1

APPLICATION UNDER 

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT-OST-2013-0120

SUMMARY INFORMATION

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

coversheet, a completed standard form SF424 and the full application proposal on 

www.grants.gov.

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

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

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

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

(EIN) OR TAX ID.

Legal Sponsor Name: City of Stillwater, Oklahoma

DUNS Number: 071230569

EIN/Tax ID: 736005444

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

1. STILLWATER, OKLAHOMA

2.

3.

4.

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

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

SEEKING SERVICE).

1. Stillwater Regional Airport (SWO) 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. OK-03 2.

3. 4.

E. APPLICANT INFORMATION: (CHECK ALL THAT APPLY)

Not a Consortium Interstate Consortium Intrastate Consortium

Community now receives subsidized Essential Air Service

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

Service Development Program Grant

If previous recipient: Year of grant(s):

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

PUBLIC PRIVATE

1. City of Stillwater, OK 1. Stillwater Chamber of Commerce

2. Stillwater Regional Airport Authority 2. Oklahoma State University

3. Stillwater Convention & Visitors Bureau 3.

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)

H. EXISTING LANDING AIDS AT LOCAL AIRPORT:

Full ILS Outer/Middle Marker Published Instrument Approach

Localizer Other (Approaches: ILS RW 17, Loc RW 17, NDB RW 17, 

RNAV/GPS RW 17, RNAV/GPS RW 35, VOR RW 17, VOR/DMA RW 35; Approach 

Lighting: MALSR RW 17, REIL RW 35, PAPI RW 17, RW 35, & RW 4 VASI RW 22)
3

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

LINE DESCRIPTION SUB TOTAL TOTAL AMOUNT

1 Federal amount requested $447,000

2 State cash financial contribution $36,000

Local cash financial contribution

3a Airport cash funds $0

3b Non-airport cash funds $3,365,000

3 Total local cash funds (3a + 3b) $3,365,000

4 TOTAL CASH FUNDING (1+2+3) $3,848,000

In-Kind contribution

5a Airport In-Kind contribution** $160,600

5b Other In-Kind contribution** $250,000

5 TOTAL IN-KIND CONTRIBUTION 

(5a + 5b)

6 TOTAL PROJECT COST (4+5) $4,258,600

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: Airport fee waivers including landing fees and terminal rent fees.

5b: Marketing campaign.
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) 

______________________________________________________________________________

______________________________________________________________________________
Stillwater Regional Airport 

Stillwater, Oklahoma 

Contact: Gary Johnson 

Airport Director 

2020-1 West Airport Road 

Stillwater, Oklahoma 74075 

Phone: (405) 372-7881 

Fax: (405) 372-8460 

Email: gjohnson@stillwater.org 

APPLICATION UNDER THE SMALL COMMUNITY 

AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT-OST-2013-0120


Prepared by 

TABLE OF CONTENTS

PAGE

Section 1. Application Highlights ........................................... 1

Lack of Access to the National Air Transportation System ............................ 1

Community Cost Contribution ........................................................................ 1

Public-Private Partnership.............................................................................. 1

Material Benefits ............................................................................................ 2

Use of Funds in a Timely Fashion .................................................................. 2

Section 2. Air Service Environment ....................................... 3

Airport Catchment Area ................................................................................. 3

Proximity to Alternate Airports ........................................................................ 4

Growing Population ........................................................................................ 4

Business Community ..................................................................................... 4

Oklahoma State University............................................................................. 5

Section 3. Air Service Needs and Deficiencies ........................ 6

Major Destination Markets Not Served Adequately ........................................ 6

Need for Local, Convenient Air Service ......................................................... 7

Section 4. Strategic Plan – Air Service .................................... 8

Project Goals ................................................................................................. 8

Proposed Air Service ..................................................................................... 8

Airline Participation ........................................................................................ 9

Detailed Market Analysis ............................................................................... 9

Alternate Plan .............................................................................................. 10

Past Air Service Development Efforts .......................................................... 10

Section 5. Strategic Plan – Implementation and 

Funding ...................................................................... 11

Public-Private Partnership............................................................................ 11

Incentive and Support Plan .......................................................................... 11

Project Continuation and Sustainability ........................................................ 13

Strategic Plan Funding ................................................................................. 14

Section 6. Schedule and Monitoring ..................................... 15

Schedule and Milestones ............................................................................. 15

Monitoring Program ..................................................................................... 16

Appendix A. Community Support ......................................... 17

Public-Private Partnership............................................................................ 17

Government ................................................................................................. 17

Local Businesses ......................................................................................... 17
THIS SECTION CONTAINS: 

Highlights of the grant 

application and identification of 

the project goals and 

associated Strategic Plan. 

1 

SECTION 1. APPLICATION 

HIGHLIGHTS

his Small Community Air Service Development 

Program (SCASDP) grant application for the 

Stillwater Regional Airport (SWO) meets the criteria 

of Docket DOT-OST-2013-0120. The City of Stillwater, 

Oklahoma, the legal sponsor, is requesting $447,000 in 

federal assistance to implement a $ 4,258,600 air service 

initiative. The project goal is to introduce commercial air 

service for the Stillwater community to allow access to the 

national air transportation system. The Strategic Plan, 

American Eagle SWO-Dallas/Fort Worth service, will achieve 

the project’s goal. 

LACK OF ACCESS TO THE NATIONAL AIR 

TRANSPORTATION SYSTEM

The Stillwater community has no local commercial air 

service and thus lacks adequate access to the 

national air transportation system. This makes the 

community disadvantaged economically compared to 

other communities in the region by having to rely 

upon driving over 75 miles or 1.5 hours each way to 

Tulsa or Oklahoma City to access air service. With 

Tulsa and Oklahoma City limited in their air service 

offerings as small hub airports, some travelers feel 

the need to make the four-hour one-way trip to access 

the nearest medium/large hub airport, 

Dallas/Fort Worth. 

