International Airport’s Service Area 

Wilkes-Barre/Scranton International Airport (AVP) is a non-hub airport 

located in Northeastern Pennsylvania serving a surrounding population of 

approximately one million residents. AVP is within a two-hour drive of 

several major east coast cities including Philadelphia and New York, is 

approximately eight (8) miles from Wilkes-Barre, PA and Scranton, PA, 

and is centrally located among four (4) major interstate highways. 
Page 4 of 28 

 (Source – Google Maps) 

The Wilkes-Barre/Scranton/Hazleton metro-area has a population of over 

600,000. There are over one million potential air passengers within a 

one-hour drive time and just fewer than three million located within a 90-

minute drive time. 

 Within a One-Hour Drive Time is a Market of Over 1 Million Potential Air Passengers 

 (Source – SH&E Analysis, US Census, Maptitude) 

Wilkes-Barre/Scranton’s airport service is bound by Philadelphia 

International Airport and Lehigh Valley International Airport to the south, 

each offering substantially greater numbers of scheduled flights and often 

significantly lower fares. These two airports are approximately a 100- 

and 60-mile drive, respectively, from the Wilkes-Barre/Scranton 
Page 5 of 28 

International Airport. One factor of great concern to the Partnership 

submitting this application is that Southwest Airlines offers competing 

service at Philadelphia International Airport and is offering significantly 

lower fares to many of AVP’s top markets. An additional factor is that 

both AirTran and Allegiant Air provide low fare options to leisure 

destinations at Lehigh Valley International Airport. AirTran is also 

providing nonstop Atlanta service from Lehigh Valley International 

Airport. 

To the east, John F. Kennedy International Airport, Newark Liberty 

International Airport, LaGuardia Airport and Stewart International Airport 

also compete with AVP, offering travelers numerous low fare options. As 

large hubs, John F. Kennedy International, Newark Liberty International 

and LaGuardia offer substantially more scheduled flights and direct 

service options both domestically and internationally. 

B. Description of Community’s Existing Air Service 

There are currently five (5) major airline networks serving the WilkesBarre/Scranton International Airport. These carriers are US Airways, 

Continental, Delta, United and American. Combined, these carriers serve 

a total of five (5) major hubs including Charlotte, Chicago, Detroit, 

Newark and Philadelphia. 

The table below indicates the type of aircraft flown by each carrier, 

equipment type, seats and frequency at AVP. It is important to note that 

all service to and from AVP is flown with either a regional jet or 

turboprop, yet O&D research and previous experience indicate that many 

AVP markets can support significantly larger aircraft such as Boeing 737 

or the new Embraer 170/190 series. 

Carrier Market Code A/C Stops Daily Daily Monthly Monthly Seats/

 Type Depts Seats Depts Seats Flight 

AA Chicago ORD ER4 0 1.0 50 31 1550 50 

AA Chicago ORD ERD 0 1.0 44 31 1364 44 

CO Newark CLE DH2 0 3.8 140 117 4329 37 

DL Detroit DTW CRJ 0 2.9 147 91 4550 50 

UA Chicago ORD ER4 0 2.0 100 62 3100 50 

US Charlotte CLT CR7 0 1.0 70 31 2170 70 

US Philadelphia PHL CRJ 0 3.7 187 116 5800 50 

US Philadelphia PHL DH3 0 0.1 3 2 100 50 

US Philadelphia PHL DH8 0 2.2 81 68 2516 37 

TOTALS 17.7 822 549 25479 46 

Source: OAG Schedule Tapes, August 2010, via Sabre Airline Solutions 
Page 6 of 28 

The chart below shows the cities serviced by AVP’s current airlines from 

AVP. 

