APPENDIX B 

Page 1

APPLICATION UNDER

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM 

DOCKET DOT-OST-2013-0120

SUMMARY INFORMATION

All applicants must submit this Summary Information schedule, as the application coversheet, 

a completed standard form SF424 and the full application proposal on

www.grants.gov.

For your preparation convenience, this Summary Information schedule is located at

http://www.dot.gov/policy/aviation-policy/small-community-rural-air-service/SCASDP

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: City of Del Rio

DUNS Number: 0784822620000

EIN/Tax ID: 74-6000665

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

1. City of Del Rio

2. __________________________________________________

3. __________________________________________________

4. __________________________________________________

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. Del Rio International Airport - DRT 2.

3. 4.
APPENDIX B 

Page 2

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

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

1. TX-23 2.

3. 4.

E. APPLICANT INFORMATION: (CHECK ALL THAT APPLY)

X Not a Consortium □ Interstate Consortium □ Intrastate Consortium D 

□ Community now receives subsidized Essential Air Service

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

Development Program Grant

If previous recipient: Year of grant(s): 2004

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

PUBLIC PRIVATE

1. City of Del Rio 1. Amistad Industrial Developers

2. Del Rio Chamber of Commerce 2.

Pico Aviation, Kusy Ventures, RCGF 

Properties, Westex Capital ltd.

3. Del Rio Convention and Visitors Bureau 3. Rio Grande Aviation

4. Del Rio Hispanic Chamber of Commerce 4. The Bank & Trust

5.

City of Acuna – Acuna Economic 

Development 5. Texas Community Bank

6. Border Federal Credit Union

7.

Del Rio Management Company,dba/Ramada 

Del Rio

8.

Hex Del Rio LC, San Antonio, TX dba/Holiday 

In Express Hotels & Suites of Del Rio

9. Levcor Inc. – Plaza Del Sol Mall

10. Marathon Heaters, Inc.

11. Rio Bravo Cancer & Blood, P.A.

12. Baker Investment Company, dba Gatti’s Pizza

13. PLR Furniture Inc. – Ashley Furniture

14. John F. White, Jr.

15. Sentry Security Service

16. Scott M. Ham

17. The Koury Group

18. Alamo Saddlery

19. Benton Wardlaw

. 20. Rio Grande Electric Cooperate Board

21. David Winters

22. Robert A. Eads

23. Billie Jo Grafton

24. Jackie Robinson
APPENDIX B 

Page 2

25. Suzanne West

26. Aida Garcia

27. Josie Balderas

28. Esmeralda Meza

29. Martha Genera

30. Lydia Z. Esparza

31. Juanita Salazar

32. Alida Helgerman

33. Dora G. Alcala

34. Emily Cooper

G. PROJECT PROPOSAL: (CHECK ALL THAT APPLY)

X Marketing □ Upgrade Aircraft X New Route

□ Travel Bank X Service Restoration □ Subsidy

□ Surface Transportation X Regional Service X Revenue Guarantee

X Launch New Carrier X Start-up Cost Offset □ First Service

□ Study □ Secure Additional Service □ Other (explain below)

H. EXISTING LANDING AIDS AT LOCAL AIRPORT:

X Full ILS X Outer/Middle Marker

X Localizer X Other (specify) MALSR, 

REIL, PAPI, HIRL

X Published Instrument Approach
APPENDIX B

Page 3

LINE DESCRIPTION SUB TOTAL TOTAL AMOUNT

1 Federal amount requested $500,000

2 State cash financial contribution

Local cash financial contribution

3a Airport cash funds

3b Non-airport cash funds $162,700

3 Total local cash funds (3a + 3b) $162,700

4 TOTAL CASH FUNDING (1+2+3) $662,700

In-Kind contribution

5a Airport In-Kind contribution** $28,000

5b Other In-Kind contributions $298,816

5

TOTAL IN-KIND CONTRIBUTION (5a + 5b) $326,816

6 TOTAL PROJECT COST (4+5) $989,516

J. IN-KIND CONTRIBUTIONS**

5a. Airport In- Kind Terminal Rent and User Fee’s, In Airport Advertising 

5b. Other In-Kind Advertising, Marketing, Free & Reduced Rate Crew Quarters, Reduced Rate 

Fuel, Reduced Rate A&P Licensed Aircraft Mechanic Services, Travel Pledges

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

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

describe the source(s) of fund(s) and the value ($) of each.

