Legal sponsor: City of Sioux City

DUNS: 961522351

Tax ID: 42-6005220

Congressional District Code: IA-05

Contact: John Backer

Interim Airport Director

2403 Aviation Boulevard

Sioux City, IA 51111

(712) 279-6165

jbacker@sioux-city.org

SIOUX GATEWAY AIRPORT

COLONEL BUD DAY FIELD

APPLICATION UNDER 

THE SMALL 

COMMUNITY AIR 

SERVICE 

DEVELOPMENT 

PROGRAM

Docket DOT-OST-2012-0069


Prepared by

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TABLE OF CONTENTS

Application Highlights.............................................. 1

New Airline and Destination...............................................1

Significant Community Involvement and Support ..............2

Far Reaching Benefits to the Community ..........................2

Air Service Environment .......................................... 3

Large Catchment Area ......................................................3

Long Drives to Competing Airports....................................4

Locally Headquartered Businesses ...................................4

Significant Business Development ....................................4

Substantial Educational and Medical Facilities..................5

Air Service – Existing and Historical....................... 6

Existing Air Service............................................................6

Historical Air Service .........................................................7

Destinations, Service Providers and Traffic 

Levels................................................................... 7

Extenuating Factors that have Affected Air 

Service ................................................................. 8

Past Air Service Development Efforts................................8

Strategic Plan............................................................ 9

Air Service Needs and Deficiencies ..................................9

Project Goals...................................................................10

Public-Private Partnership...............................................10

Proposed Plan.................................................................10

Comprehensive Marketing Campaign ...................11

Service Monitoring and Strategic Analysis ............12

Strategic Plan Funding ....................................................13

Previous Grant Recipient - New Project and Goals.........14

Schedule and Monitoring ....................................... 15

Appendix A. Airline and Community 

Support .............................................................. 16
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APPLICATION HIGHLIGHTS

his Small Community Air Service 

Development Program (SCASDP)

grant application for the Sioux 

Gateway Airport/Col. Bud Day 

Field meets the criteria of Docket DOTOST-2012-0069. The City of Sioux City, 

the airport sponsor, is requesting 

$160,000 in federal assistance to 

implement a $240,000 air service initiative.

The project goal is to create a marketing 

campaign and comprehensive monitoring 

program to ensure the success of new 

Essential Air Service (EAS) to Chicago 

O’Hare International Airport on 

American Airlines.

New Airline and Destination

The Sioux Gateway Airport had service 

from Northwest Airlines/Delta Air Lines for 

many years without subsidies; however, in 

2011, Delta announced plans to eliminate unsubsidized service at Sioux Gateway Airport. In the fall 

of 2011, the US Department of Transportation (DOT) issued a Request for Proposals for air service 

at Sioux Gateway Airport, along with 22 other markets affected by Delta’s decision. As part of that 

process, American Airlines submitted a proposal to provide twice daily, nonstop regional jet service to 

Chicago O’Hare International Airport by its regional partner American Eagle. Access to Chicago has 

been a priority for many years for the Siouxland area, and American service was supported and 

selected. American commenced new service at the Sioux Gateway Airport on April 3, 2012.

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Because of the change in both airline and destination, it is important for the new service to have as much 

support as possible for success. With the current economic climate for airlines, especially for American 

which entered bankruptcy protection at the end of 2011, there are limited airline funds available for 

marketing the Sioux Gateway Airport service. Historically, 89 percent of Siouxland travelers found it 

necessary to drive to an alternate airport (i.e. Minneapolis, Omaha or Sioux Falls) to access adequate 

air service. With a new carrier serving the airport, it is important for Sioux Gateway Airport to do 

everything possible to increase the awareness of the new service, increase the retention rates for 

passengers using Sioux Gateway Airport and ultimately reduce or eliminate the need for EAS subsidies.

Significant Community Involvement and Support

The City of Sioux City, Sioux Gateway Airport/Col. Bud Day Field, the Siouxland Chamber of Commerce, 

and The Siouxland Initiative have formed a public-private partnership in support of this application.

Cooperatively, these organizations have a history of successful initiatives with broad support from the 

community. To support this air service initiative, non-airport revenue sources will fund 17 percent 

($33,000) of the $200,000 cash requirement. This is a strong commitment by the local community to

support the new air service and ensure American’s success.

The public-private partnership and local businesses have the ability to implement the project. This was 

demonstrated in 2007 by the successful effort by the community to entice Frontier Airlines to serve the 

market. This cooperative effort was the sole reason behind Frontier entering the market.

