# Worcester Regional Airport

, Worcester, MA 

# Application for Small Community Air Service Development Grant

Docket DOT- OST -2013-0120

DUNS # 001766328 Congressional District MA -2

July 26, 2013

Legal Sponsor : 

# Massachusetts Port Authority One Harborside Dr ive – Suite 200S East Boston, MA 02128

### 1 APPLICATION UNDER

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT-OST-2013-0120

SUMMARY INFORMATION

A. P ROVIDE 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: Massachusetts Port Authority

DUNS Number: 001766328

EIN/Tax ID: 046006429

B. L IST THE 

### N AME OF THE COMMUNITY OR CONSOR TIUM OF COMMUNITIES APPLYING 

### :
1._ CITY OF WORCESTER



### _________________________________ 2.____________________________________________________

3.____________________________________________________

4.____________________________________________________

C. P ROVIDE THE FULL AIRPORT NAME AND 

### 3-L ETTER 

### IATA A IRPORT 

### C ODE FOR THE

APPLICANT 

### ( S 

### ) AIRPORT 

### ( S 

### ) (O NLY PROVIDE CODES FOR THE AIRPORT 

### ( S 

### ) THAT ARE ACTUALLY

SEEKING SERVICE 

### ).
1. Worcester Regional Airport (ORH) 2.

3. 4.

D. L IST THE 

### 2- DIGIT CONGRESSIONAL DISTRICT CODE APPLICABLE TO THE SPONSORING

ORGANIZATION 

### , AND IF A CONSORTIUM 

### , TO EACH PARTICIPATING COMMUNITY



### . 1. Massachusetts Port Authority/ORH – MA

2 2.

3. 4.

### 2 E. A PPLICANT 

### I NFORMATION 

### : (C HECK 

### A LL 

### T HAT 

### A PPLY 

### )

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): 2003

F. P UBLIC 

### /P RIVATE 

### P ARTNERSHIPS 

### : (L IST 

### O RGANIZATION NAMES 

### )

PUBLIC PRIVATE
1. Massachusetts Port Authority 1. Worcester Regional Chamber of

Commerce

2. Massachusetts Office of Travel and

Tourism 2.

3. City of Worcester 3.

4. 4.

5. 5.

G. P ROJECT 

### P ROPOSAL 

### : ( 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 Serv ice Other (explain below)

H. E XISTING 

### L ANDING 

### A IDS AT 

### L OCAL 

### A IRPORT 

### :

Full ILS Outer/Middl e Marker Published Instrument Approach
Localizer Other (specify) GPS based RNAV X

X 

### X

X 

### X X

X

X X

X X

X X

X

### 3 I. P ROJECT 

### C OST 

### : D O NOT ENTER TEXT IN SHADED AREA



### L INE 

### D ESCRIPTION 

### S UB 

### T OTAL 

### T OTAL 

### A MOUNT


### 1 Federal amount requested $350,000

2 State cash financial contribution $150,000

Local cash financial contribution

3a Airport cash funds $150,000

3b Non-airport cash funds $150,000
3 Total local cash funds ( 3a + 3b ) $300,000
4 TOTAL CASH FUNDING ( 1+2+3 ) $800,000

In-Kind contribution

5a Airport In-Kind contribution** $349,003

5b Other In-Kind contribution** $20,000

5 TOTAL IN-KIND CONTRIBUTION
( 5a + 5b ) $369,003

6 TOTAL PROJECT COST ( 4+5 ) $1,169,003

J. IN-KIND CONTRIBUTIONS**
For funds in lines 5a (Airport In-Kind contribut ion) and 5b (Other In-Kind contribution), please
describe the source(s) of fund( s) and the value ($) of each.
5a. Massport In-Kind Contributions:

 Waived airport fees and charges - $349,003
5b. Worcester Regional Ch amber of Commerce:

 Central Massachusetts Business Expo conferen ce sponsorship and JetBlue key note address
- $20,000

### 4 K. I S 

### T HIS 

### A PPLICATION 

### S UBJECT 

### T O 

### R EVIEW 

### B Y 

### S TATE 

### U NDER 

### E XECUTIVE 

### O RDER 

### 12372

P ROCESS 

### ?

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. I S 

### T HE 

### A PPLICANT 

### D ELINQUENT 

### O N 

### A NY 

### F EDERAL 

### D EBT 

### ? (I F 

### “Y ES 

### ”, P ROVIDE



### E XPLANATION 

### )

No Yes (explain)

______________________________________________________________________________

______________________________________________________________________________

X

XWorcester Regional Airport, Worcester, MA. Application for Small Community Air Service Development Grant

Docket DOT

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- 2013

- 0120, DUNS # 001766328, Congressional District MA -2 , July 26, 2013

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# Table of Contents

1. Executive Summary

.................................................................................................................. 1

1.1 Introduction and Background ................................................................................................................ 1

1.2 Previous Small Community Air Service Develop Grant Awards ......................................................... 3

2. Overview of the Worcester Regional Airport Market

.............................................................. 5

2.1 Catchment Area ..................................................................................................................................... 5

2.2 Regional Economy ................................................................................................................................ 6

2.3 Air Service and Traffic History ............................................................................................................. 7

3. Strategic Plan for Air Service

................................................................................................ . 13

3.1 Strategic Goals and Objectives ........................................................................................................... 13

3.2 Public- Private Partnership ................................................................................................................... 13

3.3 Strategic Use of Funds ........................................................................................................................ 14

3.4 Funding Plan and Grant Request ......................................................................................................... 16

3.5 Implementation Timeline and Monitoring .......................................................................................... 17

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

Appendix A: Commitments

Appendix B: Community Letters of SupportWorcester Regional Airport, Worcester, MA. Application for Small Community Air Service Development Grant

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- 0120, DUNS # 001766328, Congressional District MA -2 , July 26, 2013

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# 1. Executiv e Summary

1.1 

### In troduction a nd Background

The Worcester Regional Airport (ORH), owned and operated by the Massachusetts Port Authority (Massport), respectfully submits this proposal to the U.S. Department of Transportation (US DOT) for a small community air service grant through the U.S. DOT’s Small Community Air Service Developm ent Program (SCASDP). ORH requests a grant of $ 350,000 to help re

- establish regularly scheduled commercial airline services at the airport. The grant will be supplemented with $ 450,000 in state and local cash contributions and $ 369,003 of in

kind contribut ions marketing , promotion and airport fee waivers for JetBlue daily nonstop services to Orlando International (MCO) and F ort Lauderdale-Hollywood International (FLL) and potential future JetBlue services.

The Worcester Regional Airport, located in Centra l Massachusetts, has been without commercial airline services since Direct Air suspended public charter services in March 2012. The Worcester Airport’s primary and secondary catchment areas have a combined population of one million people and include the C ity of Worcester, the second largest city in New England. The Worcester Airport catchment area generates over 1.8 million annual origin

- destination passengers. The airport has a long history of commercial airline services and was continuously served by major scheduled airlines until 2003 when US Airways discontinued services while reorganizing under Chapter 11. Since then the airport has been served sporadically with infrequent services provided by two small carriers targeting leisure passengers: Allegiant Airlines from December 2005 to September 2006 and Direct Air from November 2008 to March 2012. These services only carried traffic in the local nonstop markets and did not provide Worcester passengers with connectivity to any beyond markets.

