Proposal of Concord Regional Airport • Concord, North Carolina • July 2013 APPLICATION UNDER
SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT

- OST

- 2013

- 0120

SUMMARY INFORMATION

A. P ROVIDE THE LEGAL SPO NSOR AND ITS DUN AND BRADSTREET (D& B) DATA UNIVERSAL NUMBE RING SYSTEM (DUNS)

NUMBER , INCLUDING +4, EMPLOYEE IDENTIFICAT ION NUMBER (EIN) OR TAX ID

. Legal Sponsor Name: City of Concord, North Carolina
DUNS Number:
079067484 EIN/Tax ID:
56

- 6001207

B. L IST THE N AME OF THE COMMUNITY OR CONSORTIUM OF COMMUN ITIES APPLYING : 1. C ITY OF C ONCORD , N ORTH C AROLINA

C. P ROVIDE THE FULL AIRP ORT NAME AND 3

- L ETTER IATA A IRPORT C ODE FOR THE APPLICAN T ( S ) AIRPORT ( S ) (O NLY

PROVIDE CODES FOR TH E AIRPORT ( S ) THAT ARE ACTUALLY SE EKING SERVICE ).
1. Concord Regional Airport (JQF )Proposal of Concord Regional Airport • Concord, North Carolina • July 2013

D. L IST THE 2

- DIGIT CONGRESSIONAL DISTRICT CODE APPLIC ABLE TO THE SPONSORI NG ORGANIZATION , AND IF A

CONSORTIUM , TO EACH PARTICIPATIN G COMMUNITY

. 1. NC

- 08

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):

F. P UBLIC /P RIVATE P ARTNERSHIPS : (L IST O RGANIZATION NAMES )
PUBLIC PRIVATE
1. Concord Regional Airport 1. Cabarrus County CVB
2

. City of Concord 2. Cabarrus Regional Chamber
3. Cabarrus County 3. Cabarrus Economic Development Corp.

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 Service Other (explain below)

H. E XISTING L ANDING A IDS AT L OCAL A IRPORT : Full ILS Outer/Middle Marker Published Instrument Approach
Localizer Other (specify) 

### XProposal of Concord Regional Airport • Concord, North Carolina • July 2013

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 $2 5 0,000
2 State cash financial contribution $0
Local cash financial contribution
3a Airport cash funds $ 0
3b Non

- airport cash funds $10 0,000
3 Total local cash funds ( 3a + 3b ) $ 100,000
4 TOTAL CASH FUNDING ( 1+2+3 ) $3 5 0,000
In

- Kind contribution
5a Airport In

- Kind contribution** Various
5b Other In

- Kind contribution** Various
5 TOTAL IN

- KIND CONTRIBUTION ( 5a + 5b ) Various
6 TOTAL PROJECT COST ( 4+5 ) $ 3 5 0,000

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. The Airport will waive terminal rent and landing fees for two years; l ocal media companies will offer discounts on advertising; partner airlines will offer free tickets for giveaways

.Proposal of Concord Regional Airport • Concord, North Carolina • July 2013

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)

_____________________________________________________________________________________________Proposal of Concord Regional Airport • Concord, North Carolina • July 2013 

## 1

TABLE OF CONTENTS

Legal Sponsor 1
In troductory Letter of Support 2
Introduction 3
The Concord/North Charlotte Air Service Market 4 Unique Catchment Area 4 Regional Fare Increases 6
Air Service Needs and Deficiencies in Concord 8 Average Fares 8 Cost of Travel per Mile 9 Regional Load Factors 10 Capacity Allocation: Connecting vs. Local 10 Strategic Plan for Scheduled Air Service 1 2 New Target Markets 1 2 Project Timeline 1 5 Public/ Private Partnership 1 6 Letters of Support 18
Conclusion 20



## LEGAL SPONSOR
The Concord Regional Airport is the legal sponsor responsible for administering the proposed air service development program. The Airport is a government agency, owned and operated by the City of Concord.

C ity of Concord, North Caro lina 2 6 Union Street, South Concord, North Carolina 2802 5 Rick Cloutier , A viation Director (704 ) 920

- 5913 cloutier@concordnc.gov 

### Section Page NumberProposal of Concord Regional Airport • Concord, North Carolina • July 2013 

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INTRODUCT

ORY LETTER OF SUPPORTProposal of Concord Regional Airport • Concord, North Carolina • July 2013 

## 3

INTRODUCTION

Concord, North Carolina

, lies to the northeast of downtown Charlotte, at the center of an area of Charlotte’s northern suburbs with the highest median household income in the State. Concord Regional Airport serves its unique catchment area, which is home to 667,000 people,
throu gh private and charter aviation. The Airport has never had scheduled air service. But today, the local economy demands better access to the national transportation system.