Far Reaching Benefits to the Community

Sioux Gateway Airport serves a region that includes a population exceeding 300,000 in Iowa, Nebraska 

and South Dakota. As the region’s center for business, education and medical services, ensuring the 

success of the new American Chicago O’Hare service is important to serve the diverse needs of these 

sectors as well as those of its citizens.

Non-airport revenue sources will fund 17 

percent ($33,000) of the $200,000 cash 

requirement.
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AIR SERVICE ENVIRONMENT

he Siouxland community is large and dynamic. This section demonstrates the community’s 

need for additional air service including: a catchment area with a population over 300,000; 

inadequate alternative service; vibrant business community; and a region with substantial 

educational and medical facilities. Retaining air service and ensuring the success of the new 

service on American Airlines will have a significant positive impact on the Siouxland economy.

Large Catchment Area

Located on the Iowa, Nebraska and South 

Dakota border, Sioux Gateway Airport/Col. 

Bud Day Field serves portions of all three 

states with a catchment area population 

exceeding 300,000. Sioux City, Iowa is the 

largest city and the commercial hub of the 

six-city, tri-state metropolitan region known 

as Siouxland. The region consists of 

Woodbury County, Iowa; Dakota County 

and Dixon County, Nebraska; and Union 

County, South Dakota. Exhibit 2.1 provides 

a depiction of the 10,050 square mile area 

served by the Airport.

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EXHIBIT 2.1 AIRPORT CATCHMENT AREA AND PROXIMITY TO 

COMPETING AIRPORTS
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Long Drives to Competing Airports

Only 11 percent of catchment area passengers use Sioux Gateway Airport; 63 percent use Omaha’s Eppley Airfield, 18 percent 

use Sioux Falls’ Joe Foss Field and eight percent use the Minneapolis/St. Paul International Airport. The Siouxland region is 

located approximately 89 miles from Sioux Falls, 97 miles from Omaha, and 270 miles from Minneapolis (Exhibit 2.1, previous 

page). The distance and drive time required to each of these airports is costly for local businesses.

Locally Headquartered Businesses

The strength of the Siouxland air travel market lies in its business 

community. By any standard, the local business market is vigorous 

and vibrant. Much of this success can be traced back to cooperative 

efforts between the various government entities, businesses and 

citizens. These efforts have led to business growth, in-migration of 

new businesses and a well-diversified economy. Many different 

industries ranging from agriculture to high tech have a stake in the 

Siouxland area. Wells Enterprises Inc. is a multi-billion dollar 

corporation headquartered in Siouxland. Beef Products Incorporated 

(BPI), Sioux Honey Association, American Pop Corn, Great West 

Casualty and Wilson Trailer are multi-million dollar organizations that 

are also headquartered in the Siouxland region. Tyson Fresh Meats 

and Gelita North America operate large manufacturing facilities in the 

area. All of these organizations rely on air service to move staff, 

vendors and clients to and from Siouxland. 

Significant Business Development

Siouxland continues to attract new business and investment with 

recent developments like: 

• New multi-million dollar Events Center

• Renovated Orpheum Theatre

• Lewis and Clark Interpretive Center

• Riverfront development including a new marina

• Development of Historic Fourth Street

National 

Recognition

• Sioux City Metro 

ranked #14 for Best 

Small Places for 

Businesses and 

Careers –

Forbes.com (2010) 

• Sioux City Metro 

ranked in top 15 in 

“2011 Best Places 

for Businesses and 

Careers” – Forbes

(July 2011)

• Sioux City Metro 

ranked #8 in nation 

in the nation for 

“Emerging Logistics/ 

Distribution Growth 

Centers” – Business 

Facilities, Aug 2011

• Sioux City Metro 

ranked #4 in the 

nation in “Top 5 

Food Processing 

Industry Growth” –

Business Facilities, 

Aug 2011 
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•New downtown theater complex

• $400 million upgrade to Beef Products Inc complex in South Sioux City • Additions to St. Luke’s Regional Medical Center/Mercy Medical Center • Northeast Nebraska Community College and Wayne State College are building a joint facility in South Sioux City • New 55,000 square foot public museum to open downtown Sioux City December 2010 - $13.5 million investment

In addition, over the last few years, several new companies have begun operations in Siouxland including Stream, Alorica Inc., 

Vizio and GovConnection.These four companies alone added over 2,000 new jobs to the community.There has also been an 

additional one million square feet of retail development in the Siouxland area.A $400 million upgrade to BPI’s manufacturing 

complex was constructed in South Sioux City; this was the largest single investment project in Nebraska history. In 

addition to the above, Hyperion Energy has optioned 11,000 acres in southern Union County in South Dakota to build a refinery.