A recent air service study showed that the Stillwater 

area generates nearly 500,000 annual passengers or 

674 passengers daily each way (PDEW). These 

travelers are forced to drive a minimum of 90 minutes 

to the closest commercial service airports, adding to 

roadway congestion and pollution that could be 

reduced by having direct service into SWO. While 

there is cost for the direct value of their time, the drive 

also adds direct expense for Stillwater area travelers, 

adding an extra $90 or more to every roundtrip flight. 

COMMUNITY COST CONTRIBUTION

To support this air service initiative, the City of 

Stillwater, Oklahoma State University and others from 

the Stillwater community will fund 90 percent of the 

proposed $4,258,600 Strategic Plan. Non-airport 

revenue sources will fund 88 percent ($3,401,000) 

of the $3,848,000 cash requirement. This is a very 

strong commitment by the local community to 

introduce airline service. 

PUBLIC-PRIVATE PARTNERSHIP

The City of Stillwater, Stillwater Regional Airport 

Authority, Stillwater Chamber of Commerce, Stillwater 

Convention and Visitors Bureau, and Oklahoma State 

University have formed a public-private partnership. 

This partnership is dedicated to the success of this 

initiative, as indicated by the significant local, nonairport financial contributions. 

T
SECTION 1. APPLICATION HIGHLIGHTS

2 

MATERIAL BENEFITS

Nonstop air service from SWO will benefit a broad 

segment of the traveling public, including businesses, 

Oklahoma State University and other enterprises. 

Within the SWO catchment area, approximately 

195,000 people reside in the area. The Stillwater 

population is in line with other markets served by 

American Airlines from Dallas/Fort Worth. 

Importantly, Oklahoma State University employs 

over 5,000 people and has over 23,500 students. 

The University has a high demand for Dallas/Fort 

Worth service with significant numbers of North 

Texas students and Alumni.

The growing population of Stillwater, Oklahoma State 

University and many businesses in the region 

desperately need the proposed service. Dallas/Fort 

Worth is one of the community’s top destinations with 

the ability to connect on American Airlines to more 

than 185 destinations on greater than 800 

daily departures. In a survey of local businesses, 89 

percent of respondents indicated that local access to 

the national air transportation is important to them, 

with 47 percent indicating it is very important. Nearly 

one in two respondents listed Dallas/Fort Worth as 

one of their top five destinations. 

USE OF FUNDS IN A TIMELY FASHION 

All of the elements are in place to ensure the timely 

use of grant funds. SWO has a 7,400 foot runway with 

an Instrument Landing System and a terminal facility 

with airline positions available. No operational 

restrictions are anticipated. In short, SWO is ready 

and waiting for an airline to begin service. 

A detailed market analysis has been completed for 

American Eagle service to Dallas/Fort Worth. 

Preliminary discussions with American have already 

taken place. It is reasonable to expect that this 

service could be implemented in spring/summer 2014. 
3 

THIS SECTION CONTAINS:

Description of the Stillwater 

community in relation to air 

service to demonstrate the 

benefit to a broad segment of 

the traveling public.

SECTION 2. AIR SERVICE 

ENVIRONMENT

he Stillwater community is in need of local access to commercial air service. SWO has no commercial air 

service and passengers must rely upon significant drives to access the nearest commercial service airport. 

Oklahoma State University’s proximity to SWO and the solid and growing business and population base in the 

Stillwater area is driving local demand for air service improvements. This section reflects the broad segment of the 

traveling public, including businesses, educational institutions and other enterprises that will benefit from the 

proposed Strategic Plan. 

AIRPORT CATCHMENT AREA

SWO is located in north-central Oklahoma in the City of Stillwater. The Stillwater area is located about 75 miles from 

Oklahoma City and Tulsa. SWO’s catchment area, shown in blue in Exhibit 2.1, has a population of over 195,000. 

Within a 40-mile radius of SWO is a population of almost 240,000 (source: Diio Mi). 

EXHIBIT 2.1 SWO CATCHMENT AREA 

T
SECTION 2. AIR SERVICE ENVIRONMENT

4 

PROXIMITY TO ALTERNATE AIRPORTS

Since SWO has no commercial air service, the SWO 

catchment area must divert from the area and use other 

surrounding airports including Oklahoma City, Tulsa, Wichita 

and Dallas/Fort Worth. Table 2.1 shows the drive miles and 

estimated drive time from the Stillwater community to each 

of these airports. The primary diversionary airport is 

Oklahoma City with 61 percent of the catchment area 

making the 76-plus mile trip at almost 1.5 hours each way. 

The Stillwater-Tulsa drive is similar to the drive to Oklahoma 

City; however, Tulsa has less service offerings than 

Oklahoma City. Both airports are classified as small-hub 

airports and the drive times can be significantly longer 

depending on traffic. The nearest medium or large hub 

airport is Dallas/Fort Worth, requiring a drive of over four 

hours each way. 

GROWING POPULATION

The Stillwater Micropolitan Statistical Area (Micro) has an 

estimated 2012 population of 77,547. From 2000 to 2010, 

Stillwater’s population grew by 13 percent (source: Woods & 

Poole Economics, Inc.). This growth rate exceeded the state 

of Oklahoma’s nine percent growth and the US growth of 10 

percent. Similarly Stillwater’s per capita income is up 39 

percent since 2000, compared to 24 percent for the state of 

Oklahoma, and retail sales have increased 18 percent since 

2000, compared to 13 percent for the state of Oklahoma. 

