Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2014

APPLICATION UNDER 

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT-OST-2014-0113

SUMMARY INFORMATION

A. PROVIDE 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: 

St. Clair County, Illinois

Name of Signatory Party for Legal Sponsor:

Tim Cantwell, Airport Director

DUNS Number:

07-5897371

EIN/Tax ID:

37-6001924

B. LIST THE NAME OF THE COMMUNITY OR CONSORTIUM OF COMMUNITIES APPLYING:

1._ST. CLAIR COUNTY, ILLINOIS_

C. PROVIDE THE FULL AIRPORT NAME AND 3-LETTER IATA AIRPORT CODE FOR THE APPLICANT(S) AIRPORT(S) (ONLY 

PROVIDE CODES FOR THE AIRPORT(S) THAT ARE ACTUALLY SEEKING SERVICE).

1. MidAmerica St. Louis Airport (BLV)

DOES THE AIRPORT SEEKING SERVICE HOLD AN AIRPORT OPERATING CERTIFICATE ISSUED BY THE FEDERAL AVIATION 

ADMINISTRATION UNDER 14 CFR PART 139? (IF “NO,” PLEASE EXPLAIN WHETHER THE AIRPORT INTENDS TO APPLY FOR A 

CERTIFICATE OR WHETHER AN APPLICATION UNDER PART 139 IS PENDING.)

 Yes No X
Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2014

D. LIST THE 2-DIGIT CONGRESSIONAL DISTRICT CODE APPLICABLE TO THE SPONSORING ORGANIZATION, AND IF A 

CONSORTIUM, TO EACH PARTICIPATING COMMUNITY.

1. IL-12

E. APPLICANT INFORMATION: (CHECK ALL THAT APPLY)

Not a Consortium Interstate Consortium Intrastate Consortium

Community now receives subsidized Essential Air Service

Community (or Consortium member) previously received a Small Community Air Service 

Development Program Grant

If previous recipient: Year of grant(s): 

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

PUBLIC PRIVATE

1. MidAmerica St. Louis Airport 1. Leadership Council of Southwestern Illinois

2. St. Clair County 2. Greater Belleville Chamber of Commerce

G. PROJECT PROPOSAL:

1. GRANT GOALS: (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

X
Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2014

2. FINANCIAL TOOLS TO BE USED: (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,

including 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 Handling 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 carrier, with defined procedures for the subsequent 

use of the pledges or the deposited funds; counted as in-kind contributions only

Other (explain below)

H. EXISTING LANDING AIDS AT LOCAL AIRPORT:

Full ILS Outer/Middle Marker Published Instrument Approach

Localizer Other (specify)

X

X

X

X
Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2014

I. PROJECT COST: DO NOT ENTER TEXT IN SHADED AREA

LINE DESCRIPTION SUB TOTAL TOTAL AMOUNT

1 Federal amount requested $200,000

2 State cash financial contribution $0

Local cash financial contribution

3a Airport cash funds $0

3b Non-airport cash funds $50,000

3 Total local cash funds (3a + 3b) $50,000

4 TOTAL CASH FUNDING (1+2+3) $250,000

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) $250,000

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.

Airport will waive landing fees for additional flights; local media companies will offer discounts on 

advertising; partner airlines will offer free tickets for giveaways, etc.

K. IS THIS APPLICATION SUBJECT TO REVIEW BY AN AFFECTED STATE UNDER EXECUTIVE ORDER 12372 PROCESS?

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. IS THE LEAD APPLICANT OR ANY CO-APPLICANTS DELINQUENT ON ANY FEDERAL DEBT? (IF “YES”, PROVIDE 

EXPLANATION)

No Yes (explain) 

_____________________________________________________________________________________________
Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2014 1

TABLE OF CONTENTS

Legal Sponsor 1

Introduction 2

The St. Louis Air Service Market 3

Greater St. Louis Catchment Area 3

Top Origin and Destination Markets 6

Air Service Deficiencies in the St. Louis Area 7

Regional Capacity Reductions 7

Average Regional Fares 8

Airport Use 8

Per Capita Capacity 9

Strategic Plan for Additional Air Service 11

New Target Markets 12

Project Timeline 16

Public/Private Partnership 17

Conclusion 18

LEGAL SPONSOR

St. Clair County, Illinois, sponsor of MidAmerica St. Louis Airport, is the legal sponsor responsible for 

administering the proposed air service development program.