 Source: OAG Schedule Tapes August 2010 

AVP Primary Catchment Area Usage, Retention & Total Booked

Rank Market PDEW 

AVP 

Retention 

AVP Primary 

Leakage 

Total 

Booked 

1 MCO 45.0 34% 88.6 133.6 

2 LAS 26.7 37% 45.1 71.8 

3 ORD 26.0 34% 49.8 75.8 

4 TPA 20.8 33% 42.6 63.4 

5 ATL 18.9 39% 29.4 48.3 

6 PHX 17.6 37% 30.6 48.2 

7 PHL 17.5 87% 2.6 20.1 

8 LAX 15.5 34% 30.5 46.0 

9 FLL 15.0 32% 32.2 47.2 

10 DFW 12.7 34% 24.7 37.4 

11 RSW 11.4 41% 16.1 27.5 

12 CLT 11.3 30% 27.0 38.3 

13 DEN 11.3 35% 20.7 32.0 

14 CVG 10.8 67% 5.3 16.1 

15 PBI 10.6 36% 18.8 29.4 

16 BNA 9.4 53% 8.3 17.7 

17 DTW 9.4 32% 20.4 29.8 

18 STL 9.1 54% 7.8 16.9 

19 MSP 8.5 43% 11.3 19.8 

20 SAN 8.3 35% 15.6 23.9 

21 JAX 8.0 37% 13.4 21.4 

22 SEA 7.9 31% 17.6 25.5 

23 MCI 7.5 43% 10.0 17.5 

24 SFO 7.4 38% 12.1 19.5 

25 IND 6.5 35% 12.0 18.5 

26 IAH 6.1 28% 15.5 21.6 

27 MIA 5.9 21% 22.6 28.5 

28 CUN 5.8 10% 54.4 60.2 

29 RDU 5.7 33% 11.5 17.2 

30 SAT 5.6 29% 13.6 19.2 

 Subtotal 382.4 35% 710.1 1,092.5 

 Other 221.1 31% 498.9 720.0 

 Total 603.5 33% 1,209.0 1,812.5 

 Source: Adjusted SABRE MIDT and D.O.T. 10% Coupon Sample for YE April 2010 
Page 7 of 28 

For 2009, Wilkes-Barre/Scranton International Airport reported 413,001 

combined enplaned & deplaned passengers. However, the true Primary 

Catchment Area size is estimated to be triple that number (see table 

above), which indicates that AVP is leaking passengers to surrounding 

airports, with the primary reasons, based on market research, being 

competition from low-fare markets, frequency and available seats. 

US Airways has traditionally dominated the AVP market. Delta 

Connection has recently cut flights, which increases opportunities for 

other airlines. In 2009, Delta Connection has eliminated Cincinnati 

service (January 2009), which was AVP’s #9 O&D Market for CY 2008, 

and has eliminated Atlanta (August 2009), which was AVP’s #5 O&D 

Market for CY 2008. 

New service in the past several years include: United Express to 

Washington Dulles in October 2004; Continental Connection to Boston in 

March 2005; Hooters Air to Orlando, Fort Lauderdale, St. Petersburg in 

October 2005; Myrtle Beach Direct Air to Myrtle Beach in June 2008; 

Continental Connection to Newark in October 2008; and American Eagle 

to Chicago O’Hare in June 2010. 

Source: OAG Schedule Tapes August 2010; Wilkes-Barre/Scranton International Airport, YE 2Q 2010 
Page 8 of 28 

AVP New Service During the Past Several Years

New Service Airline Began Ended Reason for Ending (1)

Washington-Dulles, DC United Express October 2004 August 2005 Shuttle America became US Airways 

carrier – United did not have other 

aircraft to maintain route 

Detroit, MI Northwest Airlink April 2005 N/A 

Orlando, FL Hooters Air October 2005 March 2006 Rising Fuel Costs 

Fort Lauderdale, FL Hooters Air October 2005 March 2006 Rising Fuel Costs 

St. Petersburg, FL Hooters Air October 2005 March 2006 Rising Fuel Costs 

Myrtle Beach, SC Hooters Air March 2006 March 2006 Rising Fuel Costs 

Boston, MA Continental Connection March 2005 March 2007 Reduction of Continental Connection 

flights into BOS system wide 

Pittsburgh, PA US Airways Pre-1980 June 2007 Reduction of US Hub 

Myrtle Beach, SC Myrtle Beach Direct Air June 2008 August 2008 Seasonal service 

Cleveland, OH Continental Connection October 2008 Moving AVP’s service from #3 CO Hub 

to #1 CO Hub 

Newark, NJ Continental Connection October 2008 N/A 

Cincinnati, OH Delta Connection March 1995 January 2009 Reduction of DL Hub 

Atlanta, GA Delta Connection May 2002 August 2009 Poor load factors; AVP-ATL route over 

700 NM (too far for CRJ) 

Chicago, IL (O’Hare) American Eagle June 2010 N/A 

(1) “Reasons for Ending” comments were given by Airline Representatives to AVP 

AVP Outbound Seats History

 Annual Percent 

 Outbound Change vs. 

