### 1 APPLICATION UNDER

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT-OST-2013-0120

SUMMARY INFORMATION

All applicants must submit this Summary Information schedule, as the application coversheet, a completed standard form SF424 and the full application proposal on www.grants.gov

. For your preparation convenience, this Summa ry Information schedule is located at

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

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: New Hanover County Airport Authority

DUNS Number: 148017882

EIN/Tax ID: 561652319

B. L IST THE 

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

### :
1. W ILMINGTON 

### , NC

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. Wilmington International Airport (ILM) 2.

3. 4.

### 2 D. L IST THE 

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

ORGANIZATION 

### , AND IF A CONSORTIUM 

### , TO EACH PARTICIPATING COMMUNITY



### . 1. NC-07 2.

3. 4.

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) prev iously received a Small Community Air Service Development Program Grant

If previous recipient: Year of grant(s): 2003 State of North Carolina (Consortium Member)

F. P UBLIC 

### /P RIVATE 

### P ARTNERSHIPS 

### : (L IST 

### O RGANIZATION NAMES 

### )

PUBLIC PRIVATE

1. New Hanover County Airport Authority 1. Air Service Focus Group

2. 2.

3. 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: VOR/PAPI/VASI)

### 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 $750,000

2 State cash financial contribution $0
Local cash financial contribution

3a Airport cash funds $130,960

3b Non-airport cash funds $203,500
3 Total local cash funds ( 3a + 3b ) $334,460
4 TOTAL CASH FUNDING ( 1+2+3 ) $1,084,460

In-Kind contribution

5a Airport In-Kind contribution** $77,970

5b Other In-Kind contribution** $12,800

5 TOTAL IN-KIND CONTRIBUTION
( 5a + 5b ) $90,770

6 TOTAL PROJECT COST ( 4+5 ) $1,175,230

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: Airport fee waivers ($72,970) an d program administration ($5,000) 5b: Marketing campaign ($7,800) a nd program administration ($5,000)

### 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)

______________________________________________________________________________

______________________________________________________________________________

# A PPLICATION 

# U NDER THE 

# S MALL 

# C OMMUNITY



# A IR 

# S ERVICE 

# D EVELOPMENT 

# P ROGRAM

Docket DOT-OST-2013-0120



# Wilmington International Airport Wilmington, North Carolina

Legal sponsor: New Hanover County Airport Authority

Contact: Jon Rosborough Airport Director 1740 Airport Blvd. Suite 12 Wilmington, NC 28405
Phone: 910-341-4125 JRosborough@flyilm.comAPPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMWILMINGTONINTERNATIONALAIRPORT

Prepared by 

# T ABLE OF 

# C ONTENTS

Section 1. Application Highlights ..................................................... 1
Higher than Averag e Airfar es ......................................................................... 1 Community Cost Contribut ion ........................................................................ 2
Public-Private Partnership.............................................................................. 2
Material B enefits ............................................................................................ 2 Use of Funds in a Timely Fashion .................................................................. 2



### Section 2. Air Service Environment ................................................. 3 Large and Growing Ca tchment Area .............................................................. 3 Proximity to Other Airports ............................................................................. 3 Strong and Diverse Economy ........................................................................ 4 

### Section 3. Air Service – Existing/Historical ..................................... 6
Existing Air Service ........................................................................................ 6
Historical Ai r Service ...................................................................................... 7
Past Air Service De velopment E fforts ............................................................ 7



### Section 4. Air Service Needs and Deficiencies ............................... 9

Lack of Seat Av ailabilit y ................................................................................. 9 Impact of Loss of Air Servi ce ....................................................................... 10 High Airfar es ................................................................................................ 11 

### Section 5. Strategic Plan – Air Service ......................................... 12
Project G oals ............................................................................................... 12 Proposed Air Se rvice ................................................................................... 12
Airline Partic ipation ...................................................................................... 13 Market Analysis ............................................................................................ 13
Alternate Plan .............................................................................................. 13 Previous Grant Recipient - New Project an d Goals ..................................... 14 

### Section 6. Strategic Plan – Implementation and Funding ............ 15

Public-Private Partnersh ip............................................................................ 15
Incentive and S upport P lan .......................................................................... 16 Strategic Plan Funding ................................................................................. 18 Project Continuation an d Sustainabi lity ........................................................ 18


### Section 7. Schedule and Monitoring .............................................. 19

Critical Mile stones ........................................................................................ 19 Monitoring Pr ogram ..................................................................................... 20


### Appendix A. Letters of SupportAPPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMWILMINGTONINTERNATIONALAIRPORT

Page

1 

# S ECTION 

# 1. A PPLICATION


# H IGHLIGHTS

his Small Community Air Service Development Program (SCASDP) grant application for the Wilmington Internationa l Airport (ILM) meets the criteria of Docket DOT-OST-2013-0120. New Hanover County Airport Authority, the legal sponsor and owner/operator of IL M, is requesting $750,000 in federal assistance to implement a $1,175,230 air service initiative.

The project goal is to improve westbound connections which is a top priority of the community. The St rategic Plan, primarily focused on nonstop American Airlines service to Chicago O’Hare, will achieve the project goals. The proposed Strategic Plan will improve connectivity and increase competition at ILM which will reduce airfares and the need to drive long distances to alternate airports to access alternate air service and competitive fares.



### H IGHER THAN 

### A VERAGE 

### A IRFARES

Over the last 10 years, ILM’s airfar es have continued to rise, reaching a 10-year high in 2012. ILM’s average domestic fare surpassed the average for the state of North Caro lina, the Southeast region and the national average. In addition, ILM’s fares are higher than surrounding airports with similar or higher levels of air service including Charlotte, Greensboro, Raleigh/Durham, and Myrtle Beach.

Since American Airlines left the ILM market in March 2012, airfares to top American-competitive ILM desti nations have risen significantly, with double digit increases in 16 of the top 20 markets. Reinstating American’s Chicago O’Hare service is a high priority and will provide significantly improved western connections and increased competition thereby once again lowering airfares to ILM’s
top destinations.

The only airport within 150 miles from the ILM catchment area with air service greater than ILM is located in Myrtle Beach, SC, wh ich still requires a drive of almost 1.5 hours. The closest medium hub airport is Ra leigh/Durham at 150 miles distant or over a two-hour drive. The closest large hub air port is Charlotte which is over 200 miles away and approximately a 3.5 hour drive. Excessive drive distances to alternate airports along with high airfares are the key determinates of the need for
improved air service. 

# T This section addresses:

 Project goals

 Description of the

Strategic Plan

 Highlights of the grant

application



### New hub service

that increases

westbound connecting opportunities is a top priority of the community.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMWILMINGTONINTERNATIONALAIRPORT

Page

2 

### C OMMUNITY 

### C OST 

### C ONTRIBUTION

To support this air service initiati ve, ILM and the community will fund 36 percent of the proposed $1,175,230 Strategic Plan. Non-airport community revenue sources will fund $203,500 (nearly 20 This is a very strong percent) of the $1,084,460 cash requirement. commitment by the local community to continue to be proactive to improve local air service.



### P UBLIC 

### -P RIVATE 

### P ARTNERSHIP

Local businesses and the public-private part nership have the ability to successfully implement this project. ILM has partnered with the Air Service Focus Group for purposes of air service development. Fourte en private partners comprise the Air Service Focus Group in support of this application. ILM and the community are committed to the successful development of air service at ILM and have a vested interest in the successful outcome of this Strategic Plan.



### M ATERIAL 

### B ENEFITS

Wilmington’s central East Coast location is located at the mid-point between New York and Florida. The large population bas e has a very prominent business, education and tourism economy. The catc hment area includes a population of approximately 839,733 residents. Within a 50- mile radius of ILM there is a population of almost 653,000 expanding to over 1.3 million within a 75-mile radius.

Wilmington is an economically vibrant and fa st-growing city that is drawing residents, tourists, and businesses in equal force. There are multiple large local employers in the ILM catchment area, several with lo cal corporate headquarters, such as GE Nuclear, Pharmaceutical Product Development, Castlebranch, and International Paper. International companies such as Wieland, General Electric, DuPont, and Corning also have facilities in Wilmington. The film industry has a strong presence in Wilmington as the home of EUE Scr een Gems Studios, the largest domestic television and movie production facility outside of California.

With the strong business environment, higher education supporting enrollment of over 13,700 students at University of North Carolina at Wilmington, and more than 1.6 million visitors annually, the air service improvement plan proposed in this grant application will benefit a bro ad segment of the traveling public, including business,
educational institutions and tourism.



### U SE OF 

### F UNDS IN A 

### T IMELY 

### F ASHION

The public-private partnership has a solid schedule and Strategic Plan to ensure timely use of the funds. An initial me eting was held with the targeted airline in anticipation of this grant application, and the Strategic Plan proposal is
under consideration. 

### The greater Wilmington area is home to numerous businesses, educational institutions and tourist destinations driving the need for improved air service.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMWILMINGTONINTERNATIONALAIRPORT

Page

3 

# S ECTION 

# 2. A IR 

# S ERVICE


# E NVIRONMENT

LM is a small-hub, commercial service airport located in New Hanover County in southeastern North Carolina. Wilmington’s US East Coast location is located at the mid-point between New York and Florida. The large population base has a very prominent business, education and tourism econ omy. This section provides an overview of the Wilmington community and its need for additional air service and improved connectivity to the west.



### L ARGE AND 

### G ROWING 

### C ATCHMENT 

### A REA

The primary catchment area for ILM includes eight North Carolina counties including New Hanover, Brunswick, Pender, Columbus, Bladen, Onslow, Duplin and Sampson. In addition, the catchment area includes the northeast section of Horry County in South
Carolina. The catchment area inclu des a population of approximately 839,733 residents ( Table 2.1 ). Within a 50-mile radius of ILM there is a population of almost 653,000 expanding to over 1.3 million within a 75-mile radius (source: ESR I Business Analyst Online).

From 2012 to 2017, the ILM catchment area population growth is projected to be more than double that of the US national average (source: ESRI Business Analyst Online) with median household income also growing at a greater rate than the national average. Air service at ILM must expand to keep pace with this growing community.



### P ROXIMITY TO 

### O THER 

### A IRPORTS

The only airport within 150 miles from the ILM catchment area with air service greater than ILM is located in Myrtle Beach, SC, which still requires a drive of almost 1.5 hours. Table 2.2 , next page, provides a comparison of the mileage, drive ti me and weekly flights and seats from Wilmington proper. The closest medium hub airport is Raleigh/Durham at 150 miles distant or over a two-hour drive. The closest large hub airport is Charlotte which is over 200 miles away and approximately a 3.5 hour drive. Excessive drive distances to alternate airports along with high air fares are the key determinates of the need for improved air service.