St. Clair County, Illinois

MidAmerica St. Louis Airport

9656 Air Terminal Drive, Suite 100

Mascoutah, Illinois 62258

Tim Cantwell, Airport Director

(877) 643-2637

director@flymidamerica.com

Section Page Number
Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2014 2

INTRODUCTION

MidAmerica St. Louis Airport serves as the low cost alternate for the St. Louis metro area, and an 

airport catchment area that is home to almost 4.1 million people. While the “metro east” – the 

18 Illinois counties in the greater St. Louis region – make up 25% of the population of the region, 

MidAmerica can effectively serve as an alternate airport to Lambert – St. Louis for the entire twostate area.

Average fares in the St. Louis area are quickly rising – up 28% in the last five years. Service at 

Lambert Airport continues to decline. In fact, since the summer of 2013, airlines serving Lambert 

have cut an average of 5,387 daily departing 

seats, or 22% of all capacity. This will likely 

result in even higher fares before the end of 

2014.

MidAmerica Airport, meanwhile, has seen 

Allegiant’s service grow load factors and 

passengers, as Allegiant’s low fare philosophy offers an alternative to the high average fares at 

Lambert. In the 12 months ending March 2014, Allegiant averaged an 83% load factor at 

MidAmerica on its flights to Orlando/Sanford.

Allegiant’s success on the Orlando/Sanford route proves that MidAmerica can be an effective 

low fare airport for the St. Louis area. MidAmerica recently met, in person, with Allegiant 

planners who did discuss the expansion of local service to other points in Florida. Allegiant 

expressed the need to additional marketing in the St. Louis region before the launch of 

additional service, as it works to draw more passengers, not only, from the metro east counties, 

but also from the Missouri counties in the catchment area.

The Airport has defined its role as the low cost alternative to Lambert. In order to recruit 

additional service, the Airport is seeking its first Small Community Air Service Development Grant. 

It intends to use $200,000 in Grant funding, matched by $50,000 in non-airport local cash, to offer 

marketing incentives to carriers launching service to new non-stop destinations. This service will 

help replace lost airline seats, provide additional competition in the region, and better serve one 

of the most underserved markets in the Midwest.

“Allegiant’s success on the 

Orlando/Sanford route proves that 

MidAmerica can be an effective low 

fare airport for the St. Louis area.”
Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2014 3

THE ST. LOUIS AIR SERVICE MARKET

Current and Historical Air Service

MidAmerica St. Louis Airport, located in the “metro east” of the St. Louis area, is positioned as the 

low cost, hassle-free alternate airport for the St. Louis metro area. The Airport is located on Scott 

Air Force Base, and is a joint use facility shared with St. Clair County. The County operates the 

commercial side of the 

Airport while the US Air 

Force operates the

base.

MidAmerica serves the 

greater St. Louis region, 

an area of 55 counties 

in both Illinois and 

Missouri (see map 1). 

This region is home to 

4.06 million people as of 

the latest US Census 

estimates. The 18 

counties on the Illinois 

side of the St. Louis 

metro area comprise 

36% of the St. Louis 

metro population with 

1.1 million people living on the 

Illinois side of the Mississippi River.

The greater St. Louis area depicted 

in map 1 generates total personal 

income of $162.4 billion dollars per 

year as of the latest US Census 

estimates (see figure 1). The St. 

Louis area has an average annual 

personal income of $39,950. The 

MAP 1: Greater St. Louis Catchment Area

Source: Sixel Consulting Group, 2013 US Census Estimates

FIGURE 1: Economic Breakdown of “Metro East” Counties

Source: Sixel Consulting Group; US Census Data
Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2014 4

18 Illinois counties comprise 24% of the regional St. Louis economy. Collectively, the 18-county 

“metro east” has annual earnings of almost $23.4 billion and total personal income of almost 

$39.4 billion. The 1.1 million people who live in this region make an average of $34,000 per year 

per capita, which is slightly lower than the overall greater St. Louis average.

