Proposal of Columbus Airport • Columbus, Georgia • July 2014 APPLICATION UNDER
SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT

- OST

- 2014

- 011 3

SUMMARY INFORMATION

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

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

. Legal Sponsor Name:
Columbus Airport Name of Signatory Party for Legal Sponsor:
Richard Howell , Airport Director
DUNS Number:
10

- 753

- 2855 EIN/Tax ID:
58

- 1095402

B. L IST THE N AME OF THE COMMUNITY OR CONSORTIUM OF COM MUNITIES APPLYING : 1._ C OLUMBUS A IRPORT , C OLUMBUS , G EORGIA

_

C. P ROVIDE THE FULL AIRP ORT NAME AND 3

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

PROVIDE CODES FOR THE AIRPOR T ( S ) THAT ARE ACTUALLY SE EKING SERVICE ).
1. Columbus Airport (CSG)

D OES THE AIRPORT SEEK ING SERVICE HOLD AN AIRPORT OPERATING CE RTIFICATE ISSUED BY THE F EDERAL A VIATION A DMINISTRATION UNDER 14 CFR P ART 139? (I F “ NO ,” PLEASE EXPLAIN WHETHER THE AIRPORT INTENDS TO APPLY FOR A CERTIFICATE OR WHETH ER AN APPLICATION UN DER P ART 139 IS PENDING .)

Yes No (explain) 

### XProposal of Columbus Airport • Columbus, Georgia • July 2014

D. L IST THE 2

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

CONSORTIUM , TO EACH PARTICIPATIN G COMMUNITY

. 1. GA

- 02

E. A PPLICANT I NFORMATION : (C HECK A LL T HAT A PPLY )

Not a Consortium Interstate Consortium Intrastate Consortium Community now receives subsidized Essential Air Service Community (or Consortium member) previously received a Small Community Air Service Development Program Grant
If previous recipient: Year of grant(s):

___________

a nd , the te x t of the Grant agreement section(s) setting forth the scope of the grant project:

F. P UBLIC /P RIVATE P ARTNERSHIPS : (L IST O RGANIZATION NAMES )
PUBLIC PRIVATE
1. Columbus Airport 1. Greater Columbus Chamber of Commerce
2

. City of Columbus 2. The Valley Partnership

G. P ROJECT P ROPOSAL : 1. G RANT G OALS : ( CHECK ALL THAT APPLY )
Launch New Carrier Secure Additional Service Upgrade Aircraft
First Service New Route Service Restoration Regional Service Surface Transportation Professional Services Other (explain below) 

### X

X X
X
XProposal of Columbus Airport • Columbus, Georgia • July 2014 2

. F INANCIAL T OOLS T O B E U SED : ( CHECK ALL THAT APPLY )

Marketing (including Advertising): promotion of the air service to the public
Start

- Up Cost Offset: offsetting expenses to assist an air service provider in setting up a new station and starting new service (for example, ticket counter reconfiguration)
Revenue Guarantee: an agreement with an air service provider setting forth a minimum guaranteed profit margin, a portion of which is eligible for reimbursement by the community
Recruitment of Air Carrier: air service development activities to recruit new air service,
inclu ding expenses for airport marketers to meet with air service providers to make the
case for new air service
Fee Waivers: waiver of airport fees, such as landing fees, to encourage new air service;
counted as in

- kind contributions only
Ground Handlin g Fee: reimbursement of expenses for passenger, cabin, and ramp (below wing) services provided by third party ground handlers
Travel Bank: travel pledges, or deposited monetary funds, from participating parties for the purchase of air travel on an air car rier, with define d procedures for the subsequent

use of the pledges or the deposited funds; counted as in

- kind contributions only
Other (explain below)

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

### X
X

X

XProposal of Columbus Airport • Columbus, Georgia • July 2014

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 $75 0,000
2 State cash financial contribution $0
Local cash financial contribution
3a Airport cash funds $2 5 ,000
3b Non

- airport cash funds $175 ,000
3 Total local cash funds ( 3a + 3b ) $200 ,000
4 TOTAL CASH FUNDING ( 1+2+3 ) $950 ,000
In

- Kind contribution
5a Airport In

- Kind contribution** Various
5b Other In

- Kind contribution** Various
5 TOTAL IN

- KIND CONTRIBUTION ( 5a + 5b ) Various
6 TOTAL PROJECT COST ( 4+5 ) $950 ,000

J. IN

- KIND CONTRIBUTIONS** For funds in lines 5a (Airport In

- Kind contribution) and 5b (Other In

- Kind contribution), please
describe the source(s) of fund(s) and the value ($) of each.
L ocal media companies will offer discounts on advertising; partner airlines will offer free tickets for giveaways, etc.

