Grant Application Under the 2010 Small Community Air Service Development Program OST-2010-0124

DOCKET OST- 2010-0124

Grant Application Under The 2010

Small Community Air Service

Development Grant Program

Submitted By

DUNS # 120 250 345 

Congressional District # 6
Grant Application Under the 2010 Small Community Air Service Development Program OST-2010-0124

TABLE OF CONTENTS

I. KEY INFORMATION

II. THE BATON ROUGE COMMUNITY

III. AIR SERVICE ISSUES IN BATON ROUGE

IV. CURRENT AND HISTORICAL AIR SERVICE

V. MARKETING AND PUBLIC AWARENESS CAMPAIGN AND ADMINISTRATION

VI. REVIEW AND SUMMARY

APPENDIX

LETTER OF SUPPORT FROM US AIRWAYS
Grant Application Under the 2010 Small Community Air Service Development Program OST-2010-0124

I. Key Information 

A. Airport and Community Name: 

Baton Rouge Metropolitan Airport, 9430 Jackie Cochran Drive, Baton 

Rouge, Louisiana 70807 

All correspondence should be sent to Mr. Anthony Marino, Director of Aviation. 

B. Community Support: 

Baton Rouge Chamber of Commerce & Baton Rouge City Council.

C. Project Sponsor:

The Baton Rouge Metropolitan is the official project sponsor.

D. Grant Intent:

Airline seating capacity reductions at the Baton Rouge Metropolitan Airport (BTR) have resulted in 3 

consecutive years of declining enplanements, including a decrease of -17% in 2009. However, the passenger 

volume decreased at a lower percentage than the seating capacity reductions, resulting in higher load factors 

for BTR carriers. Subsequently, the reduced capacity and higher fares exacerbated the historical problem of 

passenger leakage from Baton Rouge Metro Airport to New Orleans.

On June 24th of this year, US Airways Express entered the market with 3 daily CRJ flights to their Charlotte 

hub. The new Charlotte flights provide BTR with service to a second network-carrier hub in the East, providing 

more competition and seating capacity. Prior to the US Airways service, only one BTR carrier provided 

connecting service via a hub in the East; the other two BTR carriers require a backhaul for connecting service 

to eastern U.S. destinations. In the first full month of US Airways service (July, 2010), BTR enplanements were 

up 13.58%, reversing the 3-year decline in passenger volume and moderating the passenger leakage to New 

Orleans. 

For BTR to sustain this turnaround, it is critical that the US Airways service be successful. The Baton Rouge 

Metropolitan Airport is requesting a grant to fund a comprehensive advertising and community support program 

to ensure that the US Airways load factors continue to improve. 

The airport is requesting a grant in the amount of $100,000, which will be supplemented with a 20% local 

funding match. We will utilize the $120,000 in a diverse media and community awareness campaign to extol 

the benefits of using the Baton Rouge Metro Airport in general, and the new US Airways service in particular. 

US Airways has limited advertising funds available for a market of BTR’s size, but the carrier needs more 

exposure in the Baton Rouge area to reach profitable load factors. The growth of US Airways in Baton Rouge 

will be instrumental in maintaining the reversal of our previously declining passenger numbers, and putting 

BTR in a position to build the existing service and attract additional capacity. Failure of the US Airways flights 

would likely put BTR in a difficult position for many years to come in terms of passenger growth and expanded 

airline service. 
Grant Application Under the 2010 Small Community Air Service Development Program OST-2010-0124

II. The Baton Rouge Community

Baton Rouge is the capital and second largest city in the state of Louisiana. The nine-parish MSA population 

was projected to be 786,947 in 2009; and approximately 1.6 million people are located in BTR’s catchment 

area. Baton Rouge is the seat of government for the state of Louisiana, with state government accounting for 

approximately 30,000 local employees and spending approximately $14 million in air travel annually. 

The Baton Rouge area is also a major industrial, petrochemical, biomedical and port center. A number of 

Fortune 1000 companies are headquartered in Baton Rouge including the Shaw Group, Albemarle 

Corporation, Turner Industries, and Amedisys Corporation. The ExxonMobil refinery in Baton Rouge is the 

second largest in North America; and petrochemical companies Dow Chemical, Dupont, BASF, Honeywell, 

Shell, DSM Copolymer and Novartis have major operations in the area as well. The area plays host to 

statewide hospital systems, world-renowned biomedical research centers such as the Pennington Biomedical 

Research Center, and specialty surgical facilities. As the farthest inland deep-water port on the Mississippi 

River, the Port of Greater Baton Rouge ranks among the top ten U.S. Ports and 32nd in the world in total 

tonnage annually. 