# I

TABLE 2.1 CATCHMENT AREA POPULATION CATCHMENT AREA COUNTY POPULATION New Hanover 209,234

Brunswick 112,257

Pender 54,195 Columbus 58,098

Bladen 35,190 Onslow 183,263 Duplin 60,033 Sampson 63,949 Horry (SC)** 63,514 Total 839,733 Source: US Census Bureau;

Note: ** NE section only This section addresses: Description of the Wilmington community in
relation to air service to
demonstrate the benefit of the Strategic Plan to a broad segment of the traveling public.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMWILMINGTONINTERNATIONALAIRPORT

Page

4 TABLE 2.2 DRIVE TIMES TO AIRPORTS FROM WILMINGTON PROPER

AIRPORT MILEAGE DRIVE TIME WEEKLY (JUL 13) FLIGHTS SEATS Wilmington, NC (ILM) 4 7 min 171 11,169 Jacksonville, NC (OAJ) 62 1 hr, 8 min 95 4,825 Myrtle Beach, SC (MYR) 77 1 hr, 22 min 253 28,197

Fayetteville, NC (FAY) 89 1 hr, 34 min 142 7,548 New Bern, NC (EWN) 90 1 hr, 38 min 70 3,422 Florence, SC (FLO) 113 1 hr, 59 min 39 1,677 Greenville, NC (PGV) 126 2 hr, 7 min 33 1,572 Raleigh/Durham, NC (RDU) 150 2 hr, 8 min 1,265 119,999 Charlotte, NC (CLT) 206 3 hr, 26 min 5,195 521,536 Greensboro, NC (GSO) 211 3 hr, 9 min 320 23,346 Source: Microsoft MapPoint 2010; Diio Mi



### S TRONG AND 

### D IVERSE 

### E CONOMY

Wilmington is an economically vibrant and fa st-growing city that is drawing residents, tourists, and businesses in equal force. The In ternational Port of Wilmington, ILM, the University of North Carolina, and Cape Fear Community College combine to create a proactive business climate. This along wi th a strong work force, a responsive public education system, and an abundance of indust rial sites make Greater Wilmington a prime business location with strong per capita income. All indicators show that Wilmington is not your typical small comm unity and is in need of improved air

. The following subsections discuss local businesses in the community, service access higher education facilities and tourism.

Local Businesses

There are multiple large local employers in the ILM catchment area, several with local corporate headquarters. Drawn with the high quality of life and strong work force, businesses find Wilmington attractive for their corporate offices. Table 2.3 lists a sample of the companies and organizations in the W ilmington area that would benefit from new nonstop air service at ILM. International co mpanies such as Wieland, General Electric, DuPont, and Corning have facilities in Wilmington.

TABLE 2.3 TOP EMPLOYERS COMPANY/ORGANIZATION GE Nuclear Headquarters* University of NC - Wilmington

GE Jet Engine Division Cape Fear Community College Pharmaceutical Product Development (PPD)* New Hanover County Schools Corning, Inc. aaiPharma New Hanover Health Network Castlebranch* Screen Gems Studio Louisiana Pacific Corporation Duke Energy Progress KoSa Verizon VisionAir US Military - Camp Lejeune Military Base Chemtex New Hanover County Elemetis Chromium LP

City of Wilmington International Paper* Note: *Corporate headquarters

The Wilmington area is a growing community and has today become a regional leader in commerce and industry. Home to a diverse economy, the area contains a variety of 

### Wilmington receives national recognition:

 "One of the Best Towns" and "The Next Big Thing" by Outside Magazine

 Bloomberg Business Week ranked Wilmington "The #7 Most Fun, Affordable City."

 Forbes rated the area one of the 15 best in the country for business and

careers

 One of the 100 Best Arts Towns

 Best Places to Launch a Business

 Top 10 Recreation CitiesAPPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMWILMINGTONINTERNATIONALAIRPORT

Page

5 industry, which demand quality, efficient air service to major business cities. From fiber optics and aircraft engines to pharmaceutical testing and plastics, the mega movie industry and tourism industry combine to create a large base of user s and potential users of ILM.

One of the more notable industries, the film industry, has a strong presence in Wilmington. In the 1980s, Hollywood discovered Wilmington. Wilmington is the home of EUE Screen Gems Studios, the largest domestic television and movie production facility outside of California. If you’ve seen Iron Man 3, Revolution, or Dawson’s Creek, then chances are, you’ve probably seen parts of Wilmington. These listed are only three of about 350 produced in the Wilmington area. Their list of clients past and present include CBS, HBO, BET Networks, ABC, Warner Brothers Television, and Sony Television among others. This 50-acre film and television production complex has 10 sound stages, two special effects water tanks and 30,000 square feet of office space. Mo re than 1,000 world-class crew are based in Wilmington.

Higher Education

The University of North Carolina at Wilmington (UNCW) is the only public university in Southeast North Carolina. UNCW offers 73 bachelor’s degree programs and 27 graduate programs with an annual enrollment exceeding 13,700 students and over 1,800 full-time staff. For the ninth year, UNCW was seventh among the top public master’s universities in the South by US News & World Report. Among both public and private instit utions in the South, UNCW is 20th out of 127 institutions.

Cape Fear Community College (CFCC) is among the largest of North Carolina's 59 community colleges. Over 26,000 people attend classes at CFCC every year. CFCC's main campus is located in historic downto wn Wilmington on the banks of the Cape Fear River and a North Campus in northern New Hanover County. The College also offers classes in Pender County center in Burgaw and Surf City.

Tourism

Long known for its beautiful beaches and mi les of protected coastal waterways, Wilmington is a family-friendl y vacation spot. Its mild climate allows year-round outdoor recreation at over 150 regional golf courses, 30 marinas and numerous county and state parks.

The Wilmington area hosts an abundance of ar tistic and cultural attractions including art galleries, dance, gardens, museums, music and theatre. Wilmington is rich in Colonial, Revolutionary, and Civil War history. Major attractions include the USS North Carolina, a World War II battleship that won 15 stars for distinguished service. Located on the Cape Fear River’s west bank, the battleship draw s approximately 250,000 visitors per year. Wilmington in total attracts approximately 1.6 million visitors annually.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMWILMINGTONINTERNATIONALAIRPORT

Page

6 

# S ECTION 

# 3. A IR 

# S ERVICE



# – E XISTING 

# /H ISTORICAL

his section provides an overview of ILM’s existing air service. Carriers providing service, service frequency, nonstop destin ations offered, and equipment types are included in the discussion. A summary of historical air service is also included with destinations, traffic levels, and service providers. A description of air service development efforts concludes the section.



### E XISTING 

### A IR 

### S ERVICE

ILM is served by Delta Air Lines to two nonstop destinations, Atlanta and New York LaGuardia, and US Airways to three nonstop destinations, Charlotte, Philadelphia, and Washington National. While ILM is fortunate to have service to five destinations, historically air service has provided much greater access to the central and western US. There are an average of 170 weekly flights and 11,554 seats ( Table 3.1 ).

Over the next 12 months, ILM’s servi ce is expected to decline. Delta is scheduled to reduce weekly departures to Atlanta to as low as 34 weekly departures, down from 48 in July. Delta’s Ne w York LaGuardia
service also declines to as low as 14 weekly departures, down from 22. US Airways’ service
remains consistent. While much of Delta’s reduced departures reflect seasonal fluctuations, Delta’s ILM departures drop by 32 percent until
March 2014.

ILM’s future Delt a service is in transition. ILM’s service is provided by je t equipment, predominately with the 50-seat Canadair Regional Jet 200 (CRJ-200) aircraft that are being phased out of most airline fleets, particularly Delta. Forty-five percent of ILM’s flights are operated with the CRJ200. Over half of those are flights operated by Delta. In June 2012, Delta and its regional jet pilot union approved a contract that capped t he number of 50-seat regional jets to just 125; this reduced the fleet from 343 at that time. While some of the reduction will be back-filled with the 70- or 90-seat regional jet s, there is a shortage of these aircraft in Delta’s fleet. It is likely that many smaller markets, currently served with the 50-seat regional jet, will either be eliminated or frequency of service will be reduced. This makes obtaining new, alternative air service very important in the ILM market. 

# T

TABLE 3.1 EXISTING AIR SERVICE NONSTOP DESTINATION MARKETING CARRIER AIRCRAFT WEEKLY DEPARTURES WEEKLY SEATS
Atlanta, GA (ATL) Delta CRJ 200/ Airbus A319 48 2,932

Charlotte, NC (CLT) US Airways CRJ 200/ CRJ 900/ Airbus A319 63 5,294

New York, NY (LGA) Delta ERJ/CRJ 700 22 1,244
Philadelphia, PA (PHL) US Airways ERJ 170/ERJ 175/CRJ 200 23 1,384
Washington, DC (DCA) US Airways CRJ 200 14 700 Total 170 11,554 Source: Diio Mi, July 2013 This section addresses:

 Description of existing

air service

 Synopsis of historical

air service

 Description of air

service development
effortsAPPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMWILMINGTONINTERNATIONALAIRPORT

Page

7 

### H ISTORICAL 

### A IR 

### S ERVICE

Over the past 10 years, ILM has been fortunate to experience an increase in total departures and seats reaching a 10-year high in 2013 ( Table 3.2 ). However, the number of airlines serving the market and the number of destinations have decreased. In 2011, four airlines served ILM: Allegiant Air, Amer ican Airlines, Delta Air Lines and US Airways. Since then both Allegiant and American have left the market leaving only two . While the loss of two air carriers has considerably reduced carriers remaining competition in the market, ILM also lost service to three destinations including Chicago O’Hare, Cincinnati, and Orlando Sanford. Th e most detrimental loss was American’s service to Chicago. The Chicago O’Hare hub provided significant additional connecting opportunities to the ILM market as well as nonstop service to their fourth highest passenger market (Chicago), the number one market without
nonstop service.