1. City of Del Rio – Airport In -Kind $28,000

No Cost Terminal Rental or User Fee’s $25,000, No Cost in Airport 

Advertising $3,000

2. Del Rio Convention & Visitors Bureau $60,000

In Kind Marketing $60,000

3. Hispanic Chamber of Commerce $3,000

Free advertising website, facebook

4. Acuna Economic Development Commission $25,000

$25,000 In Kind Advertising

5. Pico Aviation (FBO)

In to Plane fuel discount for 3-6 months

6. Rio Grande Aviation $4,248

20% Discount on labor for the first year $3,936, 2 RT-DFW $300

7. Del Rio Bank and Trust $18,000
APPENDIX B

Page 3

10,000 Annual Ticket purchases-$8,000 marketing 

8. Texas Community Bank $6,000

$6,000 Annual Ticket purchases

9. Border Federal Credit Union $2,383

3 RT Washington DC, 2RT DFW, 3 RT other

10. Ramada Inn $17,803

In Kind 2 Crew Rooms 60 days free, thereafter special rate of 

$50.00, free transportation $12,000, 12 RT MEX, DFW, VER,MTY 

$5,803.56

11. Holiday Inn Express $28,800

2 Guest Rooms 30 days free ($6,900), thereafter special rate of 

$85.00 ($21,900), free transportation, corporate travel

12. Plaza Del Sol Mall $15,240

$15,240 Advertising

13. Marathon Heaters $7,500

$7,500 Annual Ticket purchase

14. Rio Bravo Cancer & Blood $4,789

4 RT ORD, 2 RT MCO, 5 RT Undetermined (DFW) $3,289, $1,500 

towards marketing

15. Mr. Gattis $17,500

$2,500 Pre Purchase Tickets,$15,000 IN Advertising

16. Ashley Furniture $5,000

$5,000 Tickets first year

17. John F. White $4,370

10 RT New Orleans first 12 months

18. Sentry Security $2,000

Ticket Purchase $2,000 2 year period

19. Scott Ham, $3,418

(10 RT New Orleans) 

20. The Koury Group $25,000

100% company travel estimated $25,000 annually
APPENDIX B

Page 3

21. Alamo Saddlery $5,000

Annual estimated airfare purchases $5,000

22. Benton Wardlaw $2,500

Annual estimated airfare purchases $2,500

23. Rio Grande Electric Coop $6,000

Annual estimated airfare purchases $6,000

24. W. David Winters $25,000

$25,000 Ticket Purchase guarantee first year

25. Robert Eads $680

4 RT DFW 

26. Billie Jo Grafton $1,560

(2-RT-BOI, $1410) (1-RT-DFW, $150) 

27. Jackie Robinson $1,394

2 RT LGA, 2 RT PHX

28. Suzanne West $528

2 RT BNA

29. Aida Garcia $374

2 RT DFW

30. Josie Balderas $720

2 RT ORD 550, 1 RT DFW 170

31. Esmeralda Meza $510

3 RT DFW $510

32. Martha Genera $693

2 RT IAH $693

33. Lydia Z. Esparza $285

1 RT ELP 285

34. Juanita Salazar $510

3 RT DFW $510

35. Alida, Helgerman $600

$600 Ticket purchase to Guadalajara
APPENDIX B

Page 3

36. Dora Alcala $1,565

(2 RT SFO 415, 2 RT DFW 150)

37. Emily Cooper $885

2 RT DEN-590, 1 RT STL 295
K. 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.

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

L. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT? (IF "YES", PROVIDE

EXPLANATION)

X No □ Yes (explain)



























































Docket DOT-OST-2013-0120

Proposal under the Small Community Air

Service Development Grant Program of

DUNS #0784822620000

Congressional District: TX-23
Proposal of Del Rio International Airport

2013 Small Community Air Service Development Grant

Docket DOT-OST-2013-0120 Page 2

Table of Contents

PROPOSAL OVERVIEW 3 

DOT Primary and Secondary Selection Criteria ....................................................................................... 4

Grant Specifics .......................................................................................................................................... 7

The Del Rio and Ciudad Acuna Region Can Support New Service ......................................................... 8

Air Service Access – Imperative for the Region’s Growth ....................................................................... 8

Contact Information................................................................................................................................... 9

1. DRT MARKET AREA 10 

Geographic Location and Market Population ........................................................................................10

2. DRT AIR SERVICE HISTORY AND FUTURE POTENTIAL 11 

Historical Air Service................................................................................................................................11

Aging Aircraft Led to Operational Challenges ........................................................................................11

United Airlines Performance at DRT – CY 2012....................................................................................12

DFW Hub: Win-Win for AA, Del Rio, and Surrounding Multinational Region ........................................13

3. DRT COMMUNITY: THE POWER OF PARTNERSHIP 15 

Regional Business Revenue Guarantee Commitments ........................................................................15

In-kind Incentives.....................................................................................................................................15

In-kind Travel Pledges .............................................................................................................................15

4. SCASD GRANT ADMINISTRATION PLAN 17 

Responsibility for SCASD Grant Funds and Term of Grant ...................................................................17

Funding and Revenue Sources...............................................................................................................17

Revenue Guarantee ................................................................................................................................17

Marketing Support...................................................................................................................................18

Plan to Monitor Funds and Project Effectiveness..................................................................................18

Previous Air Service Development Efforts..............................................................................................18

Differences Between Current Grant Proposal and Previous Grant Award ...........................................19
Proposal of Del Rio International Airport

2013 Small Community Air Service Development Grant

Docket DOT-OST-2013-0120 Page 3

Proposal Overview

The City of Del Rio, Texas and the Del Rio International Airport (DRT) respectfully submit its 

proposal for a grant under the 2013 Small Community Air Service Development Grant Program

(Docket DOT-OST-2013-0120). 

As of April 8th, 2013, commercial air service at Del Rio International Airport was discontinued, 

as a result of United Airlines decision to cancel its twice daily nonstop flights from Del Rio to 

George Bush Intercontinental Airport. This resulted in Del Rio having no effective airline access

to the national air transportation system. The only option is a nearly three hour drive to San 

Antonio via mostly two-lane highway. The economic vitality of the region is now severely 

threatened. The air service, which this grant will make achievable, is critical to the economic 

performance of the entire region.

American that has indicated a strong interest in the opportunity at Del Rio as indicated by their 

attached letter of support for the DRT grant proposal, therefore the information presented in 

this proposal is specific to that carrier. 

