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: Wilkes-Barre/Scranton International Airport 

DUNS Number: 042623728 

EIN/Tax ID: 23-1736989 

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

1. WILKES-BARRE/SCRANTON INTERNATIONAL AIRPORT

2. LACKAWANNA COUNTY, PA 

3. LUZERNE COUNTY, PA 

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. AVP 2. 

3. 4. 
2 

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

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

1. 17 (Primary) 2. 11 (Surrounds AVP) 

3. 10 (Surrounds AVP) 4. 

E. APPLICANT INFORMATION: (CHECK ALL THAT APPLY) 

Not a Consortium Interstate Consortium Intrastate Consortium 

Community now receives subsidized Essential Air Service 

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

Development Program Grant 

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

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

PUBLIC PRIVATE 

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

2. Lackawanna County 2. Greater Pittston Chamber of Commerce 

3. Luzerne County 3. Greater Pocono Chamber of Commerce 

4. Greater Scranton Chamber of Commerce 

5. Greater Wilkes-Barre Chmbr. of Commerce 

6. Lackawanna County Conv. & Visitors Bur. 

7. Luzerne County Conv. & Visitors Bur. 

8. Wyoming County Chamber of Commerce 

G. PROJECT PROPOSAL: (CHECK ALL THAT APPLY) 

Marketing Upgrade Aircraft New Route 

Travel Bank Service Restoration Subsidy 

Surface Transportation Regional Service Revenue Guarantee 

Launch New Carrier Start-up Cost Offset First Service 

Study Secure Additional Service Other (explain below) 
3 

H. EXISTING LANDING AIDS AT LOCAL AIRPORT: 

Full ILS Outer/Middle Marker Published Instrument Approach 

Localizer Other (specify)

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

LINE DESCRIPTION SUB TOTAL TOTAL AMOUNT

1 Federal amount requested $ 575,000 

2 State cash financial contribution $ 0 

Local cash financial contribution 

3a Airport cash funds $ 100,000 

3b Non-airport cash funds $ 200,000 

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

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

In-Kind contribution 

5a Airport In-Kind contribution** $ 280,000 (est.) 

5b Other In-Kind contribution** $ 29,395 

5 TOTAL IN-KIND CONTRIBUTION 

(5a + 5b) 

$ 309,395 (est.) 

6 TOTAL PROJECT COST (4+5) $1,184,395 (est.) 

J. IN-KIND CONTRIBUTIONS** 

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

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

5a. minimum 6 month waiver of landing fees/space rentals, billboard usage, direct mail 

campaigns 

5b. ad placements, trade show exposure, staff fulfillments, mailings, web site exposure/ads, 

newsletter inserts 
4 

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. 

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

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

No Yes (explain) 

_________________________________________________________________________________

___________________________________________________________________________ 
5 

 

 

 

Proposal Under the 

Small Community Air Service 

Development Program 

Date: July 19, 2013 

Applicants: Wilkes-Barre/Scranton International Airport 

 Luzerne County, PA; Lackawanna County, PA

DUNS Number: 042623728 

+4 Number: 7531 

Employee Identification Number: 23-1736989 

Congressional Districts: 17 (Primary), 11, 10 

Contact: Barry J. Centini 

 Wilkes-Barre/Scranton International Airport 

 100 Terminal Drive, Suite 1 

 Avoca, PA 18641 

 Phone: (570) 602-2000 

 E-mail: airport@flyavp.com 

Docket #: DOT-OST-2013-0120 
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I. EXECUTIVE SUMMARY 

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

Lackawanna are submitting this application for grant funds available under the 

Small Community Air Service Development Program to address the deficiencies in 

the Airport’s air service, including high fares and an insufficient level of service. 

These deficiencies are the result of the unique characteristics of the air 

transportation system in the Greater Northeastern Pennsylvania region. 

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

among the highest fares of any similar sized airport around the globe. AVP has 

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

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

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

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

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

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

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

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

convenient service. 

The Northeastern Pennsylvania Region is a diverse economic region worthy of 

attention. Within the Wilkes-Barre/Scranton MSA, AVP serves a population of 

over 1.7 million people. The Wilkes-Barre/Scranton MSA’s population is near 

500,000 on its own. Further fueling the region’s economic growth into the next 20 

years is the massive Marcellus Shale Industry. 

The Marcellus Shale is a black shale formation extending deep underground from 

Ohio and West Virginia northeast into Pennsylvania and southern New York. 