K. I S T HIS A PPLICATION S UBJECT T O R EVIEW B Y AN AFFECTED S TATE U NDER E XECUTIVE O RDER 12372 P ROCESS ?

a. This application was made available to the S tate 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 S tate for review.

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

L. I S T HE L EAD A PPLICANT OR A NY C O - A PPLICANTS D ELINQUENT O N A NY F EDERAL D EBT ? (I F “Y ES ”, P ROVIDE
E XPLANATION )
No Yes (explain)

____________________________________________________________________________________ _________Proposal of Columbus Airport • Columbus, Georgia • July 2014 

## 1

TABLE OF CONTENTS

Legal Sponsor 1
Introduction 2
The Columbus Air Service Market 3 Passenger Heat Maps of the Catchment Area 3 Capacity Reductions 4 Passenger and Fare Trends 5
Economic Data 6
Air Service Needs and Deficiencies 8 Passenger Leakage 8 Catchment Area Fares by Airport 9 Southeast Region Fares 9 Air Service Development Plan : Columbus

– Charlotte 10 Connectivity for Columbus Passengers 11 Funding Request and Timeline 13 Public/ Private Partnership 15
Conclusion 16



## LEGAL SPONSOR

The Columbus Airport is the legal sponsor responsible for administering the proposed air service development program. The Airport is a public agency, governed by the Columbus Airport
Commission

.

Columbus Airport 3250 West Britt David Road Columbus, Georgia 31909 Richard Howell , Airport Director (706 ) 324

- 2449 rhowell@flycolumbusga. com 

### Section Page NumberProposal of Columbus Airport • Columbus, Georgia • July 2014 

## 2

INTRODUCTION

Columbus Airport is seeking a federal Small Community Air Service Development (SCASD) Grant
for a revenue guarantee for a second carrier to enter the market. The Airport has never before been awarded a Grant. The timing for this proposal comes on the heels of the cancellation of American Airlines’ service to Dallas/Ft. Worth, and the subsequent loss of 49% of the Airport’s airline capacity.

Columbus Airport provides a critical transportation link to Fort Benning, which

, with more than 42,000 Department of Defense stationed personnel

, is the fourth largest US military installation in the world. The Fort generates tens of thousands of airline trips per year, but most of those travelers are unable to use Columbus Airport for two reasons: a general lack of available seats and exceptionally high fares.

The average one way fare at Columbus Airport in 2013 was $333, which ranks as the highest average fare in the southeast region. Columbus’ fares have been high for the last decade, but 2013 fares were up by 4% over 2012. The Columbus average fare is a surprising $169 more each way than the average in the southeast.

High fares have made it difficult for the Airport to retain those in its immediate catchment area. In preparation for this Grant application, the Airport commissioned a True Market passenger leakage and retention study. The study shows Columbus Airport retains just 9% of the passengers generated in its catchment. 90% of passengers drive to Atlanta for flights.

The Columbus market needs additional capacity in order for the Airport to be more relevant. There is no incentive for Columbus’ sole airline, Delta, to offer more seats as it enjoys a healthy fare premium with relatively full planes. The best way to achieve additional capacity , and better connect the community to the world, is through the recruitment of a second airline.

The Airport has developed a strategic plan for service on American, to the Charlotte hub it inherited in its merger with US Airway s. The Airport has secured $200 ,000 in local cash to match its Grant requ est, in support of a revenue guarantee leading to competitive service. 

## “The average one way fare at Columbus Airport in 2013 was $333, which ranks as the highest average fare in the southeast region.”Proposal of Columbus Airport • Columbus, Georgia • July 2014 

## 3

THE COLUMBUS AIR SERVICE MARKET Current and Historical Air Service

Columbus Airport serves a primary market of almost 500,000 people, with no alternate airport
within 9 0 minutes ’ drive time . The Airport is a gateway to the fourth largest Department of Defense facility in the world

– Fort Benning. The market has some of the highest

ave rage fares in the country and is one of the most underserved, too. Columbus has just one carrier to one destination after the departure of American, which cancelled its Dallas/Ft. Worth service in the summer of
2013.