After a conc erted effort by Massport and the local Worcester community to recruit air carriers to serve the airport, JetBlue announced that it will initiate new scheduled services between Worcester and MCO and FLL in November of this year. These services represent a u nique opportunity to re- establish Worcester Regional Airport as a commercial service airport and provide Central Massachusetts residents and businesses with easy, convenient and safe access to the national air transportation system. In addition to serving the local markets, JetBlue’s MCO and FLL services will provide Worcester passengers with access to its expanding air service network with beyond connections to as many as 13 markets in the Caribbean and Latin America, including San Juan, Puerto Rico, Santo Domingo, Dominican Republic, Bogota, Colombia; and San Jose, Costa Rica. If the
MCO/FLL services are successful, JetBlue intends to add services to other top Florida destinations and connecting hubs at New York JFK and San Juan, which would further expan d Worcester’s connectivity to the national air transportation system

. A New York JFK service would connect with up to 56 destinations while a San Juan route would connect with up to six destinations in the Caribbean based on JetB lue’s current network.

Re gularly scheduled Worcester air services that provide access to the national air transportation network would strengthen the competitiveness of the Central Massachusetts region and contribute to the region’s economic development. Local government and busin ess leaders recognize the importance of re

- connecting ORH to the national air service network and worked actively with Massport to recruit JetBlue to the Worcester market. The local community is equally committed to ensuring the success of the new JetBlue services and have formed a public- private partnership with Massport to develop the public’s awareness of the new services. Since ORH has not had regularly scheduled airline services by a major airline since 2003, air passengers traveling to and fromWorcester Regional Airport, Worcester, MA. Application for Small Community Air Service Development Grant

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- 0120, DUNS # 001766328, Congressional District MA -2 , July 26, 2013

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### Centra l Massachusetts have become accustomed to driving long distances to surrounding commercial service airports (Boston Logan, T.F. Green and Hartford Bradley airports). In addition to Massport’s cash contribution ($150,000) and airport fee waivers ($349,003), the state and local community have pledged $300,000 in non

airport cash and $20,000 of in

- kind contributions to raise awareness of the new services among local passengers, as well as visitors from Central/South Florida, and ensure the long

- term sustainabi lity of airline services at
ORH.

Worcester Regional Airport’s application meets four out of the six priority selection criteria outlined in the US DOT’s Small Community Air Service Development Program for Fiscal Year 2013.

 A Significant Local Contribution and Funding from Non

- Airport Revenues: The total project cost is $1,169,003 to provide marketing and promotional support for the JetBlue services to their MCO/FLL focus cities, beyond connecting markets, and future JetBlue services to Fort Myers and their New York JFK and San Juan connecting hubs; destination marketing to increase inbound passenger traffic and strengthen the routes; and airport cost waivers. The community will provide 70 % ($ 819,003) of the project cost in the form of cash and in -kind contributions. Of this, non

- airport sources will provide 27 % ($ 320,000) of the total program cost in the form of cash and in-kind contributions.

 A Public

- Private Partnership Has Been Established: Massport has formed a public

- private partnership

w ith the City of Worcester, the Massachusetts Office of Travel and Tourism (MOTT) and the Worcester Regional Chamber of Commerce for the purposes of funding the project and providing marketing and promotion assistance.

 The Project will Benefit a Broad Segm ent of the Traveling Public: Re

- establishing commercial airline services at Worcester Regional Airport will benefit residents and visitors traveling to and from Worcester and the Central Massachusetts region including the general public, business travelers , and the students and faculty of the area’s educational institutions. The City of Worcester is the second largest city in New England with 181,000 residents. Top employers in the region include healthcare, medical research, insurance, IT, high tech and bi otech companies. Hanover Insurance, which has corporate headquarters in Worcester, writes over $100 million of premiums in Florida and maintains a regional office in Central Florida as well as an extensive network of agencies and field personnel in the state. Two biopharmaceutical firms with facilities in the Worcester market area, Bristol -Myers Squibb and Abbott Laboratories, also operate facilities in Puerto Rico and the Dominican Republic that can be reached from Worcester via connecting services at Je tBlue’s MCO and FLL focus cities. The Worcester region is also home to 13 colleges and universities with an enrollment of 33,000 students.

 Funds will be Used in a Timely Manner: Since JetBlue services at Worcester will commence November 7, 2013, shortly a fter grants are awarded, grant monies to promote and market the new services will be used in a timely manner. Massport and JetBlue have already developed a marketing and promotion plan to raise local awareness of Worcester Airport and the new services. Fu nds allocated to the project will be used to supplement JetBlue’s local advertising campaign, to market ORH and the Central Massachusetts region to residents of Central and South Florida, to monitor new services once they begin, and to promote
and market f uture JetBlue services to Fort Myers and the New York JFK and San Juan hubs should the
MCO/FLL services succeed.

In addition, the ORH application also supports several of the secondary selection criteria. A significant portion of the project funds, 27 % , will be contributed by local non- airport sources

. Local community leaders andWorcester Regional Airport, Worcester, MA. Application for Small Community Air Service Development Grant

Docket DOT

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- 0120, DUNS # 001766328, Congressional District MA -2 , July 26, 2013

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### officials were actively involved in recruiting JetBlue to serve Worcester Airport and will participate in raising local community awareness and patronage of the new air service s. Promoting usage of the JetBlue services which will appeal to a broad segment of Worcester air travel market directly addresses the community’s need to

re

- establish viable air services at ORH.

1.2 

### Previous Small Community Air Service Develop Grant Awards

20 03 S CAS D Grant

In 2003, the Worcester Airport (then owned by the City of Worcester) was awarded a Small Community Air Service Development grant of $442,615

. The goal of the 2003 air service project was to attract commercial
services to Florida destinations by low

- cost, charter type carriers (such as ATA and Trans Meridian) to serve leisure passengers originating in the Worcester area. Project dollars were allocated for carrier recruitment, local public awareness and promotional campaigns and airline operating costs offsets (i.e., fuel, ground handling, deicing, landing fees and terminal rents). Allegiant Airlines was successfully recruited and provided service to
Orlando Sanford Airport (SFB) from December 2005 through the beginning of September 2006. Funds were also used to promote services provided by Direct Air, which entered the ORH-SFB market in November 2008.

This current air service project is fundamentally different from Worcester’s previously funded project in several
respects:

 The JetBlue services to MCO and FLL have been announced and will commence on November 7, 2013. For the prior project, a portion of the funds were used to attract a low cost carrier (LCC); there were no up-front commitments from airlines to provide service. For the current project, funds will be spent entirely on marketing the new JetBlue services and additional services that JetBlue may initiate to top Worcester
markets.