Although the Marcellus Shale is exposed at the ground surface in some locations 

in the northern Finger Lakes area, it is as deep as 7,000 feet or more below the 

ground surface along the Pennsylvania border in the Delaware River valley. In 

Pennsylvania, production from Marcellus wells is exceeding expectations and some 

of the wells are among the most productive in the world. Pennsylvania has 240,000 

jobs related to the Commonwealth’s oil and natural gas extraction activities. When 

it comes to production numbers, Standard & Poor’s own words confirm that this is 

a “mere drop in the bucket” of the Marcellus’ full potential. This growth is 

expected to increase rapidly over the next several years, which will provide the 

Commonwealth of Pennsylvania with a steady supply of affordable, clean-burning 

energy. 

The Wilkes-Barre/Scranton International Airport (AVP) is the gateway airport to 

the heart of the Marcellus Shale Industry in northeastern Pennsylvania and the 

Commonwealth of Pennsylvania as a whole. 

 
7 

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

record of improving the cost differential in some AVP markets. Successfully 

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

one year ago, Allegiant began twice weekly nonstop service from AVP to OrlandoSanford. 

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

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

carriers has been steadily decreasing, which is forcing air travelers to travel to 

another airport for their air service needs. Our described program is designed to 

address these concerns. 

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

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

travel – the customer. Currently, AVP has three legacy carriers and one low-cost 

carrier. While airlines have in the past been more prone to provide their own 

employees for ground handling and customer support positions, the last few years 

have put that in jeopardy as airlines consolidate their employees at smaller 

airports. 

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

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

using methods, such as reducing airline employee wages and the actual 

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

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

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

their flights dramatically to control costs. 

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

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

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

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

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

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

seek operating to those markets from AVP. 

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

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

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

business travelers, with acceptable fares. 

Wilkes-Barre/Scranton International Airport and its supporting communities have 

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

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

Air Service Development Program. 
8 

II. SERVICE DESCRIPTIONS 

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

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

located in Northeastern Pennsylvania serving a surrounding population of 

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

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

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

is centrally located among four (4) major interstate highways. 

 (Source – Google Maps) 

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

600,000. There are over one million potential air passengers within a onehour drive time and just fewer than three million located within a 90-

minute drive time. 

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

International Airport and Lehigh Valley International Airport to the south, 

each offering substantially greater numbers of scheduled flights and often 

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

60-mile drive, respectively, from the Wilkes-Barre/Scranton International 

Airport. One factor of great concern to the Partnership submitting this 

application is that several low-cost airlines offer competing service at 

Philadelphia International Airport and are offering significantly lower fares 

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

provide low fare options to multiple leisure destinations at Lehigh Valley 

International Airport. 

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

International Airport, LaGuardia Airport and Stewart International Airport 

also compete with AVP, offering travelers numerous low fare options. As 
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large hubs, John F. Kennedy International, Newark Liberty International 

and LaGuardia offer substantially more scheduled flights and direct service 

options both domestically and internationally. 

In addition, to the northwest, Allegiant provides low fare options to leisure 

destinations at Elmira Corning Regional Airport. 

B. Description of Economic Growth in Northeastern Pennsylvania 

The Wilkes-Barre/Scranton International Airport (AVP) is the gateway 

airport to the heart of the Marcellus Shale Industry in northeastern 

Pennsylvania and the Commonwealth of Pennsylvania as a whole. As 

shown on the map below, much of the activity in the Commonwealth over 

the past few years has been near AVP. 

Two of the sweet spots for tapping that natural gas are in Northeastern 

Pennsylvania and the Pittsburgh area. To reach the gas, drillers use a 

process called hydraulic fracturing – or fracking, for short – in which they 

shoot millions of gallons of water, laced with chemicals and sand, into the 

ground. Much of that water comes back to the surface along with the gas it 

releases. 

Companies eager to tap into the gas already have transformed large swaths 

of rural Pennsylvania, and future gas production has the potential to change 

residents’ lives for a generation or more. Marcellus shale gas has shifted 

global energy supplies, created instant wealth for some landholders, 

stimulated the state’s economy by creating jobs and raised environmental 

concerns about toxins going into the air and water.
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A problem that we are finding with the travel needs of these workers is the 

need to get across the Commonwealth of Pennsylvania. Northeastern 

Pennsylvania and the Pittsburgh area are the concentrated areas for 

drilling in the Commonwealth. To do business on both sides of the state, 

workers have to drive, rather than fly, losing valuable time in that five-hour 

trip, when they could fly in approximately one hour. 