TABLE 3.2 HISTORICAL DESTINATIONS AND SERVICE PROVIDERS

DESTINATION AIRLINE ITEM MONTH OF JULY - WEEKLY DEPARTURES/SEATS 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Atlanta, GA Delta Dept 41 35 34 47 40 60 45 45 45 48 Seats 2,050 1,750 1,700 2,350 2,140 3,000 2,250 2,250 2,250 2,932
Charlotte-Douglas, NC US Airways Dept 52 57 58 63 63 56 63 63 63 63 Seats 4,657 6,322 5,040 5,739 5,518 4,516 5,098 4,710 4,803 5,294
Chicago, IL (ORD) American Dept 14 Seats 616
Cincinnati, OH Delta Dept 14 7 7 Seats 700 350 350

New York, NY (LGA) Delta Dept 14 22 Seats 700 1,244
US Airways Dept 12 21 20 20 27 21 20 18 Seats 600 1,050 1,000 1,000 1,350 1,050 1,000 900
Orlando, FL (SFB) Allegiant Dept 2 2 2 2 2 Seats 300 300 300 300 300
Philadelphia, PA US Airways Dept 21 17 26 28 22 24 23 24 23 Seats 1,050 850 1,300 1,652 1,282 1,660 1,150 1,200 1,384
Washington, DC (DCA) US Airways Dept 2 2 2 3 14 Seats 74 100 100 150 700 Average weekly departures 107 150 129 163 167 161 154 167 151 170 Average weekly seats 7,381 10,972 8,590 10,739 11,310 10,148 10,308 10,026 9,403 11,554 Source: Diio Mi



### P AST 

### A IR 

### S ERVICE 

### D EVELOPMENT 

### E FFORTS

ILM and its community supporters have been proactive in attempts to maintain and improve air service. Each year ILM staf f makes numerous proposals to airlines who could successfully serve the ILM market. This strategy includes frequent follow-up and communication to keep potential air carriers in formed on ILM’s market as well as provide
continuous information that could affe ct their decision to begin service.

Over the past five years ILM has met with American and United at their offices twice each and attended several air service development conferences including both the Network USA and ACI-NA JumpStart Air Service Development conferences where they met with multiple airlines (including Aero Mexico, Air Canada, Air Tran, Allegiant,APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMWILMINGTONINTERNATIONALAIRPORT

Page

8 American, Cayman Airways, Continental, Delt a, Gulfstream, Jet Blue, People Express, Southwest, Spirit, Sun Country, Trans States Airlines, United, US Airways, and Vision Air). Additionally, ILM has attended the Allegiant Conference and met with incumbent airlines at their corporate offices. At Ju mpStart 2013, ILM met with American, JetBlue Airways, Silver Airlines, Southwest Airlines, United Airlines, and US Airways. Several airlines expressed interest in expanding service from ILM including American that specifically expressed interest in this Stra tegic Plan. This grant application is one more example of a pro-active community fully en gaged in its air service development efforts.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMWILMINGTONINTERNATIONALAIRPORT

Page

9 

# S ECTION 

# 4. A IR 

# S ERVICE 

# N EEDS

AND 

# D EFICIENCIES

he Air Service Needs and Deficiencies section identifies the major origin/destination markets that are not se rved adequately and the high fare levels in the ILM market. This section provides a detailed analysis to demonstrate that

. ILM is underserved and overpriced



### L ACK OF 

### S EAT 

### A VAILABILITY

In 2012, ILM’s load factors to markets provid ing western connectivity were very high. While Washington National (DCA) and New York LaGuardia (LGA) are valued nonstop markets for ILM travelers, the hubs primarily provide point-to-point service as well as limited international connectivity. The Atlant a (ATL), Charlotte (CLT) and Philadelphia (PHL) hubs provide the primary western connectivity today.

Table 4.1 shows the average load factors by m onth from January through December 2012. The hubs that provide western connectivi ty are highlighted for reference. As shown in the table, load factors were 80 percent or greater in 10 of t he 12 months at Atlanta, and nine months at Charlotte and Philadelphia, exceeding 90 percent, particularly in the Atlanta market, in many of the 12 months. With ILM’s existing service reaching load factors as high as 94 percent in some months, seat availability at competitive prices at peak times is frequently a major problem.

As stated in the previous section, over ha lf of ILM’s service is provided on smaller regional jets with 50 seats or less. High load factors on aircraft of this size mean there are few if any seats available, especially on the higher demand morning flights. This suggests that rejected demand occurs on many flights forcing ridership to alternate airports.

TABLE 4.1 ILM AVERAGE LOAD FACTORS BY MARKET

MONTH LOAD FACTOR ATL CLT DCA LGA ORD PHL SFB Jan-12 76 63 26 45 61 66 86 Feb-12 81 65 36 50 66 71 91 Mar-12 90 71 58 66 80 79 91 Apr-12 94 84 69 81 95 87 91 May-12 93 80 57 77 83 81 Jun-12 94 84 70 78 86 86 Jul-12 93 89 76 83 89 92 Aug-12 93 95 88 84 93 90 Sep-12 86 85 60 64 88 Oct-12 84 83 50 62 88 81 Nov-12 84 85 63 54 88 75 Dec-12 79 83 65 55 82 83
Source: Diio Mi 

# T This section addresses: Description of the Wilmington community’s air
service needs and
deficiencies.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMWILMINGTONINTERNATIONALAIRPORT

Page

10 These high load factors indicate there is a significant need for improved connectivity to western destinations. The option of connecting via an additional hub for westbound travel would greatly improve the quality of catchment area air service and aid economic and market development.



### I MPACT OF 

### L OSS OF 

### A IR 

### S ERVICE

American Airlines’ served the ILM market to/from Chicago O’Hare from July 2011 to March 2012. With only nine months in the market, the American Chicago O’Hare service did not have sufficient opportunity to mature. However, within that short timeframe, American had a significant impact. Table 4.2 shows the number of passengers American carried one-way over the nine-month period as well as total ILM passengers and the fare. A comparison is provided to the nine-month period following Am erican’s departure from the ILM market. In many of the top 20 American-ILM marke ts, passengers decreased by double digits following American’s departure. In addition, average fares rose dramatically in many markets with double digit increases in 16 of the 20 markets.

TABLE 4.2 IMPACT OF AMERICAN AIRLINES' CHICAGO SERVICE (NON-DIRECTIONAL)

AA-ILM RANK TOP AA-ILM MARKET AA-ORD SERVICE POST-AA ORD SERVICE % CHANGE AA PAX TOTAL PAX FARE TOTAL PAX FARE PAX FARE
1 Chicago, IL (ORD) 7,365 12,094 160 9,370 173 (23) 8
2 Los Angeles, CA 1,146 7,824 239 7,867 291 1 22 3 Dallas, TX (DFW) 977 7,232 173 6,475 193 (10) 12
4 San Francisco, CA 645 5,540 242 5,778 267 4 10
5 Phoenix, AZ (PHX) 451 3,995 184 3,973 205 (1) 11 6 Denver, CO 418 6,161 161 6,933 186 13 15
7 Seattle, WA 389 2,909 237 3,269 272 12 15 8 San Diego, CA 381 3,386 240 3,423 266 1 11 9 St. Louis, MO 289 3,283 148 3,633 164 11 11 10 Minneapolis, MN 252 3,956 187 3,926 196 (1) 4
11 Las Vegas, NV 241 4,647 212 4,327 239 (7) 13
12 San Jose, CA 212 758 279 484 333 (36) 19 13 London, UK (LHR) 202 539 503 632 584 17 16
14 Tucson, AZ 189 741 247 479 312 (35) 27 15 Austin, TX 182 2,341 184 2,015 223 (14) 21 16 Grand Rapids, MI 179 490 209 389 287 (21) 37
17 Reno, NV 178 546 251 531 328 (3) 31 18 Madison, WI 175 508 290 811 332 60 15 19 Kansas City, MO 172 2,979 162 3,429 177 15 9 20 Oklahoma City, OK 165 908 267 678 286 (25) 7

Nonstop service to a connecting city such as Chicago or Dallas will once again provide the westbound connections needed by t he community as well as provide additional competition in the marketplace to bring down the fares in the top markets. 

### Following American’s departure from the ILM market, average fares have risen dramatically in many markets with double digit increases in 16 of

the 20 markets.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMWILMINGTONINTERNATIONALAIRPORT

Page

11 

### H IGH 

### A IRFARES

The Order Soliciting Community Proposals in dicated that the US Department of Transportation (DOT) will compare the local co mmunity’s airfares to the national average airfares for all communities using the BT S database. The BTS report for calendar year 2012 is the source for Diio Mi airfares shown in the following table.

Table 4.3 provides a comparison to surrounding airports with a similar level of air service
in addition to the state of North Caroli na average, Southeast region average, and US average. In some cases, ILM has a signific ant fare discrepancy with other surrounding airports. ILM’s average domestic fare also exceeds the state, region and national averages.

TABLE 4.3 AVERAGE ONE-WAY FARE PAID AVERAGE DOMESTIC FARE ILM $ DIFF 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 ILM $157 $138 $140 $177 $162 $166 $146 $155 $175 $188 Charlotte-Douglas, NC $187 $172 $159 $157 $158 $172 $149 $165 $179 $186 $2 Greensboro, NC $136 $137 $142 $174 $162 $165 $151 $165 $171 $182 $6 Raleigh/Durham, NC $126 $118 $120 $139 $134 $141 $126 $140 $156 $164 $24

Myrtle Beach, SC $107 $109 $121 $137 $127 $130 $115 $112 $115 $121 $67

North Carolina $150 $142 $140 $155 $152 $161 $143 $157 $171 $180 $8 Southeast Region $131 $127 $130 $144 $143 $150 $137 $148 $161 $167 $21 US $134 $131 $135 $147 $147 $157 $143 $157 $170 $176 $12 Source: Diio Mi; Domestic onlyAPPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMWILMINGTONINTERNATIONALAIRPORT

Page

12 

# S ECTION 

# 5. S TRATEGIC 

# P LAN



# – A IR 

# S ERVICE

he Strategic Plan proposed by ILM will achieve the community’s goals and help to
alleviate the air service deficiencies of th is community. This Strategic Plan section provides a detailed description of the goals of the project and a primary and alternate plan for attaining those goals. As a previous grant recipient (consortium member), this application is a new project wi th different goals than the previous project.



### P ROJECT 

### G OALS

The project goal is to improve connections to westbound markets to adequately serve the Wilmington area. By improving connections to the west, which is ILM’s top air service deficiency, the following will be achieved:

 Higher than average airfares will be reduced and more in line with other markets

with additional capacity and competition in the marketplace.

 The need to drive long distances to use alternate airports to access a higher level of

air service and competitive fares will be mitigated.

 Seat availability will be opened up on high load factor flights for additional

passengers in high demand markets.



### P ROPOSED 

### A IR 

### S ERVICE

With existing hub service with western connections experiencing high loads for most of the year, ILM’s primary air service need is to a destination offering connecting opportunities to the west, specifically Chicago O’Hare ( Exhibit 5.1 ). Increasing
fares since American Airlines ceased service to Chicago O’Hare support the
need for this air service initiative. Reinstatement of American’s Chicago O’Hare service would provide ILM with improved air service access to top markets and new unique one-stop connections (including Kalamazoo, MI; Dubuque, IA; Fargo, ND; Sioux Fa lls, SD; Helsinki, Finland; Beijing, China; Shanghai, China; Reno, NV and others). This plan will achieve the project goals by offering more western connecting service options and competition to top markets. 