 Unlike the previous project which targeted low -cost public charter and leisure oriented point

- to -point
carri ers like Trans Meridian , ATA and Allegiant, this project will support services by an air carrier that is competitive with both LCC and major network airlines. In recent years JetBlue has transformed itself from a pure LCC into a hybrid carrier with a focus not only on cost savings but also on an expanding network of domestic and international destinations, high levels of customer service and amenities and code share relationships to broaden its reach to leisure and business passengers.

 JetBlue has a strong presence and exceptional brand recognition in the New England and Florida markets and can build on the prior successes of Allegiant and Direct Air by appealing to a broader market segment that includes business as well as leisure passengers and inbound as well as outbound passengers.

 MCO and FLL are rapidly expanding focus cities for JetBlue and will provide Worcester passengers with greater connectivity than the previous services. Frequent nonstop services to MCO/FLL will allow Worcester passengers to co nnect to more than a dozen markets in JetBlue’s growing Caribbean and Latin American networks including San Juan, Santo Domingo, San Jose (Costa Rica) and Bogota. These connecting opportunities will appeal not only to leisure passengers but also to busine ss passengers from companies such as Bristol-Myers Squibb and Abbott Laboratories that have facilities in Central Massachusetts and Caribbean markets served by JetBlue.Worcester Regional Airport, Worcester, MA. Application for Small Community Air Service Development Grant

Docket DOT

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- 0120, DUNS # 001766328, Congressional District MA -2 , July 26, 2013

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###  JetBlue will be providing year -round, daily services which are more attractive to busi ness passengers, whereas Allegiant and Direct Air provided infrequent services (two to three flights per week) and often discontinued services during off- peak travel seasons.

 The initial JetBlue services will be to primary large hub airports - MCO and FLL - with potential connections to 13 beyond markets in the Caribbean and Latin America. The prior Allegiant and Direct Air services were limited to secondary airports such as Sanford ( SFB ) and Punta Gorda (PGD) with no beyond connecting markets. Passengers will not only benefit from the frequent, high quality flight services and connectivity provided by JetBlue but they will also benefit from the services and amenities available at the large hub destination airports. For example, Walt Disney World, a major O rlando area attraction, provides complimentary ground transportation for guests arriving at MCO but offers no such
service from SFB.

 The advertising and marketing campaigns to support the JetBlue services are distinctly different from the promotional camp aigns conducted for the Allegiant services . One of Massport’s public-private partners, the Massachusetts Office of Travel and Tourism, will conduct destination marketing campaigns to attract
visitors from Central and South Florida to the Worcester and Cent ral Massachusetts regions.

 JetBlue services to MCO and FLL are an important first step to re

- establishing viable air services at ORH. JetBlue operates an extensive network of leisure and business markets in the U.S., Caribbean and Latin
America and will h ave numerous future expansion opportunities at Worcester.

In summary, the goal s of the 2013 SCASD Project to re

- establish commercial services that will appeal to
business and leisure passengers as well as inbound and outbound passengers while also providin g connections to the global air transportation system

, are distinctly different and broader in scope than the 2003 Project goals . A s such, the 2013 Project meets the requirements of the Small Community Air Service Development Program to qualify as a new an d eligible project.Worcester Regional Airport, Worcester, MA. Application for Small Community Air Service Development Grant

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# 2. Overview of the Worcester Regional Airport Market

2.1 

### Catchment Area

Worcester Regional Airport is located in Worcester County approximately three miles west of the City of Worcester’s central business district. The airport is approximat ely 53 miles west of Boston Logan International Airport, 52 miles northwest of T.F. Green Airport in Rhode Island, 73 miles south of Manchester -Boston Regional Airport in New Hampshire, and 73 miles northeast of Bradley International Airport in Connecticut.

The Worcester Regional Airport catchment area has a population of more than one million 1 

### and generates more
than 1.8 million annual domestic and international origin

- destination (O&D) passengers. A 2010 survey of passengers from the ORH area using

Bost on Logan Airport (BOS) indicates
that 78% of ORH catchment area passengers use BOS. 2 

### Worcester catchment area passengers also use the secondary, regional airports: T.F. Green (11%); Manchester Boston (6%) and Hartford Bradley (5%). Worcester’s
estimated top domestic O&D markets based on the O&D markets for the airports used by passengers traveling to or from the Worcester catchment area, include business
and leisure destinations as shown in the following table. The top destinations for Worcester area pass engers using Logan, based on the Logan passenger survey, are also shown below. According to the Logan

passenger survey , 39% of the passengers traveling to or from the Worcester catchment area were traveling on business
and 31% were visitors to the

Worcest er/Central Massachusetts region

.

1 Based on the ORH primary and secondary catchment areas. The primary area includes all cities and towns that are at least 30 minutes and 30% closer to O RH than any other commercial service airport and the secondary area includes all other cities and towns that are closest to ORH based on drive times.

2 Massport, 2010 Boston Logan International Airport Air Passenger Ground Access Survey. Worcester Regional Airport Catchment Area

Generates 1.8M Annual O&D PassengersWorcester Regional Airport, Worcester, MA. Application for Small Community Air Service Development Grant

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6 Top Domestic O&D Markets for the Worcester Catchment Area

Note: Domestic O&D markets based on top O&D markets for BDL, BOS, MHT and PVD and airport usage patterns of Worcester area pa ssengers determined from the 2010 Lo gan Pas senger Ground Access Survey.

Source: US DOT, O&D Passenger Survey, 2012 , and Massport, 2010 Logan Passenger Ground Access Survey



### 2.2 

### Regional Economy

The Worcester MA

- CT Metropolitan Statistical Area (MSA) has a population of more than 900,000. With

n early 183,000 residents, the City of Worcester is the largest municipality in the ORH catchment area and the second largest city in New England. Population has been migrating from the Boston MSA westward towards Worcester to take advantage of quality low -c ost housing and an expanding business base. From 2000 to 2010, population in the Worcester MSA increased by 6.6% while population in the Boston MSA grew by only 3.7%. The median household income for the Worcester MSA is $60,493, nearly 20% higher than the median U.S.
household income.

The Worcester economy has been transformed from a traditional manufacturing base into an economy anchored by the information technology, bio

- technology, medical research, healthcare, insurance and higher education sectors. Top IT and biotech employers in the region include Seimens, EMC Corporation, Allegro Microsystems,
Bristol

- Myers Squibb, Genzyme Genetics, Abbot Bioresearch, Astra Zeneca, and Advanced Cell Technology. The University of Massachusetts Medical School, located in Worcester, is one of the fastest

- growing research institutions in the nation and the recipient of more than $200 million in federal and private research grants in FY **Estimated Top Domestic O&D Markets:**