The project would create: • $10 billion capital investment • 400,000 barrels of oil refining per day • 1,800 permanent jobs at $20 to $30 per hour and three “spin

-off” jobs 

per permanent job; total support jobs will exceed 5,000

Substantial Educational and Medical Facilities

Siouxland is fortunate to be home to many education and medical institutions (Table 2.1) that serve both a regional and national customer base and 

generate air service demand.

In short, the partnerships between the business community and government in 

Siouxland are strong.These partnerships can be leveraged to support air 

service at Sioux Gateway Airport to attain similar success of other community 

development projects in Siouxland.

TABLE 2.1 INSTITUTIONS UNIVERSITIES AND COLLEGES

Briar Cliff University

Morningside College

Tri-State Graduate Center

Western Iowa Tech Community College

Northeast Nebraska Community College

Design West – Iowa State University

Wayne State College

MEDICAL INSTITUTIONS

Mercy Medical Center

St. Luke’s Regional Medical Center

The Center for Neurosciences, 

Orthopedics, & Spine

Siouxland Surgery Center

June E. Nylen Cancer Center
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AIR SERVICE – EXISTING AND 

HISTORICAL

his section provides an overview of 

existing air service. Carriers 

providing service, service 

frequency, direct and connecting 

destinations offered, and equipment types 

are included in the discussion. A summary 

of historical air service is also included with 

destinations, traffic levels, service 

providers and an overview of extenuating 

factors that have affected air service. A

description of air service development 

efforts concludes the section.

Existing Air Service

In April 2012, the carrier and hub at Sioux Gateway Airport changed. Currently, the Airport has 

nonstop service to Chicago O’Hare International Airport with twice daily service on American Airlines 

subsidized by the EAS program. In June 2012, American will operate an average of two daily 

roundtrips with 50-seat Embraer ERJ-145 aircraft providing 650 weekly available seats on 13

departures (Table 3.1).

TABLE 3.1 EXISTING AIR SERVICE

NONSTOP 

DESTINATION

MARKETING 

CARRIER AIRCRAFT

WEEKLY 

DEPARTURES

WEEKLY 

SEATS

Chicago O’Hare American Airlines ERJ-145 13 650

Source: Diio Mi, June 2012

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Historical Air Service

This subsection summarizes Sioux Gateway Airport’s air 

service history including: destinations, traffic levels and service 

providers.Extenuating factors that have affected air service 

over time are also reviewed.

Destinations, Service Providers and TrafficLevels

Over the last 10 years Sioux Gateway Airport’s air service 

declined significantly, a trend which was partially offset in 

2007/2008 by Frontier Airlines’ Denver service but was

stymied by the service cancellation in May 2008. Exhibit 3.1

provides a summary of annual departures and passengers

from 2002 through 2011. Table 3.2 shows the average 

scheduled weekly departures by destination and airline.

In the past 10 years, Sioux Gateway Airport’s departures decreased 63 percent. Average weekly departures have declined from 

approximately 49 weekly departures to only 18 departures in 2011. Average weekly available seats declined from 2,234 to 883, 

a 60 percent decline. The reduction in departures and available seats and high local fares resulted in onboard passengers also 

declining. From 2000 to 2006, passengers declined 62 percent. Passengers rebounded somewhat in 2007 and 2008 with the 

addition of Frontier’s Denver service and Northwest’s addition of one roundtrip per day to Minneapolis that began in August 

2007. However, in 2009 passengers plunged to 32,791, a 36 percent decrease over 2008. Enplanements made a moderate 

improvement in 2011 from 2010 but were still below historical numbers.

TABLE 3.2 HISTORICAL DESTINATIONS AND SERVICE PROVIDERS

DESTINATION AIRLINE ITEM

AVERAGE SCHEDULED WEEKLY DEPARTURES/SEATS

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Denver, CO Frontier Dept 16 17

Seats 1,227 1,258

Minneapolis, MN Delta/Northwest Dept 45 46 47 43 34 32 33 30 20 18

Seats 2,077 1,834 1,807 1,740 1,339 1,241 1,314 1,247 930 883

St. Louis, MO American Dept 15

Seats 628

Average weekly departures 49 46 47 43 34 36 41 30 20 18

Average weekly seats 2,234 1,834 1,807 1,740 1,352 1,548 1,838 1,247 930 883

Source: Diio Mi

EXHIBIT 3.1 DEPARTURES AND ONBOARD PASSENGERS

Source: Diio Mi

0

12,000

24,000

36,000

48,000

60,000

0

500

1,000

1,500

2,000

2,500

2002200320042005200620072008200920102011

Onboard Passengers

Departures
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Extenuating Factors that have Affected Air Service

Sioux Gateway Airport’s air service has suffered due to a combination 

of factors. In 2011, Delta Air Lines filed to terminate service at Sioux 

Gateway Airport, even though traffic levels had been improving.