The community has a very high military component, with Laughlin AFB being the US Air Force’s

largest pilot training facility. American Airlines – which has shown strong success in tapping 

small markets with military traffic, such as Watertown and Manhattan (KS) – has interest in 

Del Rio for these reasons as well as several other factors.

The grant requested herein is to re-establish air service for Del Rio via the American Airlines 

hub at Dallas-Fort Worth International Airport. American Airlines’ DFW hub provides the 

international and domestic connectivity that will generate the demand to establish the DRTDFW route as a positive revenue generator for the carrier. It is noted that, in addition to the 

strong military traffic, the US/Mexico Border City of Ciudad Acuna has an expanding

manufacturing industry that generates significant demand for travel to many U.S., Mexico as 

well as European destinations.

Alternatively, the community also believes that United may have renewed interest in serving 

Del Rio from its hub at Houston Intercontinental which may be considered for this grant 

proposal.1

 

1 United indicated that it suspended service due to fleet restraints as it restructured its IAH hub operation.
Proposal of Del Rio International Airport

2013 Small Community Air Service Development Grant

Docket DOT-OST-2013-0120 Page 4

DOT Primary and Secondary Selection Criteria

The City of Del Rio and the community believe that its grant proposal meets, and in some cases 

exceeds, the primary and secondary selection criteria put forth by the DOT. 

Primary Selection Criteria

1) DRT experienced high airfares prior to its scheduled service being discontinued. This 

discouraged DRT-IAH travel and encouraged passenger traffic leakage to larger airports, 

specifically San Antonio International Airport. Based on DOT data, the average gross one way 

fare from DRT was $307 compared to $226 at SAT. While there are no guarantees as to what 

airfares would be if scheduled air service were re-established at DRT, there is every possibility 

of bringing fare discipline to the market.

2) There has been an incredible level of support from the community for this grant proposal in

terms of cash contributions, In-kind support and In-kind travel pledges. While this support is

detailed later in the proposal, the following chart illustrates the level of commitment from the 

City of Del Rio and its community and regional partners.

This includes the City of Del Rio, local businesses, the US/Mexico Border City of Ciudad Acuna, 

along with many others throughout the region who realize the importance of regularly 

scheduled air passenger service to this remote area of southwest Texas.

$62,700.00

$126,368.00

$200,448.00

$100,000.00

DRT SCASD Grant Community Financial Support $489,516

Miniumum Revenue

Guarantees

In-Kind Travel

Pledges

In-Kind Support

CODR SCASD Grant

Matching
Proposal of Del Rio International Airport

2013 Small Community Air Service Development Grant

Docket DOT-OST-2013-0120 Page 5

3) The commitment by the Nine County Middle Rio Grande Development Council, as presented 

in their attached Resolution of support, has resulted in the concept of an Air Service 

Consortium which is being developed to focus on and promote the air service in the region. 

This group will aid in ensuring the new air service achieves self sufficiency through working 

with the carrier to quickly address any issues/concerns, redirecting marketing support if 

necessary, and work tirelessly to achieve the levels of passenger traffic necessary to maintain

self-sufficiency.

4) New air service will serve a broad spectrum of stakeholders in the greater Del Rio Region to 

include local businesses, the maquiladoras (manufacturing operations and factories) in both 

Del Rio, Ciudad Acuna Mexico and Eagle Pass, Peidras Negras Mexico, Laughlin Air Force Base, 

as well as the many leisure travelers. All of these travelers now have extremely limited access 

to the national transportation system. The numerous letters of support are attached to this 

proposal are listed below. Cash and in-kind contributions from several sectors of the 

community are also discussed later in this proposal.

Letters of Support 

Business, Civic and Governmental

American Airlines Elastomeros Tecnicos Moldeados, Inc. 

U.S. Congressman Pete Gallego subsidiary of Park Ohio Holdings Corp

U.S. Senator John Cornyn Pico Aviation, Kusy Ventures, RCGF Properties, 

Westex Capital ltd.

Texas House Representative Poncho Nevarez Rio Grande Aviation

9 County Middle Rio Grande Development Council The Bank & Trust

City of Del Rio Texas Community Bank

Val Verde County Border Federal Credit Union

Del Rio International Airport Commission Del Rio Management Company,dba/Ramada 

Del Rio

Del Rio Chamber of Commerce Hex Del Rio LC, San Antonio, Texas 

dba/Holiday In Express Hotels & Suites of Del 

Rio

Del Rio Convention and Visitors Bureau Levcor Inc. – Plaza Del Sol Mall

Del Rio Hispanic Chamber of Commerce Marathon Heaters, Inc.

Del Rio Hispanic Chamber of Commerce #2 Val Verde Regional Medical Center

City of Del Rio Housing Authority Rio Bravo Cancer & Blood, P.A.

City of Acuna – Acuna Economic Development Baker Investment Company, dba Gatti’s Pizza

Tarrant County Commissioner Pct. 3 PLR Furniture Inc. – Ashley Furniture

Del Rio and Acuna Maquilla Association John F. White, Jr.

