Millington Airport Authority; Millington, Tennessee 

Small Community Air Service Development Program Proposal; Docket DOT-OST-2014-0113 

APPLICATION UNDER 

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM 

DOCKET DOT-OST-2014-0113 

SUMMARY INFORMATION

A. PROVIDE THE LEGAL SPONSOR AND ITS DUN AND BRADSTREET (D&B) DATA UNIVERSAL 

NUMBERING SYSTEM (DUNS) NUMBER, INCLUDING +4, EMPLOYEE IDENTIFICATION NUMBER 

(EIN) OR TAX ID. 

Legal Sponsor Name: Millington Airport Authority 

Name of Signatory Party for Legal Sponsor: Roy Remington 

DUNS Number: 0081302180000

EIN/Tax ID: 62-1534081

B. LIST THE NAME OF THE COMMUNITY OR CONSORTIUM OF COMMUNITIES APPLYING: 

1. Millington, Tennessee 

C. PROVIDE THE FULL AIRPORT NAME AND 3-LETTER IATA AIRPORT CODE FOR THE 

APPLICANT(S) AIRPORT(S) (ONLY PROVIDE CODES FOR THE AIRPORT(S) THAT ARE 

ACTUALLY SEEKING SERVICE). 

1. Millington Regional Jetport (NQA) 2. 

3. 4. 

DOES THE AIRPORT SEEKING SERVICE HOLD AN AIRPORT OPERATING CERTIFICATE ISSUED 

BY THE FEDERAL AVIATION ADMINISTRATION UNDER 14 CFR PART 139? (IF “NO,” PLEASE 

EXPLAIN WHETHER THE JETPORT INTENDS TO APPLY FOR A CERTIFICATE OR WHETHER AN 

APPLICATION UNDER PART 139 IS PENDING.) 

 Yes No (explain) 
Millington Airport Authority; Millington, Tennessee 

Small Community Air Service Development Program Proposal; Docket DOT-OST-2014-0113 

D. LIST THE 2-DIGIT CONGRESSIONAL DISTRICT CODE APPLICABLE TO THE SPONSORING 

ORGANIZATION, AND IF A CONSORTIUM, TO EACH PARTICIPATING COMMUNITY. 

1. TN-09 2. 

3. 4. 

E. APPLICANT INFORMATION: (CHECK ALL THAT APPLY) 

 Not a Consortium Interstate Consortium Intrastate 

Consortium 

 Community now receives subsidized Essential Air Service 

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

Service Development Program Grant 

If previous recipient: Provide Year of grant(s): ________________________________________; 

Did not execute contract with DOT and, the text of the Grant agreement section(s) 

setting forth the scope of the grant project: __________________________________________ 

_____________________________________________________________________________________

_____________________________________________________________________________________ 

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

PUBLIC PRIVATE

1. Millington Airport Authority 1. Millington Industrial Development Board 

2. City of Millington, Tennessee 2. Millington Chamber of Commerce 

3. 3. 

4. 4. 

5. 5. 
Millington Airport Authority; Millington, Tennessee 

Small Community Air Service Development Program Proposal; Docket DOT-OST-2014-0113 

G. PROJECT PROPOSAL: 

1. GRANT GOALS: (CHECK ALL THAT APPLY)

 Launch New Carrier Secure Additional Service Upgrade Aircraft 

 First Service New Route Service Restoration 

 Regional Service Surface Transportation Professional Services 

 Other (explain below) 

_____________________________________________________________________________________

_____________________________________________________________________________________

__________________________________________________________________________________ 

2 . FINANCIAL TOOLS TO BE USED: (CHECK ALL THAT APPLY) 

Marketing (including Advertising): promotion of the air service to the public 

Start-Up Cost Offset: offsetting expenses to assist an air service provider in setting up 

a new station and starting new service (for example, ticket counter reconfiguration) 