As seen below, over half of the work being done within the Marcellus Shale 

in the Commonwealth of Pennsylvania is being performed in Northeastern 

Pennsylvania, specifically in six counties. 

 Source: Pennsylvania Department of Environmental Protection 

C. Description of Community’s Existing Air Service 

There are currently three (3) major airline networks, and one low-cost 

airline, serving the Wilkes-Barre/Scranton International Airport. These 

carriers are Allegiant, Delta, United and US Airways. Combined, these 

carriers serve a total of seven (7) destinations, including Atlanta, Charlotte, 

Chicago, Detroit, Newark, Orlando-Sanford and Philadelphia. 

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

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

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

(with the exception of Allegiant Air), yet O&D research and previous 

experience indicate that many AVP markets can support significantly larger 

aircraft such as Boeing 737 or the Embraer 170/190 series. 
11 

Current AVP Service

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

Type Depts Seats Depts Seats Flight 

DL Atlanta ATL CR9 0 0.9 69 28 2,128 76 

DL Atlanta ATL CR7 0 0.1 6 3 195 65 

DL Detroit DTW CRJ 0 2.8 142 88 4,400 50 

G4 OrlandoSanford SFB M80 0 0.3 43 8 1,328 166 

UA Chicago ORD ERJ 0 1.9 97 60 3,000 50 

UA Newark EWR DH2 0 2.0 74 62 2,294 37 

US Charlotte CLT CR9 0 1.0 76 30 2,370 79 

US Charlotte CLT CRJ 0 1.2 58 36 1,800 50 

US Philadelphia PHL CRJ 0 0.8 42 26 1,300 50 

US Philadelphia PHL DH8 0 5.1 189 158 5,846 37 

TOTALS 19.6 796 499 24,661 49 

Source: OAG Schedule Tapes, July 2013, via Sabre Airline Solutions 

AVP Primary Catchment Area Usage, Retention & Total Booked

Rank Market PDEWs 

AVP 

Retention 

AVP Primary 

Leakage 

(PDEWs) 

Total 

Booked 

(PDEWs) 

1 CLT 43.4 87% 6.7 50.1 

2 SFB 41.9 N/A N/A N/A 

3 ORD 39.6 53% 35.1 74.7 

4 DTW 28.9 69% 13.2 42.1 

5 ATL 22.2 44% 28.8 51.0 

6 MCO 19.4 17% 92.8 112.2 

7 DFW 16.5 34% 31.7 48.2 

8 LAX 15.2 44% 19.6 34.8 

9 PHL 14.7 57% 11.0 25.7 

10 LAS 14.2 29% 35.3 49.5 

11 EWR 13.0 66% 6.8 19.8 

12 TPA 12.9 29% 31.8 44.7 

13 DEN 12.0 35% 22.7 34.7 

14 SFO 10.4 31% 22.9 33.3 

15 FLL 10.2 21% 38.1 48.3 

16 PHX 9.5 33% 19.6 29.1 

17 MSP 8.9 50% 8.8 17.7 

18 IAH 8.9 28% 23.2 32.1 

19 RSW 8.2 34% 15.7 23.9 

20 SAN 7.4 40% 11.2 18.6 

21 SEA 7.3 29% 18.3 25.6 

22 BNA 7.2 57% 5.5 12.7 

23 CVG 6.7 72% 2.6 9.3 

24 PBI 6.7 29% 16.2 22.9 

25 STL 6.3 58% 4.6 10.9 

26 LIT 6.0 47% 6.8 12.8 

27 JAX 5.8 35% 10.8 16.6 

28 IND 5.8 46% 6.9 12.7 

29 MCI 5.6 64% 3.2 8.8 

30 CUN 5.5 8% 59.3 64.8 

 Subtotal 420.3 43% 609.2 987.6 *

 Other 206.1 32% 439.2 645.3 

 Total 626.4 38% 1,048.4 1,632.9 *

 Note: Figures for this chart do not include AVP Leakage & Total Market for SFB. 

 Therefore, the totals marked with an "*" are below actual levels. 