MidAmerica Airport has seen steadily improving loads on its Allegiant Air-provided service to 

Orlando/Sanford. Allegiant entered the market in November of 2012 with load factors in the low 

70s for the first two months of service (see figure 2). Allegiant does take a hiatus in service at 

MidAmerica in September, which is common in its Florida network. Still, for the 12 months ended 

March 2014 Allegiant averaged an 83% load factor at MidAmerica. MidAmerican has seen 

load factors above 90% in peak months.

Allegiant had previously served MidAmerica Airport from 2005 through the beginning of 2009, 

but ended service due to low ancillary revenue and the long length of haul between 

MidAmerica and Las Vegas. MidAmerica service does perform better on a shorter stage length 

due to the limited fuel burn.

Between 2009 and 2012, market dynamics in the St. Louis area changed appreciably, with 

service at Lambert Airport continuing to decline, making MidAmerica service more attractive. 

At its peak in 2007, MidAmerica generated 51,190 annual passengers on Allegiant, or an 

average of 70 passengers per day each way (PDEW) (see figure 3 on next page). Still, that peak 

number represented just 0.5% of the total passengers generated in the St. Louis metro area, with 

the other 99.5% using Lambert Airport.

FIGURE 2: Seats per Day Each Way, Flights per Day Each Way, and Load Factor, MidAmerica – Orlando/Sanford

Source: US DOT T100, November 2012 – March 2014
Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2014 5

Since the 2007 passenger peak at St. Louis’ two airports with scheduled air service, origin and 

destination passengers have dropped by 10% or an average of 1,600 PDEW (see figure 3). At 

the same time, the average one way fare in the region has increased from $167 to $203 – a 

jump of 22% or an average of $36 each way.

The fare increase in the market is even more pronounced since 2009. In the last five years, the 

average fare at Lambert Airport is up $44 each way, or 28% (see figure 3). Rising fares have 

clearly had the impact of suppressing the market’s passengers. The greater St. Louis area can 

generate more passengers than it currently does, but it needs lower fares and more available 

seats for that to happen.

Lambert Airport is returning to its role as a connecting hub. It is not near the connecting point it 

was when Trans World Airlines (TWA) operated its major hub, but Lambert’s share of connecting 

passengers rose to 21% in 2013, up from just 15% in 2012. As airlines like Cape Air and Air Choice 

One continue to grow their regional operations at Lambert, connecting passengers from 

FIGURE 3: O&D Passengers and Average One Way Fares, at MidAmerica and Lambert Airports

Source: US DOT OD1A, Calendar Year 2004 – Calendar Year 2013
Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2014 6

Essential Air Service (EAS) markets to the national air transportation system in St. Louis, the share 

of connecting passengers will continue to grow. This will also begin to fill seats at Lambert that 

would have otherwise been available to local St. Louis area passengers, further squeezing St. 

Louis’ airline capacity.

The Illinois side of the larger St. Louis catchment area generates almost 25% of all the region’s 

passengers. The Airport’s True Market/Leakage Study shows the Illinois side share by the region’s 

top 25 origin and 

destination markets 

(see Figure 4). The 

MidAmerica Illinoisside catchment area 

generates an even 

higher proportion of 

St. Louis’ passengers 

to leisure destinations. 

For example, the

“metro east” 

generates 31% of 

passengers, or 

112,201 annual 

passengers, to 

Orlando/Sanford; 36% 

of passengers, or 

106,872 annual 

passengers to Las 

Vegas; 34% of 

passengers, or 91,396 annual passengers to Phoenix/Mesa; and 37% of passengers, or 47,523 

annual passengers to Southwest Florida, which includes Ft. Myers and Sarasota.

While MidAmerica is especially well positioned to draw from the St. Louis area’s Illinois counties, it 

can also draw from the Missouri side of the area. In fact, MidAmerica’s Missouri retention will 

grow as Lambert continues to see capacity cuts, and as low fares continue to undercut the 

pricing of airlines serving Lambert.

FIGURE 4: Top 25 O&D Markets in the St. Louis Area, by Catchment, YE3Q12

Source: Sixel Consulting Group BLV True Market/Leakage Study
Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2014 7

AIR SERVICE DEFICIENCIES IN THE ST. LOUIS AREA

Airlines serving the St. Louis area continue to cut capacity. Airline capacity cuts have resulted in 

steadily increasing fares and continued passenger suppression. Despite the reduction in 

available airline seats at Lambert – St. Louis International Airport passengers who travel to and 

from the Illinois counties of the catchment area still overwhelmingly use Lambert, since so little 

service is offered at the cheaper and more convenient MidAmerica St. Louis Airport.