2012 O&D Percent
Rank Market Passengers of Total Rank Market

1 Orlando 98,751 7.0% 1 Baltimore
2 Baltimore 77,730 5.5% 2 Orlando
3 Chicago 59,821 4.2% 3 Los Angeles
4 Tampa 52,419 3.7% 4 Denver
5 Fort Lauderdale 46,906 3.3% 5 Chicago
6 Washington 41,495 2.9% 6 Fort Lauderdale
7 Atlanta 29,639 2.1% 7 Phoenix
8 Denver 27,177 1.9% 8 Charlotte
9 Las Vegas 26,588 1.9% 9 Atlanta
10 Los Angeles 25,797 1.8% 10 Fort Myers
11 San Francisco 24,123 1.7% 11 Washington 12 Charlotte 24,093 1.7% 12 Las Vegas 13 Philadelphia 22,736 1.6% 13 San Francisco
14 Fort Myers 22,182 1.6% 14 Dallas/Fort Worth
15 New York 20,694 1.5% 15 Long Beach
16 Dallas/Fort Worth 19,375 1.4% 16 West Palm Beach
17 Phoenix 19,187 1.4% 17 Detroit
18 West Palm Beach 18,747 1.3% 18 Seattle/Tacoma
19 Detroit 17,115 1.2% 19 Minneapolis 20 Raleigh/Durham 16,161 1.1% 20 San Diego
Subtotal 690,737 48.7%

Total Domestic O&D 1,418,587 100.0% **Top Domestic O&D Markets for Worcester Passengers Using Logan Airport:** Worcester Regional Airport, Worcester, MA. Application for Small Community Air Service Development Grant

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### 2009. These organizations rely on air transportation to travel to customer and company l ocations, industry
conferences and events.

The Worcester region is also home to 13 four- year colleges and universities with a total student enrollment of 33,000 and more than 16,000 faculty and staff. These institutes of higher learning generate significa nt amounts of air passenger trips as many students, prospective students and faculty travel to from Worcester each academic year and during school vacation periods as well as relatives who visit for school open houses and graduations.

2.3 

### Air Service and Tra ffic History

Air S ervice His tory

Worcester Regional Airport has a long and successful history of commercial airline service. The Airport was served continuously from the late 1940s when the airport opened through February 2003, when US Airways discontinued its Philadelphia service. Since 2003 service has been sporadic and as of March 2012 ORH has been without commercial airline service.

In the 1980s several carriers including Bar Harbor Airlines, Continental Airlines, Northwest Airlines and Piedmont Airways provided daily nonstop services between Worcester and major Northeast destinations. At its peak in 1988, the Worcester Airport received 15 daily departures to five nonstop destinations: New York LaGuardia, Newark, Baltimore, Pittsburgh and Detroit. Sever al of these were burgeoning connecting hubs that provided Worcester area passengers with online connections to numerous markets across the country.

Worcester’s service levels began to contract in the early 1990s when the Massachusetts and national economie s entered a recession. The weak economy led to capacity cuts and consolidation within the airline industry. A merger of Piedmont Airlines and US Airways (then USAir) had a negative impact on Worcester as overlapping
services were eliminated.

In 1999, Massport entered into an operating agreement with the City of Worcester, which owned the airport at the time, and undertook an intensive marketing campaign to increase air service levels at ORH. Several new
services were initiated between 1999 and 2001. Delta Air Lines commenced nonstop regional jet service to Atlanta in February 2000. American Eagle followed with nonstop turboprop service to New York JFK in July 2000. Pan Am commenced nonstop service to Orlando Sanford Airport in February 2001. Finally, Americ an Eagle began nonstop regional jet services to the Chicago O’Hare connecting hub in July 2001. However, in 2002 in the wake of the 9/11 terrorist attacks, which weakened passenger demand nationwide and strained airline financial resources, these services were discontinued. By February 2003, US Airways, the only remaining carrier in the market, also terminated services.

Since then, ORH has been served intermittently by Allegiant Air from December 2005 to September 2006 and by Direct Air from November 2008 t o March 2012. Allegiant Air provided less than daily service (2 weekly Institutions of Higher Education in the
Worcester Catchment Are aWorcester Regional Airport, Worcester, MA. Application for Small Community Air Service Development Grant

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### departures) to Orlando Sanford Airport. Direct Air, which operated as a public charter carrier, offered nonstop service to Florida destinations and Myrtle Beach, South Carolina. The Fl orida services were mainly to secondary airports ( Orlando Sanford, Punta Gorda and West Palm Beach), departures were infrequent ( two to three flights a week ), some services were not offered during off

- peak travel months and none of the services provided connections to beyond markets.

.
P as s enger Traffic His tory

Airport passenger traffic grew rapidly in the late 1980s as passengers responded to an expansion of air services at the airport. Worcester’s traffic peaked at 355,000 enplaned/deplaned passengers in 1989. Traffic declined during the 1990s in response to capacity cuts and airline consolidation. By 1999, Worcester’s passenger traffic had fallen to 49,000. With the reintroduction of scheduled airline services to connecting hubs and major destinations passenger traffic climbed to 159,000 in 2001.

History of Worcester Airport Passenger Traffic

Note: Enplaned plus deplaned scheduled and non

- schedules passengers. Sources: U.S. DOT, T1, T100, and Part 298C Commuter Databases (1980

- 2006) and Massport (2007

- 201 0)



### More recently, the Worcester air travel market responded positively to Direct Air’s services from 2008 to 2012. The initial customer response broke records for Direct Air’s new market introduction. Direct Air began nonstop
service to Orlando Sanford a nd Punta Gorda and eventually added services to Myrtle Beach and West Palm Beach. In 2009, the first full year of services, Direct Air carried 46,000 Worcester passengers. Passenger traffic grew by more than 50% in 2010 and again in 2011 exceeding 107,000 as Direct Air added new markets and strengthened load factors in existing markets. Data provided by Direct Air shows that 14% of their passengers originated in Florida, indicating the potential for inbound passenger traffic to support air services at ORH. 3

3 Based on Direct Air data for the first quarter of 2009. 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000

'85 '90 '95 '00 '05 '10 **Passengers**

Allegiant Direct AirWorcester Regional Airport, Worcester, MA. Application for Small Community Air Service Development Grant

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9 Direct Air Passenger Traffic and Load Factors at Worcester Regional Airport

Source: Massport



### Air S ervice Development E fforts

Massport has been actively engaged in air service development for the Worcester Regional Airport. Over the past three years, Massport has had numerous meetings and conference calls with route planning executives from each of the following U.S. carriers regarding possible service to ORH: Allegiant, American, Delta, Frontier, JetBlue, Spirit, Southwest, United, and US Airways. The air service development objectives for Massport and the community are to secure scheduled nonstop service to ORH’s top passenger markets and to connect ORH to the nation’s air transportation system through services to an airline connecting hub or focus ci ty. The JetBlue services, described below, can achieve both of these objectives for ORH.

J etB lue S ervices

In 2010 Massport assumed ownership of the Worcester Regional Airport from the City of Worcester, Masspor t

. Shortly afterwards, Massport, state governm ent leaders, the City of Worcester and the Worcester community joined forces in a multi

- year marketing campaign to recruit JetBlue services to the Worcester Regional Airport. JetBlue representatives made several visits to tour the airport, meet with Masspo rt and other state and local officials, and gauge the level of community support for air services. The local community was actively involved in demonstrating their support and commitment to Worcester air service. T he president of Worcester

- based
Massachus etts Biomedical Initiatives, local college administrators, area business executives, and civic lea ders from Central Massachusetts participated in a luncheon with the JetBlue CEO and local citizens also showed
their commitment and enthusiasm for JetBlue ser vices through a social media video campaign.