 Source: Adjusted SABRE MIDT and D.O.T. 10% Coupon Sample 
12 

For 2012, Wilkes-Barre/Scranton International Airport reported 445,593 

combined enplaned & deplaned passengers. However, the true Primary 

Catchment Area size is estimated to be well over double that number (see 

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

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

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

US Airways has traditionally dominated the AVP market, however, all 

legacy air carriers at AVP have decreased service in some capacity: 

• US Airways has decreased its Charlotte service (December 2012) 

from three daily flights to two, and have decreased daily seats to 

Philadelphia, via smaller aircraft, over the past year (from 

approximately 287 to 235 daily seats). 

• Delta Connection eliminated all Cincinnati service (January 2009), 

and eliminated all Atlanta service (August 2009). The airline also 

decreased its Detroit service from four flights to three (September 

2012), and then to two flights (December 2012). 

• United Express decreased its Chicago O’Hare service (August 2011) 

from three daily flights to two, and decreased its Newark service) 

from four flights to three (January 2013), and then to two flights 

(June 2013). 

• American Eagle decreased its Chicago O’Hare service (August 2011) 

from two daily flights to one daily flight plus one flight four times a 

week. The airline left the AVP Market in November 2011. 

New service in the past few years include: 

• Direct Air to Myrtle Beach (June 2008) 

• United Express/Continental Connection to Newark (October 2008) 

• American Eagle to Chicago O’Hare (June 2010) 

• Delta Connection to Atlanta (September 2011) 

• Allegiant to Orlando-Sanford (June 2012) 

Note: Direct Air and American Eagle service are no longer active at AVP. 

Source: OAG Schedule Tapes July 2013; Wilkes-Barre/Scranton International Airport, YE May 2013 
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AVP New Service During the Past Eight Years

New Service Airline Began Ended Reason for Ending (1)

Washington-Dulles, DC United Express October 2004 August 2005 

Shuttle America became US Airways 

carrier – United did not have other 

aircraft to maintain route 

Detroit, MI Northwest Airlink April 2005 N/A 

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

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

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

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

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

flights into BOS system wide 

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

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

Cleveland, OH Continental Connection May 2003 October 2008 Moving AVP’s service from #3 CO 

Hub to #1 CO Hub 

Newark, NJ Continental Connection October 2008 N/A 

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

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

over 700 NM (too far for CRJ) 

Chicago, IL (O’Hare) American Eagle June 2010 November 2011 Poor load factors; not making $ 

Atlanta, GA Delta Connection September 2011 N/A 

Orlando-Sanford, FL Allegiant June 2012 N/A 

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

AVP Outbound Seats History

 Annual Percent 

 Outbound Change vs. 

Year Seats Prior Year

2005 396,224 17.0% 

2006 331,991 -16.2%

2007 291,678 -12.1%

2008 278,908 -4.4% 

2009 265,041 -5.0% 

2010 268,488 1.3% 

2011 297,348 10.7% 

2012 304,819 2.5% 

 Seats

Month ('13 vs. '12) Diff (+/-) % Change

January -825 -3.5% 

February -2,578 -11.3% 

March -2,145 -7.9% 

April -859 -3.4% 

May -80 -0.3%

Total for Period -6,487 -5.2% 

 

Source: Wilkes-Barre/Scranton International Airport

Losses in the past few years include: 

• United Express to Washington-Dulles (August 2005) 

• Hooters Air to Orlando, Fort Lauderdale, St. Petersburg and Myrtle 

Beach (March 2006) 
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• Continental Connection to Boston (March 2007) 

• US Airways to Pittsburgh (June 2007) 

• Direct Air to Myrtle Beach (August 2008) 

• Continental Connection to Cleveland (October 2008) 

• Delta Connection to Cincinnati (January 2009) 

• Delta Connection to Atlanta (August 2009) 

• American Eagle to Chicago O’Hare (November 2011) 

With these losses, plus the increase in passenger enplanements (shown 

below), an increase in load factors, and the economic growth in Northeastern 

Pennsylvania, the problem arising is the limited amount of seats remaining 

in the market, which will, in turn, force air travelers to, once again, use 

other nearby airports for their air travel needs. 

AVP Enplanement History 

 Percent 

 Annual Change vs. 