Revenue Guarantee: an agreement with an air service provider setting forth a 

minimum guaranteed profit margin, a portion of which is eligible for reimbursement by 

the community 

Recruitment of Air Carrier: air service development activities to recruit new air 

service, including expenses for airport marketers to meet with air service providers to 

make the case for new air service 

Fee Waivers: waiver of airport fees, such as landing fees, to encourage new air 

service; counted as in-kind contributions only 

Ground Handling Fee: reimbursement of expenses for passenger, cabin, and ramp 

(below wing) services provided by third party ground handlers 

Travel Bank: travel pledges, or deposited monetary funds, from participating parties 

for the purchase of air travel on an air carrier, with defined procedures for the 

subsequent use of the pledges or the deposited funds; counted as in-kind contributions 

only 
Millington Airport Authority; Millington, Tennessee 

Small Community Air Service Development Program Proposal; Docket DOT-OST-2014-0113 

Other (explain below) 
Millington Airport Authority; Millington, Tennessee 

Small Community Air Service Development Program Proposal; Docket DOT-OST-2014-0113 

H. EXISTING LANDING AIDS AT LOCAL AIRPORT: 

 Full ILS Outer/Middle Marker 

Published Instrument Approach 

 Localizer Other (specify) 

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

Line Description Sub Total Total Amount

1 Federal amount requested $250,000

2 State cash financial contribution

Local cash financial contribution

3a Airport cash funds $0

3b Non-airport cash funds $37,500

3 Total local cash funds (3a + 3b): $37,500

4 TOTAL CASH FUNDING (1 + 2 + 3): $287,500

In-Kind contribution

5a Airport in-kind contribution** $75,722

5b Other in-kind contribution**

5 TOTAL IN-KIND CONTRIBUTION (5a + 5b): $75,722

6 TOTAL PROJECT COST (4 + 5): $363,222

J. IN-KIND CONTRIBUTIONS** 

For funds in lines 5a (Airport In-Kind contribution) and 5b (Other In-Kind contribution), 

please describe the source(s) of fund(s) and the value ($) of each. The Jetport will 

waive landing fees and ramp fees for the first two years of new service. The Jetport inkind contribution is estimated based on a landing fee of $1.90 per one thousand 

pounds and an $80 ramp fee per turn. The estimate assumes the airline would operate 

two MD-80 departures per week for the two year length of the incentive. 

K. IS THIS APPLICATION SUBJECT TO REVIEW BY AN AFFECTED 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. 
Millington Airport Authority; Millington, Tennessee 

Small Community Air Service Development Program Proposal; Docket DOT-OST-2014-0113 

L. IS THE LEAD APPLICANT OR ANY CO-APPLICANTS DELINQUENT ON ANY FEDERAL DEBT? 

(IF “YES”, PROVIDE EXPLANATION) 

 No Yes (explain) 

___________________________________________________________________________________ 
Millington Airport Authority; Millington, Tennessee 

Small Community Air Service Development Program Proposal; Docket DOT-OST-2014-0113 1

Contents 

INTRODUCTORY LETTER.................................................................................................................................. 2

INTRODUCTION............................................................................................................................................... 3

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

Catchment Area and Alternate Airports............................................................................................... 4

AIR SERVCE DEVELOPMENT NEEDS AND DEFICIENCIES............................................................................ 5

Capacity Trends ........................................................................................................................................ 5

Traffic Trends............................................................................................................................................... 6

Traffic Retention and Leakage ............................................................................................................... 8

The Relationship of Capacity, Domestic Traffic and Domestic Fare Trends.................................... 9

Memphis Fares Versus Fares at Other Airports in the Region............................................................ 11

Memphis Fares Versus Fares at Other Airports in the Lower 48 United States................................ 12

STRATEGIC PLAN .......................................................................................................................................... 13

Ground Handling and Marketing for Ultra-Low-Cost Carrier Service.............................................. 13

Goals ......................................................................................................................................................... 15

PARTNERSHIPS, FUNDING, IMPLEMENTATION, SUCCESS METRICS AND FINANCIAL CONTROL ......... 15

Public / Private Partnerships................................................................................................................... 15

Project Funding........................................................................................................................................ 16