Through EAS, the Airport was able to obtain service to Chicago 

O’Hare. With service starting in April 2012 on a new airline and to a 

new hub, it is imperative that Sioux Gateway Airport be able to market

this service to ensure success, increase passenger retention rates, and 

decrease the reliance upon the EAS subsidies.

Past Air Service 

Development Efforts 

Sioux Gateway Airport plays a critical role in 

the community’s economic health and quality of 

life. Since 1996 and particularly over the past 

several years, the City of Sioux City, Siouxland 

Chamber of Commerce and The Siouxland 

Initiative have worked together on air service 

development efforts. These efforts have 

included several market studies to determine 

retention of local passengers, pro forma 

analyses for many major hubs and 

presentations to airlines. Table 3.3 provides an 

overview of the air service development efforts 

from 2009 to present.

TABLE 3.3 PAST AIR SERVICE DEVELOPMENT EFFORTS

YEAR INITIATIVE RESULT

2009

Allegiant Air conference Completed

Network conference (met with AA/DL/F9/UA/US/YX) Completed

Passenger Demand Analysis Completed

American Airlines' Chicago O'Hare pro forma analysis 

(positive) Completed

United Airlines’ Chicago O’Hare pro forma analysis (positive) Completed

United Airlines’ Denver pro forma analysis (positive) Completed

Delta Air Lines' Salt Lake City pro forma analysis (positive) Completed

American Airlines' proposal in Dallas/Ft. Worth Pending

Delta Air Lines' proposal in Atlanta Successful

United Airlines' proposal in Chicago Completed

SCASDP grant application Unsuccessful

2010

Allegiant Air conference Completed

Air service marketing brochure - update Completed

Network conference (met with AA/F9/UA/MX/AM) Completed

Delta Air Lines' proposal in Atlanta Completed

United Airlines' proposal in Chicago Pending

SCASDP grant application Awarded

2011

Network conference (met with AA/F9/FL/RP/UA) Completed

American Airlines' proposal in Dallas/Ft. Worth Completed

SkyWest Airlines proposal in St George Completed

Mead & Hunt EAS Conference Completed

American Airlines bid and award of EAS Successful

2012

Mead & Hunt Air Service Development Conference Completed

Network conference (met with AA, F9, G4, RP, UA) Completed

Jumpstart conference (met with AA/G4) Completed

Extenuating 

Factors

Delta Air Lines’ 

decision to discontinue 

service at Sioux City 

led to public 

uncertainty. Now with 

service to a new hub 

by a new carrier, public 

awareness is critical.
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STRATEGIC PLAN 

he Strategic Plan will achieve the 

community’s goals and help to 

alleviate the air service needs and 

deficiencies of Siouxland. This 

section identifies the public-private 

partnership and provides a detailed 

description of the goals of the project and a 

plan for attaining those goals. A detailed 

description of the funding necessary for 

implementation of the Strategic Plan, 

including federal and non-federal 

contributions, is included.

Air Service Needs and Deficiencies

The Sioux Gateway Airport had Northwest Airlines/Delta Air Lines service to Minneapolis/St. Paul 

International Airport for many years. The change in air carrier from Delta to American Airlines with 

service to Chicago O’Hare will present a challenge to the community to not let the already high 

diversion levels increase. With service on Delta, the Airport had a diversion rate of 89 percent, which 

is ultimately why the air service is now subsidized through the EAS program. 

Since American started service, they have made an effort to be more involved with the community 

through sales and marketing efforts, as well as offering a more consistent fare in relation to the main 

diversion airport, Omaha’s Eppley Field. However, the need for the community to closely monitor the 

new service, fares and schedules to ensure a successful change is critical, while the comprehensive 

marketing plan will help educate the public of the switch in air carrier and hub destination. 

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Project Goals

The project goal is to increase the use of Sioux Gateway Airport by 

providing awareness to the community through a comprehensive 

marketing campaign accompanied by service monitoring and 

strategic analysis of the passenger traffic to ensure a successful 

change of airline and hub.

Public-Private Partnership

The City of Sioux City, the owner/sponsor of Sioux Gateway 

Airport/Col. Bud Day Field, has been designated as the sponsor of 

this grant application. The City of Sioux City has formed a public-

private partnership with The Siouxland Initiative and the Siouxland 

Chamber of Commerce.

All partners will be fully involved in the execution of the Strategic Plan (Table 4.1). The City of Sioux City will execute federal grant offers, 

process reimbursement requests and oversee grant administration. 