Year Enplanements Prior Year

2005 221,348 9.7% 

2006 212,865 -3.8%

2007 220,893 3.4% 

2008 223,130 1.3% 

2009 207,168 -7.2%

2010 217,706 5.1% 

2011 233,990 7.5% 

2012 224,530 -4.0% 

 

Enplanements

Month ('13 vs. '12) Diff (+/-) % Change

January -278 -1.7% 

February -1,452 -8.5% 

March -955 -5.0% 

April -382 -2.0% 

May 76 0.4%

Total for Period -2,991 -3.3% 

 

Source: Wilkes-Barre/Scranton International Airport

As seen below, since the loss of nonstop Orlando service in 2006, AVP has 

been on a steady decline of passengers to a top O&D Market – Orlando. In 

2005, AVP had over 45 PDEWs to Orlando, retaining nearly 50% of the 

Primary Catchment Market. In 2011, AVP captured approximately 23 

PDEWs. Now, AVP captures almost 56 PDEWs, with retention on the rise in 

the Primary Catchment Market. Although Allegiant’s low-cost service is 

bringing passengers back to AVP with their twice weekly service, there are 

airports with low cost daily service to the Orlando area surrounding the AVP 

market, which is a major detriment to AVP. 
15 

AVP – ORLANDO AREA PROFILE

 Source: U.S. DOT O&D Survey, via Database Products, YE May 2013 

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

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

at ABE: 

• Delta has increased seat capacity to Atlanta with 76-seat aircraft 

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

using 50-seat aircraft 

• Allegiant has increased service to Orlando-Sanford from three-to-four 

weekly flights to one daily flight using 166-seat aircraft 

• Allegiant has increased service to Tampa-St. Petersburg from two 

weekly to four weekly flights using 166-seat aircraft 

• Allegiant has increased service to Myrtle Beach from two weekly to 

four weekly flights using 166-seat aircraft 

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

daily flights using 50-seat aircraft 

• US Airways has increased daily seat capacity to Philadelphia with 50-

seat aircraft 

D. Analysis of Greater Northeastern Pennsylvania Needs and 

Deficiencies 

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

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

number of seats available. Additionally, Atlanta, another AVP top O&D 

market, continued to perform well since returning to AVP in 2002, but 

ended in August 2009. One daily flight to Atlanta did return in September 

2011. Although the airline states the AVP market is underserved, they have 

yet to add additional service. 

American, which began service at AVP in June 2010, cut back their flights 

beginning in August 2011. American went from two daily flights to one daily 

flight plus one flight four times a week, then discontinued all service in 

November 2011, citing poor load factors and an inability to increase 

revenues. 
16 

Delta has had recent growth to Detroit, adding a fourth flight in March 

2012. This was the first growth of the route since they began with three 

daily flights in April 2005. However, the service was cut back to three daily 

flights in September 2012, and then to two daily flights in December 2012. 

Although the third flight returned in March 2013, flights to Detroit are still 

below where they were one year ago. 

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

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

daily, and United has been satisfied with the performance to date with no 

additional increase in service. In April 2011, the third daily flight was 

added, however, in August 2011, the flights returned to twice daily. 

US Airways has had recent growth to Charlotte. The service began with one 

daily flight in April 2005, and went to twice daily in January 2011, and has 

been performing well. The airline added a third daily flight to Charlotte in 

July 2012. However, since the AVP departure time was late in the day (not 

getting into Charlotte until approx. 9 PM which missed mostly all 

connecting flights), the flight loads did not perform well, and the flight was 

eliminated. 

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

destinations, most destinations have load factors at 80% or higher or a 12 

month period. 

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

Another challenge for AVP is the fact that competing airports are marketing 

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

television, newspaper, radio and billboard. In light of these circumstances, 

AVP continues to actively pursue competitive low-fare service, as well as 

maintaining or even increasing legacy air service, to its top markets. 

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

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

As shown on the charts below, AVP’s fares remain above average and 

significantly higher than select markets with similar sized O&D passengers. 
17 

AVP vs. Selected World Cities - O&D Passengers & Avg. Fare (+/- 10 Ranking of AVP’s Enp. Psgrs.)

