# August 2, 2011 Sponsor: Auburn

- Lewiston Municipal Airport , Auburn

- Lewiston, Maine Rick Cloutier, Airport Director Congressional Code: ME

- 0 0

2 Dun & Bradstreet Number: 093631935 Tax Identification Number (EIN): 01

- 0365409 

### Application for Federal Support for New Air Service via:
Revenue Guarantees Advertising/Marketing Program Start

- Up Cost Offsets 

### In Support of Non

- Stop Service between Auburn

- Lewiston and Boston 

# AUBURN

- LEWISTON MUNICIPAL AIRPORT
, MAINE Proposal Under the Small Community Air Service Development Program Docket DOT

- OST

- 2011

- 0119Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 2 TABLE OF CONTENTS

Introductory Letters 3 Summary Information

– Appendix C 8
Introduction 1 1
The Auburn

- Lewiston Air Service Market 1 2
Potential for Air Service 1 3 Air Service Development Efforts 1 7
Air Service Needs and Deficiencies 1 8 Strategic Plan for New Air Service 2 3 Proposed New Route 2 4 Implementation Timeline 3 0
Alternate Plan 3 1 Public/ Private Partnership 3 2 Funding Plan 3 4
Performance Measures and Financial Controls 3 6 Legal Sponsor 3 7
Letter s of Support 3 8 Availability of Alternate Airports 5 1 Airport Information 5 2 Community Profile 5 3
Conclusions 6 3



### Section Page NumberAuburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 3 INTRODUCTORY LETTERSAuburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 4Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 5Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 6Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 7Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 8 SUMMARY INFORMATION

– APPENDIX C

Small Community Air Service Development Program Docket DOT

- OST

- 2011

- 0119



### A. Applicant Information

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

_______________________


### B. Public/Private Partnership

Public:

1. Auburn

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

Private:

1. Androscoggin County Chamber of Commerce 2. Lewiston

- Auburn Economic Growth Council 3. Bates College 4. L/A ArtsAuburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 9 C. Project Proposal

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

- Up Cost O ffset First Service Study Secure Additional Service Other (Specify)



### D. Existing Landing Aids at Airport

Full ILS Outer/Middle Marker Published Instru ment Approach Localizer Other:



### E. Project Cost

1. Federal amount requested: $ 6 00,000 2. State cash financial contribution: $ 0 Local cash financial contribution: 3a. Airport cash funds: $ 25,000 3b. Non

- Airport cash funds: $ 7 5,000 3. Total local cash funds: $ 10 0,000 4. TOTAL CASH FUNDING: $ 70 0,000 In

- Kind Contribution:

a. Airport In

- Kind contribution: $ Various b. Other In

- Kind contribution: $ Various 5. TOTAL IN

- KIND CONTRIBUTION: $ Undetermined 6. TOTAL PROJECT COST: $ 70 0,000 + In

- Kind



### F. In

- Kind Contributions

For funds in lines 7a (airport in

- kind contribution) and 7b (other in

- kind contribution), please describe the source(s) of fund(s) for each. Fee waivers: landing and terminal fees (airport) Advertising and marketing match money (media companies)Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 10 G. Is Application Subject to Review by State Under Executive Order 12372 Process?
This application was made available to the State on ______. Program is subject to review, b ut has not been selected by the State. Program is not covered.



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

NoAuburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 11 INTRODUCTION

The methodical process to prepare the Auburn

- Lewiston Municipal Airport for scheduled airline service is nearing completion. Just this summer, the regional governments approved an $800,000 investment in a renovated airline terminal at the Airport

– the last piece of the facilities puzzle in preparing the Airport for scheduled service. The terminal investment comes after two years of intense market study and research, paid for by the communities of Auburn and Lewiston themselves. The cities realized air service could be the key to continued economic development. One City leader went as far as to say the future of the community rests on the ability to bring an air carrier to the Auburn

- Lewiston Municipal Airport.

In the summer of 2011, the Auburn

- Lewiston area has already celebrated two big wins for the local economy. First TD Bank announced the expansion of its corporate center in the region, adding another 500 jobs to an already large base of more tha n 2,000 employees. Then, in June of 2011, Carbonite

– the computer file back

- up service

– announced a new operation in Auburn

Lewiston employing 250 high

- tech engineers.

The Auburn

- Lewiston Municipal Airport is working to capture that energy in its effor t to attract local scheduled air service. The Airport has the potential to serve a region that has los t 1,440 departing seats per day since 2009

– more than 37% of its airline capacity

. This capacity decline has caused fares to jump by 12% in the last year. The n ew service at Auburn

- Lewiston would make up for only a small fraction of the seats lost in the region
, but that gives the Airport increased confidence local service would be su pported.

The Airport’s True Market/Leakage Study, updated in July of 2011 for this application, shows the market generates an average of 605 passengers per day each way as of calendar year 2010. These passengers must travel on a toll road to access any r egional air service. The Airport seeks to provide a local, convenient alternative for air service . It has raised $100,000 in matching money for this project, and now it seeks the support of the Small Community Air Service Development Program. 

## “One city leader went as far as to say the future of the community rests on the ability to bring an air carrier to the... Airport.”Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 12 THE AUBURN

- LEWISTON AIR SERVICE MARKET Potential for Air Service

The cities of Auburn and Lewiston, Maine, recognizing the value of their local airport to the economy of the region, have made commitments to invest almost $1 million in airport improvement projects and air service development projects. The latest investment is a remodeling of the Auburn

- Lewiston Municipal Airport’s 1950’s era passenger terminal, to make it air carrier ready

– a commitment made within the last 60 days.

Additionally, without the aid of a Small Community Air Service Development Grant, the communities commissioned a detailed True Market/Leakage Study so they could bett er understand travel patterns in the region closest to the local airport. This Study has guided the Airport in its mission, and helped to add detailed focus to the air service development efforts in the region. While the Study shows significant potential for air service to be successful, the Airport has been conservative in its request for federal Small Community Air Service Development Program dollars

– and conservative in the approach for new air service.

The Airport’s True Market/Leakage Study showed the Airport has the potential to serve as a more efficient, and better positioned, gateway for much of the central section of Maine

– all the way from the Atlantic coast to the mountains in the north (see map 1) . Auburn

- Lewiston is a hub for 

### MAP 1 : The Catchment Areas of Regional Maine Airports Updated 2011; Source: Sixel Consulting GroupAuburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 13 the new econo my, with large recent investments from companies such as Deutsch Lufthansa, TD Banknorth, Procter and Gamble, LL Bean, Nestle, and General Electric. This area is home to 278,200 people as of the latest US Census estimates and makes up 28% of the region’s total population

– a larger share than either of the current served airports in Augusta or Rockland (see map 1). Augusta makes up just 16% of the regional population, while Rockland is even smaller, with just 10% of the region’s population. The case can be made that there is more of a market for local air service in Auburn

- Lewiston than there is in either Augusta or Rockland

– both of which currently have local air service subsidized by the Essential Air Service program.

The Airport’s True Market/Leakage Study pulled a sample of local tickets from 2007

. In the summer of 2011, it was updated with new data then meshed with US Department of Transportation data from the other airports in the region to give a market update based on new trends in travel in the region. This year, the updated Study showed the Auburn

- Lewiston extended ca tchment area produces a total of 441,926 annual passengers or an average of 605 passengers per day each way (see figure 1 ). The study showed more than 75% of those passengers currently fly from Portland International Jetport

– the closest airport with current air service.



### FIGURE 1 : Estimated O&D Passengers and Average Fares in the Auburn

- Lewiston Catchment Area Updated for CY2010; Source: Sixel Consulting Group True Market Study Update, 2011

310,963 313,638 345,667 372,624 357,035 407,232 436,633 435,313 421,055 14,216 13,941 15,510 15,432 16,731 18,450 19,231 19,446 20,871

445.5 448.7 494.8 531.6
512.0 583.1 624.5 623.0 605.4

200,000 250,000 300,000 350,000 400,000 450,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 PDEW International Domestic

$170 $178 $169 $167 $192

$180 $187

$161 $180Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 14 The Study estimates that, over the last nine years, Auburn

- Lewiston Municipal Airport catchment area passengers have increased by 36%

- from an average of 446 passengers per day each way in 2002 to an average of 605 passengers per day each way in 2010

– growth of an average of 160 passengers per day each way (see figure 1). Growth has been stalled, however in the last three years, largely due to the loss of airline seat capacity in the region.