Implementation Timeline........................................................................................................................ 17

SUCCESS METRICS........................................................................................................................................ 18

Legal Sponsor........................................................................................................................................... 18

Financial Controls .................................................................................................................................... 19

CONCLUSION ............................................................................................................................................... 20
Millington Airport Authority; Millington, Tennessee 

Small Community Air Service Development Program Proposal; Docket DOT-OST-2014-0113 2

INTRODUCTORY LETTER 
Millington Airport Authority; Millington, Tennessee 

Small Community Air Service Development Program Proposal; Docket DOT-OST-2014-0113 3

INTRODUCTION 

Millington Regional Jetport is seeking a Small Community Air Service Development 

(SCASD) Grant in the amount of $250,000 for marketing and ground handling assistance 

to help secure its first scheduled air service. The Jetport is targeting an ultra-low-cost 

airline such as Allegiant or Spirit for service as an alternative to the service operated by 

airlines at Memphis International Airport. Millington Regional Jetport can offer either 

airline lower rates and charges than the rates and charges the airlines would pay at 

Memphis International Airport. 

The Jetport can best serve the community and catchment region with less-than-daily 

service on an ultra-low-cost carrier. Allegiant Air, with potential nonstop service to 

several Florida destinations, Phoenix-Mesa and Las Vegas, is the primary choice. 

Additionally, Spirit Airlines with potential nonstop service to Fort Lauderdale, Dallas/Fort 

Worth or Las Vegas. The Millington catchment region home to more than 1.2 million 

people within a 60 minute drive of the Jetport 

Within the region, Memphis International Airport has experienced significant declines in 

both capacity and traffic over the last ten years. In 2013, the average domestic oneway fare at Memphis was $212, 17.6% higher than the average domestic one-way fare 

at the average Lower 48 airport. Capacity at Memphis International Airport is down 

more than 60% since its peak in 2005. The region lacks a true ultra-low-cost carrier and 

Millington Regional Jetport, with extremely low airport operating costs, is best suited for 

attracting an ultra-low-cost carrier. 

Millington Regional Jetport is seeking modest grant funding of $250,000 to help secure 

ultra-low-cost scheduled air service. The grant will assist with the start-up with no-cost 

ground handling and a marketing program for a period of two years to support new air 

service at the Jetport. Earlier this year, the Jetport held preliminary discussions with 

Allegiant Air to begin the recruitment process, and has continued the discussions with 

Allegiant. The proposed service of Allegiant at Millington can be compared to 

Allegiant’s successful service at Concord, North Carolina, where Allegiant serves 

Concord as a low-cost alternative to Charlotte Douglas International Airport. The 

proposed ultra-low-cost service will fill a void for residents of Millington and the rest of 

Southwest Tennessee. 
Millington Airport Authority; Millington, Tennessee 

Small Community Air Service Development Program Proposal; Docket DOT-OST-2014-0113 4

AIR SERVICE OVERVIEW 

Catchment Area and Alternate Airports 

Millington Regional Jetport serves Southwest Tennessee and is located approximately 25 

miles north of Memphis International Airport. Based on a recently completed leakage 

study and traffic at Memphis International Airport, nearly 4,800 passengers originated or 

terminated in the region around Memphis, with most of these passengers using 

Memphis International Airport. Approximately 78% of the traffic originating within a 60-

minute drive of Millington Regional Jetport use Memphis International Airport, and 

approximately 22% use Nashville International Airport. The map in Exhibit 1 below 

illustrates the location of Millington Regional Airport, the 30, 60 and 90-minute drive 

times from the Jetport, and the locations of other airports in the region with commercial 

service. The population within a 60-minute drive of the Jetport is approximately 

1,288,000 residents.