Stillwater has received several accolades in the last few 

years including being named the "6th Fastest Growing Small 

Town in America" by Forbes.com. 

Many communities of similar size have local commercial air 

service. As shown in Table 2.2, the Stillwater population is 

in line with other markets served by American Airlines from 

Dallas/Fort Worth. 

BUSINESS COMMUNITY

Although Stillwater is a small community, it has been 

successful in turning the area into a diversified economy that 

includes aerospace, education, medical, technology and 

service sectors. Stillwater is also the county seat of Payne County, Oklahoma. While the major economic driver in the 

area is Oklahoma State University (discussed on the following page), Stillwater is home to multiple large local 

businesses. Table 2.3 provides a list of top employers in the Stillwater area. 

TABLE 2.1 PROXIMITY TO ALTERNATE 

AIRPORTS 

AIRPORT

DRIVE 

MILES

DRIVE 

TIME

Oklahoma City, OK (OKC) 76 1:25 

Tulsa, OK (TUL) 78 1:20 

Wichita, KS (ICT) 128 2:06 

Dallas/Fort Worth, TX (DFW) 262 4:18 

TABLE 2.2 POPULATION COMPARISON 

AIRPORT CSA/MSA/MICRO

2012 ESTIMATED 

POPULATION

GCK Garden City, KS 37,058 

ROW Roswell, NM 67,502 

GRI Grand Island, NE 73,056 

SWO Stillwater, OK 77,547 

SJT San Angelo, TX 112,919 

MHK Manhattan, KS 131,164 

Source: Woods & Poole Economics, Inc. 

TABLE 2.3 TOP EMPLOYERS 

EMPLOYER INDUSTRY 

Oklahoma State University Education 

Stillwater Medical Center Health Care 

ASCO Industries Aerospace 

Stillwater National Bank Financial 

Kicker Manufacturing 

Armstrong Flooring Manufacturing 

National Standard Manufacturing 

Ocean Dental Headquarters Health Care 

Frontier Electronics Manufacturing 

Meridian Technology Center Education 

FLIR Technology Manufacturing 

Source: Stillwater Chamber of Commerce 
SECTION 2. AIR SERVICE ENVIRONMENT

5 

The following highlights a few of the many businesses that 

would benefit from local commercial air service: 

 ASCO Industries provides manufacturing of 

aerospace components. The new facility in 

Stillwater is the first plant in the US for this 

Belgium company. 

 FLIR Technology has facilities located throughout 

the US, with its corporate headquarters outside 

Portland, Oregon. 

 Kicker is a worldwide leader in music and speaker 

systems. Based in Stillwater, the company has 

travel needs both domestically and internationally 

that would be met with nonstop Dallas/Fort 

Worth service. 

OKLAHOMA STATE UNIVERSITY

Stillwater is home to the campus of Oklahoma State 

University. With over 5,000 faculty and staff and more than 

23,500 students (19,000 undergraduate and 4,722 graduate 

students), Oklahoma State University drives significant 

economic benefits for the community. The University 

currently has more than $495 million in research and 

sponsored programs active in the community. 

As part of the Big 12 conference, the University has national recognition and has substantial travel needs. With nearly 

240,000 alumni from around the country (reference Exhibit 2.2), Oklahoma State University drives a significant 

amount of inbound travel for sporting events. North Texas is especially important to the University, with a significant 

push for student recruitment over the past few years, and the largest number of alumni outside of Oklahoma. 

EXHIBIT 2.2 OKLAHOMA STATE UNIVERISTY ALUMNI 

0 - 100 

101-500

501-1,000

1,001-2,500

2,500-125,000

125,000+
6 

THIS SECTION CONTAINS: 

Description of the Stillwater 

community’s air service needs 

and deficiencies.

SECTION 3. AIR SERVICE 

NEEDS AND DEFICIENCIES 

he Stillwater area has no air service and is forced to 

make an approximately 80-mile drive to its nearest 

commercial service airport. The Air Service Needs 

and Deficiencies section identifies the deficiencies in air 

service at SWO and what air service improvements are 

needed to correct these deficiencies. This section 

demonstrates that the Stillwater community is underserved 

and in need of access to the national air 

transportation system. 

MAJOR DESTINATION MARKETS NOT SERVED ADEQUATELY 

A Passenger Demand Analysis (i.e. retention/diversion study) based on passenger booking data and US Department 

of Transportation (DOT) reported origin and destination data estimated a true market of over 490,000 annual 

passengers to/from the SWO catchment area (Table 3.1), or approximately 674 PDEW. Almost 15,000 air travelers 

annually from the catchment area drive to Dallas specifically to access air service, a four-hour drive to the south. 

Service to a hub airport such as Dallas/Fort Worth is important to allow for connections to the top destinations which 

are omni-directional in nature. 