Additionally, the average fare paid by the Auburn

- Lewiston catchment area passenger has risen by 12% in the last year (see figure 1). In 2009, the average fare for Auburn

- Lewiston catchment area passengers was $161 each way through all airports from which they flew. In 2010, that number jumped to an average of $180 each way, or $360 roundtrip, suppressing local passengers by about 3%, or 18 passengers per day each way.

The majority of the largest origin and destination passenger markets from the Auburn

- Lewiston catchment area are concentrated along the East Coast

. In all, 12 of the top 20 true O& D passenger markets from the Auburn

Lewiston catchment area are on the East Coast , with just three on the West Coast (see figure 2). This reflects the business make

up of the Auburn

- Lewiston market, as most of the largest employers in the catchment area h ave other offices in the Northeast or Southeast

. 

### FIGURE 2 : Estimated Top 20 O&D Passenger Markets Updated for CY2010; Source: Sixel C onsulting Group

47,170 31,851 26,310 19,663 18,070 13,862 13,619 11,777 10,590 8,112 8,028 7,666 7,622 7,509 6,401 6,217 6,115 5,795 5,638 5,463 64.6 43.6 36.0 26.9 24.8 19.0 18.7 16.1 14.5 11.1 11.0 10.5 10.4 10.3 8.8 8.5 8.4 7.9 7.7 7.5

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 New York/Newark, NY

Orlando/Sanford, FL Baltimore, MD Washington, DC Atlanta, GA

Tampa, FL Philadelphia Charlotte, NC Chicago, IL Fort Lauderdale, FL San Francisco, CA

Los Angeles, CA Fort Myers, FL

Denver, CO Las Vegas, NV Jacksonville, FL Phoenix/Mesa, AZ Seattle/Tacoma, WA Dallas/Fort Worth, TX Raleigh/Durham, NC Annual Passengers PDEWAuburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 15 The summer 2011 update to the Airport’s True Market/Leakage Study shows New York/Newark is the number one O&D passenger market from the Auburn

- Lewiston catchment area, averaging almost 65 passengers per day each way through other airports (see figure 2). Other large O&D markets to and from the Auburn

- Lewiston catchment area include Orlando, with an average of 44 passengers per day each way in 2010; Baltimore and Washington, DC, with a combined average of 63 passengers per day each way; Atlanta, with an average of 25 passengers per day each way; and Tampa, with an average of 19 passengers per day each way.

As previously noted, the average one way fare as determined by the summer 2011 update to the Airport’s True Market/Leakage Study was $180 (see figure 3). While average fares to most East Coast markets were below the overall Auburn

Lewiston average due to the fact that they are shorter stage length flights,

some East Coast markets have prohibitively high fares, despite the presence of low fare carriers at both Portland and Manchester. For example, the average fare for Auburn

- Lewiston catchme nt area passengers to Washington, DC
, in 2010 was $184 each way while the average fare to Philadelphia was $189 each way. Generally, Auburn

- Lewiston catchment area residents pay fares that are higher than the regional average to access air service out of other airports in the region. 

### FIGURE 3 : Estimated Fares in Top 20 O&D Passenger Markets Updated for CY2010; Source: Sixel Consultin g Group

$114

$124 $110 $184 $161 $122 $189 $143 $223 $148 $202 $207 $142 $181 $184 $133 $169 $212 $195 $122

$0 $50 $100 $150 $200 New York/Newark, NY

Orlando/Sanford, FL Baltimore, MD Washington, DC Atlanta, GA

Tampa, FL Philadelphia Charlotte, NC Chicago, IL Fort Lauderdale, FL San Francisco, CA

Los Angeles, CA Fort Myers, FL

Denver, CO Las Vegas, NV Jacksonville, FL Phoenix/Mesa, AZ Seattle/Tacoma, WA Dallas/Fort Worth, TX Raleigh/Durham, NC 

### Average Fare : $ 180Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 16 The summer 2011 update to the Airport’s True Market/Leakage Study confirms Auburn

- Lewiston is at the center of the largest region in Maine without any commercial airline service

. It also affirms the community’s decision to go forward with a remodel of the outdated airline terminal (see figure 4). The Auburn

- Lewiston Municipal Airport has not had commercial, scheduled airline service since the 1980s. As such, the Airport’s terminal was not suitable for current scheduled air service. The Cities of Auburn and Lewiston have approved an $800,000 plan to update and expand the termi nal to make it air carrier ready.

The Airport will be able to handle scheduled service, under Part 139, by the summer of 2012. Should a Small Community Air Service Development Grant be awarded in this cycle, the Airport’s infrastructure will be ready for service under an aggressive timeline, helping to ensure the Grant funding gets put to use within nine months of the award. 

### FIGURE 4 : Diagrams of Updated Auburn

- Lewiston Municipal Airport Passenger TerminalAuburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 17 AIR SERVICE DEVELOPMENT EFFORTS

The biggest air service development project at the Auburn

- Lewiston Municipal Airport is just about to begin

– the remodeling of the 1950s era passenger terminal. The project will cost $800,000, paid for by the communities of Auburn and Lewiston, but it will be essential to the Airport’s ability to handle scheduled airline service. The proj ect should be complete by the summer of 2012, meaning service could begin at that time.

The administration of the Auburn

- Lewiston Municipal Airport has been extremely active in working to add air service to the community. As community leaders expressed their desire to do whatever it takes to bring air carrier service to their local Airport, Airport leaders commission ed an air service study, and have since been meeting, one

on

- one, with potential airlines. These meetings have included Cape Air and Colgan Air, airlines that will be specifically mentioned in this application. The Airport has also met with ExpressJet, R epublic, and other regional carriers with major airline codeshares.

The next step in the Airport’s air service development program is t he development of funding for risk mitigation. The Airport’s meetings with various airlines have yielded a specific plan for risk mitigation. This Small Community Air Service Development Grant is a key to that risk mitigation program. 

## “The project will cost $800,000... but it will be essential to the

Airport’s ability to handle scheduled airline service.”Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 18 AIR SERVICE NEEDS AND DEFICIENCIES

As has been established, the Auburn

- Lewiston Municipal Airport has no current scheduled air service, n or does it have any local access to the national air transportation system

. Auburn

Lewiston area businesses, and travelers, are at a distinct disadvantage when compared to other communities in the Northeast as their only access to air service requires a drive on a toll road.

The Auburn

- Lewiston Municipal Airport understands that a ir carriers spend very little time analyzing smaller markets, and specific inf ormation on potential passenger traffic in smaller communities is limited. For these reasons, the Airport first commissioned a True Market/Leakage Study. That Study data has been updated for calendar year 2010, for use in this proposal under the federal Small Community Air Service Development Program.

The Study shows that a lmost 75% of all

passengers originating from the Auburn

- Lewiston catchment area fly from the Portland International Jetport (see figure 5 ). Roughly 18% of travelers from Auburn

- Lewiston drive all the way to Boston’s Logan Airport to access the national air transportation system

– a drive of three hours without traffic. All other airports account for the remainder of tickets sold to Auburn

Lewiston c atchment area travelers.

On average in 2010 , the Auburn

Lewiston catchment area generates 451 passengers per day each way in and out of the Portland Jetport (see figure 5). The catchment generates an additional 108 passengers per day each way in and out of Boston, while it generates almost 33 passengers per day each w ay in and out of Manchester as of 2010. In all, the Auburn

Lewiston catchment area is estimated to generate an average of 605 passengers per day each way, despite the lack of local air service at the Auburn

- Lewiston Municipal Airport. 