Alcoa Power and Production Division

Alcoa Fastening Systems Group

Sentry Security Service

Caterpillar Scott M. Ham

Blueline Manufacturing The Koury Group

Magna Seating Alamo Saddlery

North American Muller Textiles, Inc. Benton Wardlaw

Amistad Industrial Developers Rio Grande Electric Cooperate Board

Border Opportunity Savers Systems, Inc. and

Hadlock & Fox mfg, LLC.
Proposal of Del Rio International Airport

2013 Small Community Air Service Development Grant

Docket DOT-OST-2013-0120 Page 6

Individual Letters of Support

Rodolfo Karisch Maria Dolores Pena

Robert A. Eads Lydia Z. Esparza

Jackie Robinson Lolina Pena

Suzanne West Juanita Salazar

Lewis W. Nunley Alida Helgerman

Dora G. Alcala Dennis Robinson

Billie Jo Grafton Emily Cooper

Aida Garcia Eric & Sally Finkelstein

Josie Balderas John & Lisa Stipo

Esmeralda Meza Lou & Mary Ann Zylka

Martha Genera

5) It is fully expected that the grant will be utilized within the required time allotted by DOT, as 

Del Rio has already held initial conversations with American Airlines on the potential of new 

service.

6) A very critical aspect to this proposal is the role Del Rio International Airport plays as a THE 

Regional Airport for the southwest Texas Region. There are no other commercial airports within 

three hours of Del Rio, and the rural nature of southwest Texas makes road travel difficult and 

time consuming. This is why the Nine County Middle Rio Grande Development Council supports 

this proposal, and why there is broad support not only from Del Rio citizens and businesses, 

but also Ciudad Acuna, Mexico and other Cities within the nine county area.

Secondary Selection Criteria

1) This proposal is innovative, and shows broad support by US and Mexico communities on the 

southern US border. The partnership between these two communities is unwavering, and this 

type of partnership is unique within the spectrum of Small Community Air Service Development 

Program grant proposals.

2) As mentioned previously, there is indeed broad support for this proposal as indicated by the 

attached letters of support.

3) The location of Del Rio International Airport cannot be understated – this is truly a small 

community, in a regional context, which relies on access to air service that is critical to

economic development. DRT is the Regional Airport in southwest Texas, and re-establishing air 

service is essential to this rural area’s economic growth and well-being.
Proposal of Del Rio International Airport

2013 Small Community Air Service Development Grant

Docket DOT-OST-2013-0120 Page 7

Grant Specifics

The Del Rio community is requesting a grant in the amount of $500,000 to be matched with

a combination of local cash contributions of $162,700 as well as $200,448 of in-kind services 

and $126,368 of in-kind travel pledges, for a total project cost of $989,516. 

 

The intent of the SCASD grant funds would be for risk abatement for American Airlines’ DRTDFW nonstop service, with a portion of the funding going toward marketing the new service. 

The City believes this proposal meets the intent and spirit of the Small Community Air Service 

Development Program, and also believes this particular opportunity is a perfect match for the 

goals established by the DOT.

Analyses by the Community and the Airport indicates strong market potential for a new carrier. 

As a practical matter, however, the size of the DRT market restricts the service options to just 

two relatively close airline connecting hubs. The first is American/DFW, and the second is 

United/IAH.2 While airline strategies change, currently the direction of United at IAH is moving 

away from small airport feed however this may change as its fleet mix evolves therefore the 

possibility of United IAH service being reintroduced is something the community may also 

consider.

On the other hand, American has indicated interest in the market, based on that carrier’s focus 

on military traffic and in the current and future growth of international flows generated at 

Ciudad Acuna. With the levels of community support and the growing economy in Del Rio and 

Ciudad Acuna, the DRT market can become self sufficient through the unwavering regional 

support of the DRT grant proposal for an American Airlines nonstop DRT-DFW service.

The American Airlines subsidiary American Eagle operates a modern regional jet fleet well 

suited for a market the size of Del Rio. The momentum in passenger traffic from the second 

half of 2011 and first quarter 2012, which is illustrated in detail later in this proposal, can be 

reignited and successful with a reliable carrier such as American Eagle to a DFW hub. The Del 

Rio community, working with Ciudad Acuna as well as the entire southwest Texas Region, have 

committed to providing the necessary resources to ensure that introduction of new scheduled 

air service at DRT will be successful now and into the future. 

 

2 The flying distance to other airline hubs, such as UA/DEN and US/PHX makes the economic viability of a small market such as 

DRT problematic.
Proposal of Del Rio International Airport

2013 Small Community Air Service Development Grant

Docket DOT-OST-2013-0120 Page 8

The Del Rio and Ciudad Acuna Region Can Support New Service

The greater Del Rio region’s economy has been a growth story, one that is aided by its 

geographic location on the US-Mexico border. In addition to being a major trade crossing with

Mexico, Del Rio is home to the Laughlin Air Force Base, which is the largest employer in the 

region and the premier pilot training site for the US Air Force. Del Rio also has a number of 

other major federal agencies including U.S. Customs, U.S. Border Patrol and FBI.

The presence of the maquiladoras, in both Del Rio and Ciudad Acuna, has created significant 

economic growth in the region over the last several years. Major companies such as Caterpillar, 

General Electric, Kimberly-Clark, and Alcoa and other major corporations have operations in 

the region. In total, there are over 50 maquiladoras in the region. These companies rely heavily 

on the ability to travel efficiently, and the availability of air service is of great concern to them.

Laughlin Air Force Base graduates approximately 300 pilots per year and was recently named 

the busiest airfield in the US Air Force. Laughlin provides over 1,200 jobs to local residents 

and generates over $230 million dollars to local economy. In addition to the local businesses, 

the AFB generates significant air service demand – demand that now is unmet and which this 

grant will help to resolve.

The lack of commercial air service now has a detrimental effect on the overall economy and 

community if not restored. For this reason, American Airlines nonstop air service to its DFW 

hub is a proposition that can create a win-win for both the community and the airline.