TABLE 3.1 CATCHMENT AREA DIVERSION OF PASSENGERS 

TOP TRUE 

MARKETS 

ORIGIN AIRPORT % TRUE 

OKC TUL DFW MARKET PDEW 

Las Vegas, NV 71 27 2 20,617 28.2 

Washington, DC (DCA) 21 79 0 20,503 28.1 

Houston, TX (HOU) 75 24 0 20,006 27.4 

Denver, CO 71 29 0 19,214 26.3 

Orlando, FL (MCO) 62 36 2 17,027 23.3 

Phoenix, AZ (PHX) 55 43 2 15,249 20.9 

Dallas, TX (DFW/DAL) 68 32 0 14,858 20.4 

Chicago, IL (ORD) 60 39 1 12,101 16.6 

Atlanta, GA 57 40 3 12,024 16.5 

Baltimore, MD 64 36 0 11,545 15.8 

San Diego, CA 74 25 1 11,240 15.4 

San Antonio, TX 65 28 7 10,797 14.8 

Total Domestic 61 37 2 455,881 624.5 

Total International 63 30 7 36,431 49.9 

Total True Market 61 36 3 492,312 674.4 

T
SECTION 3. AIR SERVICE NEEDS AND DEFICIENCIES

7 

In order for SWO to have long-term, effective access to the 

national air transportation system, it must be able to prove 

that the catchment area can support airline service. This is 

best accomplished by adding American Eagle service to 

Dallas/Fort Worth, allowing for connections to most of its top 

destinations with a single connection, as well as meeting the 

needs of Oklahoma State University by having nonstop 

service to its most important out of state market, 

North Texas. 

NEED FOR LOCAL, CONVENIENT AIR SERVICE

Airport Use 

As shown in the previous subsection, air travelers use 

Oklahoma City, Tulsa and Dallas/Fort Worth for access to 

the national air transportation system. Exhibit 3.1 shows the 

percentage use by airport for SWO catchment 

area travelers. There is no local access to the national air 

transportation system. 

Cost of Travel 

While access to the Oklahoma City and Tulsa airports (both 

small hub airports) require a roundtrip drive of three or more hours, to access Dallas/Fort Worth (the nearest 

medium/large hub airport) requires a drive of more than eight hours roundtrip. Building in time for parking and busy 

security areas an extra two or more hours must be added to the travel time. In addition, although there is nonstop 

service to major destinations from the Oklahoma City and Tulsa airports, many destinations require a connection at 

an airlines’ major hub, thereby greatly increasing the total travel time for many Stillwater area residents. While there is 

cost for the direct value of their time, the drive also adds direct expense for Stillwater area travelers, adding an extra 

$90 or more to every roundtrip flight, when using the standard IRS mileage rate of 56.5 cents per mile. 

Business Travel Survey 

Recently, a survey of local businesses was conducted to gain a better understanding of the Stillwater area’s air travel 

needs. The Stillwater Chamber of Commerce, one of the private partners in the public-private partnership, conducted 

the survey. Over 900 surveys were completed. For an area of this size, survey response was very high indicating a 

strong interest in obtaining local commercial air service. 

Eighty-nine percent of respondents indicated that local access to the national air transportation is important to them, 

with 47 percent indicating it is very important. Nearly one in two respondents listed Dallas/Fort Worth as one of their 

top five destinations. Ninety-three percent of respondents are also willing to pay a premium to fly out of SWO of at 

least $50 showing the value of avoiding the long drives and added travel time to access air service at Oklahoma City 

or Tulsa. 

EXHIBIT 3.1 SWO CATCHMENT AREA AIRPORT USE 

Oklahoma 

City (OKC)

61%

Tulsa 

(TUL)

36%

Dallas/Fort 

Worth 

(DFW)

3%
8 

THIS SECTION CONTAINS: 

A detailed description of the 

project goals and a primary and 

alternate plan for attaining 

those goals.

SECTION 4. STRATEGIC 

PLAN – AIR SERVICE

his Strategic Plan – Air Service section provides a 

detailed description of the goals of the project and a 

primary and alternate plan for attaining those goals. 

The City of Stillwater has never applied for, and therefore 

never received, a SCASDP grant. 

PROJECT GOALS

The following goals will be accomplished by the proposed 

Strategic Plan: 

 Secure air service to a major airline’s hub allowing 

much needed access to the national air 

transportation system for the Stillwater community 

including Oklahoma State University. 

 Mitigate the need to drive long distances to access 

commercial air service at alternate airports. 

PROPOSED AIR SERVICE

The proposed Strategic Plan to meet the project’s goals is 

nonstop SWO-Dallas/Fort Worth service with two or three 

daily, regional jet roundtrips on American Eagle. The 

proposed air service is the primary target to meet the 

project’s goals because: 

 American’s Dallas/Fort Worth hub will provide the 

region with direct access to the national air 

transportation system with over 800 daily departures to more than 185 single connect destinations. Exhibit 

4.1 provides a depiction of the proposed service and the top 20 markets that would be served over 

Dallas/Fort Worth. 

 Nonstop service to Dallas/Fort Worth will reduce the number of passengers that are now diverting to other 

airports to access the national air transportation system. Currently, almost 500,000 origin and destination 

passengers annually divert to an alternate airport. This creates congestion and pollution on 

the roadways.

 The SWO catchment area is accustomed to flying with American Airlines/American Eagle with 25 percent of 

the travelers using American when they fly out of alternate airports providing brand and airline loyalty. 

T

EXHIBIT 4.1 PROPOSED AIR SERVICE 
SECTION 4. STRATEGIC PLAN – AIR SERVICE

9 

AIRLINE PARTICIPATION 

Recently, members of the public-private partnership met with 

American Airlines/American Eagle regarding nonstop service 

to Dallas/Fort Worth. Because this is a new market without 

proven air service in the past, an airline’s willingness to 

serve SWO depends heavily on offsetting the airline’s startup risk. A grant award for this application would provide the 

necessary tools to lower the risk for an airline to initiate 

service between SWO and a major airline hub such as 

Dallas/Fort Worth. 

DETAILED MARKET ANALYSIS

A detailed market analysis has been completed for American 

Eagle service to Dallas/Fort Worth International Airport. Key 

points of the analysis are described below. Projections were 

completed for a two roundtrip schedule on a 50-seat Embraer 

Regional Jet. The operating and market assumptions are 

listed below: 

 Existing passengers are based off of the Passenger 

Demand Analysis total passenger estimate. 