Year Seats Prior Year

2001 366,429 

2002 390,586 6.6% 

2003 293,017 -25.0%

2004 338,714 15.6% 

2005 396,224 17.0% 

2006 331,991 -16.2%

2007 291,678 -12.1%

2008 278,908 -4.4% 

2009 265,041 -5.0% 

 

Seats

Month ('10 vs. '09) Diff (+/-) % Change

January 185 0.9% 

February -3,611 -17.5% 

March -2,142 -9.1% 

April -1,684 -7.4% 

May -2,296 -9.7% 

June 94 0.4%

Total for Period -9,454 -7.0% 

 

Source: Wilkes-Barre/Scranton International Airport
Page 9 of 28 

Losses in the past several years include: United Express to Washington 

Dulles in August 2005; Hooters Air to Orlando, Fort Lauderdale, St. 

Petersburg and Myrtle Beach in March 2006; Continental Connection to 

Boston in March 2007; US Airways to Pittsburgh in June 2007; Myrtle 

Beach Direct Air to Myrtle Beach in August 2008; Continental Connection 

to Cleveland in October 2008; Delta Connection to Cincinnati in January 

2009; and Delta Connection to Atlanta in August 2009. 

With these losses, as well as the significant reduction in available seats 

(shown above), it is anticipated that the decrease in passenger 

enplanements (shown below), as well an increase in load factors, will 

continue to drop throughout the remainder of 2010, even with the 

addition of American Eagle in June 2010. 

AVP Enplanement History 

 Percent 

 Annual Change vs. 

Year Enplanements Prior Year

2001 189,036 

2002 202,178 7.0% 

2003 181,715 -10.1%

2004 201,765 11.0% 

2005 221,348 9.7% 

2006 212,865 -3.8%

2007 220,893 3.4% 

2008 223,130 1.3% 

2009 207,168 -7.2%

 

 Enplanements

Month ('10 vs. '09) Diff (+/-) % Change

January -312 -2.0% 

February -2,227 -14.2% 

March -858 -4.8% 

April -397 -2.2% 

May -851 -4.6% 

June 587 3.1%

Total for Period -4,058 -3.9% 

 

Source: Wilkes-Barre/Scranton International Airport
Page 10 of 28 

To the south of AVP, Lehigh Valley International Airport has been 

increasing seats, which we feel is a detriment to AVP. Within the past 

year at ABE: 

• AirTran has added new service to Orlando, Atlanta and Fort 

Lauderdale (beginning November 4, 2010) with 117-seat Boeing 

717 aircraft 

• Allegiant Air has added new service to Myrtle Beach, and moved its 

Florida service from Sanford to Orlando with 150-seat MD-80 

aircraft 

• American Eagle added new service to Chicago O’Hare with three 

daily flights using 50-seat aircraft 

• Direct Air added new service to Myrtle Beach and Punta Gorda with 

150-seat Boeing 737 aircraft 

• Delta has increased seat capacity to Atlanta from one daily 50-seat 

aircraft to one 142-seat MD-88 aircraft 

• Delta has increased service to Detroit from three to four daily 

flights using 50-seat aircraft 

• United has increased service to Chicago O’Hare from three to four 

daily flights using 50- and 66-seat aircraft 

C. Analysis of Greater Northeastern Pennsylvania Needs and 

Deficiencies 

Over the past several years, AVP experienced a severe reduction in jet 

service to Philadelphia and Pittsburgh, which included a reduction in the 

number of seats available. Additionally, the region does not currently 

have competitive year round low fare service to its number one O&D 

market: Orlando. Service to Orlando performed well when it was 

introduced in 2004, with the positive trend continuing in 2005 and 2006, 

until Hooters Air discontinued all air service due to multiple factors, 

including internal scheduling problems, rising fuel costs, airline scheduling 

problems and problems with their service model. 

Atlanta, another AVP top O&D market, continued to perform well since 

returning to AVP in 2002, but ended in August 2009. Delta’s primary 

reason for discontinuing the flight is that the stage length was too long 

for a regional jet. 