# T This section addresses:

 A Strategic Plan for

meeting ILM’s air
service needs and
deficiencies

 Alternate plan to meet

the goals

EXHIBIT 5.1 PROPOSED AIR SERVICEAPPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMWILMINGTONINTERNATIONALAIRPORT

Page

13 

### A IRLINE 

### P ARTICIPATION

Recently, members of the public-private partnership ( Table 6.1 , page 15) met with American Airlines regarding reinstatement of Chicago O’Hare service. Discussions with
They agreed that the previous service was cancelled too American have been positive.early and should have been given more opportunity to mature and are interested in reentering the market. However, based on prel iminary discussions, the community support package proposed in the Strategic Plan is critical in the airline’s decision to serve the Chicago O’Hare market. American to Chicago O’Hare would meet the goals of this SCASDP grant application and is the highest priority of the community.



### M ARKET 

### A NALYSIS

The ILM market responded strongly to American’s Chicago O’Hare service. Table 5.1 shows the number of departures, passenger s carried, seats, and load factor for the nine
months that American served the market. While load factors dipped during the lowseason months of January and February like most markets, loads were strong during the
other seven months American served ILM. American served 18,116 passengers each way during the nine-month period, a total of 36,232 origin and destination passengers. It is anticipated with current service levels and high loads in other hub markets with western connectivity, the market will react even str onger to new hub service in

the future

.

TABLE 5.1 AMERICAN AIRLINES PERFORMANCE AT ILM

MONTH DEPARTURES PASSENGERS SEATS LOAD FACTOR
2011-07 57 2,278 2,559 89 2011-08 58 2,223 2,570 86 2011-09 59 2,113 2,604 81 2011-10 61 2,209 2,704 82 2011-11 58 1,970 2,554 77 2011-12 58 1,998 2,552 78 2012-01 58 1,553 2,552 61 2012-02 55 1,594 2,420 66 2012-03 60 2,118 2,640 80 2012-04 2 63 66 95

Total 524 18,116 23,221 78 Source: Diio Mi; Non-directional



### A LTERNATE 

### P LAN

While the public-private partnership was encouraged by discussions with American, if ILM fails to obtain Chicago O’Hare service in a reasonable time period, alternate carriers will be approached for westbound connecting se rvice. Alternate service that would fulfill the goals of this grant application include but are not limited to the following: United Airlines’ Chicago O’Hare, American Airli nes’ Dallas-Fort Worth, United Houston, and
JetBlue Boston service to name a few. Consis tent with the intent of the air service initiative proposed, obtaining nonstop service to an alternate connecting airport with numerous western connecting opportunities and competitive airfares is the best option for ILM catchment area passengers. 

### American Airlines isinterested in reentering the ILM market.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMWILMINGTONINTERNATIONALAIRPORT

Page

14 

### P REVIOUS 

### G RANT 

### R ECIPIENT


### - N EW 

### P ROJECT AND 

### G OALS

In 2003, the US DOT awarded the State of North Carolina DOT a SCASDP grant. ILM participated as one of six consortium members in North Carolina. The goal of the 2003 grant was to fund the creation of a network of regional routes from Raleigh-Durham to provide improved air service and better access to the nation’s air transportation network.

Though ILM was a participant of the previous grant application, ILM did not receive any financial assist ance or beneficial results from thegrant award and is now applying individually as a nonconsortium entity.

Where the previous application’s g oals were specific in nature by concentrating on intra-North Carolina service, this application’s goals focus specifically on improving westbound connections with a concentration on Chicago O’Hare International Airport. As demonstrated, this application qual ifies as a new project and meets the requirements of the SCASDP.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMWILMINGTONINTERNATIONALAIRPORT

Page

15 

# S ECTION 

# 6. S TRATEGIC 

# P LAN



# – I MPLEMENTATION AND 

# F UNDING

his section, Strategic Plan - Implementation and Funding , provides the detailed incentive and support plan required to implement the Strategic Plan. A legal sponsor responsible for administering t he program has been designated, and a public-private partnership has been formed to actively participate in implementing the proposed project. In addition, this section iden tifies self-sufficiency of the service as an integral part of the community’s goals and pr ovides a description of the community’s plan to continue with the project if it is not self-sustaining after the grant award expires. A detailed description of the fund ing necessary for implementa tion of the Strategic Plan, including federal and non-federal contributions, is included.



### P UBLIC 

### -P RIVATE 

### P ARTNERSHIP

New Hanover County Airport Authority has been designated as the sponsor of this grant applic ation. For the purpose of this application, New Hanover County Airport Authority/ILM and the Air Service Focus Group have formed a public-private partnership (refer to community support letters in Appendix A ). Collectively, the partnership is committed to completing the Strategic Plan outlined herein.

The following private entities (i.e. the Air Service Focus Group) have partnered with the New Hanover County Airport Authority in support of this application:

 Branch Banking and Trust Company (BB&T)

 Brunswick County Economic Development Commission

 Castle Branch, Inc.

 City of Wilmington

 Eastern Aviation Fuels, Inc.

 Monteith Construction Corp.

 New Hanover County  New Hanover Regional Medical
Center

 Pharmaceutical Product Development, LLC

 Talbert & Bright

 University of North Carolina at Wilmington

 Wilmington Business Development

 Wilmington Chamber of Commerce

 Wilmington Health

All partners in the public-private partnership will be fully involved in the execution of the Strategic Plan ( Table 6.1). New Hanover County Airport Authority/ILM will execute all federal grant offers, process all associ ated reimbursement requests, oversee grant administration and administer the revenue g uarantee. The Air Service Focus Group will be responsible for overseeing the marketing campaign. Together these partners form a team committed to improving air service at ILM and seeing this Strategic Plan through to completion. 

# T

TABLE 6.1 PUBLIC-PRIVATE PARTNER ROLES PUBLIC-PRIVATE PARTNER ROLE

New Hanover County Airport Authority/ILM Grant and revenue guarantee administration, marketing program Air Service Focus Group Assist with the marketing program This section addresses:

 Description of the

public-private partnership

 Designation of a legal

sponsor

 Funding necessary for

implementation of the Strategic Plan

 Sustainability of the

project



### New Hanover County Airport Authority/ILM and

the Air Service Focus Group have

formed a publicprivate partnership.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMWILMINGTONINTERNATIONALAIRPORT

Page

16 

### I NCENTIVE AND 

### S UPPORT 

### P LAN

The current industry status filled with recent and ongoing airline mergers and consolidation, limited fleet availability, volatile fuel prices and an uncertain economy is challenging for many communities like Wilmington. These obstacles work against new service and
extend the time it takes for new or increased service to gain profit ability. Accordingly, airlines are cautious and highly risk adverse requiring communities to partner with them to reduce economic uncertainty. In today’s industry, community risk mitigation programs have become an expectation. To be effective, airline support packages must be structured to address the realities of today’s industry and ensure that investments made are quick to respond. This Strategic Plan is structured to address today’s industry realities.

The public-private partnership proposes an ai rline incentive program that has been tested and proved to be successful. To reduce the breakeven period and offset the economic risk during start-up, the public-p rivate partnership proposes the following incentives ( Exhibit 6.1 ):

 Revenue guarantee: reduce airline economic risk

 New service marketing campaign: create improved service awareness

 Landing fee waivers: reduce start-up costs

Revenue Guarantee

ILM is competing with other markets across the country for very limited resources. Without a revenue guarantee to cover some of the airlines economic risk, ILM has little chance of becoming one of the targeted carrier ’s priority markets. To reduce airline risk and provide incentive to potential airlines to initiate nonstop service to Chicago O’Hare or another market, this Strategic Plan includes an airline revenue guarantee as part of the community support package. Based on feedback from the airlines and examples of other incentives carriers have recently received for new, small market star t-up, it is anticipated that a nearly $1 million airline revenue guaran tee is needed to be considered for Chicago O’Hare or other priority service. Exact term s of the airline revenue guarantee agreement are subject to further discussions and negotiation. 

### To reduce airline risk and provide incentive to providenew nonstop, highpriority service, this Strategic Plan includes an airline revenue guarantee. EXHIBIT 6.1 INCENTIVE AND SUPPORT PLANAPPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMWILMINGTONINTERNATIONALAIRPORT

Page

17 Marketing Campaign

A complete marketing/advertising plan will be developed prior to any expenditure of marketing dollars. This plan will be specifically tailored to the needs and support of new service with improved western connectivity.

The marketing plan will be structured for a 12-month program and will focus on public awareness of the new service. However, a permanent marketing program will be in place, meaning that existing efforts will continue in an expanded and enhanced manner past the grant period.

Marketing service ramp-up will emphasize how th e new service will make air travel more convenient, less time-consuming, and less costly, while providing more direct access to primary western destinations. In addition, there will be a more general awareness campaign on the issues of supporting local air service, already underway. This campaign will become a permanent part of the operation of ILM.

MARKETING MESSAGES:

Key marketing messages will emphasize th e features and benef its of the proposed service to the identified audiences. Messages will focus on the following:

 Convenience: The new service will get passengers to key western destinations
with more convenience.

 Cost effective: The new service will reduce the cost of travel to key
western destinations.

 Airline name and aircraft type: The new service is provided by a name brand airline and larger aircraft.

TARGET AUDIENCE

The target audience for the new air service is a combination of business travel and leisure travel. For the business market, the target audience can best be identified as follows: direct to consumer; corporate/gov ernment account; and travel agency. For the leisure market, the target audience is: direct to consumer; tour operator/consolidator; and travel agency.

MARKETING SCHEDULE

Marketing is planned to begin at least 60 days prior to the initiation of service. The initial program will focus on the target audience, solidify travel agent interest, schedule meetings and presentations to advise local area businesses of service and schedule, and begin the print and radio advertisements. In addition, a welcoming celebration will be
held at ILM to herald the arrival of the first aircraft of the new service. This will be a heavily publicized public event that will draw s ignificant local coverage. It is expected that a significant share of the budget will be expe nded in the first 60 days. However, the total advertising and promotion program is planned for 12 months. Efforts to secure donations and other support for marketing will be ongoing. 

### Marketing service ramp-up will emphasize how the new service will make air travel more convenient, less time-consuming, and less costly.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMWILMINGTONINTERNATIONALAIRPORT

Page

18 FUNDING

A partnership agreement with local media outlets has been established. This $111,300 campaign will be funded by non-airport sources ($3,500 cash and $7,800 in-kind) and ILM ($100,000 cash).

Fee Waivers

The air service support program includes a landing fee waiver. As part of ILM’s standard rates and charges, signatory airlines will be charged a landing fee assessed at $1.96 per 1,000 pounds of gross landed weight. ILM will waive landing fees for the first 12 months for new service. Landing fees for the first 12 months are estimated at $72,970 based on two daily flights with the Canadair Regional Jet 200. The landing fee waiver may vary depending on aircraft type used, the number of roundtrips, and final airline negotiations.