Connecting/flow markets are capped at 20 percent 

of the total true market potential. The local 

Dallas/Fort Worth passenger traffic was assumed to 

be just 50 percent of the total true market potential, 

and includes no stimulation. Based on other regional 

markets similar to SWO, it’s assumed that local 

traffic will ultimately be equal to or greater than the current true market estimate. 

 The average fare was estimated based on Oklahoma City’s average fare plus $35 each way. 

 American Eagle’s fully allocated operating costs between SWO and Dallas/Fort Worth were estimated using 

Diio Mi Form 41 data for American Eagle, as well as Essential Air Service bids, adjusted by the 

manufacturer’s cost curve and American Eagle feedback. 

Table 4.1 provides a summary of the American Eagle Dallas/Fort Worth market analysis for two roundtrips per day on 

a 50-seat regional jet. Passenger projections were based on a mature market (i.e., passenger projections would be at 

100 percent on the first day of service). Two roundtrips per day are projected to generate $259,707 (five percent 

margin) in segment profit for American Eagle. The SWO-Dallas/Fort Worth route is forecast to be a strong economic 

performer for both American Eagle and American after ramp-up is complete. With an estimated eight percent fully 

allocated system profit margin for two roundtrips, this market will be self-sustaining. 

Although it is estimated that American Eagle will earn a profit after the SWO-Dallas/Fort Worth market matures, 

American Eagle will not generate this amount of profit at start-up. New markets typically have losses during the first 

year or two of operation; hence the need for a revenue guarantee to temper the airline’s risk, and this is especially 

true in a community that has never had commercial air service. The uncertainty in the airline industry including the 

fluctuating cost of fuel will play a large part in the revenue guarantee negotiations with American Eagle. 

TABLE 4.1 SWO-DALLAS/FORT WORTH 

MARKET ANALYSIS 

ITEM 

STATISTICAL 

CATEGORY 

2 

RT 

1 Available seats per 

departure 50 

2 Segments per day 4 

3 Onboard passengers 59,788 

4 Load factor 82% 

5 Average fare all markets $207 

6 Segment 1 revenue $5,022,957 

7 Segment 1 cost $4,763,250 

8 Segment 1 profit margin $ $259,707 

9 Segment 1 profit margin % 5% 

10 System revenue $12,860,558 

11 System cost $11,817,090 

12 System profit/loss $1,043,467 

13 System margin 8% 

Source: Mead & Hunt, Inc. 
SECTION 4. STRATEGIC PLAN – AIR SERVICE

10 

For purposes of estimating the shortfall, for the first month of 

service, it is estimated that 60 percent of the projected 

passengers in a mature market will be attained. It is 

estimated that the market will reach full maturity after the first 

nine months of service. The ramp-up period is speculative 

and may differ depending on the effectiveness of the 

marketing campaign. 

To calculate the effect of the ramp-up period on net profit, 

Table 4.2 shows revenue by month with an April 2014 start 

date, the associated cost per month, and the net shortfall. 

With a first year estimated cost of $11.8 million, the service 

will incur an estimated shortfall of $1.5 million. 

TABLE 4.2 SERVICE RAMP-UP/START-UP PERIOD 

MONTH 

DAYS 

OPERATING 

ESTIMATED 

O&D PAX 

RAMPUP % RAMP-UP 

ADJ. PAX REVENUE 

ESTIMATED 

COST 

NET 

SURPLUS/ 

SHORTFALL 

April 30 4,914 60% 2,948 $609,355 $971,268 ($361,912) 

May 31 5,078 64% 3,272 $676,309 $1,003,643 ($327,334) 

June 30 4,914 69% 3,385 $699,630 $971,268 ($271,637) 

July 31 5,078 73% 3,724 $769,593 $1,003,643 ($234,050) 

August 31 5,078 78% 3,949 $816,235 $1,003,643 ($187,408) 

September 30 4,914 82% 4,040 $835,043 $971,268 ($136,225) 

October 31 5,078 87% 4,401 $909,519 $1,003,643 ($94,124) 

November 30 4,914 91% 4,477 $925,318 $971,268 ($45,950) 

December 31 5,078 96% 4,852 $1,002,803 $1,003,643 ($840) 

January 31 5,078 100% 5,078 $1,049,445 $1,003,643 $45,802 

February 28 4,586 100% 4,586 $947,886 $906,517 $41,370 

March 31 5,078 100% 5,078 $1,049,445 $1,003,643 $45,802 

Total 365 59,788 N/A 49,792 $10,290,584 $11,817,090 ($1,526,506) 

ALTERNATE PLAN

If SWO fails to obtain American Eagle service to Dallas/Fort Worth, the secondary target is United Airlines’ service to 

either Denver International Airport or Houston’s George Bush Intercontinental Airport. Consistent with the intent of the 

air service initiative proposed, United’s Denver and Houston hubs would fill the need for service to a hub airport 

providing access to the national air transportation system. Service on another airline to its hub allowing access to the 

national air transportation system would also meet the goals of this project. 

PAST AIR SERVICE DEVELOPMENT EFFORTS

In recent years SWO has taken a proactive approach to improving air service. Several community meetings have 

been held to discuss SWO air service. SWO has also completed multiple market analyses including a Passenger 

Demand Analysis to assess retention/diversion and a Business Travel Survey to gather qualitative data in the 

community. After identifying the top market opportunities, a route forecast was completed for SWO-Dallas/Fort Worth 

service. Subsequently, multiple airline meetings were conducted including airline meetings at Mead & Hunt’s Annual 

Air Service Development Conference and Network USA 2013. A representative from American visited the Stillwater 

area in 2013 and met with SWO and Oklahoma State University staff. 
THIS SECTION CONTAINS: 

Identification of the publicprivate partnership, designation 

of a legal sponsor, funding and 

sustainability of the project.