The aggressive marketing campaign culminated in JetBlue’s April 3, 2013 Worcester service announcement. JetBlue will inaugurate nonstop services from Worcester to Orlando International Airport and Ft. Lauderdale Hollywood Airport on November 7, 2013, making Worcester JetBlue’s 80 th 

### city and 8 th 

### New England market. JetBlue will provide one daily roundtrip to each Florida market with 100- seat Embraer E190 regional jets. 44% 65% 75% 81%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

2008 2009 2010 2011 46,000 71,000 107,000

- 20,000 40,000 60,000 80,000 100,000 120,000

2009 2010 2011 + 55% + 51% 

### ORH **Passengers ORH**  **Average Load Factors**Worcester Regional Airport, Worcester, MA. Application for Small Community Air Service Development Grant

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- 0120, DUNS # 001766328, Congressional District MA -2 , July 26, 2013

10 

### JetBlue is well known not only for its low f ares, but also for its growing domestic and international reach and its superior customer service and amenities. As the largest airline serving Logan Airport and with services to seven other New England markets, JetBlue has a broad and loyal customer base in the Worcester region. If the initial JetBlue services to MCO and FLL are successful, JetBlue will operate additional frequencies in those markets and add new nonstop markets. The requested SCASD grant will be used, in part, to assure the success of JetBlue’s initial services, which is a critical first step for JetBlue to further expand its presence at Worcester.

JetBlue Worcester Nonstop and Connecting Services – Phase 1

Note: Services effective November 7, 2013.Worcester Regional Airport, Worcester, MA. Application for Small Community Air Service Development Grant

Docket DOT

- OST

- 2013

- 0120, DUNS # 001766328, Congressional District MA -2 , July 26, 2013

11 JetBlue Worcester Nonstop and Connect ing Services – Phase 1

Note: Services effective November 7, 2013.



### In Phase 1 of its Worcester expansion, JetBlue is expected to add additional flight frequencies to MCO and FLL, which would increase beyond connecting opportunities for Worcester passenger s. If this is successful, in Phase 2, Massport expects JetBlue to add new nonstop services that would further increase Worcester’s access to top O&D destinations through a combination of nonstop and connecting services. New nonstop markets are likely

to include Fort Myers, New York JFK and San Juan. These are similar to markets that JetBlue has added to the Hartford Bradley and Westchester airports after entering those markets with nonstop flights to MCO and FLL.Worcester Regional Airport, Worcester, MA. Application for Small Community Air Service Development Grant

Docket DOT

- OST

- 2013

- 0120, DUNS # 001766328, Congressional District MA -2 , July 26, 2013

12 

### These additional services would greatly expand Worcester’s connectivity by providing connecting services to top O&D markets across the U.S. JetBlue’s Phase 2 services would provide Worcester with nonstop or connecting service to 16 of its top 20 domestic O&D markets, connecting ORH to the nation ’s air transportation
system

.
JetBlue Domestic Markets Served from Worcester Airport



### The forthcoming JetBlue services are distinctly different from the Allegiant and Direct Air services at ORH.
JetBlue will offer year

- round, frequent (daily) scheduled services to the primary Orlando and South Florida airports (MCO and FLL). These services will be attractive to both leisure and business passengers. Orlando and Fort Lauderdale are focus cities for JetBlue and offer connecting services to 13 destinations in JetBlue’s growing Caribbean and Latin American network. Connecting opportunities are expected to increase as JetBlue expands its Caribbean and Latin American destinations and augments its ORH services with additional nonstop
markets in Phase 2 of its Worcester expansion. In contrast, Allegiant and Direct Air were both focused on serving the outbound leisure segment of the market with infrequent services ( two to three flights per week) limited to the peak travel months only

. The Allegiant and Direct Air services only carried point

- to

- point traffic since neither carrier operated a connecting hub at the Sanford or Punta Gorda a irports . With limited flights and no beyond connecting services, the Allegiant and Direct Air services predominantly appealed to leisure

passengers.

Airport F acilities

Worcester Regional Airport has in place all the facilities necessary to accommodate JetBlue’s announced scheduled passenger services as well as additional airline services. These include: a modern spacious terminal Rank Market Phase 1 Phase 2

1 Orlando Nonstop Nonstop
2 Baltimore
3 Chicago Connecting
4 Tampa Connecting
5 Fort Lauderdale Nonstop Nonstop
6 Washington Connecting
7 Atlanta
8 Denver Connecting
9 Las Vegas Connecting
10 Los Angeles Connecting
11 San Francisco Connecting
12 Charlotte Connecting 13 Philadelphia Connecting
14 Fort Myers Nonstop
15 New York Nonstop
16 Dallas/Fort Worth
17 Phoenix Connecting
18 West Palm Beach Connecting
19 Detroit 20 Raleigh/Durham Connecting JetBlue ORH ServiceWorcester Regional Airport, Worcester, MA. Application for Small Community Air Service Development Grant

Docket DOT

- OST

- 2013

- 0120, DUNS # 001766328, Congressional District MA -2 , July 26, 2013

13 

### with 6 aircraft gates; a Category I instrument approach for Runways 11 and 29 with a planned upgrade to Category 3; and 24/7 ARFF and maintenance support facilities.



# 3. Strategic Plan for Air Service

3.1 

### Strategic Goals and Objectives

The community’s overall str ategic objective is to re

- establish regularly scheduled commercial services from Worcester Regional Airport to top destinations on a major airline with an expansive network of services that will be attractive to leisure and business passengers. Ensuring th e success of the JetBlue services that will commence November 7, 2013 is the critical first step to re

- establishing ORH as an air service market. The specific goals of the project to support this objective are:

 Implement a comprehensive advertising and pro motion plan for new JetBlue services to MCO and FLL and other services that JetBlue may add

.

 Increase public awareness of ORH as an air travel option for residents and businesses in the ORH market area, as well as inbound visitors, through marketing and pr omotional campaigns in support of the JetBlue
services.

 Waive airport fees for JetBlue services to reduce start

- up costs associated with new air service
introduction.

3.2 

### Public

- Private Partnership

Massport and local government and business leaders recognize t hat the return of regularly scheduled commercial airline service to ORH is important to the region’s continued economic growth and competitiveness. Community leaders actively collaborated with Massport in recruiting JetBlue to serve ORH and will join Massp ort in a public

- private partnership to re

- establish air services at ORH. Massport’s partners in this
endeavor include:

 City of Worcester – is the former owner and operator of the Worcester Regional Airport. The City of Worcester has a long history of sup porting the airport and understands the economic linkages between the city’s vitality and being connected to the national and international air transportation networks.

 Massachusetts Office of Travel and Tourism - is the state agency dedicated to promoting Massachusetts as a friendly, family

- oriented destination set in the midst of rich historical and cultural tradition. MOTT is responsible for encouraging overnight stays in the Commonwealth , as well as increasing tourism

- related spending and payroll. MOTT often partners with other public and private entities to promote
Massachusetts as a leisure destination.