### S TRATEGIC 

### P LAN 

### F UNDING

The public-private partnership is requesting US DOT assistance in funding 64 percent, or $750,000, of the Strategic Pl an. Specifically, US DOT funding will be used to fund a portion of the airline revenue guarantee. All other elements including the marketing campaign, fee waivers, Strategic Plan monit oring and airline meetings will be funded by the airport and the community.

Table 6.2 provides the Strategic Plan budget by element and sources of funding. ILM and the community will fund 36 percent of the total proposed air service program. Non-airport sources will fund nearly 20 percent of the cash requirement and 18 percentof the total program including inkind services.



### P ROJECT 

### C ONTINUATION AND 

### S USTAINABILITY

Based on a strong marketing campaign for promoting Chicago O’Hare or other qualifying connecting service, it is anticipated that t he new service will be self-sustaining after the start-up period which can take up to a year. However, a leading cause of service failure is lack of awareness in the community. The public-private partnership will fund an
additional $100,000 marketing campaign if at the end of the first year of service the market average load factor for the 12-mont h period averaged less than 75 percent. The public-private partnership and the Wilmingt on business community are committed to the success of this project, have a vested interest in the outcome of this Strategic Plan, and
understand the difficulties associated wi th profitably operating air service. TABLE 6.2 STRATEGIC PLAN BUDGET

DESCRIPTION FUNDING SOURCE

TOTAL US DOT AIRPORT NON-AIRPORT CASH CASH IN-KIND CASH IN-KIND Airline incentive program: Revenue guarantee $750,000 $200,000 $950,000 Marketing campaign $100,000 $3,500 $7,800 $111,300
Fee waivers $72,970 $72,970 Strategic Plan monitoring $22,660 $22,660 Airline meeting $8,300 $8,300 Program administration $5,000 $5,000 $10,000
Total $750,000 $130,960 $77,970 $203,500 $12,800 $1,175,230 Percent of total project 64% 11% 7% 17% 1% 100% Percent of cash contribution 69% 12% N/A 19% N/A 100%APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMWILMINGTONINTERNATIONALAIRPORT

Page

19 

# S ECTION 

# 7. S CHEDULE AND


# M ONITORING

he public-private partnership established for this Strategic Plan has developed a realistic timetable to achieve the goals of this proposal. This section provides critical milestones to be achieved by the public-private partnership. A monitoring program is also provided to track the progress of the project.



### C RITICAL 

### M ILESTONES

The following milestones are proposed to track the progress of this air service initiative. The timeline is highly dependent on the date of the US DOT’s grant award
and the service start date.

Marketing Campaign Development/Initiation

: Development of the marketing campaign will be completed in January 2014 January/February 2014 in order to begin the marketing campaign 60 days prior to new service initiation. Development of t he marketing campaign is dependent on air service announcement and start-up. It is ant icipated that the marketing campaign will begin by April 1, 2014, and continue thro ughout the first year of new service.

Service Improvement Initiation

: The service start date is the critical dat e for the rest of the Strategic Plan. June 2014 It is anticipated that American will begin nonstop Chicago O’Hare service by June 2014. Air service initiation is dependent on airline route planning and availability
of aircraft.

Alternate Plan

: If American has not committed to nonstop Chicago O’Hare service by June 2014
June 1, 2014, ILM will contact alternate ca rriers that would meet the goals of this grant application. United Airlines service to Chicago O’Hare, American service to Dallas-Fort Worth, United service to Housto n, or JetBlue service to Boston are the top priorities following nonstop American Chicago O’Hare service to provide the westbound connections needed by the community.

End of First Year of Service

: At the end of the first year of service, the revenue guarantee will be May 2015 calculated based on the terms of the agreem ent. If the service start date changes due 

# T This section addresses:

 How the community will

monitor the progress of the project

 The plan/schedule for

timely completion of the project



### It is anticipated that American will begin

Chicago O’Hare service by June 2014.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMWILMINGTONINTERNATIONALAIRPORT

Page

20 to airline circumstances and/or equipment availability, the revenue guarantee contract term will change accordingly.

: If the load factor for the first 12 months of service does not reach an May 2015 average of 75 percent, ILM will invest $100,000 in supplementary marketing for an additional 12 months to help the service reach the potential pas senger levels required
for carrier success.



### M ONITORING 

### P ROGRAM

The monitoring program proposed is aggres sive and comprehensive. The monitoring program includes: service performance tracki ng, assessing the effectiveness of the marketing campaign, and determining the impact of the service on retention of catchment area passengers at ILM.

The following will be completed:

 Review aircraft departures, enplaned passengers and load factors on a monthly

basis and route unit revenue performance on a quarterly basis. Airport data, US DOT airline reported data and data obtained directly from the airline will be used.

 Average airfares will be reviewed on a quarterly basis and compared and

evaluated to prior quarters. Published airf ares will also be tracked via one of the Global Distribution/Computer Reservat ions Systems (GDS/CRS) or through
airline web sites.

 A retention/diversion study will be perf ormed to determine changes in passenger

retention/diversion after the first 12 months of service. By comparing post-service improvement retention levels to pre-servi ce retention levels, the study will determine the impact of the air service improvements on retention/diversion
at ILM.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMWILMINGTONINTERNATIONALAIRPORT 

# A PPENDIX 

# A. L ETTERS OF


# S UPPORT

ppendix A includes letters of support for ILM’s application to the US DOT to increase westbound connecting opportunities. Support letters were submitted by participants in the public-private partnership, government officials and members of the Wilmington area. The letters of support are included on the following pages of this Appendix A and are listed below.

Public-Private Partnership New Hanover County Airport Au thority (refer to cover letter) Air Service Focus Group: Branch Banking and Trust Company (BB&T) Brunswick County Economic Development Commission Castle Branch, Inc. City of Wilmington, Mayor Bill Saffo Eastern Aviation Fuels, Inc. Monteith Construction Corp. New Hanover County, Board of Commissioners New Hanover Regional Medical Center Pharmaceutical Product Development, LLC Talbert & Bright University of North Carolina Wilmington Wilmington Business Development Wilmington Chamber of Commerce Wilmington Health

Government North Carolina General Assembly, Representative Rick Catlin North Carolina General Assembly, Representative Susi Hamilton State of North Carolina, Department of Transportation

Businesses and Organizations
4 Seasons Site & Demo, Inc. All Kinds of Stuff, LLC Arts Council of Wilmington
AT&T Atlantic Dermatology Associates, PA
Barker Jones & Co. Barnhill Contracting Company
Britt Law Firm Bullock LLC dba The Cotton Exchange Cape Fear Community College 

# A This section addresses: Letters of support frommembers of the publicprivate partnership, the local business community and city/county government.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMWILMINGTONINTERNATIONALAIRPORT Businesses and Organizations (Cont.) Cape Fear Literacy Council Cape Fear Products, Inc. Carolinas Cement Company, LLC CATLIN Engineers & Scientists Cavanaugh & Associates, PA Copley Investment Management, LLC Corbet Package Company Creative Training Concepts, International DJ Investments, Inc. Duke Energy Enterprise Holdings Evergreen Clearing, Inc. FASTSIGNS Wilmington
First Citizens Bank Fourth Day Advertising Gateway Bank Mortgage, Inc. GE Hitachi Nuclear Energy Goodrich Architecture, PA Gregory Construction Company Hertz Corporation Intracoastal Angler Intracoastal Realty Corporation John Izzo, CPA
Julia’s Florist Ken Weeden & Associates, Inc. Larry Bell Real Estate Legacy Wealth Strategies Businesses and Organizations (Cont.)

LS3P Architects LS3P Associates, Ltd. McColl & Associates, Inc. New Hanover County Tourism

Development Authority New River Pottery NewBridge Bank North Carolina Aquarium OpinionLab, Inc. Paramounte Engineering, Inc.
PNC Bank Southern Metals Recycling, Inc.
Star News Media
Summer Sands Suites The Davis Community The Lakes Country Club Thomas Construction Group Thomson, Corder & Co. Tidewater Group, Inc. Totally Travel, LLC UBS Financial Services, Inc. Wilmington Downtown, Inc. Wilmington Regional Film Commission Wilmington Rotary Club Wilmington Symphony Orchestra Wilmington Today
WILM-TVJuly 18, 2013

Brooke Chapman, Associate Director Small Community Air Service Development Program U.S. Department of Transportation 1200 New Jersey Ave, SE W86-310 Washington, DC 20590

Subject: Small Community Air Serv ice Development Grant Application Docket DOT-OST-2013-0120 Wilmington, North Carolina



### Dear Ms. Chapman:

I write to you in strong support of the SCASD grant application from the Wilmington International Airport (ILM). Enhancing access to the marketplace through local air ser vice is vitally important to the business community in the Southeast region. The proposed air service improvements would expand access to the national transportation system which in turn would allow us the opportunity to extend our local business reach outwa rd. In today’s national and international marketplace it is imperative for a small hub airport like ILM to remain competitive, and obtaining this grant would allow us to make great strides forward.

I appreciate all consideration of this application and will be happy to answer any questions the Review Board may have. Please call my office at 910-733-5830 if you w ould like to discuss my support in more detail.

Sincerely,

Representative Rick Catlin District 20, New Hanover County North Carolina House of Representatives Raleigh, North Carolina 27603
919-733-5830

## (Earolm a

REPRESENTATIV E SUS I H

. HAMILTO N NE W HANOVE R AN D BRUNSWIC K COUNTIE S - IST H DISTRIC T

OFFIC E ADDRESS :

TELEPHONE :

EMAIL : 131 3 LEGISLATIV E BUILDIN G

1 6 WES T JONE S STREE T

RALEIGH , N C 276O1-1O9 6 (919 ) 733-575 4
(919 ) 733-259 9 FA X susi.hamilton@ncleg.ne t Jul y 22

, 201 3 COMMITTEES :

PUBLI C UTILITIES

, VIC E CHAI R COMMERC E AN D JO B DEVELOPMEN T ENVIRONMEN T FINANC E INSURANC E
RULE S TRANSPORTATIO N



### Ms

. Brook e Chapman

, Associat e Directo r Smal l Communit y Ai r

Servic e Developmen t

Progra m U.S

. Departmen t

o f Transportatio n 120 0 Ne w Jerse y Ave

, S E W86-31 0 Washington

, D C 2059 0

Subject : Smal l Communit y Ai r Servic e Developmen t

Gran t Applicatio n Docke t DOT-OST-2013-012 0 Wilmington

, Nort h Carolin a

Dea r Ms

. Chapman :

I a m o f th e understandin g tha t

th e Wilmingto n Internationa l Airpor t (ILM ) i s i n th e proces s o f applyin g fo r

a Smal l Communit y Ai r

Servic e Developmen t

Gran t (SCASDP ) wit h th e U.S

. Departmen t o f Transportation

.