The market is changing. With a large hub, dominated by a single airline, the cost of air travel in Charlotte has steadily climbed. Charlotte now ranks as the most expense airl ine hub on the East
Coast . The average fare at Charlotte has risen by 29% over the last four years to an average of
22

- cents per mile. Travelers in and out of Charlotte pay, on average, 33% more for access to air service than their counterparts in other cities in the
Southeast

.

The Airport has put together a strategic air service development plan to bring additional competition to the region and to help lower fares. Adding network carrier service to Concord is unlikely to stimulate the market and develo ped new passengers. But adding low cost less

- than

- daily service at Concord will help stimulate traffic with fares much lower than those at Charlotte. It will also provide a type of service that is not currently offered within a two hour drive of Concord.

The Airport has already met with prospective airlines. Those airlines have expressed interest in launching service as soon as winter of 2013

– 2014. Each of the prospective carriers expressed a need for marketing support to help educate the community a bout the new service. The Airport and its public and private partners have developed $100,000 in funding to this end

, but with the high cost of media in the Charlotte market

, the local funding will not be enough for wide outreach. The Airport is seeking $250,000 in federal Small Community Air Service Development (SCASD) Grant funding to support its marketing effort. New service to Concord will not only support local businesses, families, and economic development, it will also help connect the 1.5
million tourists who visit Cabarrus County each year, “Where racing lives.” This service is critical to the growth of the tourist economy of a large section of North Carolina. 

## “New service to Concord will not only support local businesses... it
will also help connect the 1.5 million tourists who visit each year to Cabarrus County...”Proposal of Concord Regional Airport • Concord, North Carolina • July 2013 

## 4

THE CONCORD/NORTH CHARLOTTE AIR SERVICE MARKET The Regional Economy and Air Service Environment

Several decades ago, Concord, North Carolina

, was a small town about 20 minutes north of
Charlotte

– mostly a “bedroom community”

– and a small one, at that. Today, Concord is the center of world motorsports as the headquarters of
NASCAR and most of its
teams. It is a center for biotech and banking . As Charlotte has grown to one of the top 20 largest metro areas in the country,
Concord , itself, has seen unparalleled growth.

But Concord is a unique community

– and not solely a satellite to Charlotte. The Concord economy is the third largest in the State of
North Carolina

– after

Charlotte and Raleigh

- Durham. Its unique catchment area is home to 667,484 people to the northeas t of
downtown Charlotte (see Map 1). A surprising 33% of the Charlotte metro area’s population, and 30% of its economic activity, is closer to the Concord Regional Airport than to Charlotte Douglas International Airport.

The households with the highest income level in south
central North Carolina are clustered around Concord. While the Charlotte Metropolitan Statistical Area (MSA) had a median household income of $50,671 in 2012, the Concord median household income was $69,12 6, or 36% 

### MAP 1: Concord Regional Airport Catchment Area Source: Sixel Consulting Group, 2011 US Census Estimates

MAP 2 : Median Household Income by Census Tract Source: US Department of Commerce, 2012Proposal of Concord Regional Airport • Concord, North Carolina • July 2013 

## 5

higher than Charlotte (see Map 2 on previous page ). The average Concord household made $18,455 more in 2012 than the average Charlotte household. Spending power is stronger in and around Concord, mainly due to the large number of high paying “white collar” jobs, and the large number of high

paying NASCAR

- affiliated jobs.

The Concord economy is also driven by tourism. More than 1.5 million people come to Concord each year for

ev ents at the Charlotte Motor Speedway. The facility seats 140,000 people at 15 main events, and a number of smaller events. The Speedway is just a mile and a half from the Concord Regional Airport terminal, which is just across Interstate 85 (see Map 3). Concord is working hard with its partners to grow inbound tourism. Air service at Concord Regional Airport will be a key to that growth.