 Worcester Regional Chamber of Commerce – the largest Chamber of Commerce in New England. Worcester Regional Chamber of Commerce is dedicated to enhanci ng the region’s economic prosperity and the vitality of its business community. The mission of the Chamber is to support existing businesses and promote economic development in the Worcester region by being a bold, strong, articulate and
effective advocate

.Worcester Regional Airport, Worcester, MA. Application for Small Community Air Service Development Grant

Docket DOT

- OST

- 2013

- 0120, DUNS # 001766328, Congressional District MA -2 , July 26, 2013

14 

### Massport will serve as the legal sponsor and will be responsible for administering the SCASD grant, providing marketing support and cost

- concessions to JetBlue, and coordinating the community’s marketing and promotional efforts.

The City of Worcester wi ll contribute $150,000 towards the advertising and promotion campaigns for the new
JetBlue service s. In addition, the City will provide intangible support by assist ing with the media and marketing strategies and providing reco mmendations for media type, p lacement, quantity and frequency for media buys in the Worcester/Central Massachusetts Region. The value of these intangible services cannot be estimated but will represent a meaningful contribution to the overall marketing and advertising campaing. The M assachusetts
Office of Travel and Tourism (MOTT) will provide $150,000 in cash to design and implement an inbound marketing campaign to attract visitors from Central/South Florida to the Worcester/Central Massachusetts region. The Worcester Region Chamber of Commerce will provide in

- kind support for the advertising and marketing c campaigns by promoting the JetBlue services to its membership and at sponsored events , including the Central Massachusetts Business Expo featuring the JetBlue CEO as the keynote sp eakers. The value of the promotional materials and advertising in conjunction with this event is estimated at $20,000 . The Chamber’s intangible support will be provided through its on- going activities and cannot be valued.

3.3 

### Strategic Use of Funds

Marketin g and P romotion Campaigns

In an effort to help build awareness for the Worcester Regional Airport, and more immediately, for the success of JetBlue’s MCO and FLL services, Massport has crafted a multi

- faceted community outreach strategy, designed to suppo rt the efforts of JetBlue’s advertising campaign and attract leisure and business travelers to Worcester Airport. Since the service announcement, Massport has been working closely with JetBlue, the City of Worcester and MOTT to leverage the marketing plan and media strategy developed by Mullen Advertising Agency for JetBlue. Massport’s “JetBlue Worcester” campaign is designed to promote Worcester Airport and America’s favorite airline in the Worcester and Central Massachusetts regions.

Target Audiences

Mas sport’s strategic marketing outreach program utilizes a multidimensional and targeted approach in an effort to build awareness in the region through the penetration of various targeted audiences that include:

 Central Massachusetts business community

 Centra l Massachusetts leisure /consumer community

 Worcester regional collegiate community

 Specific campaigns will also be directed at the following sub segments:

− 65+ travelers

− Families

− Latino communityWorcester Regional Airport, Worcester, MA. Application for Small Community Air Service Development Grant

Docket DOT

- OST

- 2013

- 0120, DUNS # 001766328, Congressional District MA -2 , July 26, 2013

15 

### In addition to Massport’s local marketing and advertising cam paigns, MOTT will market and promote Worcester and the Central Massachusetts region as a destination to generate awareness among Central and South Florida passengers and bolster loa d factors and generate demand to support additional services.

Media Channel s

The comprehensive public awareness, marketing and promotional campaigns for the new JetBlue services will rely on multiple media channels including:

 Radio (WXLO 104.5FM, WSRS 96,Hot 96.9, Country 102.5, Magic 106.7)

 Print ( Telegram & Gazette, Worcester Business Journal, Worcester Living

, Sentinel & Enterprise

, Community Advocate, MNI

, Media Max , Boston Magazine, BayState Parent )

 Out of Home (Clear Channel, Murray, Lamar, Titan)

 Digital (AOL, Boingo, Crisp Media, GoLocalWorcster.com, Pandora, MNI, Mojiva, Telegram.com, Yahoo!, MediaMax

 Sponsorships & Events

Massport will begin to infuse ORH centric advertising (radio and print) in the Worcester County region in advance of the service launch. Massport has also been working with JetBlue to identify regional events and opportunities to promote the service inaugural.

Concurrent with the launch of JetBlue’s full advertising campaign in September, senior Massport leadership will promote the JetBlue ORH services at targeted speaking engagements. On October 2, 201 3, the Worcester Regional Chamber of Commerce will produce the Central Massachusetts Regional Business Expo featuring Dave Barger, President and CEO of JetBlue to promote the new services to the Central Massachusetts business community. This event will inc lude logos/naming, print/radio/digital/TV advertising, promotional interviews, and promotional print support materials. In November, Massport and its partners will host a major inaugural event at Worcester Airport with all local and regional media, politic al, business and community leaders to promote and increase public awareness of the services. Ongoing marketing outreach will continue after the
service launch to continue the JetBlue/ORH awareness momentum.

Airport F ee Waivers

Massport offers an Air Service Incentive Program to help support new airline services at Worcester Regional Airport. Any passenger carrier that provides scheduled nonstop roundtrip service from ORH to any new destination is eligible to participate in the Air Service Incentive Program. The program incentives include 100% rebates for landing fees, jet bridge fees, overnight aircraft parking and terminal rents for the first and second years of service. (The Air Service Incentive Program also includes $75,000 in cooperative marketing suppo rt per new nonstop destination which will be used to support the marketing and promotion campaigns described above).Worcester Regional Airport, Worcester, MA. Application for Small Community Air Service Development Grant

Docket DOT

- OST

- 2013

- 0120, DUNS # 001766328, Congressional District MA -2 , July 26, 2013

1 6 

### 3.4 

### Funding Plan and Grant Request

Massport is requesting a grant of $ 350,000 to support the Strategic Air Service Development plan for ORH. This funding will be matched by $450,000 in local cash contributions. Of the local cash contributions, Massport will contribute $150,000 (33%) and the City of Worcester and MOTT will each contribute $150,000. Two-thirds
of the local cash contribution will be funded from non- airport sources.

Project Cost and Funding Sources

Line Description Subtotal Total Amount

1 Federal Amount Requested $350,000

2 State cash financial contribution $150,000

3 Local cash financial contribution
3a: Airport cash $150,000 f unds

3b: Non -airport cash $150,000 funds

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

4 TOTAL CASH FUNDING (1 + 2 + 3) $800,000

In

- Kind contribution
5a: Airport in

- kind $349,003 contribution

5b: Other in

- kind $ 20,000 contribution

5 TOTAL IN

- KIND CONTRIBUTION (5a + 5b) $ 369,003

6 TOTAL PROJECT COST (4+5) $ 1,169,003

Notes: Line 3b includes $150,000 from the City of Worcester and $150,000 from MOTT. Line 5a and 5b in

- ki nd contributions itemized below.



### In addition to the cash co ntributions, the local community will contribute $369,003 worth of in

- kind services and cost rebates. Massport will provide $ 349,003 in cost offsets to JetBlue over a two

- year period, as shown
below.