I f thei r applicatio n fo r

a gran t i s accepted

, th e airpor t

wil l se e majo r

improvement s i n it s ai r

servic e developmen t

effort s a s wel l a s a significan t increas e i n it s abilit y t o acces s th e nationa l transportatio n system

. Thi s improve d acces s wil l b e beneficia l t o th e entir e region

, includin g th e loca l busines s community

.

Th e goa l o f

th e SCASD P i s t o provid e communitie s tha t depen d o n smal l hu b airport s lik e IL M wit h financia l assistanc e fo r

improvin g ai r

servic e deliver y t o thos e areas

. Fo r thi s reason , I a m writin g thi s lette r o f suppor t i n hope s tha t

th e U S Departmen t

o f Transportatio n wil l giv e seriou s consideratio n t o th e merit s o f IL M Airpor t

an d approv e it s applicatio n fo r SCASD P funding

.

Pleas e fee l fre e t o contac t

m e shoul d yo u hav e an y question s regardin g thi s letter

. Respectfully

,

~&MAj<L.

Sus i H

. Hamilto n Distric t 1 8 Servin g Brunswic k

an d Ne w Hanove r

Countie s

## S TATE OF 

## N ORTH 

## C AROLINA 

# D EPARTMENT OF 

# T RANSPORTATION

P AT 

### M C 

### C RORY 1501 M AIL S ERVICE C ENTER , R

ALEIGH , N. C. 27699

- 1501 

### A NTHONY 

### J. T ATA
G OVERNOR S ECRETARY

PHONE 919-707-2800 FAX 919-733-9150 

### July 19, 2013

Brooke Chapman, Associate Director Small Community Air Service Development Program U.S. Department of Transportation 1200 New Jersey Ave, SE W86-310 Washington, DC 20590

Subject: Small Community Air Service Development Grant Application Docket DOT-OST-2013-0120 Wilmington International Airport

Dear Ms. Chapman:

Please accept my strongest endorsement for the above refe renced grant application for Wilmington International Airport. Wilmington International Airp ort is in a unique position within our state. With a growing private sector business community and expanding tourism industry, the area is on the brink of significant and sustained growth. The airport is a key catalyst to promote this growth and support the growing commerce within the region. Access between marketplaces through expanded air service is cr itical to maintain the area’s growth and economic competitiveness. With the support of a Small Comm unity Air Service Development Grant Application (SCASDG), I am confident the airport will be able to capture additional air service and improve connectivity between southeast North Carolina and other critical markets.

I can personally assure you the airport leadership is strong and the proposed SCASDG is appropriate for Wilmington International Airport as it is one of the best managed airports in the entire country. With all the needed resources to execute a will conceived plan for im proved air service, the airport has a strong need for the grant and is an ideal candidate for your program.

Thank you for your consideration of the Wilm ington International Airport SCASDG!

Sincerely,

Richard J. Walls, P.E. Deputy Secretary for TransportationDate 7/22/13

Brooke Chapman, Associate Director Small Community Air Service Development Program U.S. Department of Transportation 1200 New Jersey Ave, SE W86-310 Washington, DC 20590

Subject: Small Community Air Service Development Grant Application Docket DOT-OST-2013-0120 Wilmington, North Carolina

Dear Ms. Chapman:

4 Seasons Site and Demo Inc. is in support of the subject grant application for the air service improvements. 4 Seasons bids a nd performs work across North and South Carolina. The ability to travel by air with a moment's notice is must in our line of work. As our business grows, so does the demand for air travel and im provements to air service.

The proposed service improvements will be utiliz ed by 4 Seasons and other businesses like ours.

Sincerely,



### President/Owner
4 seasons Site & Demo Inc. Chuck Ohnmacht

# All Kinds Of Stuff, LLC www.ShopAKOS.com 1231 Potomac Court, Wilmington, NC 28411 (910) 791-2147 FAX (910) 452-7408

July 15, 2013

Brooke Chapman, Associate Director Small Community Air Service Development Program U.S. Department of Transportation 1200 New Jersey Ave, SE W86-310 Washington, DC 20590

Subject: Small Community Air Service Development Grant Application Docket DOT-OST-2013-0120 Wilmington, North Carolina

Dear Ms. Chapman:

All Kinds of Stuff supports the Small Community Air Service Development Grant Application for ILM – Wilmington International Airport. The air service at ILM is lacking in ease of travel whether it be for business or personal use. There are too many people that travel to ot her airports where the options are much better and you can get better connections. This severely hurts our local ec onomy and ILM but could easily be corrected with improved services.

All Kinds of Stuff would gladly use ILM with the proposed service improvements. I also feel it would be used by not only people and businesses in Wilmington but also fro m the surrounding communities. We don’t have a lot of choices and the outlying communities have a choice of ILM, Raleigh, NC or Myrtle Beach, SC. With this grant being approved for ILM, I feel confident that we, along w ith many others, would choose ILM instead of driving or going to another airport.

Sincerely, Ann L Willard
Ann L Willard All Kinds of Stuff, LLC Owner

# The 

# futs Council

of 

## Mlmington & 

## NHC

July 19, 2013

Brooke Chapman, Associate Director

Small Community Air Service Development Program

U.S. Department of Transportation

1200 New Jersey Ave, SE W86-310 Washlngton, DC 20590



### Subject: Small Community Air Service Development Grant Application

Docket DOT-OST-2o13-0120 Wilmington, North Carolina

Dear Ms. Chapman:

The Arts Council of Wilmington and New Hanover County strongly supports the Air Service Development
grant application for Wilmington lnternational Airport.

Our region's increasing regard as an arts destination is dependent upon access to the national aviation
system. Wilmington lnternational Airport is an important portal for our thriving film industry, as well as

many artists and arts organizations in southeastern North Carolina.

Additionally, many allied businesses which provlde goods and servlces to Wilmington's arts community

will benefit from the proposed service improvements.

We are hopeful that the U.S. Department of Transportation will invest in the improvements sought by Wilmington lnternational 

### Airport. Our 3000 creative industry workers and 150 arts organizations are counting on it.

Sincerely, 

# $ \g

RhoTda Bellamy
Executive Director

### John Lyon AT&T Regional Director 102 N. 4 th 

### St. Wilmington, NC 28401

JL7169@att.com 910 -341-7622 (w) 910-599-4799 (c)



### July 17, 2013

Brooke Chapman, Associate Director Small Community Air Service Development Program U.S. Department of Transportation 1200 New Jersey Ave, SE W86-310 Washington, DC 20590

Subject: Small Community Air Service Development Grant Application Docket DOT-OST-2013-0120 Wilmington, North Carolina

Dear Ms. Chapman:

As AT&T’s Regional Director of External Affairs, I would like to voice my support of ILM’s Small Community Air Service Development Grant Application. Having a vibrant and growing air transportation system is vital to the needs of existing businesses in the area, as well as for any new businesses that are considering locating to this area. The proposed air service improvements are much needed by our business and other businesses in the region to improve access to the national transportation system.

I know that I will personally utilize ILM’s services in my business travels, as will many of my bu siness associates and the customers that we serve in the area.

Sincerely,

John Lyon

–

AT&T Regional Director of External Affairs

# BARKER JONES 

# & CO.

C R T I I D ) B 

### I e ACCO U T A HS



### July 1 7, 2013

Brooke Chapman, Associate Director Small Community Air Service Development Program U.S. Department of Transportation 1200 New Jersey Ave., SE W86-310 Washington, DC 20590

Subject: Small Community Air Service Developn1ent Grant Applic a t ion Docket DOT -OST -2013-0120 Wilmington, North Carolina

Dear Ms. Chapman:

Barker Jones & 

### Co. supports the subject grant application. As part of a s m a ll er business community, we rely on our local airport and the air services it provides to deve lop and expand the opportunities for our business to connect with current and pot en t ia l clients outside our community. Improvements and expansion of its air services w ill o nly serve to increase our business opportunities and provide better access to the more glob al market place.

The improvements in air services that the grant would provide are essenti al t o the sustained growth of our business and to the other businesses in our comm unity

. We are strong supporters of our local airport and its continued role in serving the nee d s of our business community.

Thank you for your consideration.

Sincerely,

# ~/VC7~~1T0 '

Barker Jones & 

### Co.

# BY:**~~&.** C. William Barker

1 508 MILITARY CUTOFF ROAD, SUITE 

### 300, WILMINGTON, 

### N C 28403 [910]509-0803 • [910]509-0804 FAX

### 1012 S. 17 th 

### Street; Wilmington, NC 28401 Phone: (910) 251-0911 Fax: (910) 251-9095 Website: www.cfliteracy.org



### J uly 15, 2013

Brooke Chapman, Associate Director Small Community Air Service Development Program U.S. Department of Transportation 1200 New Jersey Ave, SE W86-310 Washington, DC 20590

Subject: Small Community Air Service Development Grant Application Docket DOT-OST-2013-0120 Wilmington, North Carolina

Dear Ms. Chapman:

“ILM” is invaluable to this community and its sustainability. It is essential that our airport be top caliber in the services it provides travelers and the connections it affords them to the national transportation system. Our community has a dive rse set of travelers – residents and those they welcome to Wilmington, tourists, and business/cor porate travelers. Each of these groups relies on ILM to deliver the flights and services they need. Our community health depends on ILM’s doing just that.

Therefore, we support ILM’s efforts to acquire the funds needed to make the proposed service improvements. All of us will benefit; and if our airport does not make necessary improvements and therefore lags behind, all of us will suffer the consequenceses.

We respectfully urge you to fund the grant application.