The Columbus metro area, which includes only Columbus and immediately adjacent communities, is home to 491,852 people as of the latest Census estimates (see map 1). The Columbus Airp ort catchment area,
which is seen in map 1 inside the yellow line, and includes all residents within an hour’s drive of the Airport , is home to 610,924 residents. The greater Columbus area, including all residents within 90 minute drive time of the Airpor t, is home to 1.2 million people.

The Airport commissioned a new True Market passenger leakage and retention study in anticipation of this Grant application. The study found that the majority of the passengers generated in the catchment area
came from th e immediate area surrounding the Airport and from the area around Auburn, Alabama, which is a 30 minute drive from the Airport 

### MAP 1: Columbus Airport Catchment Area Source: Sixel Consulting Group, 2013 US Census Estimates

MAP 2 : Passengers Generated by Zi p Code, CSG Catchment Source: Columbus Airport True Market Study, YE3Q13Proposal of Columbus Airport • Columbus, Georgia • July 2014 

## 4

(see map 2). Specifically, t he zip codes contained in the Columbus metro area generate 55% of all passengers from the catchment, or an average of 910 pass engers per day each way (PDEW). The zip codes at Auburn, Alabama, generate 24% of all passengers from the catchment, or an average of 397 PDEW

.

Despite the large population of the region, Columbus is only served by Delta, with four weekday flights on 50

- seat regional jets to Atlanta (see figure 1). Capacity in
the market is dow n 31% in the last two years with the loss of American service to its hub at Dallas/Ft. Worth. Columbus sees an average of just 187 departing seats per day, down from an average of 245 seats per day just two summers ago . This loss of capacity has caused a n increase in passenger leakage, and caused fares to climb.

Looking back to the summer of 2012, Columbus saw an average of eight daily departures with an average of 383 daily departing seats (see figure 2). By March of 2014, Columbus capacity had dropped to an average of just 4.5 daily departures and 194 daily dep arting seats.

Columbus has seen its overall capacity cut by an average of 189 daily departing seats since the summer of 2012 (see figure 2). This represents a loss of 49% of all the market’s available seats. Moreover, Columbus has been left with a sin gle carrier who is also the dominant carrier at the airport most Columbus passengers leak to

– Delta and Atlanta. 

### FIGURE 1: Columbus Airport Capacity Source: OAG Flight Schedules, August 2012 vs. August 2014

FIGURE 2 : Passengers, Available Seats, and Flights per Day Each Way, Columbus Airport Source: US DOT T100, June 2011

– March 2014Proposal of Columbus Airport • Columbus, Georgia • July 2014 

## 5

For the last decade, despite capacity fluctuations, Columbus has supported some of the highest average fares in the country. Its 2013 average, including both domestic and international passengers, was $333 each way (see figure 3). This was up from an average of $321 one way in
2012

– an increase of 4%.

American’s presence in the market stimulated passengers despite high fares. Between
2009 a nd 2011 passengers grew from an average of 128 per day each way (PDEW) to almost 170 PDEW (see figure 3). But with capacity cuts, and American’s departure from the market in the middle of 2013, passengers have fallen by 19% since the 2011 peak, to just 13 7 PDEW. Passengers will fall farther in 2014, as capacity has been trimmed even further by Delta since American’s departure. 

### FIGURE 3 : Origin and Destination Passengers and Average One Way Fare, Columbus Airport Source: US DOT Table DB1A, Calendar Year 2004

– Calendar Year 2013

FIGURE 4 : Top 25 True Passenger Markets Source: Columbus Airport True Market Study, YE3Q13Proposal of Columbus Airport • Columbus, Georgia • July 2014 

## 6

High average fares and an overall lack of capacity cause Columbus to lose 91% of its passengers to other airports

– with most usi ng Atlanta. Leakage is evident in each of the market’s top 25 origin and destination passenger markets. Columbus Airport retains less than 10% of passengers in each of the top 25 markets except for Dallas/Ft. Worth as of the year ended third quarter 2013 (see figure 4 on previous page). Dallas passenger retention w a s boosted by American’s non

- stop, which was operated in nine of the 12 m onths studied. It is a
certaint y that this retention will decline now that American has ceased service.