The importance of the local airport to the regional Concord economy has become more apparent in the last decade. Concord Regional Airport has never seen scheduled air service

, but it does see a large number of charters handling, primar ily, NASCAR travel needs. Since 2006, passengers using these charters have grown from just under one passenger per day each way (PDEW) to an average of 55 PDEW (see Figure 1). In 2012, Concord Regional Airport saw more than 40,000 airline passengers on s cheduled charter flights

– primarily Boeing 737s. To this point in 2013, it seems a certainty that passengers will eclipse the 2012 record. There is clearly local
demand for air service that is being met by charters. This
demand could be more effectivel y met with scheduled air service. 

### MAP 3 : Charlotte Motor Speedway Source: Google Maps, July 201 3

FIGURE 1 : O&D Passengers on Charters at Concord Regional Airport Source: US DOT OD1A, Calendar Year 2000

– Calendar Year 2012Proposal of Concord Regional Airport • Concord, North Carolina • July 2013 

## 6

The overall Charlotte market, meanwhile, has stagnated due to rapidly increasing fares. Of major airline hub markets in the country, Charlotte has some of the highest average fares, and they figure to increase further following the expected merger of Charlotte hub carrier US Airways
and American Airlines. Since 20 09, the average Charlotte fare has risen by 29%, or an average of $52 each way, to $230 each way (see Figure 2).

At the same time, Charlotte’s passenger growth has slowed. Since 2009, the market has only grown by 11% (see Figure 2). Compare that to the passenger growth from 2004 to 2007, when the market added 49% more passengers, or an average of 4.429 additional passengers per day each way. Also of note, during t hat period fares declined by 6%. Concord Regional Airport has the opportunity, through new service, to bring overall fares in the region down, and to re

- stimulate passengers that have been suppressed out of the
market.

Service in the greater Charlotte ma rket is geared toward origin and destination business travel. This is evidenced by Charlotte’s top 25 passenger markets (see Figure 3). Seven of the top ten markets are business travel destinations, including New York/Newark, which generates an average o f 674 passengers per day each way as of 2012; Boston, which generates an average of 268 PDEW; and 

### FIGURE 2 : O&D Passengers and Average One Way Fares at Charlotte Douglas International Airport Source: US DOT OD1A, Calendar Year 2004

– Calendar Year 2012

FIGURE 3 : Top 25 O&D Passenger Markets at CLT Source: US DOT OD1A, Calendar Year 2012Proposal of Concord Regional Airport • Concord, North Carolina • July 2013 

## 7

Chicago, which generates an average of 222 PDEW. Business markets tend to support higher average fares than leisure markets, as business travelers are less f are sensitive than leisure travelers, which helps to explain why Charlotte fares have been rising so rapidly.

As previously mentioned, the average
Charlo tte one way fare for 2012 was $230 (see Figure 4). In markets where fares are below $200 each way, it is almost solely due
to the short distance of the route from Charlotte. The New York/Newark fare, for example, averaged $149 each way in 2012,
which works out to a yield of 28

- cents per mile

– much higher than the regional average yield of 17

- cents per mile. Even on
short

- haul flights, Charlotte’s fares are much higher on a mileage basis than other markets up and down the East Coast

.

Concord catchmen t area passengers are forced, almost exclusively, to use Charlotte as their primary airport, with no current local scheduled service. Concord passengers are being suppressed by high fares at Charlotte. These passengers would be best served by local air

s ervice, at Concord Regional Airport, rather than an additional competitor at Charlotte. 

### FIGURE 4 : Average One Way Fares in Top 25 Markets at CLT Source: US DOT OD1A, Calendar Year 2012Proposal of Concord Regional Airport • Concord, North Carolina • July 2013 

## 8

AIR SERVICE NEEDS AND DEFICIENCIES IN CONCORD

Despite the fact that Concord lies just north of the Charlotte metro area, which is served by a large US Airways hub, there are a number of deficiencies in air service for Concord

- area travelers. The biggest challenges to air service access in Concord include high av erage fares that continue to climb, the high cost of travel
on a seat

- mile basis

– with high fares in even
short

- haul markets, high load factors on current service that suppress travel during peak times, and the fact that Charlotte’s hub carrier actually p rovides more access to connecting passengers than it does to local origin and
destination traffic at Charlotte Douglas International Airport

.

Of all southeast region airports in 2012, Charlotte has the third highest average fare at $220 each way (see Figure 5). Only Washington Dulles and Savannah had higher fares in 2012. The regional average fare for the period was $190 each way, a full $30 less than the Char lotte average. Charlotte area passengers paid an average premium of 16% over the regional average for access to scheduled air service. As the vast majority of Concord Regional Airport catchment area passengers use Charlotte’s airport, due to the lack of scheduled service in Concord, these high fares suppress travel to
and from Concord.