Sincerely,

Linda P. Lytvinenko Executive Director1904 Eastwood Road, Suite 205 Wilmington NC 28403 Office 910.392.4612 Fax 910.392.4612 

## www. cavanaugh solutions.com **July 18, 2013**

**Brooke Chapman, Associate Director Small Community Air Service Development Program**  **U.S. Department of Transportation 1200 New Jersey Ave, SE W86-310**  **Washington, DC 20590**

Subject: Small Community Air Service Development Grant Application Docket DOT-OST-2013-0120 Wilmington, North Carolina

**Dear Ms. Chapman:**

**Cavanaugh & Associates, P.A. strongly supports the subject grant application for Wilmington International Airport (ILM). The sustenance and growth of our business relies on dependable and**  **convenient air service. The businesses that are developing and growing in the Wilmington, NC market are providing goods and services across our nation and around the globe. Of the businesses and**  **institutions we work with in the Wilmington area, nearly all engage in commerce in other geographic areas, and depend on air service for accessing their customers and markets.** 

**The air service improvements that are proposed for ILM in which this grant program will support are very important to our business and other businesses in the area. The proposed improvements will**  **benefit our business, and we will take full advantage of them to aid in the sustenance and growth of our business. In this regard, I fully support the subject application for ILM.** 

**Sincerely;**

**William G. “Gus” Simmons, Jr., P.E. Vice President, Director of Engineering** 5025	B	Wrightsville	Ave ,	Wilmington,	NC		28403 O:	910‐452‐7147,	E: Ron.Copley@gmail.com ,	F:	910‐452‐7145 

## COPLEY INVESTMENT MANAGEMENT, LLC

______________________________________ Ronald E. Copley, PhD, CFA



### July 19, 2012

Brooke Chapman, Associate Director Small Community Air Service Development Program U.S. Department of Transportation 1200 New Jersey Ave, SE W86-310 Washington, DC 20590

Subject: Small Community Air Serv ice Development Grant Application Docket DOT-OST-2013-0120 Wilmington, North Carolina

Dear Ms. Chapman:


### I	am	writing	this	letter	of	suppo rt	for	Wilmington	Internationa l	Airport’s	grant request.

I	have	traveled	through	ILM	many	times	over	the	past	30	years	f or	business,	and	can personally	attest	that	it	is	a	va luable	resource	to	the	local	b usiness	community. Without	the	access	ILM	provides	CIM	to	the	national	transportat ion	network,	I would	have	to	relocate	my	busine ss	to	an	alternate	city.		I	bel ieve	that	this	grant	will provide	vital	capital	to	ILM	in	its	quest	to	maintain	state‐of‐the‐art	facilities	and technology;	improvements	that	support	a	vibrant	transportation infrastructure	my business	and	other	local	businesse s	require	for	conducting	busi ness.

Thank	you	for	considering	ILM’s request	for	funding.	I	would	be pleased	to	discuss with	you	over	the	phone	the	impo rtance	of	this	grant.	Please	do not	hesitate	to	call.

Sincerely,

Ronald	E.	Copley,	Phd,	CFA President1451 Military Cutoff Road Wilmington, NC 28403

o: 910.256.7237

c: 910.520.9199



### July 23, 2013

Brooke Chapman, Associate Director Small Community Air Service Development Program U.S. Department of Transportation 1200 New Jersey Ave, SE W86-310 Washington, DC 20590

Subject: Small Community Air Service Development Grant Application Docket DOT-OST-2013-0120 Wilmington, North Carolina

Dear Ms. Chapman:

Duke Energy is in support of the grant application submitted by the Wilmington International Airport. Access to the marketplace through local air service is important to the economic prosperity of the Cape Fear Region, and is a valued asset for local businesses in the area. The proposed air service improvements are essential for local businesses in the region to improve access to the national and global transportation systems.

We are confident that the proposed service im provements will be used by local businesses, and will keep ILM competitive in the air service industry.

Sincerely,

John K. Elliott Director, NC East Region Duke Energy CarolinasJuly 22, 2013

Brooke Chapman, Associate Director Small Community Air Serv ice Development Program U.S. Department of Transportation 1200 New Jersey Avenue, SE W86-310 Washington, D.C. 20590

Re: Small Community Air Service Development Grant Application Docket DOT-OST-2013-0120 Wilmington, North Carolina

Dear Ms. Chapman:

With its amazing coastline, Wilmington relies heavily on summer tourism for revenue; however, more and more people are relocating to the area as permanent residents. The area’s growth extends a considerable distance out side of Wilmington. North Carolina’s coastline is becoming vastly more populated for many miles both north and south of Wi lmington; thus, the need for more flight options becoming more imperative in order to maintain the growth/economy. It has only been since the late 1980’s that Interstate 40 reached Wilmington and as a result the city persistently attempts to lure businesses to relocate to this charming coastal city. In spite of councilman and commissioner’s diligence, the one issue that cannot be ignored is that flights to ILM are not nearly plentiful enough and are too constraining for business travelers. It is quit e normal for both residents and travelers to fly into other venues, such as, Raleigh or Myrtle Beach; thereby, redirectin g the attention from Wilmington. I can assure you with the ut most certainty that the expansion will be welcomed by not only the residents of Wilmington and the surro unding towns and cities, but, also by visitors and what we hope will be new business travelers.

Evergreen Clearing, Inc., along with many other local businesses, will most definitely benefit from the highly anticipated service improvements at ILM.

Sincerely,

D. Brian Benford, President Evergreen Clearing, Inc. 

# Evergreen Clearing, Inc.

2605 Blue Clay Rd. Wilmington, NC 28405

910-762-9156

### July 19, 2013

Brooke Chapman, Associate Director Small Community Air Service Development Program U.S. Department of Transportation 1200 New Jersey Ave, SE W86- 31 0 Washington, DC 20590

Subject: Small Community Air Service Development Grant Application Docket DOT-OST-2013 -012 0 - Wilmington, North Carolina

Dear Ms. Chapman:

We are writing to inform you of our support of Wilmington (N.C.) International Airport’s (ILM) Small Community Air Service Development Grant Application. As the largest private employer in the Wilmington area, GE Hitachi Nuclear Energy (the nuclear division of GE) relies on convenient air access in and out of Wilmington for our employees, our customers and our stakeholders from around the nation and the world.

The proposed expansion of Wilmington’s air service offerings are needed to improve access to the national transportation system, sustaining growth and industry in the area. Enduring multiple connections to get to our country’s and the globe’s major business hubs is a detriment to doing business in a connected world. Access to multiple hubs would increase access to and from our area in a meaningful way.

With the recent announcement of GE’s expansion in North Carolina as well as GE Hitac hi Nuclear Energy’s continued growth in national and international markets, we are also looking to attract talent. Promoting Wilmington as an ideal place to live and work is one of the ways we do this. Expanding scheduled air service is an important factor in this effort.

Expanding air service in Wilmington makes sense, and we look forward to a positive outcome to the grant process.

Sincerely,

Caroline Reda President & CEO GE Hitachi Nuclear Energy GE Hitachi Nuclear Energy

Caroline Reda President & CEO GE Hitachi Nuclear Energy

3901 Castle Hayne Road P.O. Box 780 Wilmington, NC 28402 USA

T 910

- 819

- 3900 F 910

- 362

- 3900_____________________________________________________________________________________________________________ 3142 WRIGHTSVILLE AVENUE WILMINGTON NC 28403 OFFICE: 910.343.1065 FAX: 910.343.1067 EMAIL: BGOODARCH@AOL.COM 

### July 17, 2013

Brook Chapman, Associate Director Small Community Air Service Development Program U.S. Department of Transportation 1200 New Jersey Ave., SE W86-310 Washington, D.C. 20590

Subject: Small Community Air Service Development Grant Application Docket DOT-OST-2013-0120 Wilmingt on, North Carolina

Dear Ms. Chapman:

Being a local business owner, I cannot stress how im portant our local airport service is vital to our community. Many of my clients live out of st ate and travel to Wilmington via flying. The proposed air service improvements will definitely enhance their, a nd mine, efficiency in doing business.

I assure you the service improvements will benefit all businesses in this region.

Respectfully,

H. Blair Goodrich Principal Goodrich Architecture. P.A.

### 7/16/2013

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

‐ 310 Washington, DC 20590

Subject: Small Community Air Service Development Grant Application Docket DOT

‐ OST

‐ 2013

‐ 0120 Wilmington, North Carolina

Dear Ms. Chapman:

Julia’s Florist highly s upports the ILM grant application. As a florist, I rely heavily on both cargo and travel services. Julia’s Florist receives weekly flower shipments through ILM from Florida, Canada & California. It is imperative that access improvements remain a top priority in Wilmington.

Air travel services are equally important for our busi ness. As a board member with the Society of
American Florist, ILM provides important business travel availability around the country. Increased destination access would offer greater options for my company.

Sincerely,

Dana Cook Julia’s Florist
Owner

900 South Kerr Ave Wilmington, NC, 28403, 910

‐ 395

‐ 1868

## KEN WEEDEN & ASSOCIATES, INC.


# Planning Consultants

AVIATION ● TRANSPORTATION ● CONTRACT COMPLIANCE Corporate Headquarters
PO Box 3113 Wilmington NC 28406 Phone: 910.762.6297
Fax: 910.762.5963 Web: www.kwaplanning.com

July 19, 2013

Brooke Chapman, Associate Director Small Community Air Service Development Program U.S. Department of Transportation 1200 New Jersey Ave, SE W86-310 Washington, DC 20590

Subject: Small Community Air Serv ice Development Grant Application Docket DOT-OST-2013-0120 Wilmington, North Carolina

Dear Ms. Chapman:

As an airport compliance consultant, based in Wilmingt on, I certainly recognize the importance of dependable, viable air service. We use our local airport extensively and value the access it gives us to serve our clients – whether in Charlotte, or Spokane. We really support this grant application. Can we do better? Sure. The proposed air service improvements will se rve to enhance our business growth potential as well as for many others throughout our region by improving our access to th e national transportation system. Thanks for your consideration.

Sincerely,



### Ken Weeden

Wilmington NC ● Raleigh NC ● Charlotte NC ● Savannah GA_____________________________________________________________________________

July 13, 2013

Brooke Chapman, Associate Director Small Community Air Service Development Program U.S. Department of Transportation 1200 New Jersey Ave, SE W86-310 Washington, DC 20590

Re: Small Community Air Service Development Grant Application Docket DOT-OST-2013-0120 Wilmington, North Carolina

Dear Ms. Chapman:

As a local business person I use and appreciate our lo cal airport. They have consistently served our community without a big drain on our tax base. The improvements itemized in the above listed grant application are indeed needed and will enhance the se rvice this airport provides. The majority of my clients use the local airport with its access to the national system.

The proposed improvements will be used by company and my business clients. I hope you will favorably consider this request.

Sincerely,

Larry Bell Broker/Realtor®2528 INDEPENDENCE BOULEVARD, SUITE 200 WILMINGTON, NC PH 910.790.9901 FAX 910.790.3111 LS3P.COM

July 19, 2013

Brooke Chapman, Associate Director Small Community Air Service Development Program U.S. Department of Transportation 1200 New Jersey Ave, SE W86-310 Washington, DC 20590

Subject: Small Community Air Service Development Grant Application

Do cket DOT-OST-2013-0120 Wilmington, North Carolina

Dear Ms. Chapman:

Wilmington is blessed with many natural resources. But one of our greatest assets is our airport. Access to transportation is critical in a market such as ours

– we depend on the ability to travel efficiently and quickly in order to serve our clients.

The proposed air service improvements are essential for southeastern North Carolina, and will a ll ow us to compete nationwide with other communities. I vigorously support the proposal and urge you to approve it. We will use it

– both as a company and as a promotional tool for our greater community.

Please contact me if I can provide further assistance regarding this application.