The Siouxland Initiative and Siouxland Chamber of Commerce will be 

responsible for administering the marketing campaign. The local 

media partners will assist with the marketing campaign by providing in-

kind match. Together these partners are a formidable team with a track 

record of success who are committed to improving air service for the 

Siouxland community.

Proposed Plan

The strategic plan includes two primary elements to ensure the success 

of American in the Siouxland market: a comprehensive marketing 

campaign and service monitoring and strategic analysis.

TABLE 4.1 PUBLIC-PRIVATE PARTNER ROLES

PUBLIC-PRIVATE 

PARTNER ROLE

City of Sioux City Grant and administration

Siouxland Chamber of 

Commerce

Assist with local marketing 

efforts

The Siouxland Initiative Coordination of the 

marketing program
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Comprehensive Marketing Campaign

The most significant element of the Strategic Plan for Sioux Gateway Airport is a 

comprehensive marketing plan that will target residents of the Sioux Gateway Airport 

catchment area in order to increase awareness of the new air service provided by 

American to Chicago O’Hare. Service failure and continued drive diversion often result 

from a lack of awareness of available air service at the local airport. New air service 

supported by a well-designed marketing campaign can increase the level of 

passengers, reduce drive diversion, and ultimately reduce or eliminate the need for EAS

subsidies. This aggressive and comprehensive air service marketing campaign will 

ensure long-term success of American’s service at Sioux Gateway Airport. 

Since American announced service plans for Sioux Gateway Airport, they have been 

very involved in the community and desire to increase enplanements. The 

comprehensive marketing plan will be developed in tandem with American in order to 

maximize the effectiveness of the marketing dollars. American has provided a letter of 

support for this grant application (Appendix A).

MARKETING PLAN COMPONENTS

The Siouxland Initiative and the Siouxland Chamber of Commerce will be responsible for oversight of the marketing campaign. 

The following components will be included in the marketing plan: • Promotion of American’s Chicago O’Hare service to increase ridership and decrease diversion to other airports

.

• Continual communication of air service updates and potential issues with stakeholders in the Siouxland area.

• The target audience is business travelers and mid-to-upper income households.

MEDIA SATURATION CAMPAIGN

The marketing campaign will include: • Radio advertising • Newspaper advertising • Direct email and mail advertising • Internet and social media marketing • Television advertising • Articles and news releases to local media
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• Siouxland Chamber of Commerce “Business After Hours” special event

• Direct mail promotional flyer to the Siouxland business community

The Airport has established an extensive partnership agreement with all media outlets. In addition to traditional paid media 

advertising, the marketing campaign will use websites and social media. The Siouxland Chamber of Commerce’s website 

receives nearly 5,000 visits monthly. The Siouxland Chamber of Commerce blog on the website showcases members and the 

Chamber. Unlike other forms of social media, blogs allow the reader to have more information on a subject and allow another 

avenue for communication. On the blog, the service will be highlighted and links to other forms of social media such as 

Facebook and Twitter will be available. The blog has an average of 1,300 hits monthly.

Social media is becoming a much more prominent and useful tool in marketing. Facebook and Twitter will be used in this 

marketing campaign. The goal of the Facebook page is to promote the Siouxland Chamber of Commerce, its members and the 

community as a whole. The Siouxland Chamber of Commerce uses Twitter as a means of publicizing and updating followers on 

local business and what’s going on at the Chamber. Updates on the service will be posted on Facebook and Twitter.

Service Monitoring and Strategic Analysis

American’s service started in April 2012 to Chicago O’Hare. It is critical for the Sioux Gateway Airport to monitor the new service 

and provide strategic analysis throughout the EAS contract in order to ensure success of the service. Service monitoring will 

play an important role throughout the entire SCASDP process enabling the community to more effectively target and market the 

service. The comprehensive service monitoring and strategic analysis will be performed on a monthly, quarterly and annual

basis and will include many different aspects including, but not limited to:

MONTHLY

• Published airfares at Sioux Gateway Airport will be monitored and comparisons to the primary diverting airports at 

Minneapolis, Omaha and Sioux Falls will be performed.

• Enplaned passengers and load factors will be tracked monthly.

• Schedules at Sioux Gateway Airport will be tracked to ensure maximum connectivity to primary markets, and 

coordination with American will be completed if issues are found.

QUARTERLY

• Origin and destination passengers and reported airfares will be monitored quarterly.