Air Service Access – Imperative for the Region’s Growth

With the elimination of air service in April, the closest airport with commercial air service is San 

Antonio International Airport (SAT), which is approximately 150 miles and a three hour drive 

from Del Rio. 

The effects have been immediate and economically devastating. Local businesses are having 

an increasingly difficult time attracting and retaining top talent in the manufacturing 

operations in the region due to the inability to easily travel to and from the region. The 

reestablishment of commercial air service on American Airlines to DFW would greatly improve 

this growing problem.
Proposal of Del Rio International Airport

2013 Small Community Air Service Development Grant

Docket DOT-OST-2013-0120 Page 9

Del Rio is emerging as the gateway to north central Mexico as indicated by one letter of support 

provided by Tarrant County, Dallas, and for this region of Texas to continue to be part of the 

global economy, commercial air service is imperative for this geographically isolated area. 

The traffic that can be generated to and through the AA hub at DFW can well support nonstops. 

American, by virtue of its letter of support, has agreed to further analyze this opportunity. 

However, it has made clear that a mechanism to offset the risk of entering a new market must 

be in place. This is the critical importance of this grant.

Contact Information

The City of Del Rio will serve as the legal sponsor and be responsible for administering the 

grant. All correspondence regarding this proposal should be referred to:

Robert A. Eads, City Manager

%Billie Jo Grafton - Airport Manager

Del Rio International Airport

1104 West 10th Street

Del Rio, TX 78840

Tel: (830) 774-8538

Email: bgrafton@cityofdelrio.com
Proposal of Del Rio International Airport

2013 Small Community Air Service Development Grant

Docket DOT-OST-2013-0120 Page 10

1. DRT Market Area

 

Geographic Location & Market Population

Del Rio International Airport is the air access gateway for both Del Rio and Ciudad Acuna, with 

whom Del Rio has a very close relationship. Both cities are critical to the overall economic 

prosperity of the region, DRT is the only airport option for the SW Texas region.

Primary and Secondary Catchment Area

 SOURCE: Microsoft MapPoint

Del Rio is a major trade gateway between the United States and Mexico. The US population 

within a 60 minute drive time is approximately 95,000 and within 75 minutes the population 

is well over 100,000. Furthermore, the population of the Ciudad Acuna region of the Coahuila 

state of Mexico is approximately 270,000 and Piedras Negras is 170,000. Unlike many other 

regions of the nation, this drive time population does not have easy access to another airport. 

The closest commercially-served airport is San Antonio International, which is a three-hour 

drive. Factoring in timing for travel contingencies and for security clearance at SAT, the DRT 
Proposal of Del Rio International Airport

2013 Small Community Air Service Development Grant

Docket DOT-OST-2013-0120 Page 11

consumer must allow the equivalent of a full half day before they may begin an air trip. With 

the loss of air service, this is lethal to the region’s global competitiveness.3

2. DRT Air Service History and Future Potential

 

Historical Air Service

Historically, DRT began nonstop service to United’s George Bush Intercontinental Airport (IAH), 

with a SCASD-funded incentive program in March 2005, and became self-sufficient thereafter. 

The IAH hub first with Continental, and later with United provided excellent connectivity both 

domestically and internationally. There were, however, operational reliability problems in 2011 

that discouraged ridership; these were resolved by United in 2012, and traffic rebounded with 

the introduction of jet service.

Subsequent to service initiation in 2005, DRT had between two and three daily roundtrips on 

34 seat turboprop aircraft, and most recently 37 seat regional jets. For a period, there were 

operational issues with reliability and on time performance associated with the aging 

turboprop aircraft, however, this changed once United/Continental merger was solidified and 

a more reliable carrier operated the flights on behalf of United with regional jets. However, 

early in 2013 after a mere 6 months of reliable jet operations United found it necessary to 

discontinue this air service, due to changes in the fleet mix at United Express. Today, Del Rio 

International and the region it serves have no scheduled air service.

Aging Aircraft Led To Operational Challenges

Because of the operational issues which impacted reliability of flights at DRT, air travel to and 

from the region suffered traffic declines. However, once the more reliable regional jets 

replaced the turboprop aircraft in the DRT-IAH market, passenger traffic began to rebound, as 

is evidenced on the graph on the following page.

 

3 The community believes that DRT has characteristics similar to those at Columbia, Missouri. The traffic demand is strong, and 

loss of air service was due to airline operational factors. As has been seen with Columbia, the need for outside financial support 

is expected to be only pro-tem.
Proposal of Del Rio International Airport

2013 Small Community Air Service Development Grant

Docket DOT-OST-2013-0120 Page 12

DRT Passenger Traffic History

Five Year Trend: CY 2008 – CY 2012

 SOURCE: Aviation DataMinerTM analysis of DOT/BTS Form 41 Traffic

Furthermore, while passenger traffic rebounded, the load factor achieved by United Airlines 

increased as well. This was a clear indication that the community supported the switch from 

the unreliable turboprop aircraft to the reliable regional jets. 

The rebound in both passenger traffic and load factor performance illustrates that the DRT 

market can become self-sufficient with the assistance of a grant award from the DOT. The 

proximate cause of United’s decision to drop the market was retirement of key fleet types from 

the United Express system and corporate planning changes at the carrier. It was not due to 

lack of traffic opportunities.