11 

SECTION 5. STRATEGIC PLAN –

IMPLEMENTATION AND FUNDING

his section, Strategic Plan - Implementation and Funding, details the incentive and support plan required to 

implement the Strategic Plan. A legal sponsor has been designated and a public-private partnership that will 

actively participate in implementing the proposed project has been formed. Also, this section addresses the 

self-sufficiency of the service and provides a description of the community’s plan to continue the project if it is not 

self-sustaining after the grant funds are expended. A project budget and breakdown of the sources of funds 

is included. 

PUBLIC-PRIVATE PARTNERSHIP

The City of Stillwater, Oklahoma, is the sponsor of this grant 

application. For the purpose of this application, the City of 

Stillwater, Stillwater Regional Airport Authority, Stillwater 

Chamber of Commerce, Stillwater Convention and Visitors 

Bureau, and Oklahoma State University have formed a publicprivate partnership (refer to community support letters in 

Appendix A). Collectively, this partnership is committed to 

completing the Strategic Plan. 

All partners in the public-private partnership will be involved in 

the execution of the Strategic Plan (Table 5.1). The City of 

Stillwater will execute all federal grant offers, process 

associated reimbursement requests, oversee grant 

administration, and manage the revenue guarantee. The 

Stillwater Chamber of Commerce, Stillwater Regional Airport 

Authority, Stillwater Convention and Visitors Bureau, and 

Oklahoma State University will assume responsibility for the 

implementation and management of the marketing program 

associated with the proposed service. 

INCENTIVE AND SUPPORT PLAN

The public-private partnership proposes a community support package that has been tested and proved to be 

successful in acquiring airline service and generating new passengers. To reduce the breakeven period and offset 

the economic risk, the public-private partnership proposes the following incentives (Exhibit 5.1, next page): 

• Revenue guarantee: reduce airline economic risk 

• Marketing campaign: create new service awareness for American Eagle 

• Fee waivers: reduce airline start-up costs 

• Airside equipment: reduce airline start-up costs 

T

TABLE 5.1 PUBLIC-PRIVATE PARTNER ROLES 

PUBLIC-PRIVATE 

PARTNER ROLE 

Public Partner

City of Stillwater, OK Grant and revenue 

guarantee administration 

Stillwater Regional 

Airport Authority Coordination of the 

Stillwater Convention and marketing program 

Visitors Bureau 

Private Partner

Oklahoma State University Coordination of the 

marketing program Stillwater Chamber of 

Commerce 
SECTION 5. STRATEGIC PLAN – IMPLEMENTATION AND FUNDING

12 

Revenue Guarantee 

To reduce airline risk and provide an incentive for 

American Eagle to provide nonstop service to 

Dallas/Fort Worth, this Strategic Plan includes a revenue 

guarantee. Although pro forma projections for the 

Dallas/Fort Worth hub service are positive, service 

ramp-up and breakeven can take up to two years 

(reference Table 4.2 on page 10). While the calculations 

show a loss of $1.53 million in the first year, it is 

anticipated that American Eagle will require a 

significantly larger revenue guarantee for the first two 

years of service to mitigate the risk of starting this 

new market. 

In unproven markets like SWO, there are many factors 

that can impact the profitability of the market. In other 

similar markets, American has historically required 

significant guarantees. One example of this is the 

initiation of American Airlines service at Columbia 

Regional Airport to Chicago O’Hare and Dallas/Fort Worth in March 2013. The Columbia community provided a 

revenue guarantee of $3.3 million for a two-year period in addition to up to $250,000 in fee waivers and $400,000 of 

marketing. Unlike SWO, this is a market that previously had air service yet still required the substantial guarantee and 

other incentives. Similarly, when American began nonstop Roswell-Dallas/Fort Worth service in September 2007, a 

$4.2 million revenue guarantee was provided over two years. 

Due to the above, the air service support program includes a revenue guarantee of up to $3.2 million, largely funded 

by non-airport, community resources. This level of commitment demonstrates the Stillwater community’s need for 

commercial air service. The exact terms of the revenue guarantee agreement are subject to further negotiations. 

Marketing Campaign 

The success of the proposed service between SWO and 

Dallas/Fort Worth will live or die based on the success of 

the marketing program. With SWO having never had 

commercial air service, it will be of utmost importance to 

educate the local community of the new, nonstop regional 

jet service to Dallas/Fort Worth and influencing the 

thousands of travelers that are now driving to alternate 

airports to use SWO. The importance of an aggressive 

promotion campaign cannot be overemphasized. This is 

the reason why the marketing program is such a large 

portion of the budget, accounting for $600,000 over 

two years. 

Table 5.2 provides a breakdown of the marketing dollars to be spent on maximizing passenger utilization of new 

flights between SWO and Dallas/Fort Worth. This $600,000 campaign will be funded by non-airport funds through 

TABLE 5.2 MARKETING BUDGET 

DESCRIPTION CASH 

INKIND TOTAL 

Kick-Off Phase 

Public relations $5,000 $5,000 $10,000 

Social media $5,000 $5,000 $10,000 

On-Going Media 

Television airtime and 

commercial production $100,000 $55,000 $155,000 

Targeted email 

campaign $10,000 $10,000 $20,000 

Print media $130,000 $100,000 $230,000 

Promotional Event 

Television airtime $100,000 $75,000 $175,000 

Total $350,000 $250,000 $600,000 
SECTION 5. STRATEGIC PLAN – IMPLEMENTATION AND FUNDING

13 

local private cash ($175,000) and in-kind marketing dollars 

($250,000), as well as $175,000 from the SCASDP grant. 