### FIGURE 5 : Airport Share of Auburn

- Lewiston Passengers CY2010; Source: Sixel Consulting Group

Portland 74.5%

Boston 17.9% Manchester 5.4% Bangor 1.0% Others 1.2% Airport Passengers PDEW Share

1 Portland, ME 329,204 451.0 74.5% 2 Boston, MA 78,986 108.2 17.9% 3 Manchester, NH 23,964 32.8 5.4% 4 Bangor, ME 4,357 6.0 1.0% 5 All Others 5,415 7.4 1.2%

Total 441,926 605.4 100.0% RankAuburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 19 As Auburn

- Lewiston catchment area travelers must access air service at other airports

– primarily through the Portland International Jetport according to the Airport’s True Market/Leakage Study

– it is important to understand the airline capacity available in the region to d etermine the level of service for Auburn

- Lewiston travelers. Like much of the rest of the country, Maine has been hit with airline seat and flight cuts over the last several years.

As most Auburn

- Lewiston catchment area passengers fly in and out of Portland, airline capacity at the Portland Jetport is critical to air service access in Auburn

- Lewiston . Since the summer of 2009, airlines serving Portland have cut available seats by 37%

- making Portland one of the hardest hit airports in the northeast region (see figure 6). In the summer of 2009, airlines offered an average of 3,938 departing seats per day at Portland. By February of 20 11, that number had dropped to an average of 2,498 daily departing seats

– a loss of 1,440 departing seats per day. New service at Auburn

- Lewiston would make

- up for only a small fraction of the seats lost at the Portland Jetport, giving the Airport increa sed confidence local service would be supported.



### FIGURE 6 : Passengers, Seats, and Flights per Day Each Way at PWM July 2009

– February 2011; Source: US DOT T100 Data

3,938 3,911

3,452 3,325

2,906

2,656 2,592
2,372 2,662 2,853 2,926 3,291 3,471 3,535

3,146 3,009

2,641 2,456 2,269 2,498 3,222 3,301

2,631 2,682

2,092 1,917

1,673 1,806 2,151 2,210 2,285 2,623 2,964 3,083

2,541 2,507

2,053

1,795

1,564 1,774

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500

2009

- 07 2009

- 08 2009

- 09 2009

- 10 2009

- 11 2009

- 12 2010

- 01 2010

- 02 2010

- 03 2010

- 04 2010

- 05 2010

- 06 2010

- 07 2010

- 08 2010

- 09 2010

- 10 2010

- 11 2010

- 12 2011

- 01 2011

- 02 Available SDEW Onboard PDEW Flights DEW 49.6 49.3

43.8 42.4 39.7
36.6 35.8
32.5 37.0 38.6 38.2 41.9 43.7 44.4
41.0 39.8

36.0 33.4
30.2 32.5Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 20 As airlines have cut seats from the Portland market, flights have also been cut, with departures down 35% since the summer of 2009 (see figure 6). In July of 2009, airlines serving the Portland Jetport off ered an average of 49.6 departures per day. By February of 2011, the average number of daily departures at Portland fell to 32.5

– a loss of 17 daily departures. As Portland loses available seats and flights, it becomes more difficult for Auburn

- Lewiston catchment area travelers to access air service there.

Moreover, Portland is not a hub that offers non

- stop flights to a wide breadth of destinations. Even with service provided at Portland, Auburn

- Lewiston catchment area travelers are still forced to ta ke connecting flights to get to most destinations. A nother somewhat surprising statistic from the Airport’s True Market/Leakage Study is the fact that, despite non

- stop flight options in Boston, very few Auburn

- Lewiston passengers drive to Bosto n to get those non

- stops. The S tudy shows Auburn

- Lewiston passengers prefer to fly from an airport closer to home, even if that means they’ll have to spend mo re time in connecting airports.

While the summer 2011 update to the Airport’s True Market/Leakage Study shows the largest proportion of Auburn

- Lewiston passengers travel non

- stop to their destinations, the majority connect at a hub on the way to their fi nal destination

. The Study shows about 30% of all Auburn

Lewiston catchment area passengers fly

non

- stop to their destinations, with 70% using connecting flights (see figure 7). This statistic illustrates the fact that non

- stop convenience is not as impo rtant to Auburn

Lewiston travelers as is the convenience of being able to fly from an airport that is closer to home.

The Airport’s market study also found that no one hub is significantly more popular than any other. The most popular connecting hub is P hiladelphia, with an 

### FIGURE 7 : Connection Point for Auburn

- Lewiston Passengers CY2010; Source: Sixel Consulting Group

Nonstop 29.6%

Philadelphia, PA 13.7%

Detroit, MI 7.4% Washington Dulles, DC 4.8% New York J F Kennedy, NY 4.8% New York La Guardia, NY 4.7%

Others 35.0% Airport Passengers PDEW Share

1 Non-stop 130,648 179.0 29.6% 2 Philadelphia, PA 60,749 83.2 13.7% 3 Detroit, MI 32,615 44.7 7.4% 4 Washington Dulles, DC 21,163 29.0 4.8% 5 New York J F Kennedy, NY 21,163 29.0 4.8% 6 New York La Guardia, NY 20,789 28.5 4.7% 7 Washington National, DC 20,167 27.6 4.6% 8 Chicago O'Hare, IL 19,980 27.4 4.5% 9 Atlanta, GA 19,482 26.7 4.4% 10 New York Newark, NJ 15,810 21.7 3.6%

Total of Above 362,898 497.1 82.0% RankAuburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 21 average of 83 passengers per day each way connecting through it in 2010

– or 14% of Auburn

Lewiston catchment area passengers (see figure 7). The only other hub gaining more than 5% of the sample of tickets was Detroit, with 7.4% of p assengers, or 45 passengers per day each way as of calendar year 2010

.

In all, the summer 2011 update to the Airport’s True Market/Leakage Study shows Auburn

Lewiston passengers bought tickets connecting through more than 15 different hubs . The fact that there is no preferred hub illustrates the fact that there is no preferred airline.

A quick glance at the 2010 carrier share from the Auburn

Lewiston catchment area shows that airline consolidation has had a major impact on reducing competition in the region. Three airlines capture a combined 91% of all Auburn

- Lewiston catchment area passengers as of calendar year 2010 (see fi gure 8). US Airways has long been a passenger market share leader in Maine. It captured almost 39% of all Auburn

- Lewiston catchment area passengers in 2010, or an average of 234 passengers per day each way.

The two major mergers of the last three years have dramatically shifted carrier share in the Auburn

- Lewiston market. Delta, after its merger with Northwest, now captures almost a third of Auburn

- Lewiston catchment area passengers, or an average of 191 pas sengers per day each way (see figure 8). At the same time, the United

- Continental merger has allowed United to grow its passenger market share to more than 20%, or an average of 127 passengers per day each way in the Auburn

- Lewiston catchment area in 2010

. 

### FIGURE 8 : Carrier Share of Auburn

- Lewiston Catchment Area Passengers CY2010; Source: Sixel Consulting Group

US Airways 38.7%

Delta 31.5% United 21.0% American 4.9% Others 3.9% Airline Passengers PDEW Share

1 US Airways 171,044 234.3 38.7% 2 Delta 139,207 190.7 31.5% 3 United (+Continental) 92,804 127.1 21.0% 4 American 21,598 29.6 4.9% 5 British Airways 2,179 3.0 0.5% 6 Southwest 2,116 2.9 0.5% 7 Airtran 1,992 2.7 0.5%

Total of Above 430,940 590.3 97.5% Total 441,926 605.4 100.0% RankAuburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 22 Airline consolidation means less competition, specifically in smaller states such as Maine. This reduced competition has already started to cause fare increases, with the average fare paid by Auburn

- Lewiston catchment area passengers up 12% in the last year. Additional competition in the region, at a new access point

– the Auburn

- Lewiston Municipal Airport

– will help counteract this trend.Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 23 STRATEGIC PLAN FOR NEW AIR SERVICE

The region surrounding Auburn

- Lewiston faces many air service challenges. Airline capacity in the region has been cut by more than a third in the last two years

– with a loss of more than 1,400 daily departing seats. Fares have gone up, as a result, by 12% in the last year. And 70% of all Auburn

- L ewiston catchment area passengers have to make a connection through a hub to get to their final destination.