 

 Total Daily Avg. O&D Daily O&D

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

1 Noumea, New Caledonia NOU 220,136 603 $968 439,938 1,205 

2 Newman, Australia ZNE 215,139 589 $449 430,288 1,179 

3 Gaborone, Botswana GBE 209,896 575 $432 418,744 1,147 

4 Linz, Austria LNZ 220,783 605 $316 444,845 1,219 

5 Wilkes-Barre/Scranton, PA AVP 216,034 592 $282 434,194 1,190 

6 Samarkand, Uzbekistan SKD 210,373 576 $270 394,839 1,082 

7 Neuquen, Argentina NQN 222,198 609 $206 445,229 1,220 

8 Nejran, Saudi Arabia EAM 221,449 607 $199 426,892 1,170 

9 Jayapura, Indonesia JMK 222,367 609 $182 425,304 1,165 

10 Mikonos, Greece BRM 210,707 577 $178 425,305 1,165 

11 Tabriz, Iran TBZ 214,091 587 $176 428,240 1,173 

12 Luang Prabang, Loas LPQ 221,176 606 $164 437,494 1,199 

13 Joinville, Brazil JOI 215,797 591 $159 431,858 1,183 

14 Shonai, Japan SYO 220,615 604 $145 441,163 1,209 

15 Temico, Chile ZCO 221,950 608 $144 452,751 1,240 

16 Carcassonne, France CCF 214,137 587 $142 427,428 1,171 

17 Datong, China DAT 209,870 575 $123 420,106 1,151 

18 Xichang, China XIC 211,330 579 $107 422,605 1,158 

19 Alor Setar, Malaysia AOR 215,303 590 $104 431,474 1,182 

20 Tanjung Pandan, Indonesia TJQ 222,062 608 $66 443,315 1,215 

21 Dumaguete, Philippines DGT 218,992 600 $56 437,998 1,200 

 

Average 216,876 594 $232 431,429 1,182 

Source: O&D Survey YE May 2013, via Sabre Airline Solutions, OAG Schedule Tapes 

AVP vs. Selected North American Cities - O&D Passengers & Avg. Fare

 

 Total Daily Avg. O&D Daily O&D

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

1 Appleton, WI ATW 213,026 584 $357 426,666 1,169 

2 Rapid City, SD RAP 228,317 626 $315 465,470 1,275 

3 Bangor, ME BGR 233,705 640 $309 459,599 1,259 

4 Peoria, IL PIA 276,908 759 $285 548,657 1,503 

5 Wilkes-Barre/Scranton, PA AVP 216,034 592 $282 434,194 1,190 

6 Missoula, MT MSO 277,709 761 $279 553,307 1,516 

7 Cozumel, Mexico CZM 209,099 573 $274 418,609 1,147 

8 Allentown, PA ABE 334,397 916 $264 667,755 1,829 

9 Bloomington-Normal, IL BMI 191,808 526 $249 378,550 1,037 

10 Ixtapa/Zihuatanejo, Mexico ZIH 194,715 533 $233 388,237 1,064 

11 Newburgh, NY SWF 148,741 408 $227 300,613 824 

12 Redmond, OR RDM 200,846 550 $225 401,411 1,100 

13 Acapulco, Mexico ACA 255,904 701 $223 513,397 1,407 

14 Daytona Beach, FL DAB 282,011 773 $222 561,570 1,539 

15 Medford, OR MFR 300,888 824 $217 602,820 1,652 

16 La Paz, Mexico LAP 254,873 698 $212 501,108 1,373 

17 Juneau, AK JNU 272,536 747 $195 543,046 1,488 

18 Aguadilla, PR BQN 202,775 556 $190 401,752 1,101 

19 Abbotsford, BC, Canada YXX 257,442 705 $190 515,030 1,411 

20 Ketchikan, AK KTN 195,898 537 $181 391,869 1,074 

 

Average 237,382 650 $247 473,683 1,298 

Source: O&D Survey YE May 2013, via Sabre Airline Solutions, OAG Schedule Tapes 
18 

Here are a few examples of AVP’s average one-way fares to specific destinations, when 

compared to AVP’s top five leakage airports: PHL, EWR, JFK, ABE and LGA. 

Source: O&D Survey YE May 2013, via Sabre Airline Solutions 

As seen above, of the four destinations, AVP has the 2nd highest one-way fare in two 

instances, and the highest one-way fare to Atlanta (as much as $101 higher) and Orlando 

(as much as $86 higher). 

III. STRATEGIC PLAN FOR USING GRANT FUNDING 

A. Program Goals 

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

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

insufficient air service by attracting replacement service for such services 

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

markets by increasing competition between existing air carriers and new air 

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

that travelers in and outside the region are choosing to use alternative 
19 

airports offering more scheduled service to a broader range of destinations 

with lower fare service. 