Marketing 

Campaign

This $160,000 

campaign will be the 

backbone of the 

Strategic Plan to 

promote the new 

airline and hub for 

Sioux Gateway Airport.
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ANNUALLY

• An update to the Passenger Demand Analysis (i.e. retention/diversion study) will be performed after one full year of 

American Chicago O’Hare service. The update will allow the community to evaluate the first half of the marketing 

program and be a key factor in adjusting the second half of the marketing program. This will also enable the community 

to see what has changed in destination makeup for the catchment area, as well as which markets segments need to be 

targeted more specifically for marketing dollars. Because both the airline and hub has changed, it is likely that travel 

patterns will change. 

• After the first year of service a meeting with American Airlines’ Network Planning, Sales and Marketing personnel at 

their corporate headquarters will be scheduled. The goal of the meeting will be to recap the first year of service, 

benchmarking the relative success of the community versus internal targets at American, and to refine the marketing 

plan for the second half of the EAS contract.

Strategic Plan Funding

The public-private partnership is requesting US DOT assistance in funding 67 percent, or $160,000, of the Strategic Plan.

Specifically, US DOT funding will be used to fund a portion of the marketing campaign. The service monitoring and strategic 

analysis will be paid for by the community. Table 4.2 provides the Strategic Plan budget by element and sources of funding.

Non-airport funding sources will provide 17 percent of the cash requirement and 30 percent of the funding for the total program.

TABLE 4.2 STRATEGIC PLAN BUDGET

DESCRIPTION

FUNDING SOURCE

TOTAL

US DOT AIRPORT NON-AIRPORT

CASH CASH

INKIND CASHINKIND

Marketing Campaign $160,000 - - $5,000 $40,000 $205,000

Service Monitoring & Strategic Analysis - $7,000 - $28,000 - $35,000

Total $160,000 $7,000 - $33,000 $40,000 $240,000

Percent of total project 67% 3% - 14% 16% 100%

Percent of cash contribution 80% 3% N/A 17% N/A 100%
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APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAMSIOUX GATEWAY AIRPORT / COL. BUD DAY FIELD

Previous Grant Recipient - New Project and Goals

As a previous grant recipient, this application represents a new project with different goals than the 

previous projects. Although Sioux Gateway Airport was awarded a SCASDP grant in 2010, it was unable 

to use the grant due to becoming an EAS subsidized market. It is the hope of Sioux Gateway Airport that 

a 2012 grant will help to reduce the EAS subsidies and potentially end reliance upon those subsidies in 

the future. 

Sioux Gateway Airport received grants in 2004 and 2010. In both cases, the grant goals and plan were for 

additional air service at the Airport. The 2004 grant included the following project goals:

• Introduce service by a second carrier to increase use of the airport and promote more 

competitive airfares

• Promote greater awareness of the services at Sioux Gateway Airport • Increase use of services at Sioux Gateway Airport • Generate a marketing plan to promote lower business fares, stabilize the existing passenger 

base and develop a frequent user program

The US DOT’s portion of the project budget, $609,800, included partial funding of a revenue guarantee, 

marketing support, promotional materials for a frequent user program, website development and ground 

support equipment and facilities for a new carrier.

The 2010 grant included the following project goals: • Provide competitive eastbound air service to adequately serve the Siouxland area • Reduce fares and mitigate the need to drive to alternate airports by increasing competition • Introduce Chicago O’Hare service on United Airlines or American Airlines

The US DOT’s portion of the project budget, $500,000, included partial funding of a revenue guarantee 

for new service. The 2010 grant was unable to be used by the Sioux Gateway Airport after becoming a 

subsidized EAS community.

Where the previous applications’ goals were for additional service, this year’s application is for marketing 

support of new airline service under the EAS program. As demonstrated, this application qualifies as a 

new project and meets the requirements of the SCASDP.
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SCHEDULE AND MONITORING

he public-private partnership has developed a 

realistic timetable to achieve the goals of this grant 

application. 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.

October 1, 2012: Market Monitoring and 

Strategic Analysis

Immediately following the award of the grant, Sioux Gateway 

Airport will begin monthly and quarterly monitoring of 

American Airlines Chicago O’Hare service. As outlined on 

pages 12 to 13, monitoring will include airfares, passengers, 

load factors, origin and destination markets, and schedule 

connectivity at a minimum. Monitoring is critical to ensure a 

positive transition of service to American Airlines and to ultimately increase passenger retention and 

reduce or eliminate the EAS subsidies required. After the first full year of service, a Passenger 

Demand Analysis will be conducted and a meeting with American to discuss service performance will 

be held. Market monitoring will continue until April 1, 2014.