T

he Aub urn

- Lewiston Municipal Airport is working to address those challenges through this strategic plan for service. Due to the distribution of the top destinations from the market, it is likely the most successful service will be to an E ast C oast hub, connecting to most major destinations. The Airport’s True Market/Leakage Study shows :

• Almost three

- quarters of projected passengers from the Auburn

- Lewiston Municipal Airport (LEW) catchment area

– 72%

– f ly to destinations on the E ast C oast

.

• More than two

- thirds

– 69%

– of the projected airline revenue created in the Auburn

Lewiston catchment area goes to destinations on the E ast C o ast

.

• With such a high percentage of Auburn

- Lewiston passengers and revenue flowing to destinations on the immediate E ast C oast , it is essential that any air service to/from LEW be able to connect to each of these high volume destinations

.

• The most successful air service at Auburn

- Lewiston will connect to a hub along the E ast C oast

– preferably in the N ortheast

– that offers a wide range of one

- stop destinations from New York to Florida.

• Service to hubs not on the immediate E ast C oast , or not i n the N ortheast
, will not be able to draw as many local Auburn

- Lewiston passengers , as connections would require “backtracking.”

It is also assumed that service in Auburn

- Lewiston will be more successful if it does not duplicate service at the Portland In ternational Jetport. As Portland has service to most nearby hubs covered, the Auburn

- Lewiston Municipal Airport is targeting scheduled service to Boston

– a service which is not offered from Portland. It is believed this service will help replace some of theAuburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 24 available seats lost from the region over the last two years, and offer a new destination and a new hub to the region, as a whole.

In support of this new service, t he Airport proposes to offer Grant funding, in the form of start

- up cost abatements, fee waivers, marketing support, and a revenue guarantee to Cape Air or Colgan Air/Pinnacle Airlines/Mesaba Airlines for at least
two daily flights to Boston (see map 2 ). This service offers connectiv ity to the widest possible collection of interline destinations. The route from Auburn

- Lewiston to Boston is short, can be served at low cost, and requires a much smaller investment than other service options with aircraft up to and including regional jet s. The LEW

- BOS route covers 122 miles with an average flying time of 30 minutes at an average groundspeed of 250 miles per hour.

For the purposes of this proposal, t he Airport has analyzed the Boston market, and its connections, with Cape Air as the operator of the service. The Airport proposes the flights be timed to meet the morning outbound bank at Boston on Cape Air’s codeshare airlines, jetBlue and United , and all other i nterline carriers. The service would connect to omni

- directional destinations from the hub. The Airport also proposes a late evening return, connecting those same cities back into Auburn

Lewiston during the last bank of the night (see figure 9 ). The Air port also proposes a mid

- afternoon round trip, designed to connect to outbound international destination s from Boston. 

### MAP 2 : The Proposed Auburn

- Lewiston to Boston Route

FIGURE 9 : The Proposed Auburn

- Lewiston

- Boston Flight Schedule

Flight Flight Days Weekly Origin Destination Block Origin Destination of Week Flights Departure Arrival Time Equipment

LEW BOS 1234567 7 6:30 AM 7:20 AM 0:50 Varies LEW BOS 1234567 7 3:10 PM 4:00 PM 0:50 Varies BOS LEW 1234567 7 2:00 PM 2:50 PM 0:50 Varies BOS LEW 1234567 7 9:10 PM 10:00 PM 0:50 VariesAuburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 25 Cape Air service from Auburn

Lewiston to Boston would open 4 5

one

- stop destinations over the Boston hub (see map 3) . Flights timed on the propo sed schedule would connect to all 20 of Auburn

Lewiston’s top 20 origin and destination passenger markets as indentified in the summer 2011 update to the Airport’s True Marke t/Leakage Study.

T

here are multiple options for air service to Boston. Should Cape Air not be interested in serving the route, or should the community decide to pursue service on a larger aircraft by raising more local money for the project, Auburn

- Lewi ston could work with Colgan Air/Pinnacle Airlines/Mesaba Airlines for the launch of service on the route. Colgan has operations throughout the Northeast from Boston on 34

- seat Saab 340 aircraft. These aircraft would also be well

- suited for the Auburn

- Lew iston

– Boston route, and the flight times would not change appreciably by changing the carrier and aircraft type. It is also likely most connections beyond Boston would remain relatively unchanged with either airline operating the service.

The Auburn

- Lewiston Municipal Airport proposes a total of $700,000 be used in the funding of this project. The Airport and its community partners (detailed later in this application) have raised a total of $100,000 in new funding for the project

– or 14% of the total project cost. The remaining 

### MAP 3 : Connections beyond Boston
on Cape Air and Codeshare AirlinesAuburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 26 $600,000 would come from the federal Small Community Air Service Development Grant requested in this proposal.

Of the total project cost of $ 70 0,000 , $100 ,000 will be used for marketing and advertising projects , f

ocused on the immediate Auburn

- Lewiston catchment area

. Up to $50,000 from the federal portion of the project cost will be used to cover start

- up costs for the airline entering the market. The federal share of this project will be $6 00,000, of which , at least, $5 50,000 will be used as a revenue guarantee for the new carrier

.



### Route Specific Data: Auburn

- Lewiston

– Boston

For reasons identified in this section of the application, the ideal hub for most Auburn

- Lewiston passenger demand is one in the Northeast that can connect to most East Coast destinations with one stop. Almost three

- quarters of total passenger demand in the Auburn

- Lewiston catchment area goes to destinations on the East Coast . Boston fits this role well

– especially with service on an airline that can connect, through codesha res or interlines, to multiple carriers in Boston.

The Auburn

- Lewiston

– Boston market is est imated to currently generate 393 origin and destination passengers per day each way , or 286,869 annual O&D passengers, to destinations that naturally
connect over Boston on current service (see figure 10) . It has been shown, through the summer 2011 update to the Airport’s True Market/Leakage Study
, that these passengers are currently flying out of other airports in the region

– with 75% flying from Portland

.

In a ll, the S tudy shows the Auburn

- Lewiston

– Boston route has the potential to capture 65 % of the current passengers flying in and out of the Auburn

- Lewiston catchment area (see figure 10 )

. These are current passengers, flying from other airports, not “gener ated” passengers expected to be created with new local air service. At the same time, flights flowing to destinati ons over Boston could capture 55 % of the current revenue generated in the Auburn

- Lewiston market. 

## “...the ideal hub for most Auburn

Lewiston passenger demand is one in the Northeast that can connect
to most East Coast destinations...”Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 27 It is estimated that markets flowing over Boston to current non

- stop destinations coul d capture a portion of the $44 million in annual airline revenue the Auburn

- Lewiston catchment area generates to those cities

(see figure 10). That would equate to a total of $60,278 in average revenue per day each

w ay available to the airline serving Auburn

Lewiston

.
With multiple Cape Air interlini ng airlines serving Boston, to 45 one

- stop destinations, flights between Auburn

- Lewiston and Bo ston have the potential to capture large portions of traffic in all of 

### FIGURE 10 : Auburn

- Lewiston Passengers and Revenue Flowing over Boston on Cape Air and Codeshare Airlines; CY2010; Source: Sixel Consulting Group Hub Builder

FIGURE 11 : Auburn

- Lewiston’s Top 20 Passenger Markets over Boston on Cape Air; CY2010; Source: Sixel Con sulting Group Hub Builder Boston

65% Other Hubs 35%

Boston 55% Other Hubs 45%

Estimated Auburn

- Lewiston O&D Revenue $79,472,691 100% Revenue Flowing Over Boston $44,002,732 55% Estimated Auburn

- Lewiston O&D Passengers 441,926 100% Passengers Flowing Over Boston 286,869 65%