Airport In

- Kind Contributions – Airport Cost Rebates

ORH-MCO ORH-FLL Total

Landing Fee $70,810 $70,810 $141,620 Jet Bridge fee $10,950 $10,950 $21,900 Overnight Parking $0 $36,500 $36,500

Terminal Rent Counter/ATO $9,810 Support Operations $139,173

Total: Waived Fees/Charges $349,003Worcester Regional Airport, Worcester, MA. Application for Small Community Air Service Development Grant

Docket DOT

- OST

- 2013

- 0120, DUNS # 001766328, Congressional District MA -2 , July 26, 2013

17 

### The Worcester Regional Chamber of Commerce will produce the Central Massachusetts Regional Business Expo featuring JetBlue CEO Dave Barger as the keynote speaker. The value of the promotional materials and advertising surrounding the event is valued at $20,000.

3.5 

### Implementation Timeline and Monitoring

P roject Timeline

The anticipated timeline for the project is shown below.

Monitoring P rogram

On an on

- going basis, Massport will monitor the performance of the JetBlue air services and the effectiveness of

t he marketing efforts. Service performance measures including departures operated, enplanements, and passenger load factors will be reviewed monthly using data collected by the airport. Massport will also seek to collect and review point of sale data from JetBlue to assess the effectiveness of the marketing efforts and potential adjustments to the marketing program. On a quarterly basis, Massport will review passenger airfares from the U.S. DOT O&D to compare Worcester fares to average fares at the alternati ve airports. Massport will also be in regular contact with JetBlue to discuss the operating performance of the services and the marketing
efforts. Anticipated SCASD Grant Award August 2013
Enter Grant Agreement with DOT September 2013
Develop Detailed Marketing Plan for MCO/FLL Completed
Begin New Service Marketing for MCO/FLL September 2013
New Service Inaugural MCO/FLL November 2013
Monitor Bookings/ Refine Marketing As Needed February 2013, quarterly thereafter
Begin Monitoring MCO/FLL Service Performance December 2013
New JetBlue Service(s) Announcement October 2014
Begin New Service Marketing for Additional JetBlue Route(s) November 2014
New Service Inaugural February 2015
Monitor Bookings/ Refine Marketing As Needed May 2015, quarterly thereafter
Begin Monitoring New Route(s) Service Performance March 2015
Close Grant (2 yr) September 2015 Worcester Regional Airport SCASD Grant Implementation TimelineWorcester Regional Airport, Worcester, MA. Application for Small Community Air Service Development Grant

Docket DOT

- OST

- 2013

- 0120, DUNS # 001766328, Congressional District MA -2 , July 26, 2013

18 

### 3.6 

### Legal Sponsor

Massport, the public authority that owns and operates Worcester Regional Airport, will serve as the legal sponsor for this project and will be responsible for administering the SCASD grant. Massport has the legal authority under state laws to carry out all aspects of the grant.

C ontact information:

Massachusetts Port Authority Thomas Glynn
CEO and Executive Director
One Harborside Drive Logan Office Center – Suite 200S East Boston, MA 02128

# Appendix A: 

# CommitmentsOFFICE OF THE CITY MANAGER, CITY HALL, WORCESTER, MA 01608
TELEPHONE (508) 799

- 1175 | FAX (5 08) 799

- 1208

EMAIL : citymanager@worcesterma.gov Michael V. O'Brien City Manager



### July 25, 2013

Brooke Chapman, Associate Director Small Community Air Service Development Office of Aviation Analysis U.S. Department of Transportation 1200 New Jersey Ave., SE, Room W86

- 307 Washington, DC 20590

De ar Ms. Chapman:

In support of JetBlue’s recent commitment to commence commercial air passenger service to and from the Worcester Regional Airport and Fort Lauderdale and Orlando, Florida in November 2013, the City of Worcester is pleased to have entered in to a Cooperative Marketing Agreement with JetBlue to promote public awareness of the new
JetBlue service.

The City of Worcester, in partnership with the Massachusetts Port Authority, will assist with media and marketing strategies to include recommendations as to media type, placement, quantity and frequency of insertions and/or media buys in the Worcester/Central Massachusetts Region. The City of Worcester will also review marketing plans/media buys developed by JetBlue, prior to media deployment and

cros s- sponsorship events and opportunities.

In addition to marketing support, the City of Worcester has agreed to commit $150,000 towards advertising campaigns to promote the new commercial airline service. These funds will be available to JetBlue for media buys as they deem appropriate.

We are committed to supporting this initiative and appreciate the opportunity provided by the Small Community Air Service Development Program. I thank you for your consideration of Massport’s proposal and look forward to the Worcester Regional Airport becoming one of the success stories of this grant program.

Sincerely,

Michael V. O’Brien City Manager CITY OF WORCESTER

# Appendix B: 

# Community Letters of Support

# atongrCSl1 of tl1c Nnitcb §tatcs masl1ington, 

## sill 2051.5

July 26, 2013

Brooke Chapman Associate Director Small Community Air Service Development Program US Department of Transportation 1200 New Jersey Ave, SE Washington, DC 20590

RE: Massachusetts Port Authority Small Community Air Service Development Program Application for
Worcester Regional Airport

Dear Ms. Chapman,

We are writing to express our strong support for the application submitted by Worcester Regional Airport for

a grant through the Department of Transportation's Small Community Air Service Development Grant Program (SCASDP).

Worcester Regional Airport serves the Central Massachusetts region and is one of three airports owned and operated by the Massachusetts Port Authority (Massport). Worcester has been without regularly scheduled service from a network carrier for more than 10 years. Massport and the Worcester community were very pleased when JetBlue announced earlier this year that it will begin year-round, daily nonstop services from
Worcester Airport to the Orlando International and Fort Lauderdale-Hollywood airports in November.
JetBlue's daily services to Orlando and Fort Lauderdale will not only provide passengers with direct flights

to two of Worcester's top markets, but will also provide convenient connections to several destinations in
Latin America and the Caribbean. These letBlue services and the potential expansion to other key JetBlue
destinations in the future, will serve the needs of business and leisure travelers across all of Central
Massachusetts.

The goal of Massport's SCASD grant application is to support these JetBlue services, and others that the
airline may add, to improve the region's connectivity to the national and global air transportation network. If approved, the requested grant would be used by Massport to promote and market the new services to ensure their success.

We respectfully request full and fair consideration of Mass port's application for SCASD funding for
Worcester Regional Airport. Thank you for your consideration.

Sincerely,

PRINTED ON RECYCLED PAPER

### Michael V. O'Brien CITY OF WORCESTER



### City Manager

July 24, 2013

Brooke Chapman
Associate Director Small Community Air Service Development Office of Aviation Analysis U.S. Department of Transportation 1200 New Jersey Ave., SE, Room W86-307 Washington, DC 20590

Dear Ms. Chapman:

I am pleased to submit this letter in support of the efforts of the Massachusetts Port Authority to receive a grant under the U.S. Department of Transportation Small Community Air Service Development Program.