As Charlotte is a major hub airport for US Airways, especially for domestic connecting passengers, it is also important to analyze it against it s peers. Among East
Coast airports that operate as hubs for one or more carriers, Charlotte had the fourth highest domestic 

### FIGURE 5 : Average One Way Fares in Southeast Markets Source: US DOT OD1A, Calendar Year 2012

FIGURE 6 : Average Domestic Fares at East Coast Hubs Source: US DOT OD1A, Calendar Year 2012Proposal of Concord Regional Airport • Concord, North Carolina • July 2013 

## 9

average fare in 2012, at $196 each way (see Figure 6 on previous page ). The average for these hub airports was $188 each way in the same period, with Charlotte’s average 4% above the East
Coast hub average. Only three of the large northeast corridor airports had higher average fares
in 2012

– Washington Dulles (a United hub), New York/Newark (a United hub), and New Yor k Kennedy (a
hub for Delta and J etBlue).

Average fares do not accurately tell the whole story as they do not take into account the distance flown. Passengers traveling to and from the Charlotte area, including Concord, tend to be flying on shorter

- haul trips than passengers traveling to and from other hub airports in the east. Passengers into and out of Charlotte pa y more, per mile, for their fares than those traveling in and out of any other airport in the east.

An analysis of the same East Coast hub airports shows the average cost of a trip, per mile flown, also known as the average yield per passenger mile, is 22

- cents at Charlotte Douglas
International

– the airport most used by Concord area passengers (see Figure 7). This is higher than any other East Coas t hub airport in 2012, and 33% higher than the average East Coast hub yield of 16.5

- cents per passenger mile. The three hubs that had higher average fares than
Charlotte in 2012

– Dulles, Newark, and New York Kennedy

– all had fares that cost much less
pe r mile than Charlotte. The Dulles yield was 12% below the Charlotte yield, while the Newark yield was 22% lower, and the New York Kennedy yield was 40% lower than Charlotte in 2012. All three airports were actually less expensive than Charlotte when leng th of trip is taken into
account.

Charlotte’s yield per passenger mile is far above the national average and ranks as the highest in 

### FIGURE 7 : Average Yield at East Coast Hubs Source: US DOT OD1A, Calendar Year 2012

FIGURE 8 : Average Yield per Passenger Mile in the Southeast Source: US DOT OD1A, Calendar Year 2012Proposal of Concord Regional Airport • Concord, North Carolina • July 2013 

## 10

the entire southeast region for 2012. While the average passenger in the Southeast paid 16.8

- cents per mile flown in 2012 , the average Charlotte area passenger, including those flying to and from Concord, paid an average of 22

- cents per mile flown (see Figure 8 on previous page ). On a 1,000 mile flight, the average southeast region passenger would have paid $168 in 2012.
T he average Concord area passenger would have paid $220

– or 31% more

– on the very same flight. This illustrates the true fare differential between the Charlotte area and the rest of the
Southeast , and is a compelling reason to believe service at an alter nate airport in the region
could see success and help to bring
fares down.

Despite high fares, passengers fill an extremely high percentage of available airline seats at Charlotte Douglas Airport. In 2012, almost 83% of all seats were filled with revenue passengers. Load factors peaked in June and July of 2012 over 86 % (see Figure 9). Over the last three years, the lowest load factor month at Charlotte was still above 75%

- January of 2010. Load factors have not dipped below 80% since the beginning of
2011.

With the highest fare per mile flown in the region

, it
seems difficult to believe demand for air service is strong enough to fill that percentage of available seats. While Charlotte demand, including demand in the Concord area, is robust, it is not strong enough to generate all the passengers required to fill those available seats. Many of the passengers using service at Charlotte Douglas Airport are just connecting through the facility on their way to their ultimate destination.

An analysis of 2012 passenger traffic at Charlotte shows that more than hal f of all passengers using the Airport were on connecting itineraries. Of the 18.85 million domestic passengers that flew to or through Charlotte’s main airport, just 48.4% were traveling to or from Charlotte, with 51.6% connecting to another flight (see F igure 10). While 9.2 million domestic origin and 

### FIGURE 9 : Load Factor at Charlotte Douglas International Airport Source: US DOT T100, January 2010

– January 2013

FIGURE 10 : Passenger Breakdown at Charlotte Source: US DOT T100 and OD1A, Calendar Year 2012Proposal of Concord Regional Airport • Concord, North Carolina • July 2013 

## 11

destination passengers used Charlotte Douglas Airport, another 9.7 million merely connected through the Airport.