47,170 45,973 31,851 16,700 13,862 11,777 10,417 9,288 8,305 7,622 7,509 6,401 6,217 6,115 5,795 5,607 5,463 5,088 4,559 4,509 64.6 63.0 43.6 22.9 19.0 16.1 14.3 12.7 11.4 10.4 10.3 8.8 8.5 8.4 7.9 7.7 7.5 7.0 6.2 6.2

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 New York/Newark Washington

- Baltimore Orlando South Florida Tampa Charlotte Chicago San Francisco Bay Area Los Angeles Basin Ft. Myers

Denver Las Vegas Jacksonville Phoenix Seattle/Tacoma Dallas/Ft. Worth Raleigh/Durham San Diego Houston Pittsburgh Annual Passengers PDEWAuburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 28 Auburn

- Lewiston’s 20 largest origin and destination markets. Boston is especially well positioned to capture traffic traveling to the East Coast , where most Auburn

- Lewiston passengers ha ve been demonstrated to travel. This includes large markets such as New York/Newark , whi ch is estimated to generate 65 passengers per day each way (PDEW) to and from Auburn

- Lewiston; Baltimore/Washington, whi ch is estimated to generate 63 PDEW; Orlando
, whi ch is estimated to generate 44 PDEW; South Florida, which is esti mated to generate 23 PDEW; and Tampa , whi ch is estimated to generate 19 PDEW as of calendar year 2010 (see figure 11 ). In all, the top 20 O&D passenger markets to and from the Auburn

- Lew iston catchment area that could flow over Boston currently generate an average of 357 passengers per day each way, as of 2010.

The average fare over Boston on Cape Air and affiliated codeshare and interline airlines from the Auburn

- Lewiston catchment area, as of the summer 2011 update to the Airport’s True Market/Leakage Study, is $153 each way (see figure 12). Considering the short stage lengths of the flights from the Auburn

- Lewiston area to many of the top 20 destinations, such as New York/Newark, Washington

- Baltimore, and even Chicago, the average fare for the distance is relatively high. The Chicago fare, f or example, averaged $223 each way from the Auburn

- Lewiston catchment area in 2010. It is believed new competition in the region, to these specific destinations, will help to bring fares down for all travelers in the Auburn

- Lewiston catchment area. 

### FIGURE 12 : Average One Way Fares in Top 20 Passenger Markets over Boston on Cape Air; CY2010; Source: Sixel Consulting Group Hub Builder

$114 $141 $124 $152 $122 $143 $223 $206 $206 $142 $181 $184 $133 $169 $212 $195 $122 $211 $197 $132

$0 $50 $100 $150 $200 New York/Newark Washington

- Baltimore Orlando South Florida Tampa Charlotte Chicago San Francisco Bay Area Los Angeles Basin Ft. Myers

Denver Las Vegas Jacksonville Phoenix Seattle/Tacoma Dallas/Ft. Worth Raleigh/Durham San Diego

Houston Pittsburgh Average Over BOS : $ 153Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 29 The A irport believes there is sufficient passenger traffic and revenue that would flow over Boston to make local air service profitable. The airline serving the Auburn

- Lewiston

– Boston route would not be forced to offer rock

- bottom fares to be competitive

– e ven fares slightly higher than those found in other nearby markets, such as Portland and Manchester, would be worth support for the convenience of local service for Auburn

- Lewiston travelers. The Auburn

- Lewiston Municipal Airport believes in the local mar ket, and has developed this strategic plan to ensure an airline partner can enter the market without prohibitive up

- front investments.Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 30 IMPLEMENTATION TIMELINE

The proposed implementation timeline for the project assumes the Department of Transportation will award Small Community Grant Funding in September of 2011

. Once the award is announced, the Auburn

- Lewiston Municipal Airport will conduct addition al airline me etings to secure an agreement for new service

. Based on airline planning lead times and the need for advance bookings, we assume the new carrier would not be able to begin service until at least June of 2012.

The first three milestones on the Airport's timeline are to execute the grant agreement with the Department of Transportation, meet with prospective airlines to negotiate for service, and sign the minimum revenue guarantee agreement with the appropriate airline partner

. Once service is announced a nd schedules are published, the Airport would begin marketing the new route and working with the new carrier to monitor advance bookings. The Airport will continue its marketing program and continue to work with the new carrier to monitor the route once s ervice begins. The Airport would submit grant status reports on a quarterly basis to the Department throughout the proposed two year term of the minimum revenue guarantee.

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


### Activity/Project Milestone Estimated Date
SCASD Grant Award Announcement September 2011 Executive Grant Agreement with DOT October 2011 Meet With Prospective Airlines Oct/Nov 2011 Negotiate Minimum Revenue Guarantee (MRG) With Airline Jan - Mar 2012 Announce Service March 2012 Publish Schedule March 2012 Begin Marketing of New Route March 2012 Monitor Advance Bookings March - June 2012 Service Launch June 2012 MRG Available for Service June 2012 - October 2014 Monitor Route Performance June 2012 - October 2014 Submit Grant Status Reports to DOT Quarterly Q4 2011 - Q4 2014 Close Grant October 2014Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 31 ALTERNATE PLAN

If, for some unforeseen reason, service is not commenced in a timely manner by either Cape Air or Colgan Air/Pinnacle/Mesaba on the Boston route, the Airport proposes to use federal grant money awarded under the Small Community Air Service Developmen t Program to recruit another carrier interested in beginning service to the community, as long as that carrier provides access to a hub. Among the additional target airlines would be a United Express carrier with service to the Washington Dulles hub or to the Newark hub, a US Airways Express carrier with service to the Philadelphia hub, or a Delta Connection carrier with service to the New York Kennedy or New York LaGuardia hub. All of these hubs can connect Auburn

- Lewiston with most of its passenger dema nd to cities on the East Coast

.Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 32 PUBLIC/PRIVATE PARTNERSHIP

A number of local partners will be working with the Auburn

- Lewiston Municipal Airport to promote, support, and market the new service. Contacts will be made to all Auburn

- Lewiston members of chambers of commerce and similar organizations, and those with an interest in growing the economic base of the community through local business growth, attraction of new businesses and the promotion of tourism and visitor traffic via the airport.



### Cities of Auburn and Lewiston The City Councils of both Auburn and Lewiston are some of the biggest supporters for bringing air service to the local Airport, as they realize how vital the Airport is to the growth of the entire region t hat it serves. As the joint owners and operators of the Auburn

- Lewiston Municipal Airport, City leaders continually work with the Airport to develop and support new service initiatives. The Cities also manage the Airport’s budget, and will oversee how th e Small Community Air Service Development Grant is spent.


### Androscoggin Valley Council of Governments (AVCOG)
The Androscoggin Valley Council of Governments (AVCOG) is the major government entity overseeing the cooperation of all cities and counties in the Auburn

- Lewiston sphere of influence. AVCOG addresses issues of mutual concern for the region, in addition to satisfying federal and state planning/program mandates. The agency serves as a forum for planning/discussion of

area

- wide issues, preparing regional plans and programs, serving as a regional agency for federal and state programs, and addressing other area

- wide issues as mutually desired.

AVCOG is also respon sible for the development of an efficient and effective multi

- modal transportation system for mobility and maximizing state and federal funding. AVCOG is an important public partner in the effort to bring air service to Auburn

- Lewiston.


### Androscoggin County Chamber of Commerce
The Androscoggin County Chamber of Commerce is a totally independent non

- profit corporation (not affiliated with government or any other agency) that is uniquely able to serve the needs of the business community in Auburn

- Lewisto n. The Chamber is dedicated to just one goal: the economic health of the area and the prosperity of its members.Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 33 The Chamber’s philosophy is simple: more business is good for existing business and an attractive and viable city will attract more busines s activity. The Chamber also believes additional economic activity will benefit every business person and resident in the region. The Chamber’s work toward implementing this philosophy has been successful because of a powerful combination of active, motiva ted volunteer business leaders supported by a highly regarded professional staff. Together, the volunteer leaders and the professional staff do what no service club, government agency nor individual business could do: enhance and promote Auburn

Lewiston a s a place to do business and enjoy life. Moreover, the Chamber believes enhanced air service is essential to the interconnectivity of businesses, and is an essential part of any community’s plan for economic growth.