As seen below, AVP is ranked as #6 by Delta’s Load Factors at ATL. 
Page 11 of 28 

Delta Ranking by Load Factor at ATL

Source: U.S. D.O.T. Report T-100 YE Dec 2009. 

 

All airlines (with the exception of American), including Continental, Delta, 

United and US Airways, remain at constant capacity, with no future growth on 

the horizon. 

US Airways has had no growth to Charlotte since they began with one daily 

flight in April 2005, with the exception of an occasional short-term period extra 

Saturday only flight. 

Delta has had no growth to Detroit since they began with three daily flights in 

April 2005. In October 2005, the Detroit flights decreased to twice daily 

because of problems with Mesaba Airlines. The third daily flight was reinstated 

in February 2009 after Delta discontinued all service from AVP to Cincinnati. 

United has had no growth to Chicago since they began with three daily flights 

in October 1998. In May 2003, the Chicago flights decreased to twice daily, 

and United has been satisfied with the performance to date with no additional 

increase in service. 

As seen below, AVP is ranked as #11 to Charlotte, #19 to Detroit and #23 

to Chicago O’Hare. 
Page 12 of 28 

US Airways Ranking by Load Factor at CLT

Source: U.S. D.O.T. Report T-100 YE Dec 2009. 

Delta Ranking by Load Factor at DTW

Source: U.S. D.O.T. Report T-100 YE Dec 2009. 
Page 13 of 28 

United Ranking by Load Factor at ORD

Source: U.S. D.O.T. Report T-100 YE Dec 2009. 

Although there has been no growth at AVP to these four destinations 

listed above, airports near AVP, i.e. Lehigh Valley International, have 

been gaining seats, even though there load factors are lower than AVP’s. 

From the charts listed above: 

• For ATL, AVP is ranked #6; ABE is ranked #72 

• For CLT, AVP is ranked #11; ABE is ranked #50 

• For DTW, AVP is ranked #19; ABE is ranked #72 

• For ORD, AVP is ranked #23; ABE is ranked #69 

As seen below, here are the latest load factors from AVP to specific 

destinations, most destinations have load factors at 87% or higher. 

Sources: U.S. D.O.T. T-100 Reports and Wilkes-Barre/Scranton International Airport 
Page 14 of 28 

Another challenge for AVP is the fact that competing airports are 

marketing their low-fare service to travelers in the AVP market area, 

through television, newspaper, radio and billboard (as seen below). The 

billboard below was actually placed less than 1⁄2 mile from the entrance 

to AVP. 

In light of these circumstances, AVP continues to actively pursue 

competitive low-fare service, as well as maintaining or even increasing 

legacy air service, to its top markets. 

AVP’s air fares remain extraordinarily high for the level of service offered 

and the economic demographic of the area as evidenced in the table 

below. As shown on the chart below, AVP’s fares remain above average 

and significantly higher than select markets with similar sized O&D 

passengers. 
Page 15 of 28 

AVP vs. Selected U.S. Cities - O&D Passengers & Avg. Fare

 

 Total Daily Avg. O&D Daily O&D

Rank Market Code State Enp. Psgrs Enp. Psgrs Fare Psgrs Psgrs

1 Rochester RST MN 151,359 415 $218 303,099 830 

2 Appleton ATW WI 263,838 723 $214 522,567 1,432 

3 Chattanooga CHA TN 265,181 727 $208 524,285 1,436

4 Asheville AVL NC 294,018 806 $204 582,663 1,596 

5 Wilkes-Barre/Scranton AVP PA 173,606 476 $203 349,423 957 

6 Rapid City RAP SD 284,856 780 $202 570,187 1,562 

7 Wilmington ILM NC 283,369 776 $201 570,334 1,563 

8 Durango DRO CO 148,685 407 $196 296,852 813 

9 South Bend SBN IN 296,074 811 $196 589,771 1,616 

10 Grand Junction GJT CO 207,759 572 $194 414,402 1,135 

11 Peoria PIA IL 231,807 635 $193 461,012 1,263 

12 Wausau CWA WI 161,322 442 $193 320,314 878 

13 Erie ERI PA 116,009 318 $192 231,328 634 

14 Medford MFR OR 279,429 766 $187 559,285 1,532 

15 Redmond RDM OR 222,030 608 $185 441,989 1,211 

16 Daytona Beach DAB FL 203,478 557 $185 411,235 1,127 

17 Allentown ABE PA 358,444 982 $173 713,499 1,955 

18 Newburgh SWF NY 186,726 512 $166 371,271 1,017 

19 Bloomington-Normal BMI IL 253,328 694 $156 504,198 1,381 

20 Aguadilla BQN Other 242,339 664 $154 480,025 1,315 

21 Nantucket ACK MA 141,321 387 $112 294,395 807 

22 Atlantic City ACY NJ 536,335 1,469 $ 93 1,070,089 2,932 

 