In some cases, due to the local pricing at Charlotte, it appears the main hub carrier actual ly suppresses local traffic, including Concord passengers, in favor of carrying flow traffic

– or passengers making connections at Charlotte. Charlotte acts as that carrier’s major north

- south
hub on the East Coast , and is vital in its competitiveness aga inst other large eastern hubs. Local Charlotte pricing supports the theory that local passengers are being suppressed in favor of connect passengers. Service at Concord would help to recapture some of the local passengers that have been priced out of the market.Proposal of Concord Regional Airport • Concord, North Carolina • July 2013 

## 12

STRATEGIC PLAN FOR SCHEDULED AIR SERVICE

In developing a strategic plan for air service at Concord Regional Airport, it is important to understand service at Charlotte’s airport, and to ensure the service being sought in Concord does not duplicate what is already available in the region. Charlot te is a large legacy carrier hub. Legacy carrier service at Concord would likely be unsuccessful in competing against the sheer breadth of service in Charlotte. Charlotte is missing a significant low cost carrier presence. Concord’s niche is to become t he low cost and low fare airport for the region, re

- stimulating passengers by bringing down the highest fares, per mile, on the East Coast

.

It is likely that low cost service in Concord would begin with flights to a leisure destination, probably on a less

- than

- daily basis. With this in mind, the Airport has spent the last eight months developing market data and speaking , in person, with potential carriers. T hose carriers have helped the Airport narrow down its service target list to four primary routes (see Map 4 ). Service will likely begin to an airport in Florida, with Orlando flights being the most likely. Las Vegas service is a longer

term target, but w ith high fares on the
route and suppressed local passengers, it is likely
it would be
successful.

The Concord portion
of the Charlotte area generates an estimated 30% of the region’s overall
Orlando demand
, but high fares force many who live in
Concord to drive to Orlando, instead of fly. The Charlotte

– Orlando market has seen fares rise 14% in the last four years, to an average of $136 each way (see Figure 11 on next page ). While that fare sounds reasonable, the stage length of the flight needs to be t aken into account. The 

### MAP 4: Target Routes for Concord Regional Airport Source: Concord Regional Airport, July 2013Proposal of Concord Regional Airport • Concord, North Carolina • July 2013 

## 13

$136 one way
fare costs 29.1

- cents per mile

– almost double
the southeast region average cost per mile of
16.5

- cents. With high fares,
Charlotte

– Orlando passengers have been suppressed from their 2007 peak, losing an average of 27 passengers per day each way (PDEW), or 7% of the total 2007 market size.

The Charlotte

– Tampa/St.
Pete rsburg
market has
been similarly suppressed.
It has lost an average of
45 PDEW since its 2007 peak, or 18 % of all passengers (see Figure 12). At the same time, fares have increased by 27%, to an average of $188 each way

- $40 more each way than in 2007. For a family of four traveling on vacation, the increase in Charlotte

– Tampa/St. Petersburg fares puts an extra $320 on the vacation cost, which in many cases is enough to push the family of
four to their car.

Fares between the Concord/Charlotte

area a nd south Florida, which includes
both Miami and Ft. Lauderdale, have risen 29% since 2007. The



### FIGURE 11 : O&D Passengers and Average One Way Fares, CLT

– Orlando Source: US DOT OD1A, Calendar Year 2004

– Calendar Year 2012

FIGURE 12 : O&D Passengers and Average One Way Fares, CLT

– Tampa/St. Pete Source: US DOT OD1A, Calendar Year 2004

– Calendar Year 2012

FIGURE 13 : O&D Passengers and Average One Way Fares, CLT

– MIA+FLL Source: US DOT OD1A, Calendar Year 2004

– Calendar Year 2012Proposal of Concord Regional Airport • Concord, North Carolina • July 2013 

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2012 average fare was $188 each way, an increase of $41 each way in the last six years (see Figure 13 on previous page ). At the same time, passengers have decl ined by an average of 129 PDEW, or 25%, to just 379 PDEW in 2012. Interestingly, capacity between Charlotte and Miami/Ft. Lauderdale has been steady since 2007, as have load factors, in the mid

- 80s, which indicates more connecting passengers are using the service while fewer local origin and destination passengers board the flights.