### Lewiston

- Auburn Economic Growth Counci l
The Lewiston

- Auburn Economic Growth Council is a private partner in this application. The Growth Council provides a number of in

- kind services. Growth Council funding will commit to a program of viral marketing through e

- mail blasts to all members
, as well as word

- of

- mouth advertising. The Growth Council also contributes mailers to area businesses explaining the benefits of new and additional air service. The Growth Council will have a financial stake, by providing matching funds, for any new air serv ice in the region.


### Air Service Advisory Groups
The Auburn

- Lewiston Municipal Airport is governed by the Auburn

- Lewiston Municipal Airport Board of Directors . This committee is made up of a number of community leaders from different Auburn

- Lewiston government bodies and major business organizations. The Airport Board of Directors oversaw the development of this grant application

.Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 34 FUNDING PLAN

Marketing and Advertising
The Auburn

- Lewiston Municipal Airport proposes to spend $10 0,000 in funds on marketing and advertising promotions in support of new service. The goal is to capture local enplanements and usage through targeted regional campaigns.



### Revenue Guarantee The Airpor t propose s to make available at least $55 0,000 in funds for a revenue guarantee to the new carrier, to cover start

- up losses that may occur during the first twelve months of service. Subject to negotiation, payments will be made to the new carrier quarter ly, when income derived from passengers and cargo is less than agreed expenses on the route. Revenue generated that exceeds expenses will be carried forward and tapped before any grant funds are used.



### In

- Kind Services The following organizations will hel p promote the new service through their various membership groups. There is no estimated value to these services.

**•** City of Lewiston

**•** City of Auburn

**•** Androscoggin County Chamber of Commerce

**•** Androscoggin County

**•** Androscoggin Valley Council of Governments (AVCOG )

**•** Lewiston

- Auburn Economic Growth Council

**•** Bates College

**•** L/A Arts



### Startup Cost Offsets The Airport proposes to use $50,000 of the funding provided under this proposal to pay for start

up costs in support of new service introductions. Money will be reimbursed to the new carrier, from the revenue guarantee portion of this proposal, as invoices are submitted detailing the work performed to offset the acquisition of necessary equipment to begin service (items include carts, tugs, power units, computer equipment, cabling, software, etc.). If this funding is not used for start

- up expenses, it will be rolled into the revenue guaran tee.Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 35 Additional Costs As part of this program, the Airport understands that additional expenses will be incurred, such as monitoring the results of the program and reporting those results back to the US DOT. In addition, the Auburn

- Lewiston Municipal Air port expects to incur some expenses in the recruitment of a new airline. These a dditional costs will come from sources other than the funding for this project.Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 36 PERFORMANCE MEASURES AND FINANCIAL CONTROLS

The success of the program will be based on three variables. The first measure of success will be the recruitment and retention of an airline to provide new service. When new service is initiated, the first measure of success will be met. The Airport will judge the second measure of success by the number of enplanements. Finally, the third measure of success will be based on average airfares in the community. The measurement of enplanements will include a monthly comparison, once the program begins. The measurement of a irfares will be derived from US DOT OD1A reports.

As the sponsor, the Auburn

- Lewiston Municipal Airport will be the responsible party for all fiscal matters and DOT reporting requirements. The group is established as an Airport Board of Directors, which is a public governing body. As a public entity the DOT can be assured that proper financial controls are in place to guarantee that the DOT’s grant will be used in accordance with any subsequent agreement. The Airport understands that the grant is a reim bursable grant, meaning the Airport is responsible for program expenditures and will submit invoices to the DOT for reimbursement, based on a percentage of the total grant request.

The Auburn

- Lewiston Municipal Airport has developed this proposal as a one

- time grant. While the initial startup costs will be paid for out of other airport funds, the advertising and marketing program will commence a few months before service starts and last for at least twelve months. The revenue guarantee program will also be in place for twelve months, with two additional twelve

- month periods available for negotiation. It is projected that the service will be financially self

- sustaining within the second twelve months of service.Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 37 LEGAL SPONSOR

The Auburn

- Lewiston Municipal Airport is the legal sponsor responsible for administering the program. The Auburn

- Lewiston Municipal Airport is a government entity.

Auburn

- Lewiston Municipal Airport 80 Airport Drive Auburn, Maine 04210 Rick Cloutier , Airport Director 207.786.0631 manager@flytome.comAuburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 38 LETTER S OF SUPPORTAuburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 39Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 40Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 41Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 42Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 43Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 44Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 45Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 46Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 47Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 48Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 49Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 50Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 51 AVAILABILITY OF ALTERNATE AIRPORTS

While the Auburn

- Lewiston Municipal Airport catchment area is surrounded by alternate airports, none of the alternate options are particularly convenient, and all have some cost barrier that travelers must overcome. The closest alternate airport to Auburn

- Lewiston is Portland’s Jetport, how ever it lies an hour drive away on a toll road (see map 4 ). This situation requires passengers to pay tolls just to get to a point where they can access the national air transportation system.

The major alternate to Auburn

- Lewiston is Boston’s Logan Airport, which offers non

- stops to 73 cities around the world (see map 4 ). However, Logan is a three hour drive from Auburn

- Lewiston, without hitting rush hour traffic. Very few Auburn

- Lewiston pa ssengers make the drive to Boston for this very reason

– as Boston captures just 18% of Auburn

- Lewiston travelers. 

### MAP 4 : Alternate Airports in the Auburn

- Lewiston RegionAuburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 52 AIRPORT INFORMATION

The Auburn

- Lewiston Municipal Airport is located on 547 acres in Auburn, Maine. The airport supports local and regional general aviation, flight training, cargo, and a large volume of corporate activity. The C ites of Auburn and Lewiston own and operate t he airport and it is strongly supported by the Androscoggin Valley County of Governments. The airport also has 200 developabl e acres, a foreign trade zone and c ustoms clearance at the inter

- modal freight facility

.
The Airport is in the midst of a passenge r terminal renovation project. Regional governments will spend $800,000 to renovate and expand the 1950s era passenger terminal by the summer of 2012, ensuring it can handle scheduled passenger airline service.

The Auburn

- Lewiston Municipal Airport has been in operation since 1935

. Currently, The Auburn

- Lewiston Municipal Airport frequently handles regional jet

- sized aircraft
, with hundreds of annual charters by area businesses, and by Bates College.

The Airport features a main runway, 4

- 22, that is 5,001 feet in length, with a full, all

- weather ILS approach. Auburn

- Lewiston’s general aviation runway, 17

- 35, is 2,750 feet i n length. The Airport has a brand new taxiway that is parallel to the main runway, certified to handle large jets. The Airport also has a brand new ramp, built for the Lufthansa Technik operation, which can handle virtually any kind of aircraft. The Air port can have its small, former air carrier terminal ready for new commercial airline service within months

– including a TSA and rescue plan. 

### FIGURE 13 : Aerial Photo of Auburn

- Lewiston Municipal Airport, 2011Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 53 COMMUNITY PROFILE

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

Auburn and Lewiston serve as a source of resources and entertainme nt not only for those coming into the state, but also for the local inhabitants, many of whom travel 40 minutes to an hour and a half from the rural settings, for a taste of 21st century

resources.

The Auburn

- Lewiston Municipal Airport service area is h ome to almost 300,000 people

. As of 2010, Lewiston

- Auburn Metro Area's population itself is 107,031 people. Since 2000, it has had a population growth of 3.15 percent. The med ian household income is $45,455 , but that income translated to a much higher pu rchasing power due to the low cost of living. Compared to the rest of the country, Lewiston

- Auburn Metro Area's cost of living is 7.40% l ower than the U.S. average.