Average 241,014 660 $183 481,010 1,318 

(Source: U.S. D.O.T. O&D Survey YE 2Q2010, via Sabre Airline Solutions, OAG Schedule Tapes 

III. STRATEGIC PLAN FOR USING GRANT FUNDING 

A. Program Goals 

The primary goals of this grant proposal are to increase enplanements at 

AVP by attracting new service and expanding current service, to address 

insufficient air service by attracting replacement service for such services 

recently lost, and to address unreasonably high fares to AVP’s prime 

markets by increasing competition between existing air carriers and new 

air carriers. Currently, the AVP markets are underserved and it is 

apparent that travelers in the region are choosing to use alternative 

airports offering more scheduled service to a broader range of 

destinations with lower fare service. 

Historically, the Northeastern Pennsylvania market has supported new 

service as it enters the region and it is anticipated by all Partners in this 

program that this trend will continue with a high level of success. 

 Specifically, the four program goals are as follows: 
Page 16 of 28 

1. Restore daily service to: 

a. Hartsfield-Jackson Atlanta International Airport 

b. Washington-Dulles International Airport 

c. Pittsburgh International Airport 

2. Secure daily service to Lester B. Pearson International Airport in 

Toronto, Canada. 

3. Secure service to leisure destinations, i.e. but not limited to, 

Central Florida Region (Orlando/Tampa/St. Petersburg), Fort 

Lauderdale, West Palm Beach, Punta Gorda, Las Vegas, and/or 

Myrtle Beach. 

4. Entice existing air carriers at AVP to expand their service with 

additional flights/markets. 

 

From the successful implementation of these program goals, AVP 

anticipates a direct affect of reduced fares in key markets and a 

significantly increased level of service. 

B. Target Audiences 

The following is a list of target audiences for AVP: 

• Low-fare carriers 

1. AirTran Airways 

2. Allegiant Air 

3. Direct Air 

4. Southwest Airlines 

5. Vision Airlines 

6. X Air 

• Legacy carriers 

1. Air Canada 

2. American Airlines 

3. Continental Airlines 

4. Delta Air Lines 

5. United Air Lines 

6. US Airways 

• Regional carriers 

1. Cape Air 

2. Colgan Air 

3. Gulfstream International Airlines 
Page 17 of 28 

C. Plan Implementation and Timetable 

Key milestones for the Program will be: 

• Securing meetings with carriers to negotiate new service (October 

2010 – March 2011). 

• Announcing new service with local community marketing campaign 

(January 2011 – June 2011). 

• Starting up new service (January 2011 – October 2011). 

• Monitoring and analyzing monthly traffic numbers of new service 

(January 2011 – June 2012). 

• Monitoring and analyzing fares to the target markets (January 2011 

– June 2012). 

IV. AIRPORT AND BI-COUNTY PARTNERSHIP FUNDING AND 

MONITORING ASSURANCES 

The Wilkes-Barre/Scranton International Airport will act as the sponsor of the 

program. The sponsorship will be managed by Barry J. Centini, Airport 

Director, and the program will be managed by an airport administration and bicounty partnership representing the counties of Luzerne and Lackawanna. The 

partnership will meet on a regularly scheduled monthly basis to review the 

progress and schedule of the program and more often when the program 

requires it. 

At each meeting, goals, objectives, and milestones will be evaluated to measure 

progress. Additionally designated members of the Partnership will be assigned 

to evaluate any changes in the current market environment and to identify any 

potential obstacles. The Partnership will prepare and submit quarterly reports 

to provide assurances that both the DOT and community funding are being 

spent in the manner proposed. At the time that new service is secured and the 

funding is successfully allocated, the quarterly reports will provide the DOT 

updates on the success of the service. 
Page 18 of 28 

V. FUNDING DESCRIPTION 

A. An airline to restore daily Atlanta service, minimum one (1) daily flight. 

Risk abatement subsidy for daily service for a minimum of six (6) months. 