A final example,
the Charlotte

– Las Vegas market, shows
the same
passenger suppression as
the Florida markets. Since its peak in 2007, the market has lost an average of 40 PDEW, or 12% of all its origin and destination passengers (see Figure 14). In the same period, fares have risen by an average of $43 each way, to $216 each way

– an increase of 25%. On trips to Las Vegas, there is not the choice to drive that there would be to Florida. As passenger numbers decline on Charlotte

– Las Vegas service the passengers are lost

– they simply choose not to travel. Low cost service at Concord has the potential to re

- capture these passengers who are no longer traveling at all.

After consultations with potential airlines, each of these markets

– due to the high fares and passenger suppression at Charlotte

– was carefully selected by Concord Regional Airport for potential new service. While, initially, this strategy will only help bring down fares and stimulate passengers in specific markets, over time it should help move the region from its perch atop the average fare chart.

In its discussions with low cost carriers

, Concord Regional Airport has learned they do not seek revenue guarantees in launching new service. Target carriers instead seek marketing support, to help mitigate the cost of educating local travelers about the new air service option. This Small Community Air Service Development (S CASD) Grant application seeks marketing funding to promote new service at Concord Regional Airport. 

### FIGURE 14 : O&D Passengers and Average One Way Fares, CLT

– Las Vegas Source: US DOT OD1A, Calendar Year 2004

– Calendar Year 2012Proposal of Concord Regional Airport • Concord, North Carolina • July 2013 

## 15

The City of Concord and the Airport have spent much time meeting with leaders from local partners, including the Cabarrus County Convention and Visitors Bureau, the Cabarrus Regional Chamber of Commerce, and the Cabarrus Economic Development Corporation. The City and these organizations have pledged $100,000 in cash funding for this air service development project. With this local cash in hand, the Airpo rt is seeking $250,000 in federal SCASD Grant funding, for a total project cost of $350,000. The local share of the total project is 29% of the funding needed.

All funding will be used for marketing and advertising of service

– and only once new service has been secured. The Airport has reason to believe a new service announcement will come in the fall of 2013, with the project beginning before the end of this year. The funding amount is larger than some other airports’ previous requests for marketing s upport, but it reflects the relatively high cost of media placement in the Charlotte market.

The anticipated timeline for the project assumes a Grant would be
awarded in September of 2013 (see Figure 1 5 ). If the Grant agreement
with the DOT is finalized in October of
2013
, during the fall of 2013, the Airport will work to finalize an agreement for less

- than

- daily, low cost air service through the incentives offered under this prog ram. As soon as that service is launched, the campaign , in support of that new service, will launch. The Airport anticipates closing the Grant by March of 2015 , if not before.

Concord area travelers are faced with the highest fares, per mile, of all mar kets up and down
the East Coast . While they have access to a wide array of business destinations at Charlotte Douglas International Airport, their access to low cost service has been diminished significantly in the last decade. Concord Regional Airport n ow has a role in scheduled service in its region, as it looks to develop a unique low cost alternate market for the 667,000 people who live in its
immediate area. This Grant

– the Airport’s first ever request under the SCASD Program

– is the key to bringi ng low cost service to Concord. 

### FIGURE 15 : Project Timeline Source: Concord Regional Airport, July 2013Proposal of Concord Regional Airport • Concord, North Carolina • July 2013 

## 16

PUBLIC/PRIVATE PARTNERSHIP

This application for federal Small Community Air Service Development Grant funding is supported by a number of community partners who have pledged matching cash. The public partners include the Concord Regional Airport, the City of Concord, which owns and operates the Airport, and Cabarrus County, in which the Airport is located. The three major economic development and outreach organizations in the region are also partners in this applicati on.



### City of Concord
Concord, North Carolina

, is likely best known as the home to the famous Charlotte Motor Speedway and NASCAR headquarters. But Concord is the second largest city in the Charlotte area, with a population just under 80,000. The City owns and operates Concord Regional Airport. It has made the decision, for the first time, to seek air service locally as fares continue to increase at Charlotte Douglas International Airport and as service for local residents declines.