Historically, the Northeastern Pennsylvania market has supported new 

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

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

 Specifically, the three program goals are as follows: 

1. Secure service to leisure destinations (both domestic and pre-cleared 

international), i.e. but not limited to, Tampa/St. Petersburg, Fort 

Lauderdale, West Palm Beach, Punta Gorda, Las Vegas, Myrtle 

Beach, Aruba, Bermuda, Freeport and/or Nassau. 

2. Restore service to business destinations, i.e. but not limited to, 

Pittsburgh, Washington (DC) and/or Boston 

3. Assist with marketing efforts to new and/or existing air carriers at 

AVP to expand their service with additional flights/markets. 

From the successful implementation of these program goals, AVP 

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

significantly increased level of service. 

B. Target Audiences 

The following is a list of target audiences for AVP, but not limited to: 

• Low-fare carriers 

1. Allegiant 

2. City Link Air 

3. jetBlue Airways 

4. PEOPLExpress 

5. Southwest Airlines 

6. Spirit Airlines 

7. Sun Country Airlines 

• Legacy carriers 

1. American Airlines / US Airways 

2. Delta Air Lines 

3. United Air Lines 

• Regional carriers 

1. Colgan Air 

2. PenAir 

3. Public Charters, Inc. 

4. Silver Airways 
20 

C. Plan Implementation and Timetable 

Key milestones for the Program will be: 

• Securing meetings with carriers to negotiate new service (October 

2013 – March 2014). 

• Announcing new service with local community marketing campaign 

(January 2014 – June 2014). 

• Starting up new service (January 2014 – October 2014). 

• Monitoring and analyzing monthly traffic numbers of new service 

(January 2014 – June 2015). 

• Monitoring and analyzing fares to the target markets (January 2014 

– June 2015). 

IV. AIRPORT AND BI-COUNTY PARTNERSHIP FUNDING AND 

MONITORING ASSURANCES 

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

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

and the program will be managed by an airport administration and bi-county 

partnership representing the counties of Luzerne and Lackawanna. The 

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

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

it. 

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

progress. Additionally designated members of the Partnership will be assigned to 

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

potential obstacles. The Partnership will prepare and submit quarterly reports to 

provide assurances that both the DOT and community funding are being spent in 

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

successfully allocated, the quarterly reports will provide the DOT updates on the 

success of the service. 

V. FUNDING DESCRIPTION 

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

destinations (domestic and/or pre-cleared international), i.e. but not limited 

to, Tampa/St. Petersburg, Fort Lauderdale, West Palm Beach, Punta Gorda, 

Las Vegas, Myrtle Beach, Aruba, Bermuda, Freeport and/or Nassau, 

minimum two (2) flights per week per destination. Risk abatement subsidy, 

as well as ground handling and start-up costs for provided service. 
21 

 FAA: $ 150,000 

 Luzerne County: $ 50,000 

 Lackawanna County: $ 50,000 

 Airport: $ 50,000

 Total: $ 300,000

B. An airline to provide nonstop service to one or more nonstop business 

destinations, i.e. but not limited to, Pittsburgh, Washington (DC) and/or 

Boston service, minimum two (2) daily flights per weekday per destination. 

Risk abatement subsidy for weekday service up to six (6) months. 

 FAA: $ 150,000 

 Luzerne County: $ 25,000 

 Lackawanna County: $ 25,000

 Total: $ 200,000

C. Local Market Advertising to provide needed baseline support for new and/or 

restored airline service with a new or present airline, as well as support of 

additional flights with present airline service. 

 FAA: $ 275,000 

 Luzerne County: $ 25,000 

 Lackawanna County: $ 25,000 

 Airport: $ 50,000

 Total: $ 375,000 

D. TOTALS: 

FAA: $ 575,000 

 Luzerne County: $ 100,000 

 Lackawanna County: $ 100,000 

 Airport: $ 100,000

Total: $ 875,000 

VI. COMMUNITY ACTIVITIES 

 The Airport and supporting community organizations have been aggressively and 

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

initiatives all undertaken to ensure that the Northeastern Pennsylvania 

community is served in the best possible way. 