Exhibit 1: 30, 60 and 90-Minute Drive Times from Millington Regional Jetport and Locations of 

Other Airports in the Region Relative to Millington Regional Jetport. 
Millington Airport Authority; Millington, Tennessee 

Small Community Air Service Development Program Proposal; Docket DOT-OST-2014-0113 5

AIR SERVCE DEVELOPMENT NEEDS AND DEFICIENCIES 

Capacity Trends 

Although Millington Regional Airport has no scheduled commercial service, capacity at 

the primary airport in the region, Memphis International Airport, has declined 62.2% from 

more than 22,602 seats per day each way in 2005 to just 8,540 seats per day each way 

in 2013. Exhibit 2 illustrates the downward trend in the average number of seats per day 

each way scheduled at Memphis International Airport over the last ten years. 

Northwest Airlines operated a hub at Memphis International Airport, and Northwest filed 

for bankruptcy protection in late 2005. Northwest subsequently merged with Delta Air 

Lines in 2008, and as the Delta/Northwest merger evolved, Delta has removed capacity 

from Memphis as aircraft have been retired and capacity has shifted to other Delta 

hubs. 

Exhibit 2: Seats per Day Each Way at Memphis International Airport; 2004-2013 (OAG Data).

21,727

22,602

21,341 21,250

20,388

18,793 18,145

15,704

11,922

8,540

0

5,000

10,000

15,000

20,000

25,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Seats per Day Each Way

Seats per Day Each Way

This Section Continued on Next Page 
Millington Airport Authority; Millington, Tennessee 

Small Community Air Service Development Program Proposal; Docket DOT-OST-2014-0113 6

Traffic Trends 

While capacity at Memphis International Airport peaked in 2005, traffic peaked in 2007. 

Like capacity, traffic is also down significantly since it peaked. Total Memphis traffic is 

down 31.3% from 4,772,610 O&D passengers in 2007 to 3,278,920 O&D passengers in 

2013. Domestic traffic is down 32.5% since 2007 to 2,982,130 O&D passengers in 2013, 

and international traffic is down 16.2% since 2007 to 296,790 O&D passengers in 2013. 

The majority of the decline in traffic can be attributed to Delta Air Lines reducing its 

capacity in Memphis following its merger with Northwest Airlines merger in 2008. 

Exhibit 3: Annual Origin and Destination Passengers at Memphis International Airport; 2004-2013 

(DOT DB1B Data).

3,810,430 4,002,420 4,160,810 4,418,510

3,612,730

3,226,310 3,182,140 3,070,300 2,913,840 2,982,130

295,350

315,710

341,300

354,100

326,220

291,020

295,210 291,380

291,160 296,790

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Annual Origin and Destination (O&D) Passengers

Annual Domestic O&D Annual International O&D

This Section Continued on Next Page
Millington Airport Authority; Millington, Tennessee 

Small Community Air Service Development Program Proposal; Docket DOT-OST-2014-0113 7

The annual 2013 O&D Memphis traffic data translates to 4,085 domestic and 407 

international passengers per day each way (PDEW) as illustrated in Exhibit 4. 

Exhibit 4: Passengers per Day Each Way (PDEW) at Memphis International Airport; 2004-2013 

(DOT DB1B Data). 

5,206 5,483 5,700 6,053

4,935

4,420 4,359 4,206 3,981 4,085

403

432

468

485

446

399

404

399

398 407

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Passengers per Day Each Way (PDEW)

Domestic PDEW International PDEW

This Section Continued on Next Page
Millington Airport Authority; Millington, Tennessee 

Small Community Air Service Development Program Proposal; Docket DOT-OST-2014-0113 8

Traffic Retention and Leakage 

Sixel Group completed a leakage study in March 2104 using data for the 12 months 

ending in September 2013. The leakage study found Memphis International Airport 

retains just 76.9% of the domestic traffic originating in the Memphis metropolitan area; 

22.8% of the domestic traffic leaks to Nashville International Airport. Analysis of fare 

data for the tickets sampled in the leakage study indicated the average one-way 

domestic fare for ticket for travelers using the airport in Memphis was $221, while the 

average one-way domestic fare for a ticket for travelers using the airport in Nashville 

was $166 – a difference of 33.1% or $55 each way. A summary of the domestic 

leakage data is illustrated in Exhibit 5. 