Baton Rouge is also a center of higher education with four institutions of higher learning that include Louisiana 

State University, Southern University and A&M College, Baton Rouge Community College, and our Lady of the 

Lake College. 
Grant Application Under the 2010 Small Community Air Service Development Program OST-2010-0124

III. Air Service Issues in Baton Rouge

The Baton Rouge Metropolitan Airport enplaned 356,140 passengers in 2009, a 17% decline YOY. Despite 

having a core service area encompassing a population of nearly 800,000 people, a diversified economy, and 

the 11th strongest job market in the U.S. according to a recent Bloomberg Businessweek report, BTR has 

experienced reductions in flight frequencies and seating capacity over the past 3 years. 

The service reductions were 

due more to airline industry 

dynamics and other events 

unrelated to the economy of 

the BTR service area. The 

BTR passenger numbers 

have declined less than the 

capacity reductions on a 

percentage basis, resulting in 

higher flight load factors and 

higher than average fare 

levels. In short, the decline in 

BTR enplanements was 

attributable more to the 

service reductions than the 

vibrant area market.

The reduced service in turn exacerbated the problem of passenger leakage to New Orleans, with over 50% of 

passengers generated in the BTR service area using other airports—but primarily MSY. With estimated

leakage in the top 25 markets representing over 1 million passengers annually, recapturing even a modest 
Grant Application Under the 2010 Small Community Air Service Development Program OST-2010-0124

percentage of this traffic will put BTR in a position to expand service to levels commensurate with the size of 

the community.

Pax BTR Expected BTR 

Pax

Passengers 

Lost

Percent 

Lost

Dallas 76,003 191,695 115,692 60.4%

Atlanta 41,732 112,482 70,751 62.9%

Washington 39,088 176,584 137,496 77.9%

LA Basin 34,790 110,469 75,679 68.5%

Chicago 23,120 106,242 83,122 78.2%

New York 21,510 209,222 187,712 89.7%

Houston 19,123 243,594 224,472 92.1%

Denver 19,065 66,947 47,882 71.5%

Las Vegas 18,816 67,030 48,215 71.9%

Bay Area 15,953 76,214 60,261 79.1%

Philadelphia 14,067 65,221 51,154 78.4%

Seattle 13,750 38,045 24,295 63.9%

Boston 12,736 50,931 38,195 75.0%

Austin 12,627 36,833 24,206 65.7%

Phoenix 10,716 37,017 26,301 71.1%

Kansas City 10,242 32,538 22,296 68.5%

San Antonio 9,703 34,017 24,314 71.5%

Minneapolis 9,436 31,132 21,695 69.7%

San Diego 9,208 37,005 27,797 75.1%

Salt Lake 8,641 19,879 11,238 56.5%

Richmond 8,485 16,839 8,354 49.6%

Orlando 8,364 95,578 87,213 91.2%

Raleigh Durham 8,291 32,424 24,132 74.4%

Detroit 8,053 33,741 25,688 76.1%

Pittsburgh 8,035 24,496 16,461 67.2%

Total 461,554 1,946,175 1,484,621 76.3%
Grant Application Under the 2010 Small Community Air Service Development Program OST-2010-0124

IV. Current and Historical Air Service 

BTR has service to five major connecting hubs on four major airlines—American (DFW), Continental (IAH), 

Delta (ATL & MEM), and now US Airways (CLT). Regional jet equipment is utilized on all routes with the 

majority being 50-seat CRJ aircraft.

With the addition of US Airways, BTR is beginning to reverse the decline in flights and seating capacity. The 

service is also helping to reduce BTR’s historically higher than average air fares with the availability of more 

discount seats caused by the additional capacity and new competition.

The major service reductions BTR experienced over the past 3 years were due in large part to outside events 

and industry challenges. They include:

• Frontier Airlines entered bankruptcy and discontinued service to its Denver hub in 2008.

• Delta significantly scaled back service at its Cincinnati hub, including the BTR flights.