United Airlines Performance at DRT – CY 2012

The two daily nonstop frequencies between DRT and IAH flown by United Airlines in CY 2012 

captured approximately 23,000 origin and destination passengers, accounting for nearly $6 

million in net revenue. The inbound vs. outbound distribution of passengers was relatively 

0

500

1,000

1,500

2,000

2,500

3,000

3,500

DRT Pax

Increasing passenger 

demand over the last 12-

18 months of service
Proposal of Del Rio International Airport

2013 Small Community Air Service Development Grant

Docket DOT-OST-2013-0120 Page 13

even, at 48% DRT originations, which indicates that there is very balanced market at DRT with 

limited seasonal fluctuations in passenger travel and demand. Average One Way Gross Fares 

as shown on the following page, were approximately $307, which is higher than the national 

average for CY 2012 by approximately 39% ($307 vs. $221).

United Performance at DRT

CY 2012

 SOURCE: Aviation DataMinerTM analysis of DOT/BTS O&D Survey

The top domestic O&D markets for United’s IAH nonstop service are illustrated below, with 

Houston, Cleveland, and Los Angeles comprising the top three markets. Overall, the top 10 

markets accounted for 34% of the DRT total passengers in CY 2012, accounting for 

approximately $1.8 million in net revenue.

DRT Top 10 O&D Markets –

Revenue and Passenger Performance

CY 2012

 SOURCE: Aviation DataMinerTM analysis of DOT/BTS O&D Survey

DFW Hub: A Win-Win for AA, Del Rio & Surrounding Multinational Region

The American Airlines Dallas – Fort Worth hub is the most suited match that has the potential 

for DRT air service. Due to deteriorating economics primarily resulting from aging regional jet 

aircraft along with increased fuel prices, the bar set for smaller communities is becoming 

increasingly higher in order to attract new air service. However, the DFW hub is a perfect option 

Carrier Psgr PDEW % Originating 

@ DRT

Gross OW 

Fare

Net OW 

Fare Net Rev T icket Yield

United 23,239 31.7 47.9% $307.07 $266.63 $5,904,215 20.37¢

Rank Market Psgr PDEW % Originating 

@ DRT

Gross OW 

Fare

Net OW 

Fare % of Pax Net Rev T icket Yield

1 IAH 2,337 3.2 30.2% $233.82 $207.83 10.1% $410,035 61.31¢

2 CLE 1,018 1.4 33.1% $333.84 $290.94 4.4% $290,311 20.25¢

3 LAX 719 1.0 58.9% $324.12 $281.77 3.1% $195,775 16.27¢

4 LAS 628 0.9 85.4% $240.19 $204.09 2.7% $126,043 13.07¢

5 SEA 611 0.8 60.9% $294.88 $254.85 2.6% $146,593 11.51¢

6 ORD 552 0.8 65.6% $325.78 $283.45 2.4% $153,713 22.01¢

7 BWI 529 0.7 42.9% $315.32 $273.34 2.3% $144,721 16.84¢

8 DEN 525 0.7 48.0% $270.83 $232.51 2.3% $117,366 19.36¢

9 ATL 485 0.7 46.3% $234.51 $198.74 2.1% $96,448 19.23¢

10 SAN 479 0.7 55.8% $248.41 $211.60 2.1% $101,331 12.73¢

Total 7,883 10.8 47.0% $277.15 $240.89 33.9% $1,782,334 19.79¢
Proposal of Del Rio International Airport

2013 Small Community Air Service Development Grant

Docket DOT-OST-2013-0120 Page 14

for Del Rio, as it is not only one of the United States’ premier hubs, but also a premier global 

hub. At a 335 mile stage length between DRT and DFW, operational costs can be limited and 

a smaller regional jet is the appropriate aircraft to serve this market.

Based on currently filed schedules, American’s DFW hub offers approximately 37% more 

departures and 63% more available seats than does United’s IAH hub. Therefore, the loss of 

air service with United’s DRT-IAH, while certainly an unwelcome event for the Del Rio 

community, has the potential to be substantially improved with American Airlines with even 

greater connectivity for passengers traveling to and from the Del Rio region.

American Airlines Domestic Connectivity at DFW

 

 SOURCE: Innovata, LLC via Aviation DataMiner

The following tables illustrate the average number of nonstop flights to Del Rio’s top domestic 

and international O&D markets as of CY 2012. As can be seen, DFW allows for outstanding 

connectivity.

DRT 2012 Top 10 Domestic and Int’l O&D Markets

And Connectivity on American Airlines via DFW

DRT

Rank Market City

A verage # of 

A merican 

Daily 

Nonstops 

from DFW

1 FRA Frankfurt 1.0

2 YYC Calgary 2.0

3 SIN Singapore -

4 MEX Mexico City 5.8

5 DUS Dusseldorf -

6 BJX Leon-Guanajuato 3.0

7 LHR London 2.6

8 GDL Guadalajara 2.9

9 YYZ Toronto 2.9

10 CUN Cancun 4.9

Rank Market City

A verage # of 

A merican 

Daily 

Nonstops 

from DFW

1 IAH Houston 7.4

2 CLE Cleveland 2.9

3 LAX Los Angeles 17.6

4 LAS Las Vegas 11.3

5 SEA Seattle 7.7

6 ORD Chicago 16.7

7 BWI Baltimore/ D. C. 5.5

8 DEN Denver 9.7

9 ATL Atlanta 9.6

10 SAN San Diego 8.8
Proposal of Del Rio International Airport

2013 Small Community Air Service Development Grant

Docket DOT-OST-2013-0120 Page 15

 

SOURCE: Aviation DataMinerTM analysis of Innovata Flight Schedules

3. DRT Community: The Power of Partnership

The City of Del Rio and the Del Rio International Airport understand that a public-private 

partnership is critical to the success of scheduled air service, and for this reason have been 

diligently working with the community to garner support for new scheduled air service. 