Auburn

- Lewiston has continually posted strong economic growth in the last decade, despite the lagging economy, with total job growth of 8.9% in the last decade

. The Auburn

- Lewiston area’s residents do not often drive long distances to access services, such as air transportation , as evidenced by the average commute time of just 7.3 mi nutes , and by the fact that 10% of residents bike or walk to work (the national average is 3%) . Auburn

- Lewiston residents spend an average of $6,300 on vacation each year

.Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 54 Economic Profile

Auburn

- Lewiston centers of excellence include health care, high

- precision manufacturing, printing/graphics, transportation & logistics, and telecommunications. Nearly 50 percent of the state's population is located within a 30

- mile radius of Auburn

- Lewiston

. The area is home to some of the state's most successful companies, including Tambrands (a Procter & Gamble company), L.L. Bean's Telemarketing Center, General Electric, Formed Fiber Technologies (Toyota), Elmet Technologies, TD Banknorth Operations Center, VIP Par ts, Tires, & Service, Geiger, and a Wal

- Mart Food Distribution Center. Auburn

Lewiston is home to the national office of the Forum Francophone des Affaires, an international trade group of French

- speaking nations. Auburn

- Lewiston is also home to the Maine International Trade Center. The Bates Mill Complex is at the heart of downtown Lewiston. Auburn

- Lewiston is also home to four colleges including Bates College, which U.S. News and World Report rates one of the top libera l arts schools in the country, tw o world

- class hospitals and a Foreign Trade Zone.

New Developments in the Local Economy

In the last 12 months, two major business expansions in the Auburn

- Lewiston area have added more than 750 new jobs to the region. These jobs have higher average wage s than the current Auburn

- Lewiston average, and should continue to spur air travel growth.

o In May of 2011, Carbonite, a leading provider of online backup and "anytime, anywhere access" announced the opening of a new customer support center in Lewiston that is expected to employ 150 skilled workers by the end of this year. Carbonite ultimately expects to employ more than 250 people in Lewiston

.Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 55 o TD B ank celebrated the grand opening of its new call center in Auburn, the bank's latest addition to its presence in the state of Maine. The environmentally friendly call center features local design elements and will create hundreds of new jobs for the Lewis ton

- Auburn region. Once the call center reaches full capacity of 500 employees in 2011, TD Bank will be employing nearly 3,000 Mainers at its stores, operations centers in the historic Bates Mill buildin g and other Lewiston facilities

.
Additionally, in the last two years, the Auburn

- Lewiston area has seen these additional economic development wins:

o Auburn

- Lewiston le a d s the state in economic development expansions and investments

. Among the recent major development projects in the Twin Cities is t he completion of Phase Two of Wal Mart’s Food Distribution Center estimated at $40 million. In addition, is a $24 million campus expansion at Bates College, and a spate of restaurants and retail projects, like the $6.7 million Kohl’s store.

o Le wiston

- Auburn has made the top 100 list of Inc. Magazine’s “Best Places for Doing Business in America.” Inc. examined 274 population centers looking for such criteria as job creation and sustained growth. Lewiston

- Auburn, Maine, was ranked 38th in the
“sm all cities” category. The article notes, “Our assumption is that job growth is the best measure of a region’s economi c vitality especially as it applies to entrepreneurs

. What’s more, strong job growth suggests that a region’s economy is expanding. That means new demand and new opportunities.”

o In a global study comparing the costs of locating business operations, Lewiston fared better than any o ther New England community studi ed. KPMG International’s eight

month project analyzed and compared 17 industry sectors in Canada, France, Germany, Italy, Japan, the Netherlands, Singapore, the United Kingdom, and the U.S. Lewiston was ranked as having more of a cost advantage than its New England counterparts Boston; Burlington, Vermont; Hartford, Connecticut; and Providence, Rhode Island.Auburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 56 Auburn

- Lewiston has b ecome one of Maine's busiest distribution and logistics hubs. The area is served by the Saint Lawrence & Atlantic Railroad and northern New England's only double

- stack freight container service, along with an intermodal transportation facility. Auburn became a U.S. Customs Port of Entry in 2002. In 2004, Auburn received approval to establish a Foreign Trade Zone encompassin g 760 acres (3.1 km2). A number of distribution c enters are located in the

area.

An innovative healthcare, high precision manufacturing, financial services and printing center, Lewiston

- Auburn is home to excellent companies, colleges and institutions. Some of the state's most prestigious companies are located in Auburn

- Lewiston includi ng Procter & Gamble's Tambrands, Inc., General Electric and L.L. Bean's Telemarketing Center. An independent study by KPMG International recently ranked the cost of doing business in Auburn

- Lewiston nearly two percentage points below the U.S. benchmark. Th e Twin Cities is centrally located and offers access to nearly 50 percent of Maine's population within a 30

- mile radius.

Advantage Business Services, Auburn Auburn Shoe, Auburn Andover College, Lewiston Bates College, Lewiston Central Maine Community College, Auburn Central Maine Medical Center, Lewiston Dingley Press, Lisbon Elmet Technologies, Lewiston Gates Formed Fiber Technologies, Auburn Geiger Brothers, Lewiston General Electric, Auburn Hebron Academy, Hebron ICT Group, Wilton Irving Forest Products, Dixfield Keiser Industries, Oxford L.L. Bean Telephone Oper. Center, Lewiston LePage Bakeries, Lewiston Liberty Mutual, Lewiston Maine Machine Products, So Paris McKesson, Lewiston 

### FIGURE 14 : Auburn

- Lewiston Employers w ith More t han 100 Employees , 2011; Source: Lewiston

- Auburn Economic Growth CouncilAuburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 57 Select Economic Profiles Bates Mill The Bates Mill, located in the heart of downtown Lewiston, is symbolic of the cultural identity, economic evolution and perseverance of the community. As the birthplace of Maine's industrial revolution, the Bates Mill Complex is of great economic and historic value to the City of Lewiston. Plans are well under way to convert the complex into modern uses.

The Bates Mill Complex was constructed between 1852 and 1919. It consists of nine major buildings containing approximately 1.2 million square feet of floor space on a five acre parcel. Today the Bates Mill Complex, as it is now known, is home to several companies including TD Banknorth , Affiliated Computer Services and Androscoggin Bank. The mill tenants collectively employ over 1,000 people.

It is the develope r's objective to create in the Bates Mill a multi

- use complex consisting of a compatible mix of manufacturing, retail, office, commercial and cultural uses. Building No. 1 will soon house a brewery. The Baxter Brewing Co., the first package brewery in th e Twin Cities run by Auburn native Luke Livingston, 25, said opening a brewery in the Twin Cities is a way of giving New Page Paper, Rumford Pioneer Plastics, Auburn Poland Spring Nestle, Poland Saddleback Ski Area, Rangeley Sisters of Charity Health Care Systems, Lewiston State of Maine, DHS, Lewiston Sugarloaf Ski Resort, Carrabassett Valley Sunday River Ski Resort, Newry Tambrands Inc. (Div.of Proctor&Gamble), Auburn TD Banknorth, Lewiston University of Maine Farmington University of Southern Maine VERSO Paper, Jay Wal

- Mart Distribution Center, Lewiston White Rock Distilleries, LewistonAuburn

- Lewiston Municipal Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 58 back to the community where he was raised. "We want to incorporate as many Maine products into our beers at possible," he said. That could mean Maine maple syrup as well as locally grown hops or oats in future brews.

The Lofts at Bates Mill, 52 apartments would mix low low

- income and market

- rate units in Bates Mill No. 2. , and would include on

- site laundry, access to a community room with c omputers, fitness and media rooms and free wi

- fi. There’s also a food court planned for levels one and
two.

. At full build out, the collective employment in the Complex is projected to exceed 2,500 people. The former weaving shed, known as Building No. 5
, also has a bright future. The city has received federal grants to create a master plan for the area.

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

White Rock Distilleries Since 1937, White Rock’s growth and success has been a story of commitment to innova tion, strategic marketing and national leadership in sales and distribution. In 1971, Ray Coulombe recognized this potential, and purchased the small distillery on Maine’s Androscoggin River, located 25 miles inland from the Maine coast. At that time, White Rock had three employee s, a 10,000

- square

- foot plant and was selling just 25,000 cases a year.