The Columbus ca tchment area, which was depicted in map 2, generates 40 PDEW in each of its top seven markets, and at least 20 PDEW in each of its top 23 markets (see figure 4 on previous page). The military presence in the market is evident in the top market list, as Wa shington

Baltimore is the top passenger market, and other large military markets such as Dallas/Ft Worth, Colorado Springs, Newport News, Fayetteville, and San Diego also rank highly.

Not only does the True
Market data show that the
Columbus catchment area can support additional air service, the improving regional economic profile
indicates the market will be generating more airline passengers in the future. The two metropolitan statistical areas (MSAs) that are in the immediate Columbus Airport catchment area, Auburn

- Opelika and Columbus, are among the fa stest growing in the deep south, which includes Georgia, Alabama, Florida, Mississippi, South Carolina, and Tennessee (see figure 5). Auburn’s gross metropolitan product (GMP) has grown by almost 13% since 2009, while Columbus has seen GMP growth of 11% i n the same period.

Auburn’s growth is tied to the increased enrollment at Auburn University. Meanwhile, a large part of Columbus’ growth has to do with 

### FIGURE 5 : Top 10 Deep South Metros, Ranked by GMP Growth Source: US Council of Mayors, 2009 vs. 2012

FIGURE 6 : Top 10 Department of Defense Installations Source: US Department of Defense, 2012Proposal of Columbus Airport • Columbus, Georgia • July 2014 

## 7

Fort Benning. With almost 43,000 total Department of Defense (DoD) personnel stationed at Fort
Bennin g, it ranks as the fourth largest military installation in the world (see figure 6 on previous page).

Beyond Fort Benning

, the Columbus catchment
area has a n umber of large corporate headquarters generating significant air travel. The most recognizable company headquartered in Columbus
is Aflac

– the multi

- national insurance company (see figure 7). It employs 3,700 people on its headquarters campus in Columbu s. Beyond hospitals and school districts, Columbus is also home to headquarters for Pezold Management, a large restaurant franchise management company; Koch Foods, a large poultry processor; Synovus, a financial services company; and Carmike Cinemas, whic h has movie theatres across the country.

With so many diverse users, and so much air travel demand, Columbus Airport is able to support more air service than that currently provided. Employees of these companies, and many more, drive to
Atlanta for most of their trips. Columbus Airport seeks federal assistance to help it develop a revenue guarantee package for additional airline service, so it can better serve its diverse community. 

### FIGURE 7 : Columbus Area Top Employers, HQ in Bold Source: Columbus Chamber of Commerce, 2013Proposal of Columbus Airport • Columbus, Georgia • July 2014 

## 8

AIR SERVICE NEEDS AND DEFICIENCIES IN COLUMBUS

As documented, Columbus has lost 49% of its available airline seats in the last two years. This has caused fares that were already high in comparison to the region to increase further. Columbus now has the highest average fare in the southeast. That has led to increased passenger leakage to other airports as Columbus catchment area passengers seek out
affordable air service elsewhere.

Columbus Airport’s newly completed True Market Study shows that the Airport retains just 9% of the passengers generatated in its catchment area (see map 3). The vast majority drive to Atlanta, with 90% of the catchment’s passengers using Hartsfield Jackson Airport to acces s the national air transportation system. Only a very small percentage

– less than 1% combined

– drive to Montgomery and Birmingham for service. If passengers are going to use an airport other than Columbus, they will tend to go to the airport with the m ost non

- stop destinations. Atlanta has more non

- stop cities served than any other airport in the United States thanks to its massive Delta hub.

The Columbus Airport immediate catchment area generates more than 1.2 million pas sengers per year (see figure 8). An average of 1,654 passengers per day each way (PDEW) fly in and out of the Columbus catchment area. But as of the year ended third quar ter 2013, just 149 PDEW flew in and out of Columbus Airport, itself. Atlanta is able to capture the vast majority of those traveling to and from Columbus, with an average of 1,497 PDEW using service there. Only a 

### MAP 3 : Passenger Retention and Leakage in CSG Catchment Source: Columbus Airport True Market Study, YE3Q13

FIGURE 8 : Passenger Retention by Airport in CSG Catchment Source: Columbus Airport True Market Study, YE3Q13Proposal of Columbus Airport • Columbus, Georgia • July 2014 

## 9

combined 13 PDEW use airports in Birmingh am and Montgomery to fly to and from the
Columbus catchment area.