The airlines serving Lambert Airport have continually reduced available seats over the last few 

years, but the trend became much more pronounced between summer of 2013 and winter of 

2014. Between June of 2013 and January of 2014, Lambert lost an average of 43 daily 

departures, or 18% of all departing flights (see figure 5).

Similarly, between June of 2013 and January of 2014 airlines cut an average of 5,387 daily 

departing seats (see figure 5). This capacity cut represents 22% of all capacity offered by the 

airlines serving Lambert Airport. Despite the capacity cuts, load factors have not improved. This 

indicates that passengers have declined, and many trips are being suppressed by the lack of 

available seats and subsequently high fares.

As airlines have cut St. Louis seats, fares have continued to rise. As documented in the previous 

section of this Grant application, the average St. Louis area fare is up 28% in the last five years. 

FIGURE 5: Seats per Day Each Way, Flights per Day Each Way, and Load Factor, Lambert – St. Louis Int’l Airport

Source: US DOT T100, June 2012 – January 2014
Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2014 8

Fare increases made St. Louis one of the most 

expensive air service markets in the Midwest. 

In 2013, St. Louis had the fifth highest average 

fare of all non-Essential Air Service (EAS) 

markets in Illinois, Indiana, and Missouri (see 

figure 6). The average St. Louis one way fare 

was $203, up from $159 five years ago. The 

four markets that had higher average fares 

than St. Louis in 2013 are all much smaller, with 

only a fraction of the capacity that airlines 

offer at Lambert.

Other large airports, with similar available 

seats as the St. Louis area, had much lower 

fares than St. Louis. For example, in 2013 the 

average one way fare at Indianapolis was 

$190, which was $13 lower each way than the 

St. Louis fare, or 6% less (see figure 6). 

Chicago O’Hare, Chicago Midway, and 

Kansas City all had significantly lower average fares than St. Louis in 2013, as well. St. Louis’ 

average fare was 15% higher than the overall region average of $176 each way in 2013.

To better understand its market, and the ability of the market to support additional air service, 

MidAmerica St. Louis Airport commissioned a True Market/Leakage Study in April of 2013. The 

study pulled actual ticket stock, 

from the Airline Reporting 

Corporation (ARC) from the zip 

codes in the 18-county “metro 

east” area, as defined previously in 

this application. The ticket data 

represented the year ended third 

quarter 2012. This was the period 

before Allegiant reinstated 

MidAmerica service.

FIGURE 7: Originating Airport for BLV Catchment Passengers, YE3Q12

Source: Sixel Consulting Group BLV True Market/Leakage Study

FIGURE 6: Average O/W Fares at Midwest Airports

Source: US DOT Database DB1A, Calendar Year 2013
Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2014 9

The study shows 

the MidAmerica 

catchment area, 

on the Illinois side 

of the St. Louis 

metro area, 

generates almost 

2.4 million annual 

airline passengers, 

or an average of 

3,264 passengers 

per day each way (PDEW) (see Figure 7 on previous page). In the study period, an average of 

3,146 PDEW used Lambert Airport while another 67 PDEW drove all the way to Indianapolis to 

access air service.

Not surprisingly, 96% of MidAmerica Airport catchment area 

passengers choose to use Lambert St. Louis Airport instead of 

other airports in the region (see map 2). In rare cases, small 

percentages were found to use Springfield, Peoria, 

Bloomington/Normal, or Indianapolis, among other airports. 

Passengers use Lambert Airport despite the fact that its fares 

tend to be higher than the fares found at other airports in the 

region.

MidAmerica Airport ranks as the most underserved airport in 

the Midwest – with less service than even the Essential Air 

Service (EAS) markets. The average airport in Missouri and 

Illinois had 4.3 available airline seats per capita of its metro 

area in 2013. Lambert – St. Louis International had an 

average of 6.0 seats per capita of the population of the 

Missouri counties in the greater St. Louis area (see figure 8). 

Meanwhile, MidAmerica St. Louis Airport had an average of 

just 0.029 available airline seats per capita of only the 18-

county Illinois section of the greater St. Louis area. 