October 1, 2012: Marketing Campaign Development and Initiation

Development of the marketing campaign will be completed immediately following grant award. The 

marketing campaign will begin at the earliest date possible, estimated to be November 1, 2012. The 

marketing campaign will include all facets of promoting the new American Chicago O’Hare service 

and will be completed with input from American and stakeholders from the Siouxland area. The 

marketing campaign will continue until April 1, 2014, which is when American’s EAS contract expires.

T
PAGE 16

APPLICATION 

UNDER THE 

SMALL 

COMMUNITY 

AIR 

SERVICE 

DEVELOPMENT 

PROGRAM

SIOUX 

GATEWAY 

AIRPORT / COL. BUD 

DAY FIELD

APPENDIX A. AIRLINE AND 

COMMUNITY SUPPORT

ppendix A includes letters of support for the City of Sioux City’s application to the US DOT

for a comprehensive advertising campaign to support American Airlines Chicago O’Hare 

service. Support letters were submitted by American Airlines, participants in the publicprivate partnership, and members of the Siouxland community. The letters of support are included on 

the following pages of this Appendix A and are listed below.

Airline

American Airlines

Government

US Senate, Senator Charles E. Grassley

US Senate, Senator E. Benjamin Nelson

US Senate, Senator Mike Johanns

US Senate, Senator Tom Harkin

Congress of the US, Congressman Steve King

Office of the Governor, Lieutenant Governor of 

Iowa Kim Reynolds

City of Sioux City, IA, Mayor Robert E. Scott

City of Sergeant Bluff, IA, Mayor Dale Petersen

City of South Sioux City, IA, Mayor William I. 

McLarty

Public-private partnership

City of Sioux City, IA (see cover letter)

Siouxland Chamber of Commerce

The Siouxland Initiative

Businesses and Organizations

Alorica

American Pop Corn Company

Briar Cliff University

CF Industries

CW Suter Services

GELITA USA Inc.

Great West Casualty Company

Mercy Medical Center

Midlands Clinic

Missouri Valley Steel Co.

Powell Broadcasting

Sioux Honey Association Cooperative

Siouxland National Bank

Tyson Fresh Meats

Wells Enterprises

Western Iowa Tech Community College

A




TOM HARKIN

towA

l2o2l 224-3254

Fnx: (202) 224-9369

TTY (202) 2244633

http://ha rkin.senate.gov

COMMITTEES:

AGRICULTURE

APPROPRIATIONS

HEALTH, EDUCATION,

LABOR, AND PENSIONS

SMALL BUSINESS

lf,nited Fntss Fsnste

WASHINGTON, DC 20510-1 502

May 30, 2012

Ms. Aloha Ley

Associate Director, Small Community Program

Office of Aviation Analysis

1200 New Jersey Avenue, SE W86-310

Washington, DC 20590

Subject: Small Community Air Service Development Program

Docket DOT-OST-2012-0059

City of Sioux City, lA - Sioux Gateway Airport

Dear Ms. Ley:

I am writing to offer my support for the air service proposal submitted by the City of Sioux City

for Small Community Air Service Development Program funding.

ln April 2012, American Airlines became the subsidized Essential Air Service carrier for the Sioux

Gateway Airport by initiating service to Chicago O'Hare lnternational Airport. I strongly support EAS

assistance to the Sioux Gateway Airport, which will be a key component in ensuring a successful

transition to American's service from Sioux City into Chicago O'Hare.

I ask that you give every consideration to the City of Sioux City's Small Community Air Service

Development Program grant application. Please direct any questions regarding this matter to my grants

office in Des Moines. Thank you for this opportunity to express my views and all that you do to assist

small communities in providing important air services to their businesses and citizens.

Sincerely, Lt+*

Tom Harkin

United States Senator

THljnm

I5OFIRSTAVENUE,NE 21OWALNUTSTREET 16O6BRADYSTREET 35OWEST6THSTREET 32O6THSTREET

SUITE 370 733 FEDERAL BUILDING SUITE 323 315 FEDERAL BUILDING 110 FEDERAL BUILDING

CEDAR RAPIDS, IA 52401 DES MOINES, IA 50309 DAVENPORT, IA 52803 DUBUOUE, IA 52001 SIOUX CITY, IA 51101

(319) 36H504 l5't5l 284-4574 (563) 322-1338 (563) 582-2130 17121 252-1550


SIClUX

CITY

SUCCESSFUL

SURPRISING

SIOUX CITY

Aloha Ley

Associate Director, Small Community Program

Office of Aviation Analysis

1200 New Jersey Avenue. SE W86-310

Washington, DC 20590

Subject: Small Community Air Service Development Program

Docket DOT -OST -2012-0069

City of Sioux City,IA - Sioux Gateway Airport

As the Mayor, I strongly supports the air service proposal detailed in the City of Sioux City's Small

Community Air Service Development Program grant application.