Exhibit 5: Domestic Origin and Destination (O&D) Passengers per Day Each Way (PDEW), 

Average Fare and Share for Memphis Area Passengers – Year-End Third Quarter 2013 Data 

(Source: Sixel Consulting Group) 

Airport O&D Passengers PDEW Average Fare Share

Memphis International Airport 2,456,291 3,365 $221 76.9%

Nashville International Airport 727,402 996 $166 22.8%

Little Rock National Airport 10,280 14 $129 0.3%

Total Memphis Area Passengers 3,193,973 4,375 $209 100.0%
Millington Airport Authority; Millington, Tennessee 

Small Community Air Service Development Program Proposal; Docket DOT-OST-2014-0113 9

The Relationship of Capacity, Domestic Traffic and Domestic Fare Trends 

Exhibit 6 illustrates the relationship between capacity, domestic traffic and the average 

domestic one-way fare at Memphis International Airport. As capacity and traffic have 

trended down, the average domestic one-way fare has increased and stood at $212 in 

2013. The 2013 fare of $212 represents an average fare 26.5% higher than 2005 when 

capacity peaked and 24.6% higher than 2007 when traffic peaked. 

Exhibit 6: Seats per Day Each Way, Domestic Passengers per Day Each Way (PDEW) and 

Average Domestic One-Way Fare at Memphis International Airport; 2004-2013 (DOT DB1B Data). 

21,727

22,602

21,341 21,250

20,388

18,793

18,145 15,704

11,922

8,540

5,206 5,483 5,700 6,053

4,935 4,420 4,359 4,206 3,981 4,085

$168 $168

$179

$170 $198

$180

$199

$218

$230

$212

$0

$50

$100

$150

$200

$250

0

5,000

10,000

15,000

20,000

25,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Average One-Way Fare

Seats and Passengers per Day Each Way

Seats per Day Each Way Domestic PDEW Average Domestic One-Way Fare

This Section Continued on Next Page
Millington Airport Authority; Millington, Tennessee 

Small Community Air Service Development Program Proposal; Docket DOT-OST-2014-0113 10

Analysis of capacity, traffic and the average domestic fare by quarter for the last nine 

quarters shows Memphis capacity declined 47.1% from 14,078 seats per day each way 

in fourth quarter 2011 to 7,443 seats per day in fourth quarter 2013. Versus fourth 

quarter 2012, capacity is down 24.1% in fourth quarter 2013. Exhibit 7 illustrates the 

relationship between capacity, domestic traffic and the average domestic fare. 

Exhibit 7: Seats per Day Each Way, Passengers per Day Each Way (PDEW) and Average 

Domestic One-Way Fare at Memphis International Airport; Fourth Quarter 2011 through Fourth 

Quarter 2013 (DOT DB1B Data).

14,078

12,760 13,081

12,060

9,808 9,179 9,005 8,554

7,443

4,073 3,666 4,216 4,083 3,996 3,694 4,229 4,108 4,303

$220

$242 $237

$225 $217 $219 $218 $213

$201

$0

$50

$100

$150

$200

$250

$300

0

5,000

10,000

15,000

20,000

25,000

2011-Q4 2012-Q1 2012-Q2 2012-Q3 2012-Q4 2013-Q1 2013-Q2 2013-Q3 2013-Q4

Average One-Way Fare

Seats and Passengers per Day Each Way

Seats per Day Each Way Domestic PDEW Average Domestic One-Way Fare

This Section Continued on Next Page

 
Millington Airport Authority; Millington, Tennessee 

Small Community Air Service Development Program Proposal; Docket DOT-OST-2014-0113 11

Memphis Fares Versus Fares at Other Airports in the Region 

The average domestic one-way fare at Memphis International Airport was $212 in 2013. 

Among the larger airports in the region – Little Rock, Nashville and St. Louis – Memphis 

had the highest average domestic fare. In fact, the average domestic Memphis fare 

was 17.1% or $31 higher than the next highest fare, at Little Rock, as illustrated in Exhibit 

8. 