 FAA: $ 200,000 

 Luzerne County: $ 25,000 

 Lackawanna County: $ 25,000

 Total: $ 250,000 

B. An airline or airlines to provide nonstop Washington (DC), Pittsburgh 

and/or Toronto service, minimum two (2) flights per weekday per 

destination. Risk abatement subsidy for daily service for a minimum of 

six (6) months. 

 FAA: $ 50,000 

 Luzerne County: $ 10,000 

 Lackawanna County: $ 10,000

 Total: $ 70,000

C. An airline or airlines to provide service to one or more nonstop leisure 

destinations, i.e. but not limited to, Central Florida region, Fort 

Lauderdale, West Palm Beach, Punta Gorda, Las Vegas and/or Myrtle 

Beach, minimum two (2) flights per week per destination. Start-up costs 

for provided service. 

 FAA: $ 125,000 

 Luzerne County: $ 40,000 

 Lackawanna County: $ 40,000 

 Airport: $ 50,000

 Total: $ 255,000

D. Local Market Advertising to provide needed baseline support for new 

and/or restored airline service with a new or present airline, as well as 

support of additional flights with present airline service. 

 FAA: $ 200,000 

 Luzerne County: $ 25,000 

 Lackawanna County: $ 25,000 

 Airport: $ 50,000

 Total: $ 300,000 
Page 19 of 28 

E. TOTALS: 

FAA: $ 575,000 

 Luzerne County: $ 100,000 

 Lackawanna County: $ 100,000 

 Airport: $ 100,000

Total: $ 875,000 

VI. COMMUNITY ACTIVITIES 

 The Airport and supporting community organizations have been aggressively 

and actively marketing the airport for several years. This effort has included 

many initiatives all undertaken to ensure that the Northeastern Pennsylvania 

community is served in the best possible way. 

 Specific activities have included: 

 * Direct subsidy to carriers 

 * Targeted carrier meetings 

 * New service cost reduction incentives including: 

- Advertising and marketing assistance for, but not limited to, 

television, radio, and newspaper coverage 

- Waiving of landing fees and space rentals for a negotiated period 

- Donate local billboard advertising space and county bus system 

promotion 

- Develop and direct a new service information mailing initiative to 

local travel agents and community businesses 

 * New service kick-off and promotional meetings with local travel agents 

 * New service local community marketing support initiatives 

* Annual attendance and participation at ACI’s annual Marketing 

“JumpStart” conference 

VII. RESULTS OF PAST AIR SERVICE DEVELOPMENT EFFORTS 

The results of past efforts utilizing Air Service Development funds are positive. 

Service continues to Detroit, MI, via Delta Airlines’ express carrier Pinnacle 

Airlines with load factors averaging 80% during 2008, and averaging 88% 

during 2009, and averaging approximately 89.2% for the first seven months of 

2009. Detroit service began at AVP in April 2005. Service to Orlando, FL, did 

better than expected despite Hooters Air’s end of service in March 2006 due to 
Page 20 of 28 

its own internal financial issues, with load factors averaging in the 83% to 86% 

range by the end of their tenure at AVP. 

The Detroit service continues to provide a good destination to business 

travelers, with acceptable fares. The Orlando service provided a great level of 

service for business and leisure travelers, with a very competitive fare structure. 

With our past history and experience of being able to utilize funds for positive 

gains, we are confident that an award to Wilkes-Barre/Scranton International 

Airport will bring positive results. 

VIII. PROGRAM SPONSORS 

 Program Legal Sponsor: Program Partners: 

 Barry J. Centini, Airport Director Luzerne County, PA 

 Wilkes-Barre/Scranton Lackawanna County, PA 

 International Airport Greater Pittston Chamber of Commerce 

100 Terminal Drive Greater Scranton Chamber of Commerce

 Avoca, PA 18641 Greater Wilkes-Barre Chamber of Commerce 

 570/602-2000 – Phone Lackawanna Co. Convention & Visitors Bureau 

570/602-2010 – Fax Luzerne Co. Convention & Visitors Bureau 

bcentini@flyavp.com Pocono Mountains Visitors Bureau 

Attachments: 