SWO, Oklahoma State University and Stillwater Chamber of 

Commerce will be responsible for management and 

implementation of the marketing campaign. 

The marketing campaign will include a kick-off phase 

utilizing public relations and social media, an on-going media 

campaign and promotional events throughout the two-year 

process. The marketing campaign will be monitored and 

adjusted as necessary for maximum results. 

Fee Waivers 

The air service support program includes two fee waivers: landing fees and terminal fees. SWO will waive landing 

fees for the first two years of new service. Landing fees for the first 24 months are estimated at $92,050 assuming the 

use of the Embraer Regional Jet. The landing fee waiver may vary depending on aircraft type used and the number of 

roundtrips offered. SWO will also waive terminal fees for the first two years of service. These fees are estimated 

at $68,550. 

Airside Equipment 

Since SWO does not have commercial air service operations, for an airline to enter the market, there will be 

significant up front start-up costs for airside equipment. As part of the air service support program, much of the 

equipment needed by the airline will be purchased, including: 

 Heating, Ventilation, and Air Conditioning 

(HVAC)/Ground Power Unit (GPU) combo unit 

 De-icing unit 

 Tugs (two) 

 Baggage carts (three) 

 Valet cart 

 Regional jet loading bridge 

 Potable water cart 

 Potty cart 

 Regional jet handicap chair 

 Belt loader

PROJECT CONTINUATION AND SUSTAINABILITY

Based on positive pro forma projections for American Eagle service to Dallas/Fort Worth, it is anticipated that new 

service will be self-sustaining after the start-up period which can take up to two years. A leading cause of service 

failure is lack of awareness in the community. The public-private partnership will fund an additional $250,000

marketing campaign if the service is not self-sustaining after the first two years of service. The public-private 

partnership and the Stillwater business community are committed to the success of this project and understand the 

difficulties associated with profitably operating new air service. 
SECTION 5. STRATEGIC PLAN – IMPLEMENTATION AND FUNDING

14 

STRATEGIC PLAN FUNDING

The public-private partnership is requesting the US 

DOT’s assistance in funding 10 percent, or $447,000 

of the Strategic Plan (Exhibit 5.2). Specifically, US 

DOT funding will be used to fund a portion of the 

revenue guarantee, marketing campaign and the 

strategic plan monitoring. All other elements including 

the airside equipment purchase, airline negotiations 

and airport fee waivers will be funded by the 

community. Table 5.3 provides the Strategic Plan 

budget by element and sources of funding. SWO and 

the community will fund 90 percent of the total 

proposed air service program. Non-airport funding 

sources will provide 88 percent of the cash 

requirement and 86 percent of the funding for the total 

program including in-kind services. 

While funding of certain components are identified in Table 5.3, the public-private partnership recognizes that federal 

and non-federal funds will be applied proportionately to the entire scope of the project and that communities cannot 

use non-federal funds to selectively fund certain components of a project. 

TABLE 5.3 STRATEGIC PLAN BUDGET 

DESCRIPTION 

FUNDING SOURCE 

TOTAL 

US DOT AIRPORT NON-AIRPORT 

CASH CASH IN-KIND CASH IN-KIND 

Airline incentive program: 

Marketing campaign $175,000 $175,000 $250,000 $600,000 

Revenue guarantee $200,000 $3,000,000 $3,200,000 

Airside equipment $175,000 $175,000 

Fee waivers: 

Landing fees $92,050 $92,050 

Terminal fees $68,550 $68,550 

Consultant fees: 

Airline negotiations $15,000 $15,000 

Strategic Plan monitoring $72,000 $72,000 

Total $447,000 $0 $160,600 $3,365,000 $250,000 $4,222,600 

Percent of total project 11% 0% 4% 80% 6% 100% 

Percent of cash contribution 12% 0% N/A 88% N/A 100% 

Cash: 

NonAirport

80%

Cash: US 

DOT

10%

Cash: 

Airport

0%

In-Kind: 

NonAirport

6%

In-Kind: 

Airport

4%

EXHIBIT 5.2 CASH VS IN-KIND FUNDING 
THIS SECTION CONTAINS: 

Schedule and milestones for 

timely completion of the project 

and the proposed 

monitoring program.

15 

SECTION 6. SCHEDULE 

AND MONITORING

 realistic timetable for implementation of the grant project has 

been developed to achieve the project goals and ensure the 

timely use of the grant funds. This section details the 

milestones and a monitoring program to track the progress of 

the project. 

 

SCHEDULE AND MILESTONES

The following milestones are proposed to track the progress of this air 

service initiative. A timeline follows on Exhibit 6.1, next page. 

 : After the grant is awarded and Airline negotiations

agreement is signed, the public-private partnership will 

contact American Eagle/American Airlines and continue 

airline negotiations. 

 : Due to SWO never having scheduled service, an Environmental Assessment Environmental Assessment

will need to be performed in order for SWO to be added to the Operations Specifications (Ops Specs) to 

commence scheduled service. The community will perform this Environmental Assessment once an 

agreement has been reached and expect it to be a 120-day process. 

 : While the airline agreement Marketing campaign development/initiation is being finalized, the marketing 

campaign will be developed. The timing of the marketing campaign is critical; ideally, marketing would begin 

90 days prior to new service initiation. Development of the marketing campaign is dependent on the timing 

of American Eagle’s announcement and initiation of daily Dallas/Fort Worth service. 