Exhibit 8: Average One-Way Domestic Fares in 2013 at Memphis, Little Rock, Nashville and St. 

Louis (DOT DB1B Data).

$212

$181 $173 $167

$0

$50

$100

$150

$200

$250

$300

Memphis Little Rock Nashville St. Louis
Millington Airport Authority; Millington, Tennessee 

Small Community Air Service Development Program Proposal; Docket DOT-OST-2014-0113 12

Memphis Fares Versus Fares at Other Airports in the Lower 48 United States 

In 2013, the average domestic Memphis fare of $212 was 17.6% higher than the 

average domestic fare of $181 at the average Lower 48 airport. Exhibit 9 illustrates the 

average domestic fare trend over the last ten years at Memphis relative to the average 

domestic fare at the average lower 48 airport. 

Exhibit 9: Average One-Way Domestic Fares at Memphis International Airport Versus the 

Average One-Way Domestic Fare at the Average Lower 48 Airport ; 2004-2013 (DOT DB1B Data). 

$168 $168

$179

$170

$198

$180

$199

$218

$230

$212

$134 $136

$149 $149

$159

$143

$157

$171 $177 $181

$0

$50

$100

$150

$200

$250

$300

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Average Domestic One-Way Fare

Memphis Average Domestic One-Way Fare

Average Lower 48 Airport Average Domestic One-Way Fare
Millington Airport Authority; Millington, Tennessee 

Small Community Air Service Development Program Proposal; Docket DOT-OST-2014-0113 13

STRATEGIC PLAN 

Ground Handling and Marketing for Ultra-Low-Cost Carrier Service 

All proposed funding will be used to provide ground handling to the carrier operating 

the proposed ultra-low-cost service at the Jetport and to market and advertise the 

ultra-low-cost service within the Memphis Metropolitan Statistical Area. 80% of SCASD 

funding would be used for ground handling (up to $100,000 per year) and 20% of 

SCASD funding would be used for marketing and advertising (up to $25,000 per year). 

The same ratios would apply to community cash matching funds (up to $15,000 per 

year for ground handling and up to $3,750 per year for advertising and marketing). The 

proposed budget and sources of funding for the project are summarized in Exhibit 10. 

Exhibit 10: Proposed Sources and Uses of Project Funds.

Year 1 Year 2 Total Year 1 Year 2 Total Total

SCASD Funding $100,000 $100,000 $200,000 $25,000 $25,000 $50,000 $250,000

Community Funding $15,000 $15,000 $30,000 $3,750 $3,750 $7,500 $37,500

Total Project Funding $115,000 $115,000 $230,000 $28,750 $28,750 $57,500 $287,500

*Does not included airport in-kind incentives in the form of fee waivers valued at $75,722.

Ground Handling Marketing

Allegiant Air and Spirit Airlines would be targeted to operate the ultra-low-cost service 

at Millington Regional Jetport. The Jetport would target routes to destinations already 

served by each carrier. 

For Allegiant, Sanford/Orlando (SFB), St. Petersburg/Tampa (PIE) Punta Gorda (PGD) 

and Ft. Lauderdale (FLL) would be targeted in Florida, and Las Vegas (LAS) and 

Mesa/Phoenix (AZA) would be targeted in the West. The targeted Allegiant routes are 

illustrated in Exhibit 11. 

For Spirit, Dallas/Ft. Worth (DFW), Ft. Lauderdale (FLL) and Las Vegas would be targeted 

as Spirit already operates a significant number of flights from each of these markets. 

The target Allegiant routes are illustrated in Exhibit 12. 
Millington Airport Authority; Millington, Tennessee 

Small Community Air Service Development Program Proposal; Docket DOT-OST-2014-0113 14

Exhibit 11: Potential Routes Allegiant Air Could Operate from Millington Regional Jetport.

Exhibit 12: Potential Routes Spirit Airlines Could Operate from Millington Regional Jetport.
Millington Airport Authority; Millington, Tennessee 

Small Community Air Service Development Program Proposal; Docket DOT-OST-2014-0113 15

Goals 

Millington Regional Jetport has three primary goals for the proposed project to recruit 

an ultra-low-cost carrier to the community. 