1) Attachment 1 – Gulfstream International Airlines Letter of Support 

2) Attachment 2 – US Airways Letter of Support 

3) Attachment 3 – X Air Letter of Support 

4) Attachment 4 – Cape Air Letter of Support 

5) Attachment 5 – Delta Air Lines Letter of Support 

6) Attachment 6 – Direct Air Letter of Support 

7) Attachment 7 – Program Partners “In-Kind” Contributions 
Page 21 of 28 

 ATTACHMENT 1 

Page 1 

Order: 2010-7-16 

Docket DOT-OST-2010-0124 

The Honorable Raymond LaHood Date: August 23, 2010 

Secretary of Transportation 

U.S. Department of Transportation 

1200 New Jersey Ave., SW 

Washington, DC 20590 

Dear Mr. LaHood, 

I am writing today in support of Wilkes-Barre/Scranton International Airport and their application for a Small Community Air 

Service Development Grant. 

As you may be aware, the dissolution of the former US Airways hub in Pittsburgh has left a huge hole in terms of regional air 

service in western Pennsylvania. More than thirty cities within 350 miles of Pittsburgh that former enjoyed non-stop service 

remain without that link. Besides being the second largest city in Pennsylvania, Pittsburgh is a true regional business center and 

while the Greater Pittsburgh International Airport has done a tremendous job of restructuring itself as a true Origin/Destination 

traffic generator, it is noteworthy that the only other Pennsylvania city being served by air from Pittsburgh is Philadelphia. 

Despite being the anchor of western Pennsylvania business, cities such as Latrobe, Erie, Wilkes-Barre/Scranton, Williamsport, 

Allentown, and even the State Capital in Harrisburg remain without a direct air link. Pennsylvania is the sixth largest state in the 

union in terms of population and this lack of regional access is problematic and economically restrictive. 

Gulfstream International Airlines continues to work diligently to restore service from the Greater Pittsburgh International Airport 

to airports throughout the region and would welcome the possibility of adding Wilkes-Barre/ Scranton as a destination. 

Conceived in cooperation with the Greater Pittsburgh International Airport, the “Pittsburgh Connector”, has the intent of 

restoring service in several regional markets, focusing on Pittsburgh International Airport as its “hub”. We remain very interested 

in serving the Wilkes-Barre/Scranton – Pittsburgh market and restoring that community’s link to the business center of western 

Pennsylvania. 

As with any new venture, the start-up costs constitute a good deal of our forecast outlay. We fully endorse WilkesBarre/Scranton’s effort to secure a SCASD Grant to aid in launching and marketing this venture. 

We are confident that the restoration of this vital air link will benefit economic development in Pennsylvania. These funds will 

assure a means to grow and promote this new travel option and allow Gulfstream International to focus on providing seamless 

connectivity and operational reliability to assure this new service succeeds and the people of Pennsylvania benefit. 

Very truly yours, 

Mickey Bowman 

Vice President of Corporate Development 

Gulfstream International Airlines 

3201 Griffin Road 

Ft. Lauderdale, FL 33312 

•3201 Griffin Road, 4th Floor • Fort Lauderdale • FL • 33312 • 

• (954)985-1500 • fax (954)985-5245 • cell (270)303-8719 • 

• mbowma@gulfstreamair.com • www.gulfstreamair.com • 
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 ATTACHMENT 7 