While the sheer number of flights and

non

- stop destinations at Atlanta is one reason many Columbus catchment area passengers choose to drive to it for flights, another factor is the cost of travel. The average fare paid by
Columbus catchment area passengers using Columbus Airport is $291 each way (see map 4) , which differs from the 2013 overall average of $333

. Passengers can save an average of $88 each way, or $176 on a roundtrip, by driving to Atlanta, where the average one way fare for Columbu s passengers is $203. While Montgomery and Birmingham also have lower fares than Columbus, fewer passengers drive to those airports because they are farther away than Atlanta. High fares at Columbus Airport suppress local passengers. Moreover, there is little incentive for Columbus’ sole carrier, Delta, to lower fares, as it has a monopoly locally that can generate premium revenue.

As mentioned, in 2013 Columbus had the highest average fare in the southeast, at $333 each way (see figure 9). The
southea st average fare for the period was $164, which was $169 less each way, or 51% less, than the fare in Columbus. Dothan, Alabama
, has long been the high

- fare leader in the region, but in 2013 Columbus surpassed it.

High fares continue to push passengers away from Columbus Airport and to other airports in the region. The only sure way
to achieve lower fares is to recruit additional service. More flights, on additional carriers, will not only add capacity to the
mark et, but will also help lower fares through competition. 

### MAP 4 : Average One Way Fares for CSG Catchment Passengers Source: Columbus Airport True Market Study, YE3Q13

FIGURE 9 : One Way Fares in Southeast Markets Source: US DOT Table DB1A, CY 2013Proposal of Columbus Airport • Columbus, Georgia • July 2014 

## 10

AIR SERVICE DEVELOPMENT PLAN : COLUMBUS

– CHARLOTTE

Columbus Airport has already started the work of replacing airline seats lost over the last two years and providing competition in the market. Ai rport officials have met with several airlines in

one

- to

- one meetings in 2014, including American Airlines, which is the target of service proposed in this Grant application.

The goal of the Airport is to recruit additional service that has wide

- ranging connectivity, so as to provide competition in as many origin and destination markets as possible. A service with om ni

directional connectivity would be the Airport’s ideal. The ideal second hub for a southeast
market with current
service to Atlanta

on Delta is Charlotte, which is

now a hub operated by American following its merger with US Airways. Charlotte provides connectivity to many of the same cities as Atlanta, providing competition that
should have the impact of lowering
fares.

Service to t he new American hub at Charlotte would provide Columbus catchment area passengers with connectivity to 66 one

- stop cities in 12 countries on three continents (see map 5). While the connecting package at Charlotte is not as extensive as the connections available at Atlanta, it still provides easy one

- stop options to most major cities, and to 19 of Columbus’ current top 25
ori gin and destination passenger markets. Moreover, the route is relatively short, at 257 nautical 

### MAP 5 : Connectivity over Charlotte on American Source: Sixel Consulting Group Hub Builder Software, CY2013Proposal of Columbus Airport • Columbus, Georgia • July 2014 

## 11

miles and a block time of just 1.1 hours. This means it will take little in the way of aircraft and crew resources and could be scheduled with minimal changes to the current Charlotte regional operation. The short distance of the route also means the cost will be relatively low, especially when considering fuel burn, which reduces the airline’s risk.

Altogether, Charlotte service on American would access an average of 1,095 passengers per day each way (PDEW) to and from the Columbus catchment area. Of those passengers, just 90
PDEW , or 8%, are currently retained by Delta service at Columbus Airport. The other 1,005 PDEW currently drive to other airports

– mostly Atlanta

– to access air service. Columbus can be relatively certain that new
service would not draw
passengers away from its

cur rent service. The new

se rvice can merely capture a
modest proportion of those currently using other airports
and still be successful.