• American eliminated BTR service to Chicago as part of a discontinuation of virtually all Chicago 

nonstop flights from secondary cities in the Gulf Coast and Deep South.

• Delta service to Washington/Reagan was eliminated when fuel prices reached historical highs, 

making the long-haul flights with CRJ 200 regional jets unprofitable.

• Existing carriers replaced the limited remaining mainline jet flights with regional jet service.
Grant Application Under the 2010 Small Community Air Service Development Program OST-2010-0124

Service levels spiked at BTR following Hurricane Katrina, subsequently increasing traffic and service at BTR as 

it became the primary alternate airport for MSY. However, as carriers resumed service to MSY and priced the 

market aggressively to rebuild passenger volume, the fare disparities between BTR and MSY grew and 

leakage from BTR reached historic levels from 2007 through 2009. BTR is only beginning to recover from this 

3-year decline with the addition of US Airways Express service to Charlotte. 

V. Marketing and Public Awareness Campaign Structure and Administration

The marketing and public awareness campaign will build support for US Airways and the airport, in turn helping 

to reduce the passenger leakage. Recapturing as little as 10% of the leakage will vault BTR passenger traffic 

to levels comparable to 2006 before the 3-year decline began. This will improve BTR’s opportunities for 

securing both larger aircraft on existing routes getting commitments for new ones. For example, expansion of 

nonstop US Airways service from BTR to Washington Reagan National would provide a much needed route for 

residents of Louisiana’s capital city. 

Baton Rouge will use this grant to develop a focused program to reverse public misconceptions regarding 

service options from BTR, and to attain stronger public support for the new US Airways service. Key issues 

that will be addressed include: 

 Fares—The US Airways service combined with new capacity added by incumbent carriers in response 

are resulting in more competitive fares. Low fares are available from BTR; and the goal is to get area travelers 

to check BTR first.

 Schedules—For the majority of domestic and international destinations, BTR offers competitive 

connecting service that does not differ significantly from MSY. In many instances, passengers are connecting 

over the same hubs to the same flights as they would when flying from BTR. 

 Market Message: The advertising objective is to take perceived disadvantages of the Baton Rouge 

Metropolitan Airport and turn them into advantages compared to larger airports. Convenience and customer 

service advantages offered by the hometown airport in terms of ease of access, shorter lines, nearby parking—

all of which shaves precious time from the travelers’ schedule. We will appeal to community pride and 

ownership of the airport while communicating the fact that BTR offers frequent flight choices that can take 

travelers to most destinations worldwide with a single connection. The new US Airways service will be 

featured within all ads and communications to confirm that the airport is an important economic engine for the 

community that offers better service options and fares than perceived by many residents. 

 Corporations & Institutions with High Travel Volume: The airport will focus on companies and 

institutions generating the highest passenger volume such as Shaw Industries, State Travel Office, Turner 

Industries, Albemarle Corporations, Amedisys, ExxonMobil, LSU, and Southern University among others.

 Key Demographics: The campaign will utilize a range of media channels to reach broader consumer 

segments, including both business and leisure travelers. Television, radio, outdoor, print and internet media 

sources will be selected according to audience share and key demographic criteria.

 Other Tools: Incentive programs such as the Thanks Again traveler loyalty program will be utilized to 

reward travelers for dollars spent at BTR. Additional marketing tools will include direct mailing, email alerts, 

and key civic event sponsorships. 

 Fare and Service Monitoring: Fares will be monitored closely, particularly for top destinations in the 

Eastern U.S. The airport staff will interact with carriers, particularly US Airways, to advise them of fare 

disparities that are creating the most passenger leakage.

 Program Progress: 1) Attain a 78% + load factor on US Airways within 12 months of the program 

implementation. 2) Within 12 months of program initiation, recapture a minimum of 100,000 passengers 

previously lost to MSY. 
Grant Application Under the 2010 Small Community Air Service Development Program OST-2010-0124

The Airport and the community are requesting a grant in the amount of $100,000, to be matched with $20,000 

in local dollars. The grant will fund these market activities and be expended over a 12-month period. 

The Airport will provide the Department with a detailed program spending plan for approval that will cover the 

projected one-year grant timeframe. Quarterly reports with US Airways load factor and BTR passenger 

enplanement data applicable to the 12-month period of the campaign will be provided as well. 