Over the next three

- plus decades, Ray and his son, Paul, built White Rock into a major force. Through strategic acquisition and development of new technol ogies, the Coulombe’s haveAuburn

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## 59 expanded into 50 states and more than 20 countries. Their sales have grown from 25,000 cases a year to over three million, worldwide. Today, as White Rock continues to thrive, a thi rd generation has come on board, Vice President of Florida Sales, Michelle Coulombe is working to build on the legacy of her grandfather and father. Like Maine, White Rock’s steady success is a product of character, tradition and quality.

Higher Education in the Auburn

- Lewiston Area

Auburn

- Lewiston’s pretigious c olleges and u niversities e nroll m ore t han 9,200 f ull

- t ime s tudents from a ll 50 s tates and m ore t han 40 f oreign c ountries . Convenient and efficient travel is important for this academic area, both for faculty

- related business travel, as well as student and family travel to and from the colleges.

Bates College Auburn

- Lewiston ’s most well

- known institution is Bates College, which was founded in 1855 and is the oldest continuously operating coed college in New England. Bates is continually listed among the top liberal arts colleges in the country by US News and World Report. The Princeton Review named Bates the No. 1 "Best Value College" in the United States in its 2005 ranking. Bates' 109

- acre (44 ha) campus includes the George and Helen Ladd Library; the Olin Arts Center, which houses a concert hall, the Bates College Museum of Art; and the Edmund S. Muskie Archives and Special Collections Library

.

Andover College Bates is joined in the Auburn

- Lewiston area by Andover College, which sp ecializes in business programs for young professionals. In 1967, the Andover Institute of Business opened in Portland, Maine. In 1977, the State Board of Education granted Andover Institute approval to change its name to A ndover College. By 1998, Andover College became the first school of its kind in Maine to receive accreditation from the New England Association of Schools and Colleges (NEASC). In 2004, the Lewiston c ampus enrolled itsAuburn

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## 60 first class. In the beginning of 2005, Andover College was purchase d by Kaplan Higher Education Corporation (KHE), to be a part of its Kaplan Higher Education Campuses (KHEC) division. By joining such a prestigious company, Andover College has been given the support to continue the same excellent education for which it is known.

University of Southern Maine The area is also home to a University of Southern Maine campus, which offers a full range of liberal arts undergraduate programs. The University of Southern Maine (USM) is a multi

- campus public urban comprehensive un iversity and part of the University of Maine System. USM's three primary campuses are located in Portland, Gorham, and Lewiston. Originally founded as two separate universities (Gorham Normal School, University of Maine at Portland), the two state universi ties were combined in 1970 to help streamline the public university system in Maine and eventually expanded by adding the Lewiston campus in 1988. The university is committed to being a national leader in interdisciplinary education, serving as a resource for the community, providing an outstanding educational experience for its students through degree programs that are responsive to changing cultural and workplace demands and that are available to a non

- traditional and diverse student body.

Central Maine Community College Central Maine Community College draws students from all of New England to its two

- year college prep programs. Founded in 1963 as Androscoggin State Vocational Institute, later changed to Central Maine Vocational Technical Institute. Its name was changed to Central Maine Technical College in 1989. As part of a statewide name change of the technical college system, on July 1, 2003
, it became Central Maine Community College. The college is located in Auburn, Maine, in the south central region of Maine . The 135

- acre campus overlooks Lake Auburn.Auburn

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## 61 Auburn

- Lewiston Tourism

Arts and Culture With the cooperative spirit that now characterizes the relationship between Auburn and Lewiston , the two cities formed L/A Arts in 1973 in order to increase the number of cultural amenities in the area. In cooperation with local educational institutions and community organizations, the group sponsors hundreds of performances a year by artists, autho rs, actors, and others in the community and the schools. Nationally recognized artists regularly perform at the Olin Arts Center on the Bates College campus.

The Androscoggin Chorale was formed as a community chorus in 1972. In 1991, the Chorale joined with the Maine Chamber Ensemble to form the Maine Music Society. The society has since offered several successful years of performances throughout the state, including operatic performances, classical music concerts, and holiday performances. The Lewiston

- Auburn College/USM Atrium Gallery presents exhibitions of paintings, sculptures, and photography from artists across the state. It also hosts the annual Area Artists Exhibition and annual L/A Arts Exhibit and Auction. The Bates College Museum of Art at Oli n Arts Center is home to one of the region's finest collections of masterworks on paper, including the Marsden Hartley Memorial collection. More than 40,000 square feet of space at the Creative Photographic Art Center of Maine in the historic Bates Mill Co mplex is dedicated to photography and other related arts. Genealogical literature, historical exhibits on the Native American culture and Civil War artifacts are on display at the Androscoggin Historical So ciety Library and Museum

.

The Public Theatre, a f ully professional Equity operation which has presented comedic and dramatic performances to the community for more than 10 years, was recently voted the best theatre company in Maine for the second year in a row. Since 1940, Auburn's Community Little Thea tre has been producing musicals, dramas, comedies, and benefit concerts each year in the Great Falls Performing Arts Center. The Pleasant Note Coffeehouse is a combination restaurant and concert venue that presents a variety of artists ranging from up

- and

- coming locals to internationally known folk and jazz performers. Because of all these activities, the Lewiston

Auburn area has been designated as one of the best small arts towns in America.Auburn

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## 62 Outdoor Activities A wealth of summer and winter recreational activities is available in and around Auburn and Lewiston . The proximity to mountains, forests, and lakes offers opportunities to skiers, skaters, campers, boaters, hikers, and anglers. Bicycle tours of the back r oads of the region are very popular. Just north of Lewiston is the Hebron

- to

Canton Rail Trail, an abandoned railroad bed turned pedestrian and bike route

— a 36 mile round trip overall. For water sports enthusiasts, Lewiston plays host to the Great Falls Ca noe Race each June.

The Twin Cities maintain dozens of parks and playgrounds, a supervised beach, skating rinks, and ball fields and courts. The Ingersoll Arena in Auburn is available for public skating, skating instruction, and hockey from early Octobe r to mid

- March. Sunday River Mountain Bike Park in Bethel is served by two ski lifts, and offers sixty miles of marked and patrolled trails. The Lost Valley ski area features downhill and cross

- country skiing in the winter and mountain bike trails and pain tball facilities in the summer. A number of golfing facilities are also located in or near Lewiston.Auburn

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## 63 CONCLUSIONS

The cities of Auburn and Lewiston, Maine, recogniz e the value of their local airport to the economy of the region . Together, local governments and companies in the region have made commitments to invest almost $1 million in airport improvement projects and air service development projects

– including $100,000 in matching funding for this application

. Additionally, the community has committed to a remodeling of the Auburn

- Lewiston Municipal Airport’s 1950’s era passenger terminal, to make it air carrier ready

– a commitment made within the last 60 days and worth $800,000

.
Part of the air service development project in Auburn

- Lewiston was a detailed True Market/Leakage Study . This Study has been the key to better understand ing travel patterns in the catchment area closest to the local airport. Th e Study has guided the Airport in its mission, and helped to add detailed focus to the air service development efforts in the region. While the Study shows significant potential for a ir service to be successful, the Airport has been conservative in its request for federal Small Community Air Service Development Program dollars

– and conservative in the approach for new air service.

The region surrounding Auburn

- Lewiston faces many air service challenges. Airline capacity in the region has been cut by more than a third in the last two years

– with a loss of more than 1,400 daily departing seats. Fares have gone up, as a result, by 12% in the last year. And 70% of all Auburn

- Lewiston catchment area passengers have to make a connection through a hub to get to their final destination. The plan in this application addresses each of these challenges.

Of the total project cost in this application for non

- stop service to Boston, 14% of the funding is coming from the local community. This money is already in place. Moreover, the community has many more in

- kind resources for airline support that will be mobilized upon a Small Community Air Service Development Grant award. 

## “Together, local governments and companies in the region have made commitments to invest almost $1 million in airport improvement projects.”