 Establish service on an ultra-low-cost carrier such as Allegiant or Spirit to at least 

one destination. 

 Generate enough traffic to maintain a load factor of at least 90% within the first 

60 days of the beginning of service. 

 Generate at least 10,000 enplanements in the first full calendar year of service 

(this equates to 67 departures at a 90% load factor on a 166-seat aircraft). 

PARTNERSHIPS, FUNDING, IMPLEMENTATION, SUCCESS METRICS AND 

FINANCIAL CONTROL 

Public / Private Partnerships 

The Millington Airport Authority has partnered with the Millington Industrial Development 

Board and the City of Millington to promote economic growth at the Jetport. The three 

entities meet on a regular basis to discuss potential economic development projects for 
Millington Airport Authority; Millington, Tennessee 

Small Community Air Service Development Program Proposal; Docket DOT-OST-2014-0113 16

the Jetport, and establishing the first commercial airline service is a top priority for the 

Jetport . 

Project Funding

In addition to the Small Community Air Service Development Grant of $250,000 

requested from the Department, the Millington Industrial Development Board will 

commit a cash amount of $15,000, and the City of Millington has committed to a cash 

amount of $22,500. The total cash match from both sources is $37,500, or 15.0% of the 

total proposed federal funding of $250,000. 

In addition to cash funding, Millington Regional Jetport will waive rent and landing fees 

for the first two years of service, and the amount of these fees are valued at $75,722 

based on two weekly arrivals on an MD-80 aircraft, a landing fee of $1.90/thousand 

pounds and a ramp fee of $80 per operation. A summary of funding sources is shown in 

Exhibit 13 on the following page. 
Millington Airport Authority; Millington, Tennessee 

Small Community Air Service Development Program Proposal; Docket DOT-OST-2014-0113 17

Exhibit 13: Summary of Sources and Types of Project Funding 

Funding Source Grant Cash In-Kind Total

Department of Transportation $250,000 $250,000

Community $37,500 $37,500

Airport $0 $75,722 $75,722

Total $250,000 $37,500 $75,722 $363,222

Implementation Timeline 

The proposed implementation timeline for the project assumes the Department will 

award Small Community Grant Funding in September or October 2014. Once the 

award is announced, Millington Regional Airport will advise airlines of the grant award. 

Based on airline planning lead times and the need for advance bookings, we assume 

no airline would begin service until sometime in 2015, and we have conservatively 

assumed the service could not begin no earlier than June 2015. The first two milestones 

on the Jetport's timeline are to execute the grant agreement with the Department and 

to negotiate a service agreement with the airline. Once service is announced and 

schedules are published, the airline, the Jetport and the community would begin 

marketing the new route and working with the airline to monitor advance bookings. 

The Jetport will continue its marketing program and continue to work with the airline to 

monitor the route once service begins. The Jetport will submit grant status reports on a 

quarterly basis to the Department throughout the proposed two year term of the 

minimum revenue guarantee. The proposed project timeline is illustrated in Exhibit 14.

Exhibit 14: Proposed Project Timeline 
Millington Airport Authority; Millington, Tennessee 

Small Community Air Service Development Program Proposal; Docket DOT-OST-2014-0113 18

Activity/Project Milestone Estimated Dates

SCASD Grant Award Announcement September 2014

Execute Grant Agreement with DOT September/October 2014

Airline Meetings October 2014 - January 2015

Announce Service February or March 2015

Publish Schedule February or March 2015

Market Route (Pre-Launch) April - June 2015

Monitor Advance Bookings April - June 2015

Adjust Marketing Plan Based on Advance Bookings April - June 2015

Begin Service June 2015

Market Route (Post-Launch) June 2015 and Beyond

Operate Service with Incentives June 2015 - May 2017

Monitor Route Performance June 2015 - August 2017 and Beyond

Submit Grant Status Reports to DOT Quarterly 3Q 2015 - 2Q 2017

SUCCESS METRICS

The success of the proposed project can be measured by assessing whether the three 

primary goals of the project are achieved. The goals and the success metrics are 

summarized in Exhibit 15. 