### Cabarrus County Cabarrus County is home to approximately 175,000 residents located about 30 minutes
northeast of Charlotte

. The county’s business community is diverse with a mix of small and large organizations and industries ranging from bioscience, motorsports, tourism, retail, and manufacturing. While the County has no official oversight of Concord Regional Airport, it is a partner with the Airport due to the Airport’s role in developing the County’s economy.



### Cabarrus County Convention and Visitors Bureau
The Cabarrus County Convention and Visitors Bureau (CVB) is working to grow the travel industry to become the number one economic activity in the County. Visitors to the county are critical in sustaining the local economy. Domestic tourism in Cabarrus County generat ed an economic impact of $281 million in 2009, according to the North Carolina Department of Commerce Division of Tourism, Travel and Trade. As local businesses benefit, tourism generates tax revenues which equal savings for county residents. In 2009, state and local tax revenues f rom travel to
Ca barrus County amounted to $21.8 million. This represents a tax savings of approximately $310 for each household in Cabarrus County. Air service is the key to additional tourism growth, and the CVB will financially support efforts to bring visitors to Cabarrus County.Proposal of Concord Regional Airport • Concord, North Carolina • July 2013 

## 17

Cabarrus Economic Development Corporation
The Cabarrus Economic Development Corporation is the premier organization fostering economic growth in Concord and surrounding communities

. Cabarrus County continues to be defined by its 20 percent annual population growth, low cost of living, diversified workforce, favorable climate, employment opportunities and reduced tax base. Here, you will find the reasons why Site Selection Magazine has named North Carolina the number one busin ess climate for eight consecutive years. The economic development will be best supported through
local air service.



### Cabarrus Regional Chamber of Commerce The Cabarrus Regional Chamber of Commerce has been serving businesses in Cabarrus County

, North Carolina

, and the entire Charlotte region as a trusted advocate, excellent resource, and proactive catalyst for quality business and community service. The Chamber accomplish es this through programs focused on advocacy, economic development, e vents and direct services to
its members. Th e Cabarrus Regional Chamber is a community leader in positive change, while fostering prosperity and building a stronger economic future. As the trusted voice for all Cabarrus County businesses, it works with educat ion, government, and non

- profits to address the region’s current and future needs. Its members are supporters of the effort to bring air service to Concord Regional Airport.Proposal of Concord Regional Airport • Concord, North Carolina • July 2013 

## 18

LETTERS OF SUPPORTProposal of Concord Regional Airport • Concord, North Carolina • July 2013 

## 19Proposal of Concord Regional Airport • Concord, North Carolina • July 2013 

## 20

CONCLUSION

Concord is “where racing lives,” as the slogan says. It is the home to NASCAR, the Charlotte Motor Speedway, and 90% of the teams in racing. Racing is a huge economic driver in the region, generating more than $280 mil lion per year in local impact and bringing in more than 1.5 million tourists each year. Beyond racing, the Concord area is home to 667,000 people with jobs in dozens of high tech industries

– from racing to biosciences to advanced manufacturing. All of the regional businesses are forced to rely on air service at Charlotte for connectivity t o customers and markets.

Air service at Charlotte is dominated by a single hub carrier that operates more than 85% of the available seats in the market. Subsequently, fares per mile in Charlotte are the highest on the
East Coast . The average Charlotte fare is 29% above the rest of the East Coast . On a 1,000 mile trip, the average Charlotte fare is $220, while the average
E ast Coast passenger would pay just $168. High fares have suppressed passengers, and reduced inbound demand to tourist destinations, which surround Concord.

Seeing the impact of high fares, the City of Concord and its Airport, Concord Regional, are seekin g scheduled air
service for the first time. Concord is not seeking to duplicate service available at Charlotte, but to provide an alternate service through low cost
less

- than

- daily carriers. This kind of service will be unique to the area and help provid e fare relief
to the East Coast ’s most expensive market.

The Airport has already met with several airline targets so far in 2013. It is working with target airlines on a plan that could bring new service to the region by this coming winter. Target
carri ers have expressed the need for marketing support, to help spread the message of new service throughout the cities and towns surrounding Concord, so the Airport and its private partners have committed $100,000 to the effort.

Due to the expense of advertis ing in the large Charlotte media market, the local contribution will likely be too small, on its own, to make a major impact. For the first time, Concord Regional Airport is seeking federal assistance, in the form of a Small Community Air Service Developm ent (SCASD) Grant of $250,000, to ensure low cost service is successful. 

## “Seeing the impact of high fares, the City of Concord and its Airport... are seeking
scheduled service for the first time.”