 Specific activities have included: 

 * Direct subsidy to carriers 

 * Targeted carrier meetings 

 * New service cost reduction incentives including:
22 

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

television, radio, and newspaper coverage 

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

- Donate local billboard advertising space and county bus system 

promotion 

- Develop and direct a new service information mailing initiative to 

local travel agents and community businesses 

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

 * New service local community marketing support initiatives 

* Annual attendance and participation at ACI’s annual Marketing 

“JumpStart” conference and Network USA conference 

VII. RESULTS OF PAST AIR SERVICE DEVELOPMENT EFFORTS 

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

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

Airlines with load factors averaging 88% in 2009, 90% in 2010, 87% in 2011 and 

81% in 2012. Detroit service began at AVP in April 2005. Service to Orlando, FL, 

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

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

range by the end of their tenure at AVP. 

The Detroit service continues to provide a good destination to business travelers, 

however, one-way fares have been on the rise. The Orlando service provided a 

great level of service for business and leisure travelers, with a very competitive 

fare structure. 

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

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

Airport will bring positive results. 

VIII. PROGRAM SPONSORS 

 Program Legal Sponsor: Program Partners: 

 Barry J. Centini, Airport Director Luzerne County, PA 

 Wilkes-Barre/Scranton Lackawanna County, PA 

 International Airport Greater Hazleton Chamber of Commerce 

100 Terminal Drive Greater Pittston Chamber of Commerce 

Avoca, PA 18641 Greater Pocono Chamber of Commerce 

570/602-2000 – Phone Greater Scranton Chamber of Commerce 

570/602-2010 – Fax Greater Wilkes-Barre Chmbr. of Commerce 

bcentini@flyavp.com Lackawanna Co. Conv. & Visitors Bureau 

 Luzerne Co. Convention & Visitors Bureau 

 Wyoming County Chamber of Commerce 

Five (5) Attachments follow...
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ATTACHMENT 1 

Page 1 of 1 

Docket DOT-OST-2013-0120 
24 

ATTACHMENT 2 

Page 1 of 1 

Docket DOT-OST-2013-0120 
25 

ATTACHMENT 3 

Page 1 of 1 

Docket DOT-OST-2013-0120 
26 

ATTACHMENT 4 

Page 1 of 1 

Docket DOT-OST-2013-0120 
27 

 ATTACHMENT 5 

Page 1 of 2 

Docket DOT-OST-2013-0120 

In-Kind Contributions 

Wilkes-Barre/Scranton International Airport 

Small Community Air Service Grant 

Luzerne County Convention and Visitors Bureau 

In-Kind Item Amount 

Staff Fulfillment $2,080.00 

Mailing and Distribution of Visitor Guide $820.00 

Attendance at Trade Shows $2,500.00 

Ad Placement - Annual Visitors Guide $2,500.00 

Featured Listing – PA State Web Site $ 995.00 

 Total In-Kind: $8,895.00 

Lackawanna County Convention and Visitors Bureau 

In-Kind Item Amount 

Staff Fulfillment $3,500.00 

Mailing and Distribution of Visitor Guide $1,200.00

Attendance at Trade Shows $2,000.00 

Ad Placement – CVB Web Site $1,000.00 

 Total In-Kind: $7,700.00 

Greater Pittston Chamber of Commerce 

In-Kind Item Amount 

Insert in Monthly Newsletter for 12 months $3,500.00 

 Total In-Kind: $3,500.00 

Greater Pocono Chamber of Commerce 

In-Kind Item Amount 

Ad Placement - Annual Bizzy Awards $2,500.00 

Ad Placement – Annual Dinner Program $1,000.00 

 Total In-Kind: $3,500.00 

Greater Scranton Chamber of Commerce 

In-Kind Item Amount 

Ad Placement in News Briefs Newsletter $2,000.00 

Web Site Exposure 

 Total In-Kind: $2,000.00 
28 

ATTACHMENT 5 

Page 2 of 2 

Docket DOT-OST-2013-0120 

Greater Wilkes-Barre Chamber of Commerce 

In-Kind Item Amount 

Full Page Ad Placement – Annual Dinner Program $500.00 

Full Page Ad Placement – Program/Key Event $500.00 

Staff Fulfillment & Web Site Exposure $1,000.00 

 Total In-Kind: $2,000.00 

Greater Hazleton Chamber of Commerce 

In-Kind Item Amount 

Insert in Monthly Newsletter for 3 months $ 900.00 

 Total In-Kind: $ 900.00 

Wyoming County Chamber of Commerce 

In-Kind Item Amount 

Insert of Ad on Chamber Web Site for 12 months $ 900.00 

 Total In-Kind: $ 900.00