In April 2012, American Airlines became the subsidized Essential Air Service carrier for the Sioux

Gateway Airport by initiating service to Chicago O'Hare International Airport. I fully support the need for

Essential Air Service at the Sioux Gateway Airport, and this Small Community Air Service Development

Program grant will be an important support mechanism for the air service to help ensure the successful

transition to American Airlines and service to Chicago O'Hare.

It is my hope that you will give the City of Sioux City's application full consideration and award the funds

requested to ensure the success of American Airlines in the Sioux City market.

R06

I!tk

ert E. Scott

Mayor, City of Sioux City




June 1, 2012 

Aloha Ley 

Associate Director, Small Community Program 

Office of Aviation Analysis 

1200 New Jersey Avenue, SE W86-310 

Washington, DC 20590 

Subject: Small Community Air Service Development Program 

 Docket DOT-OST-2012-0069 

 City of Sioux City, IA – Sioux Gateway Airport 

Dear Ms. Ley, 

Alorica strongly supports the air service proposal detailed in the City of Sioux City’s Small Community Air 

Service Development Program grant application. 

In April 2012, American Airlines became the subsidized Essential Air Service carrier for the Sioux 

Gateway Airport by initiating service to Chicago O’Hare International Airport. I fully support the need for 

Essential Air Service at the Sioux Gateway Airport, and this Small Community Air Service Development 

Program grant will be an important support mechanism for the air service to help ensure the successful 

transition to American Airlines and service to Chicago O’Hare. 

It is my hope that you will give the City of Sioux City’s application full consideration and award the funds 

requested to ensure the success of American Airlines in the Sioux City market. 

Sincerely, 

Mike Freeman 

Director of Operations 

Alorica 

North Sioux City, SD 



SUTER C.W. SUTER SERVICES 1800 11TH ST • SIOUX CITY IA 51101 • PH 712-252-3007 • FAX 712-252-2410 

 

 

June 1, 2012 

Aloha Ley 

Associate Director, Small Community Program 

Office of Aviation Analysis 

1200 New Jersey Avenue, SE W86-310 

Washington, DC 20590 

Subject: Small Community Air Service Development Program 

 Docket DOT-OST-2012-0069 

 City of Sioux City, IA – Sioux Gateway Airport 

Dear Ms. Ley, 

C W Suter Services strongly supports the air service proposal detailed in the City of Sioux City’s Small 

Community Air Service Development Program grant application. 

In April 2012, American Airlines became the subsidized Essential Air Service carrier for the Sioux 

Gateway Airport by initiating service to Chicago O’Hare International Airport. I fully support the need for 

Essential Air Service at the Sioux Gateway Airport, and this Small Community Air Service Development 

Program grant will be an important support mechanism for the air service to help ensure the successful 

transition to American Airlines and service to Chicago O’Hare. 

It is my hope that you will give the City of Sioux City’s application full consideration and award the funds 

requested to ensure the success of American Airlines in the Sioux City market. 

Sincerely, 

E. B. Baker 

President 

Name 
 


May 30, 2012 

Aloha Ley 

Associate Director, Small Community Program 

Office of Aviation Analysis 

1200 New Jersey Avenue, SE W86-310 

Washington, DC 20590 

Subject: Small Community Air Service Development Program 

 Docket DOT-OST-2012-0069 

 City of Sioux City, IA – Sioux Gateway Airport 

Dear Ms. Ley, 

As President and CEO of Mercy Medical Center, I have the responsibility to ensure that 

Siouxland has the best health care possible. A critical part of my role is working to 

attract new physicians to our community. Only with reliable and efficient air service is 

that possible. Mercy uses the American Airlines service to SUX on a frequent basis, 

with both our associates traveling elsewhere and brining in potential new physicians to 

the community. 

As a result, please allow me to convey my strong support for the air service proposal 

detailed in the City of Sioux City’s Small Community Air Service Development Program 

grant application. 

In April 2012, American Airlines became the subsidized Essential Air Service carrier for 

the Sioux Gateway Airport by initiating service to Chicago O’Hare International Airport. I 

fully support the need for Essential Air Service at the Sioux Gateway Airport, and this 

Small Community Air Service Development Program grant will be an important support 
mechanism for the air service to help ensure the successful transition to American 

Airlines and service to Chicago O’Hare. 

It is my hope that you will give the City of Sioux City’s application full consideration and 

award the funds requested to ensure the success of American Airlines in the Sioux City 

market. 

Thank you for your kind consideration 

Sincerely, 

Bob Peebles, President and CEO 

Mercy Medical Center – Sioux City