With the strong military presence in Columbus, and
tens of thousands of annual passengers generated by Fort Benning, con nectivity to Washington, DC

, is a major component of a successful
second service. The American hub at Charlotte would provide direct access to DC, with short connect times, accessing an average of 94 PDEW, of which only 10% are currently retained by
Colum bus Airport (see figure 10). Charlotte would also provide strong connectivity to other major markets such as New York/Newark, which generates 84 PDEW; the Los Angeles Basin, which generates 79 PDEW; Seattle/Tacoma, which generates 55 PDEW; and Philadelphia , which generates 50 PDEW. 

### FIGURE 10 : Top 25 Columbus True Markets over Charlotte on American Source: Columbus Airport True Market Study, YE3Q13Proposal of Columbus Airport • Columbus, Georgia • July 2014 

## 12

Charlotte’s omni

- directional connectivity is evident in the list of top markets that hub would access for American. The markets stretch from coast to coast with backtrack circuity limited to 66% of the overall mileage of the itinerary. If the model allowed for greater circuity, which is often seen in passenger behavior in smaller markets with limited air service options, markets in Florida and Texas would become legal connections for Columbus passengers.

Columbus fares are the highest in the S outheast. Fares to cities that would connect over Charlotte on American average $188 each way, even though the averag e l ength of haul is less
than 90 0 miles (see figure 11). For example, the distance, in statute miles, on a
Columbus

– Charlotte

– New York LaGuardia routing is 839 miles. The average one way fare in the market is $181. That means the average passenger will spend 21.6 cents per mile to fly to New York. The average fare in the United States is close to 14 cents per mile. Columbus fares to New York are 54% more expensive per mile than the average market.

The data throughout this application is
clear: Columb us needs fare relief. It is unlikely fare relief will be achieved as long as Columbus Airport is served by just one carrier. Fares did briefly dip when American served Dallas/Ft. Worth. But Dallas/Ft. Worth was a relatively long haul route for a 50

- seat regional jet. The Columbus

– DFW route is 613 nautical miles. Anything longer
than 500 miles is a difficult mission for a small regional jet as the fuel burn per seat
increases. The Columbus

– Charlotte route is just 257 miles

– or 58% shorter than the route to
DFW. The fuel burn will be much lower and multi

- directional connections will lead to a better
revenue mix on the aircraft. 

### FIGURE 11 : One W ay Fares at Top 25 Columbus Markets over CLT Source: Columbus Airport True Market Study, YE3Q13Proposal of Columbus Airport • Columbus, Georgia • July 2014 

## 13

Before its merger with US Airways, American could not consider Charlotte service, as it had no
hub there. But now that American has the Charlotte hub, it makes much more sense for American’s re

- entry into the Columbus market.

The Airport is developing a strong incentive package for its recruitment of American service to Charlotte. This Grant application is a major part of that package. In anticipation of applying for this Grant, the Airport develo ped a community cash match of $175 ,000 for the project. This cash will be used for both revenue guarantee funding, to guard against an airline’s losses in the start

up phase of new service, and marketing money. In addition to the local community cash, the Airport is committing $25,000 in its own cash for start

- up cost offsets and marketing. Th e total matching funds equal $200 ,000.

The Airport is requesting a Small Community Air Service Development (SCASD) Grant of $75 0,000 to be used as a revenue guarantee. The total project cost is $950 ,000.
The lo cal portion of the represents 21 % of the total project cost, while the federal Department of Transportatio n portion represents the other 79 % of the total project cost.

The Airport anticipates using 90% of the total funding as a revenue guarantee for the new ro ut e. The Airport has allocated $8 50,000 to the revenue guarantee pool (see figure 12 ). The Airport plans to use $90 ,000 in cash, along with significant in

- kind donations, for marketing of the new service. The Airport will make $10,000 available to the c arrier for start

- up cost offsets. If the carrier does not require these offsets, the start

- up pool of cash will be moved to the marketing portion of the project.

The anticipated timeline for the project assumes a Grant would be awarded in September of 2014 (see Figure 13). If the Grant agreement with the DOT is finalized in October of 2014, the Airport will step up its recruitment efforts in the fall, endeavoring to meet with the targeted airlines through the winter. In a best

- case scenario, the Airpo rt would hope to target April of 2015 for a new service announcement, with creative 

### FIGURE 12 : SCASD Grant Funding Plan Sourc e: Columbus Airport

FIGURE 13 : Project Timeline Source: Columbus AirportProposal of Columbus Airport • Columbus, Georgia • July 2014 

## 14

materials ready for the marketing program shortly after a formal service announcement. The targeted start date for service would be June of 2015, with a two

- year revenue g uarantee period, allowing the Grant to be closed by September of 2017.