 : The public-private partnership anticipates daily service to Dallas/Fort Worth would begin Service initiation

in spring/early summer of 2014 following successful negotiations with American Eagle. The remaining 

elements of the Strategic Plan depend on this date. The public-private partnership understands the realities 

of the airline industry; airline route planning and availability of right-sized aircraft are critical to air service 

initiation and may delay the service start date. 

A
SECTION 6. SCHEDULE AND MONITORING

16 

 Revenue guarantee contract 

completion: The revenue guarantee 

will be calculated based on the terms of 

the agreement. Many revenue 

guarantee agreements are calculated 

monthly. Assuming an April 2014 start 

date, the revenue guarantee contract 

would expire March 2016. If the service 

start date changes due to airline 

circumstances and/or equipment 

availability, the revenue guarantee 

contract term will change accordingly. 

 : American Eagle Alternate plan

service to Dallas/Fort Worth is the 

primary target of the Strategic Plan. If 

American Eagle does not show interest 

in starting service by May 2014, then 

United Airlines’ service to either 

Houston or Denver will be pursued. If 

neither air carrier has shown interest in implementing the proposed service by December 31, 2014, the City 

of Stillwater will propose an alternate plan that meets the goals of this grant application. 

The timeline proposed in Exhibit 6.1 is highly contingent on the timing of the grant award and successful airline 

agreement negotiations. If either is delayed, other elements on the timeline will be pushed back. 

MONITORING PROGRAM 

Monitoring new air service initiatives is critical to success. An aggressive and comprehensive monitoring program is 

proposed for new SWO-Dallas/Fort Worth service. The monitoring program includes: service performance tracking, 

assessing the effectiveness of the marketing campaign and determining the impact of the service on retention of 

catchment area passengers at SWO. The Strategic Plan will be monitored as follows: 

 Available service performance indicators will be reviewed on a monthly basis. The indicators are dependent 

on availability of data reported by the airline to the US DOT and data reported to SWO. It is anticipated that 

the following indicators will be reviewed monthly: departures, available seats, enplaned passengers and 

load factors. 

 On a quarterly basis, average airfares will be compared and evaluated to prior quarters. Published airfares 

will also be tracked via one of the Global Distribution/Computer Reservations Systems (GDS/CRS). 

Revenue per available seat mile will be reviewed and compared against other markets served by American 

Eagle at Dallas/Fort Worth. 

 After the first year of service, a True Market Estimate will be completed to assess the impact of the service 

on retention of passengers at SWO. After the second year of service, a full Passenger Demand Analysis will 

be performed to determine overall impact of the service. 

EXHIBIT 6.1 PROPOSED TIMELINE 

September 30, 2013 Grant award

December 1, 2013

Finalize airline negotiations

Commence Environmental

Assessment

April 1, 2014 American Eagle initiates

daily Dallas/Fort Worth service

January 1, 2014 Marketing begins

March 31, 2016 End of revenue guarantee 

contract; Passenger Demand 

Analysis performed

Monthly/Quarterly/Annual

service performance 

monitoring
THIS SECTION CONTAINS: 

Letters of support from 

members of the public-private 

partnership, the local business 

community, and state 

government.

17 

APPENDIX A.

COMMUNITY SUPPORT

ppendix A includes letters of support for the City of Stillwater, Oklahoma’s application to the US DOT for 

establishing commercial air service. Support letters were submitted by participants in the public-private 

partnership and members of the Stillwater community. The letters of support are included on the following 

pages of this Appendix A and are listed below. 

PUBLIC-PRIVATE PARTNERSHIP

City of Stillwater/Stillwater Regional Airport Authority (refer to cover letter) 

Oklahoma State University 

Stillwater Chamber of Commerce 

Stillwater Convention and Visitors Bureau 

GOVERNMENT

Congress of the United States, Representative Frank Lucas 

State of Oklahoma, Oklahoma Aeronautics Commission 

State of Oklahoma, Secretary of Transportation 

United States Senate, Senator James M. Inhofe (Submitted Separately) 

LOCAL BUSINESSES

BancFirst 

FLIR Explosives Detection 

National Learning Systems 

National Standard 

Oklahoma State University - Athletics 

Stillwater Designs 

Stillwater Medical Center 

Stillwater National Bank and Trust Company 

A








National Learning Systems, Inc. PO Box 1815 Stillwater, OK 74076-1815 

 

July 18, 2013 

Brooke Chapman, Associate Director 

Small Community Air Service Development Program 

U.S. Department of Transportation 

1200 New Jersey Ave, SE W86-310 

Washington, DC 20590 

Dear Ms. Chapman, 

I am writing in support of the City of Stillwater/Stillwater Regional Airport application 

for funding through the Small Community Air Service Development Program. 

The greater Stillwater area and Oklahoma State University have to drive up to 90 minutes 

to get to Oklahoma City or Tulsa in order to access the National Transportation System. 

This places significant time and cost on the nearly 500,000 annual passengers that are 

generated from the Stillwater catchment area. Stillwater and OSU have been working 

closely with the local business community to recruit airline service at the Stillwater 

Regional Airport. 

We understand that there are inherent financial risks and significant costs associated with 

starting schedule airline service at a community that does not currently have service, and 

that airlines are looking for financial support to help reduce that risk. The funds 

requested will be matched with significant local dollars that will be used for airline 

incentives to attract new service at Stillwater Regional Airport, and reinstate access to the 

National Transportation System by adding service to the Dallas/Ft Worth International 

Airport. 

Again, it is my hope that you will give the Stillwater Regional Airport proposal full 

consideration and award the funds requested to help Stillwater re-establish access to the 

National Transportation System by attracting new service to Dallas/Ft Worth with 

American Airlines. 

Sincerely, 

Charlcie Cumming 

Charlcie Cumming