Furthermore, the City of Del Rio has been partnering with Ciudad Acuna as well as the Nine

County Economic Development Council to further strengthen the level of support that the 

greater region can offer. 

Among the types of support that the community has committed, and illustrated through the

attached letters of support for the DRT Small Community Air Service Development Program 

grant proposal, include the following:

Regional Business Revenue Guarantee Commitments

The City of Del Rio, as one of the many community partners in this proposal, will be responsible 

for the $100,000 in local dollar match under this grant proposal.

In addition to the City of Del Rio dollar match of $100,000, local businesses in the region have 

offered an additional $62,700 towards a Revenue Guarantee Fund as a show of their support 

and commitment. These commitments are further detailed in the attached letters of support 

submitted as part of the DRT grant proposal.

In-kind Incentives

In addition to local cash in the form of revenue guarantees there are several organizations 

which have agreed to offer in-kind incentives for newly scheduled air service at DRT. The total 

dollar value of the in-kind incentives is estimated to be $200,448.

In-kind Travel Pledges

The Community and the Airport are cognizant of the Department’s counsel in the past 

regarding reliance on “travel banks” and other such pre-purchase concepts.
Proposal of Del Rio International Airport

2013 Small Community Air Service Development Grant

Docket DOT-OST-2013-0120 Page 16

The City of Del Rio does, however, maintain close contact with numerous business interests 

within the greater DRT service area, many of which have committed to support the new service 

for business travel. It is noted that “demand” in terms of numbers of passengers using a small 

airport is largely driven by the availability of capacity. 

These commitments of support are not only from companies located in Del Rio, but also from 

companies located in Ciudad Acuna and the greater region. It is estimated that the value of 

the new traffic committed to the potential new AA flights just from these businesses is a 

minimum of $126,368 annually. This type of commitment is evidence that the community will 

support any new air service to the greatest extent possible.

These commitments – in addition to and outside of the local match for the grant – represent 

the depth of support the community for the new service.
Proposal of Del Rio International Airport

2013 Small Community Air Service Development Grant

Docket DOT-OST-2013-0120 Page 17

4. SCASD Grant Administration Plan

Responsibility for SCASD Grant Funds and Term of Grant

The City of Del Rio will administer SCASD grant funds as this proposal’s legal sponsor. It is 

requested that the term of the grant be for two years.

Funding and Revenue Sources

The grant requested is $500,000, with a match of $162,700 from the local community for a 

total of $662,700 in cash. These funds will be allocated as follows:

 

Revenue Guarantee

The structure of the $562,700 risk abatement/revenue guarantee portion of the grant is 

envisioned as follows:

 DRT will negotiate with the airline an agreed upon target revenue per flight

 DRT and the airline will develop a structured, scheduled and formalized revenuedetermination formula. This includes the local O&D revenue, plus the DRT segment’s 

portion of system connecting traffic revenue, ancillary fees, cargo revenue and other 

revenue

 A computation will be made on a monthly basis of the progress of the new service. The 

carrier will agree to provide the Airport with advance booking reports and previous 

month’s traffic and revenue results every thirty days

 The settlement for the revenue guarantee will be accomplished preferably after each 

six months of service

Category SCASD 

Grant

% of 

Total

Matching 

Funds

% of 

Total

TOTAL

Revenue Guarantee and Risk Offset $450,000 80% $112,700 20% $562,700

Marketing Support for New Service $50,000 50% $50,000 50% $100,000

TOTAL $500,000 75% $162,700 25% $662,700
Proposal of Del Rio International Airport

2013 Small Community Air Service Development Grant

Docket DOT-OST-2013-0120 Page 18

Marketing Support

The City of Del Rio and the Del Rio International Airport will embark on an extensive marketing 

communications and advertising campaign in order to fully support and publicize new air 

service if the grant is approved by the DOT. With $100,000 of the grant proposal aimed at 

marketing and advertising, there will be sufficient funds to launch a full scale campaign in both 

the greater Del Rio region, but also across the US-Mexico border in the greater Ciudad Acuna 

region.

Advertising will be aimed at both the business community and general public, with special 

consideration given to increase DRT usage by Laughlin Air Force Base. Billboards, print 

advertisements, radio advertisements, and social media marketing will be utilized to increase 

the awareness of Del Rio International Airport within the region and to build ridership on the 

new scheduled air service.

Plan to Monitor Funds and Project Effectiveness

The City of Del Rio will be responsible for monitoring and administering the grant. Quarterly 

reports will be provided to the Department of Transportation as well as the community detailing 

the progress made in achieving stated project goals and expenditures.

Previous Air Service Development Efforts

The City and airport have been active in its efforts to continue to provide scheduled commercial 

air service at DRT. Since the decision of United to cancel its IAH nonstop flights, 

representatives from the City of Del Rio in conjunction with representatives from Ciudad Acuna 

have met with potential airline partners to expound on how the community can help support 

new air service. 

Most recently, the City and airport issued a survey within the community to better understand 

the travel needs of the region. Not only has this generated significant local support for 

reinstatement of scheduled air service, but also allowed for full comprehension of the needs 

of the community in order to ensure the success of new air service at DRT. American Airlines’ 

DFW hub exceeds the criteria that were offered in the over 250 survey responses.