Columbus Airport has already started the recru itment process. Its representatives have met with several carriers, in person, so far in 2014, including American. It has completed its True Market Study and briefed potential carriers on the market data. It has developed community support
for this Gran t application and for additional service. It has a number of community partners who will be working to ensure the success of new service.

Columbus Airport has never received a Small Community Air Service Development Grant . It has applied twice, but once had to remove its application from consideration. The Airport should not be limited in alternate uses of Grant funding . Among alternate routes the G rant could be used for would be service to a Washington, DC

, area airport, a Chicago area airport, or ano ther hub that could provide equal or greater connectivity than Charlotte. 

## “Columbus Airport has already started the recruitment process. Its representatives have met with several carriers... so far in 2014...”Proposal of Columbus Airport • Columbus, Georgia • July 2014 

## 15

PUBLIC/PRIVATE PARTNERSHIP

This application for federal Small Community Air Service Development Grant funding is supported by a group of community partners which have pledged their support for the effort to bring network service to the Columbus

– Charlotte route . The Airport has dozens of local partners represented by the local C hamber of C ommerce and economic development organization.



### Greater Columbus, Georgia
, Chamber of Commerce

The Greater Columbus
, Georgia

, C hamber of Commerce is the voice of business in West Georgia. The chamber staff

, working with strategic partners

, serves the local community with programs, services and initiatives that address every aspect of business development. The Chamber is a strong supporter of additional air service at Columbus Airport. The Chamber administers local matching funds for proje cts like this Grant application.



### The Valley Partnership

The Valley Partnership was founded to enhance commerce and trade opportunitie s within the Columbus, Georgia

, r egion. It work s diligently to create public/private partnerships that meet
the needs of both businesses and communities and improve the quality of life at every level. The Partnership works to create and sustain opp ortunities for business success, o ptimiz e public/private partnerships like this Grant application, devel op and support industry growth, and
i mprov e employment opportunities

.



### Columbus Chamber Military Affairs Division

The Chamber’s Military Affairs Division has a two

- fold mission. The first is to sustain and cultivate
the long

- standing tradition of su pporti ng the local military community and their families. The second facet of this Division is to advocate and facilitate local defense industry growth and to help small businesses connect with Department of Defense (DoD) contractors. Fort Benning
passengers ar e a key to the success of any service at Columbus Airport.Proposal of Columbus Airport • Columbus, Georgia • July 2014 

## 16

CONCLUSION

The goal of Columbus Airport is to recruit additional service that has wide

- ranging connectivity, so as to provide competition in as many origin and destination markets as possible. The ideal
second hub for a S outheast market with current service to Atlan ta on Delta is Charlotte, which is

now a hub operated by American following its merger with US Airways.

High fares continue to push passengers away from Columbus and to other airports in the region. Columbus has the highest average fare in the S outheas t, and one of the highest average fares in the country.

Fares have continued to climb as Columbus has seen its overall capacity cut by an average of 189 daily departing seats since the summer of 2012. This represents a loss of 49% of all the market’s available seats. Moreover, Columbus has been left with a single carrier who is also the dominant

carr ier at the airport most Columbus passengers leak
to

– Delta and Atlanta.

Columbus Airport’s newly completed True Market Study shows that the Airport retains just 9% of the passengers generatated in its catchment area. The vast majority drive to Atlanta, with 90% of the catchment’s passengers using Hartsfield Jackson Airport to access the national air transportation system.

Columbus Airport has already started the recruitment process for this service. Its representatives have met with several carriers, in person, so far in 2014, including American. It has developed community support for this Grant application and for additional service. It has a number of community partners who will be working to ensure the success of new service.

This Grant applicat ion represents the last piece of the puzzle in bringing additional service to
Columbus . The community has put up $200 ,000 in local funding in support of this ef fort. Columbus’ request for $75 0,000 in SCASD Grant funding is consistent with the best proven uses of Grant funding in the past. Grant funding is the key in reducing some of the highest fares in the nation and increasing capacity for one of the South’s strongest economies. 

## “Grant funding is the key in reducing some of the highest fares in the nation and increasing capacity for one of the South’s fastest growing economies.”