Identified as one of the country’s 20 strongest performing metropolitan areas by the Brookings Institution, Worcester is a rapidly growing community. Home to hundreds of companies, as well

as ten colleges and universities, there is a substantial travel market in our great City. The
addition of JetBlue at the Worce ster Regional Airport is vital to our economy as it improves access for visitors, as well as supports area business, organizations, and academic institutions. It is necessary to properly market the new service in order to ensure its success
and the future growth our airport. This grant represents a remarkable opportunity to further air service development in Worcester, while tapping the Central Massachusetts area that is sure to be responsive once service is fully marketed.

An airport with ample flight options and competitive fares is widely seen as essential to both quality of life and economic development. Through an aggressive public/private marketing initiative, the Worcester Regional Airport hopes to garner more domestic and connecting

### international travel resulting in new and increased passenger demand for the Airport,

increased jobs, infrastructure development, and new air service.

We are committed to supporting this initiative and appreciate the opportunity provided by the Small Community Air Service Development Program. I thank you for your consideration of Massport’s proposal, and look forward to the Worcester Regional Airport becoming one of the success stories of this grant program.

Sincerely,

Michael V. O’Brien City Manager

# ASSUMPTION COLLEGE

WORCESTER, MASSACHUSETTS | ROME, ITALY

500 Salisbury Street | Worcester, MA 01609-1296 | TEL 508.767.7321 | FAX 508.767.7169 | www.assumption.edu OFFICE OF THE PRESIDENT



### July 23, 2013

Brooke Chapman, Associate D irector Small Community Air Service Development Office of Aviation Analysis U.S. Department of Transportation 1200 New Jersey Ave., SE (Room W86

- 307) Washington, DC 20590

Dear Ms. Chapman:

As president of Assumption College , I would like to offer my full su pport of the city of Worcester’s Small Community Air Service Development Program grant application. In addition to welcoming JetBlue
service in November to Worcester, this grant award would help spur opportu nities for economic development, increased tourism, and recruitment efforts for colleges and universities.

Assumption College is one of 10 institutions of higher learning in the Worcester region. With thousands of students, faculty, a nd staff working and living here, it is vital the city have quality and dependable
service at Worcester Regional Airport. As with other local colleges and universities, many Assumption
students hail from outside New England and require air travel to get home and back to Worcester. O ur faculty attend countless conferences and presentations across the country throughout the year

. In addition, many of our staff members often travel to all corners of the United States to meet with prospecti ve students and donors. A robust , dependable, and convenient Worcester Regional Airport will not only attract prospective students to Worcester, but will also make for ease of travel in everyone’s busy life.

I believe that what is good for Worcester is go od for As sumption College . The positive economic and
cultural benefits that our city will gain via JetBlue will no doubt be significant, and we look forward to
additional opportunities through the Small Community Air Service Development Program grant. Than k you for your consideration.

Sincerely,

Francesco C. Cesareo, Ph.D.
President1—lanoverFrederickH.EppingerInsuranceGroup..President&ChiefExecutiveOfficerJuly24,2013Ms.BrookeChapmanAssociateDirector,SmallCommunityAirServiceDevelopmentProgramU.S.DepartmentofTransportationOfficeofAviationAnalysis1200NewJerseyAvenue,SEWashington,D.C.20590WorcesterRegionalAirportDearMs.Chapman:ThisletteriswrittenonbehalfoftheMassachusettsPortAuthority-WorcesterRegionalAirport.TheHanoverInsuranceGroup,Inc.isaNewYork StockExchange-listedcompany,with$14billioninassets.WeareheadquarteredinWorcester,Massachusettsandwritebusinessin all50states.WealsowriteinternationalbusinessthroughourLloyd’sofLondonmanagingagency,whichunderwrites$1billionofnetwrittenpremiumannually.Wehaveapproximately5100employees,2000ofwhomarelocatedinWorcesterandliveinoraboutthecityanditssurroundingareas.Wewriteover$100millionofnetwrittenpremiumsinFloridaandhaveanextensivenetworkofagenciesandfieldpersonnelin thestate;infact,Floridaisour eighthlargeststate.Inaddition,theSoutheastregionofthecountryisanimportantoverall regionforTheHanover:fourofourtop12statesarelocatedintheSoutheast.TheHanoverhasenjoyedvigorousgrowthoverthepastseveralyears,whichhascontributedtothegrowthandvitalityofWorcesterandthecentralMassachusettsarea.Forexample,overthelasttenyears,wehaveincreasedourpropertyandcasualtysegmentnetwrittenpremiumsfrom$2.27billionto$4.4billionandweexpecttobeclosetoorexceed$5billioninthenearfuture.Commensuratewiththisgrowth,ourtotalemployeebasehasgrownfromlessthan4000in2007toourpresent5100employees.DevelopmentofcommercialairtransportationfromtheWorcesterRegionalAirportisimportanttoTheHanover’scontinuedgrowth.Currently,nearlyallemployeeswhovisitthehomeofficefromourotherofficesthroughoutthecountrymusttravelthroughLoganAirportinBoston.Inadditiontobeingaverybusyairport,Loganisapproximatelyonehourtraveltimeaway (Boston’strafficisnotorious,sothisisonagoodday).Wealsohavecountlessagents,440LincolnStreet•Worcester;MA01653Phone508-855-2600FaxI508-852-7588TheHanoverInsuranceCompanyCitizensInsuranceCompanyofAmericawww.Hanover.comvendors,bankersandotherprofessionalswhotraveltoour officesdailyand,ofcourse,homeofficeemployeesareregularlytravellingtoout-of-statelocations.ArobustcommercialairportintheCityofWorcester would maketravel infinitelymoreconvenientforourmanyemployeesinWorcesterwhotravelregularlyaspartoftheirresponsibilities,theemployeeslocatedthroughoutthecountrywhovisitthehomeofficeandthemany otherbusinessmenandwomen with whomwedobusiness.Theprospectsofathriving regionalairportwouldalsohelpusrecruitandretainemployees,whichis amajorfocusofour effortstogrowanddevelopasacompany.Inadditiontomaking accesstotheregioneasier,manyofthemwouldfindWorcesterRegionalAirportconvenientfortheirpersonaltravel.Admittedly,the entranceofJetBluetotheWorcester market wouldnot,inandofitself,addressallofourcommercialbusinessneedsorthepersonalneedsofouremployees;however,itwouldbeanenormousstart andundoubtedlywouldmeetsomeofourimmediateneeds.Importantly, theproposedflightdestinationsoffered byJet Bluewouldalsoofferconnectingflightsforouremployeesorotherstravelingtoorfrom thecentralMassachusettsregion.Insummary,enhancedaccessibilitytoWorcesterandthecentralMassachusettsregionthroughtheproposedJetBlueserviceisvery importanttoTheHanover. Webelievethatitwillcontributetoourabilitytorecruitandretainemployeesandtothegrowthofourcompanyandtheregion.WewouldexpectthatmanyemployeesofTheHanoverwill usethisservice,eitherfordirect orconnectingflights,forbusinessandpersonalpurposes.Wealsobelievethatitis acriticalsteptobringingotherservicestotheairport,whichwillservemoreandmoreofourneeds.Sincerely,FrederickEppinrPresidentandChiefExecutiveOfficer