VI. Review and Summary

Airline industry and other events not related to the Baton Rouge core customer base have resulted in capacity 

reductions at BTR exceeding 26% over the past 3 years followed by a comparable percentage decline in 

enplanements.

The Baton Rouge Metropolitan Airport has an opportunity to capitalize on the new US Airways service by using 

it as a catalyst to build a more positive perception of the airport, counter misperceptions about service options, 

and change the buying behavior of area residents so that they begin to check BTR first when in need of air 

travel. 

Ensuring the success of the US Airways service will allow BTR to reverse the large 3-year decline in 

enplanements by rebuilding passenger volume and recapturing a significant percentage of the passenger 

leakage. This will lead to more opportunities for additional flight service and/or upgrades to larger aircraft while 

mitigating the fare disparities with MSY.

The Baton Rouge Metropolitan Airport appreciates this grant opportunity, and we look forward to the potential 

assistance with the BTR turnaround. 
Grant Application Under the 2010 Small Community Air Service Development Program OST-2010-0124
APPENDIX B

 Page 1 

Order: 2010-7-16

Docket DOT-OST-2010-0124

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT-OST-2010-0124

SUMMARY INFORMATION

All applicants must submit this information with their proposal, along with a completed form SF424 on 

http:// www.grants.gov. 

A. APPLICANT INFORMATION: (CHECK ALL THAT APPLY)

X Not a Consortium ⁭ Interstate Consortium ⁭ Intrastate Consortium

⁭ Community now receives EAS subsidy

⁭ Community (or Consortium member) previously received a Small Community Grant

 If previous recipient, expiration date of grant: ___________________________

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

Public Private

1. Baton Rouge Metropolitan Airport_______ 1.______________________________________

 2.____________________________________ 2.______________________________________

 3.____________________________________ 3.______________________________________

 4.____________________________________ 4.______________________________________

 5.____________________________________ 5.______________________________________

C. PROJECT PROPOSAL: (CHECK ALL THAT APPLY)

X Marketing ⁭ Upgrade Aircraft ⁭ New Route

⁭ Personnel ⁭ Increase Frequency ⁭ Low Fare Service

⁭ Travel Bank ⁭ Service Restoration ⁭ Subsidy
 

 APPENDIX B

 Page 2

⁭ Surface Transportation ⁭ Regional Service ⁭ Other (specify)

_________________

⁭ Revenue Guarantee ⁭ Launch New Carrier _________________

_________________

⁭ Start Up Cost Offset ⁭ First Service _________________

_________________

X Study ⁭ Secure Additional Carrier

D. EXISTING LANDING AIDS AT LOCAL AIRPORT:

X Full ILS X Outer/Middle Marker X Published Instrument Approach

X Localizer X Other (specify) RNAV “GPS”

E. PROJECT COST:

1. Federal Amount Requested: $100,000 ____________________

2. State cash financial contribution: _____________________________

3. Local cash financial contribution...

3a. Airport cash funds: $20,000 _____________________

3b. Non-Airport cash funds: _____________________________

3c. Total local cash funds (3a. + 3b.): _____________________________

4. TOTAL CASH FUNDING (1. +2.+3.) $120,000_____________________

5. Local funds contributed from already-existing

 programs or projects included in line3c. amount: _____________________________

6. Local funds contributed from new commitments

 or new resources included in line 3c. amount: _____________________________

7. Airport In-Kind contribution: _____________________________

 (amount & description)

8. Other In-Kind contribution: _____________________________

 (amount & description)

9. TOTAL IN-KIND CONTRIBUTION (7.+8.): _____________________________

 10. TOTAL PROJECT COST (4.+9.) $120,000_____________________
APPENDIX B

 Page 3

F. ENPLANEMENTS:

2000____435,233______ 2004_____375,412________ 2008____433,135____________

 2009___ 356,140____________

2001____379,843 ______ 2005_____523,417________

 2002____380,503______ 2006_____534,709_______________

2003____362,766 ______ 2007_____491,836_______________

G. IS THIS APPLICATION SUBJECT TO REVIEW BY STATE UNDER EXECUTIVE ORDER 12372 

PROCESS? No

⁭ a. This application was made available to the State under the Executive Order 12372 Process for review on

(date)___________________.

⁭ b. Program is subject to E.O. 12372, but has not been selected by the State for review.

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

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

X No ⁭ Yes (explain) _______________________________________________________________