With sincerest regards,

LS3P Architects Christopher L. Boney, AIA Vice President / Managing PrincipalP.O. Box 3415 Wilmington, NC 28406 910.350.1211 louise@mccoll-associates.com



### July 19, 2013

Brooke Chapman, Associate Director Small Community Air Service Development Program U.S. Department of Transportation 1200 New Jersey Ave, SE W86-310 Washington, DC 20590

Dear Ms. Chapman:

Being born and raised in Wilmingt on, NC and raised close to the airport I know the value of air service to our area. Wilmington International Airport is valuable to our business community, film industry and the leisure traveler . I am in total support of the Small Community Air Service Development Grant Application, Docket DOT-OST-2013-0120, Wilmington, North Carolina

The proposed air service improvemen ts vital to our region. Improved access to our national transportation system is always on the front of our transportation goals for the airport.

Having served on the North Caro lina Economic Development Board, The NC Department of Transportation Board and the North Carolina State Ports Board I can assure you we need it – we will use it – and we endorse it. And out business comm unity will be very thankful.

Sincerely,

Louise Louise F. McColl, President/Owner McColl & Associates, Inc Flash Promotions

### July 19, 2013

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

- 310 Washington, DC 20590

Subject: Small Community Air Service Development Grant Application Docket DOT

- OST

- 2013

- 0120 Wilmington, North Carolina

Dear Ms. Chapman:

On behalf of the New Hanover County Tourism Development Authority, I would like to state our support of the above referenced grant application. Access to the marketplace through local air service is vitally important to the tourism industry as well as other businesses in the community. The proposed air service improvements are much needed by all our business es in the region to improve access to the national transportation system.

Your positive consideration of th is grant application is grea tly appreciated.

Sincerely,

Kim Hufham President/CEO900 Loggerhead Road, Kure Beach, NC 28449 • (910) 458

- 8257 • Fax: (910) 458

- 6812 www.ncaquariums.com



### July 15, 2013

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

- 310 Washington, DC 20590

Subject: Small Community Air Service Development Grant Application Do cket DOT- OST

- 2013

- 0120 Wilmington, North Carolina

Dear Ms. Chapman :

I am writing to support the small community grant application submitted for Wilmington International Airport . Our region ’s continu ing growth relies on access, communication and transportation

. The proposed air service improvements will improve access to the national transportation system and benefit the Aquarium and other businesses

. In addition to creating improved access for tourists flying to Wilmin g ton and surrounding areas for a destination vac a tion, upgrade s will make doing business easier in terms of

our own frequent travel and shipping needs

.

T he proposed service improvements will be used by businesses such as ou rs

. Thank you for your consideration of Wilmington International Airport ’ s proposal

.
Sincerely,

Peggy Sloan Director

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES PAT MCCRORY, GOVERNOR • JOHN E. SKVARLA, III, SECRETARY • DAVID R. GRIFFIN, DIVISION DIRECTORJuly 17, 2013

Brooke Chapman, Associate Director Small Community Air Service Development Program U.S. Department of Transportation 1200 New Jersey Ave, SE W86-310 Washington, DC 20590

Subject: Small Community Air Serv ice Development Grant Application Docket DOT-OST-2013-0120 Wilmington, North Carolina

Dear Ms. Chapman:

OpinionLab, Inc. is in full support of the referenced gr ant application. OpinionLab is the global leader in Voice of Customer (VoC) feedback innov ation, serving a prestigious client list that includes nearly half of Fortune 50 organizations such as Wal-Mart, Bank of America, Ford Motor Company, and many more. With real-time listening solutions for every brand touch point, this pioneering VoC platform invites consumers to share input in their own words, at anytime, from anywhere, helping organizations collect, understand, and leverage both structured and unstruct ured customer data. For over a decade, hundreds of the world’s leading brands have looked to the familiar [+] feedback symbol to better acquire, engage, and retain customers through an approach so str eamlined it’s groundbreaking: listen always, listen everywhere. The result is actionable customer insight that sparks foundational improvement to companies’ products, people, and brands.

Over two years ago, OpinionLab chose to expand its national presence from our headquarters in Illinois to a satellite office in Wilmington, NC as the venue for our expansive growth and future development. As access to the marketplace through local air service is critically important to our business and other businesses in the community, we are respectfully re questing that the DOT give consideration to the application to further revitalize the Wilmington area and bring further growth and development of other similarly minded businesses. Every week, OpinionLab employees, customers and shareholders travel in and out of the Wilmington airport en route to domestic and foreign locations. The proposed air service improvements are significantly required by our business and other businesses in the region to improve access to the national transportation system, increa se the ease of travel in and out of the greater Wilmington area and contribute to further eco nomic expansion in coastal North Carolina.

Thank you for your courtesies and consideration.

Sincerely,

Rand Nickerson Chairman & CEO

# SOUTHERN METALS RECYCLING, INC.

Scrap Iron

- 

### Metals

DEALERS - EXPORTERS - BROKERS
Yard #1 Front & Wright Street P.O. BOX 2139 Yard #2 Highway 421 North Phone (910) 762-9619 WILMINGTON, NC 28402 Phone (910) 762-2646 Fax (910) 762-9620 Fax (910) 762-2153



### July 19, 

### 2013

Brooke Chapman, Associate Director Small Community Air Service Development Program U.S. Department of Transportation 1200 New Jersey Ave, SE W86-310 Washington, DC 20590



### Subject: Small Community Air Service Development Grant Application Docket DOT-OST-201 3-0 120 Wilmington, NC

Dear Ms. Chapman

This letter is in support of this very special grant application. Having adequate access to the marketplace through local air service is critical to my business and business community as a whole. The proposed air service improvements are much needed by all concerned to give us adequate access to the national transportation system.

I believe the these service improvements are greatly needed and will be used by my company and all other in the area.

Sincerely

MarkAlper Vice President



# 131SR1

M E M B E R Institute of Scrap Recyling Industries, Inc.

### SUMMER SANDS SUITES 104 Lumina Avenue Wrightsville Beach, NC 28480

July 17, 2013

Brooke Chapman, Associate Director Small Community Air Service Development Program U.S. Department of Transportation 1200 New Jersey Ave, SE W86-310 Washington, DC 20590

Subject: Small Community Air Serv ice Development Grant Application Docket DOT-OST-2013-0120 Wilmington, North Carolina

Dear Ms. Chapman:

Summer Sands is in support of the subject grant application. Access to the marketplace through local air service is vitally important to our busi ness and other businesses in the community. The proposed air service improvements are much n eeded by our business and other businesses in the region to improve access to the national transportation system.

I assure you that the proposed service improv ements will be used by busin esses such as ours and our guests that fly into the area. I have had on many occasions been able to share stories with our guests about their travel into and out of ILM. Many of our guests come from the midwest, the north and even across the country. They travel for business and for family reunions that bring them to our beaches and vibrant downtown. It is vital to keep those routes open and affordable to keep our guests returning and flying through ILM. We need ILM to continue to grow with our community.

Sincerely,

Laura Schauer ManagerBrooke Chapman, Associate Director Small Community Air Service Development Program U.S. Department of Transportation 1200 New Jersey Ave, SE W86-310 Washington, DC 20590

July 15, 2013

Subject: Small Community Air Serv ice Development Grant Application Docket DOT-OST-2013-0120 Wilmington, North Carolina

Dear Ms. Chapman:

I wish you to know that as a small businessman whose company frequently uses ILM for both business and personal travel that I fully support Wilmington International Airport (ILM) in the grant application referenced above. The airport provid es our employees access to key markets where many of our clients are locat ed. The proposed Air Service improvements are needed and will be beneficial to the company and its employees for thei r business and personal travel. I also believe that the improvements will benefit other businesses in eastern North & South Carolina as will.

I assure you that the proposed service improv ements will be used by The Tidewater Group Inc. and other businesses in southeast Carolina.

Sincerely,

William C. H. Zimmerman Managing Director Tidewater Group Inc.UB S Financia l Service

s Inc

. 198 5 Eastwoo d Roa d Suit e 11 0 Wilmington

. N

C 2840 3 Tel

. 910-256-337

6 Fa x 910-509-138 1 Tol l Fre e 800-932-540

2

www.ub s co m

Jul y 16

, 201 3

Brook e Chapman

, Associat e Directo r Smal l Communit y Ai r Servic e Developmen t Progra m U.S

. Departmen t o f Transportatio n 120 0 Ne w Jerse y Ave

, S E W86-31 0 Washington

, D C 2059 0

Subject : Smal l Communit y Ai r Servic e Developmen t Gran t Applicatio n

Docke t DOT-OST-2013-012 0 Wilmington , Nort h Carolin a

Dea r M s Chapma n

Michae l C Pearso n (Chad ) i s i n suppor t o f th e subjec t gran t applicatio n Acces s t o th e marketplac e throug h loca l ai r servic e i s vitall y importan t t o ou r busines s an d othe r businesse s i n th e communit y Th e propose d ai r servic e improvement s ar e muc h neede d b y ou r busines s an d othe r businesse s i n th e regio n t o improv e acces s t o th e nationa l transportatio n syste m

I assur e yo u tha t th e propose d servic e improvement s wil l b e use d b y businesse s suc h a s ours

. I

a m als o a pilot

, plan e owner , et c Aviatio n i s critica l t o managin g ou r busines s an d t o kee p ou r employee s employe d W e nee d thi s fundin g an d w e wil l us e it

.

I n Appreciation

, . 

# ^.cM fi*~ ——

M Cha d Pearson

, CF P FVP

, Portfoli o Manage r UB S Financia l Service s 198 5 Eastwoo d Dr

, Suit e 10 0 Wilmingto n N C 2840 3 

# UB S

UB S Financia l Service s Inc

. i s a subsidiary o f UB S AG

.BOARD OF DIRECTORS

William Vassar, Chairman Carey Jones, Vice-Chairperson
Honorable Beth Dawson
Honorable Bill Saffo

James L F Smit h

July 16 th , 2013

Brooke Chapman, Associate Director Small Community Air Service Development Program U.S. Department of Transportation 1200 New Jersey Ave, SE W86-310 Washington, DC 20590

Subject: Small Community Air Serv ice Development Grant Application Docket DOT-OST-2013-0120 Wilmington, North Carolina

Dear Ms. Chapman:

The Wilmington Regional Film Commission fully supports th e Wilmington International Airport (ILM) in their grant application that will provide for enhanced service to assist in generating additional economic benefit for the region. Air transportation is high on our clients' list of deciding factor s in bringing business to our community. Our industry relies on accessibility to reliable and consistent air transportation for industry executives coming from major markets. Even though we are a smaller market, our competition is primarily fr om larger markets. Our clients expect the air service in Wilmington to be comparable to what is found in their own larger competing markets. The proposed air service improvements are much needed by our business and other bu sinesses in the region to keep competitive and improve access to the national transportation system.

I assure you that the proposed service improvements will be used by businesses such as ours. We need it and we will use it.

Sincerely, Johnny Griffin Director The Wilmington Regional Film Commission, LLC