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In-Kind Contributions 

Wilkes-Barre/Scranton International Airport 

Small Community Air Service Grant 

Luzerne County Convention and Visitors Bureau 

In-Kind Item Amount 

Staff Fulfillment $2,080.00 

Mailing and Distribution of Visitor Guide $820.00 

Attendance at Trade Shows $2,500.00 

Ad Placement - Annual Visitors Guide $2,500.00 

Ad Placement - Pennsylvania Pursuits Magazine $1,000.00 

 Total In-Kind: $8,900.00 

Lackawanna County Convention and Visitors Bureau 

In-Kind Item Amount 

Staff Fulfillment $3,500.00 

Mailing and Distribution of Visitor Guide $1,200.00

Attendance at Trade Shows $2,000.00 

Half Page Ad Placement - This Week in The Poconos $1,300.00 

 Total In-Kind: $8,000.00 

Pocono Mountains Visitors Bureau 

In-Kind Item Amount 

Staff Fulfillment $2,200.00 

Mailing and Distribution of Visitor Guide $1,000.00

Attendance at Trade Shows $1,500.00 

Ad Placement on 800poconos.com $2,800.00 

 Total In-Kind: $7,500.00 

Greater Pittston Chamber of Commerce 

In-Kind Item Amount 

Insert in Monthly Newsletter for 12 months $3,500.00 

 Total In-Kind: $3,500.00 
Page 28 of 28 

ATTACHMENT 7 

Page 2 

Greater Wilkes-Barre Chamber of Commerce 

In-Kind Item Amount 

Full Page Ad Placement - Annual Dinner Program $500.00 

Full Page Ad Placement - Legislative Breakfast $500.00 

Full Page Ad Placement - Awards Luncheon Program $500.00 

Staff Fulfillment $2,000.00 

 Total In-Kind: $3,500.00 

Greater Scranton Chamber of Commerce 

In-Kind Item Amount 

Ad Placement in News Briefs Newsletter $2,000.00 

Web Site Exposure 

 Total In-Kind: $2,000.00 
APPENDIX B 

Page 1 

Order: 2010-7-16 

Docket DOT-OST-2010-0124 

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM 

DOCKET DOT-OST-2010-0124 

SUMMARY INFORMATION

All applicants must submit this information with their proposal, along with a completed form SF424 on 

http://www.grants.gov. 

A. APPLICANT INFORMATION: (CHECK ALL THAT APPLY) 

⌧ 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: 09/15/2004 

Expiration date of grant: 08/17/2006 

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

Public Private

1. Wilkes-Barre/Scranton International Airport 1. Greater Pittston Chamber of Commerce 

2. Luzerne County 2. Greater Scranton Chamber of Commerce 

3. Lackawanna County 3. Greater Wilkes-Barre Chamber of Comm. 

4. 4. Lackawanna Co. Conv. & Visitors Bur. 

5. 5. Luzerne Co. Conv. & Visitors Bureau 

 6. Pocono Mountains Vacation Bureau 

C. PROJECT PROPOSAL: (CHECK ALL THAT APPLY) 

⌧ Marketing ⌧ Upgrade Aircraft ⌧ New Route 

Personnel ⌧ Increase Frequency ⌧ Low Fare Service 

Travel Bank ⌧ Service Restoration ⌧ Subsidy 
APPENDIX B 

Page 2 

Surface Transportation ⌧ Regional Service Other (specify) 

Revenue Guarantee ⌧ Launch New Carrier 

⌧ Start Up Cost Offset First Service 

Study ⌧ Secure Additional Carrier 

D. EXISTING LANDING AIDS AT LOCAL AIRPORT: 

⌧ Full ILS Outer/Middle Marker ⌧ Published Instrument Approach 

⌧ Localizer Other (specify) 

E. PROJECT COST: 

1. Federal amount requested: $ 575,000 

2. State cash financial contribution: $ 0 

3. Local cash financial contribution... $ 300,000 

 3a. Airport cash funds: $ 100,000 

 3b. Non-airport cash funds: $ 200,000 

 3c. Total local cash funds (3a. + 3b.): $ 300,000 

4. TOTAL CASH FUNDING (1. + 2. + 3c.): $ 875,000 

5. Local funds contributed from already-existing

 programs or projects included in line 3c. amount: $ 0 

6. Local funds contributed from new commitments 

 or new resources included in line 3c. amount: $ 0 

7. Airport In-Kind contribution: $ 280,000 (est.) 

 (amount & description) min. 6 month waiver of landing fees/sp.rent., 

billboard usage, direct mail campaigns 

8. Other In-Kind contribution: $ 33,400 

(amount & description) (See Attachment 7) Ad placements, trade show exposure, staff 

fulfillments, mailings, web site exposure/ads, 

newsletter inserts 

9. TOTAL IN-KIND CONTRIBUTION (7. + 8.): $ 313,400 (est.) 

10. TOTAL PROJECT COST (4. + 9.): $1,188,400 (est.) 
APPENDIX B 

Page 3 

F. ENPLANEMENTS: 

2000 221,522 2004 201,765 2008 223,130 

2001 189,036 2005 221,348 2009 207,168 

2002 202,178 2006 212,865 

2003 181,715 2007 220,193 

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

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

 for review on (date) _____________. 

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

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

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

⌧ No Yes (explain) _____________________________________________