Exhibit 15: Project Goals and Success Metrics 

Project Goals Success Metric 

 Establish service on an ultra-low-cost 

carrier such as Allegiant or Spirit to at 

least one destination. 

 Allegiant or Spirit begins service from 

Millington to at least one destination within 

the grant award period. 

 Generate enough traffic to maintain a 

load factor of at least 90% within the first 

60 days of the beginning of service. 

 Millington service generates a load factor of 

at least 90% within the first 60 days from the 

date new service begins. 

 Generate at least 10,000 enplanements 

in the first full calendar year of service 

(this threshold would be achieved at 67 

departures operating with a 90% load 

factor on a 166-seat aircraft). 

 Airline service at Millington generates at least 

10,000 enplanements within the first calendar 

year of service 

Once service begins, the Jetport will rely on traffic and revenue data provided directly 

by the airline and the amount of reimbursements requested by the airline as indications 

of project success. T-100 data will be used as the official source of data to verify load 

factor and enplanement data when measuring success metrics.

Legal Sponsor 

Millington Airport Authority is the legal sponsor responsible for administering the 

proposed air service development program. The Jetport is a government agency, 

operated by the Millington Airport Authority. 
Millington Airport Authority; Millington, Tennessee 

Small Community Air Service Development Program Proposal; Docket DOT-OST-2014-0113 19

Millington Airport Authority 

8182 Hornet Ave. 

Millington, TN 38053 

Roy Remington, Executive Director 

(901) 873-5792 

rremington@cityofmillington.org

Financial Controls

As the sponsor, Millington Airport Authority and its governing body, the Millington Airport 

Authority Board, will be the responsible parties for all fiscal matters and the 

Department's reporting requirements. The Jetport Authority Board is established as 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 Millington Airport Authority Board 

understands that the Grant is a reimbursable grant, meaning the Jetport is responsible 

for program expenditures and will submit invoices to the Department for 

reimbursement, based on a percentage of the total grant request. 
Millington Airport Authority; Millington, Tennessee 

Small Community Air Service Development Program Proposal; Docket DOT-OST-2014-0113 20

CONCLUSION 

Based on the traffic generated at Memphis International Airport, the capacity lost at 

Memphis over the last ten years, and the relatively high domestic fares paid by travelers 

using Memphis International Airport, the Millington market could likely support air service 

to one or more destinations by an ultra-low-cost airline such as Allegiant or Spirit. The 

Millington Airport Authority believes less-than-daily nonstop service to one or more 

Allegiant destinations, such as Sanford/Orlando (SFB), St. Petersburg/Tampa (PIE) or Las 

Vegas (LAS) could be supported. In addition, service by Spirit to a destination such as 

Dallas/Ft. Worth (DFW), Las Vegas (LAS) or Ft. Lauderdale (FLL) could also be supported 

because the low fares offered by Allegiant and Spirit would stimulate demand at 

sustainable levels. 

The Jetport’s recruitment effort for Allegiant service to Florida began earlier this year, 

the Jetport has continued its dialog with Allegiant. The on-going dialogue has assisted 

and helped determine the amount of federal funding that will be required for the startup project. 

The anticipated timeline for the project assumes a Grant would be awarded in 

September or October 2014. If the Grant agreement with the DOT is finalized in 

October 2014, the Jetport will step-up its recruitment efforts in the fall, continuing to 

meet with both Allegiant and Spirit through the winter. In a best-case scenario, one of 

the carriers would announce service from Millington beginning no later than June 2015. 

Millington Regional Jetport has not applied for a Small Community Air Service 

Development Grant in the past. The Jetport realizes the scheduled air service 

environment has changed, and in order to be competitive with other non-hub airports it 

must assist with marketing and cost incentives to help recruit ultra-low-cost airline 

service. A small community air service development grant application is an important 

element in securing scheduled flights and gaining passenger service for the Millington 

catchment region.