The City recognizes that minimizing airline operational costs is of utmost importance to regain 

service, and offers waivers of terminal rentals and fees and no cost in airport advertising which 
Proposal of Del Rio International Airport

2013 Small Community Air Service Development Grant

Docket DOT-OST-2013-0120 Page 19

would provide a guaranteed cost benefit of approximately $28,000 annually. Furthermore, the 

airport has a newly renovated 13,333 square foot fully maintained air passenger terminal 

which includes the following:

 The use of a customer interface ticketing point

 Two managerial offices, a dispatch section, and a break area 

 Use of all common areas including passenger outbound/inbound lounges, climate 

controlled baggage area, a pilot lounge, and a conference room 

 Fully functioning baggage handling system, public announcement system and a 

passenger load ramp would also be provided at no fee 

 The City would also provide building maintenance, custodial services and utilities at no 

cost.

 No vehicle parking fees for passengers

The City of Del Rio has been extremely proactive to act as a supportive partner to incumbent 

airlines in the past, and look forward to the opportunity to do so again in the near future. There 

is a strong commitment to ensure that any new airline service is successful for the airline and 

community alike. 

Differences Between Current Grant Proposal and Previous Grant Award

The City of Del Rio was the recipient of a $318,750 Small Community Air Service Development 

grant award during FY 2004 for risk abatement to start scheduled air service at Del Rio 

International Airport. The community match for this award was $106,250, for a total of 

$425,000 in cash contribution. This award was utilized to negotiate with Continental Airlines 

to being air service in March 2005 to its Houston (IAH) hub. 

The grant was crucial in attracting the airline, and, pertinent to the immediate grant request, 

it is important to note that the 2004 grant incubated service that became self-sufficient at the 

end of the grant period. This is a clear indication that the Del Rio community can support new 

scheduled air service, and the AA/Dallas – Ft. Worth hub is the logical option. 
Proposal of Del Rio International Airport

2013 Small Community Air Service Development Grant

Docket DOT-OST-2013-0120 Page 20

Furthermore, the state of the US aviation industry has changed significantly since 2005.

 Delta Airlines merger with Northwest Airlines

 United Airlines merger with Continental Airlines

 Southwest Airlines merger with AirTran Airways

 American Airlines announcement of a merger agreement with US Airways 

 Price of crude oil increasing from $50/barrel to $100/barrel, thus having a negative 

impact on the price of jet fuel and making airline profitability even more challenging

 General airline consolidation and capacity discipline – in addition to the mergers that 

have decreased the number of US airlines the total domestic US capacity on a seat 

basis has decreased by approximately 12% between 2005 and 2012 

 US and global economic recession over the last several years has severely hindered 

growth in the aviation industry due to decreased business travel demand and fewer 

discretionary dollars for the leisure traveler

For these reasons, the current grant request can be expected to result in air success equal to 

and likely greater than the 2004 award. However from an airline-requirement perspective, the 

current grant proposal should be viewed in a completely different light than the previous 

award. The revenue requirements and fleet mixes in the industry have changed drastically over 

the last several years, and scheduled air service between Del Rio and American Airlines’ Dallas 

– Ft. Worth is the most realistic opportunity for the community of Del Rio to regain scheduled 

air service in today’s environment. 

The City of Del Rio, the Community and the surrounding multinational region appreciate the 

Department’s consideration of this grant request.
Dale Morris 

Regional Vice President, Government Affairs

American Eagle & Regional Communities 

4333 Amon Carter Blvd 

MD 5673 

Fort Worth, Texas 

817 967 0175 Office

dale.morris@aa.com

 

June 6, 2013

Brooke Chapman

Associate Director

Small Community Air Service Development 

Office of Aviation Analysis

U.S. Department of Transportation

1200 New Jersey Ave., SE

Washington, DC 20590

Room W86-307

Dear Ms. Chapman,

On behalf of American Airlines, I am pleased to provide this letter in support of the Del Rio 

International Airport (DRT) Small Community Air Service Development Grant Application.

The Del Rio International Airport, the only airport serving the Border Region in Southwest Texas 

between Laredo and El Paso has applied for a SCASD grant with the funds primarily intended to 

establish a new air service route with the focus being on a Dallas Fort Worth International 

connection. 

As a Regional International Airport along the Texas/Mexico border, representatives from the City of 

Del Rio and their neighboring City of Ciudad Acuna Mexico approached American Airlines recently 

to discuss the possibility of establishing a new air service route with a focus on a DFW connection.

American Airlines is committed to providing access to more choices and increased service across the 

company’s larger worldwide network. As part of our plan to expand service from our hubs to offer 

increased service to existing markets and service new cities we continually seek opportunities to 

provide our customers the most connected, comfortable travel experience available.

Although we are in the preliminary stages of analyzing the Del Rio market area and have made no 

commitment at this time to provide service, there are clear indicators that this region may be better 

served by focusing on a Dallas Fort Worth connection.

It is evident that this region has developed a strong Public/Private Partnership that is far reaching to 

include International, Regional and Local Community support of this new air service route.
2

It is evident, that the growing international industrial base coupled with the Air Force’s largest 

training base, Laughlin A.F.B. along with this regions flourishing tourism industry would be well 

served through the receipt of the Department of Transportation Small Community Air Service 

Development Grant.

We believe that DRT meets the criteria established by the Department of Transportation for 

consideration to receive a grant award; therefore we would ask that you give the Del Rio 

International Airport Small Community Air Service Development Grant Application your highest 

consideration for funding.

Sincerely, 

Dale Morris 

Regional Vice President, Government Affairs

American Eagle and Regional Communities