FIGURE 8: Seats per Capita in Midwest Markets

Source: US DOT T100, Calendar Year 2013

MAP 2: Airport Use for MidAmerica Catchment Area Passengers

Source: Sixel Consulting Group BLV True Market/Leakage Study, YE3Q12

Airport Seats per Capita

Chicago O'Hare 7.0

Kansas City 6.4

St. Louis Lambert 6.0

Little Rock 4.1

Tulsa 4.1

Oklahoma City 3.8

Northwest Arkansas 3.2

Wichita 3.1

Bloomington/Normal 2.9

Chicago Midway 2.7

Quad City International 2.6

Peoria 2.0

Springfield, MO 2.0

Manhattan, KS 1.9

Lawton, OK 1.3

Springfield, IL 1.0

Champaign/Urbana 1.0

Branson 0.9

Fort Smith, AR 0.8

Texarkana, AR 0.7

Columbia, MO 0.7

Rockford, IL 0.7

Joplin 0.4

Marion, IL 0.3

Decatur, IL 0.3

Cape Girardeau, MO 0.2

MidAmerica St. Louis 0.029
Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2014 10

MidAmerica had just 15% of the available seats at the next 

most underserved market in the Midwest, Cape 

Girardeau. MidAmerica had just one-half of one percent

of the available seats of Lambert Airport, even after major 

capacity cuts by the airlines serving Lambert.

At the same time, the lack of available seats at 

MidAmerica results in the Airport generating far fewer 

passengers per capita than any other Midwest market. In 

2013, the average Midwest market generated 3.4 

passengers per capita of its metro area. MidAmerica 

Airport, with so few available seats, only generated an 

average of 0.024 passengers per capita of the 18-county 

Illinois side of the St. Louis metro area (see figure 9). 

Meanwhile, Lambert Airport was able to generate an 

average of 4.6 passengers per capita of the Missouri side 

of the greater region. MidAmerica Airport generated just 

24% the passengers per capita of the second lowest 

ranked airport in 2013, Decatur, Illinois.

Despite these numbers, which make it clear MidAmerica

Airport is underserved, the Airport is well positioned to 

continue to grow its leisure-oriented traffic base, bringing 

much needed fare relief to the wider St. Louis area. MidAmerica’s position in the larger St. Louis 

region is that of a low fare alternate airport. As airlines continue to cut capacity at Lambert 

Airport, and as fares at Lambert continue to rise, MidAmerica’s fare relief will become more 

critical to the region’s overall economy.

FIGURE 9: Pax per Capita in Midwest Markets

Source: US DOT T100, Calendar Year 2013

Airport Pax per Capita

Chicago O'Hare 5.7

Kansas City 5.0

St. Louis Lambert 4.6

Little Rock 3.1

Tulsa 2.9

Oklahoma City 2.9

Wichita 2.4

Northwest Arkansas 2.3

Bloomington/Normal 2.2

Chicago Midway 2.1

Quad City International 2.0

Springfield, MO 1.6

Peoria 1.5

Manhattan, KS 1.4

Lawton, OK 0.8

Champaign/Urbana 0.7

Branson 0.7

Springfield, IL 0.7

Rockford, IL 0.6

Fort Smith, AR 0.6

Columbia, MO 0.5

Texarkana, AR 0.4

Joplin 0.3

Marion, IL 0.2

Cape Girardeau, MO 0.1

Decatur, IL 0.1

MidAmerica St. Louis 0.024
Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2014 11

STRATEGIC PLAN FOR ADDITIONAL AIR SERVICE

There are a number of cities in the US where alternate airports have become part of the travel 

fabric of the region. In the St. Louis metro area, Lambert Airport has been the sole gateway to 

the region for decades. MidAmerica St. Louis Airport is beginning to create a foothold for itself, 

as the St. Louis area’s low cost airport. This 

trend will continue as long as MidAmerica can 

continue to work with low cost carriers to 

expand their service.

The Airport’s primary target markets for 

additional low cost service are in Florida, 

building off the success of current service 

between MidAmerica and Orlando/Sanford 

(see map 3, route in blue). The Airport’s True 

Market Study shows the region has a sufficient 

market to support additional Florida service, 

with routes to St. Petersburg – Clearwater, Ft. 

Lauderdale, and Punta Gorda/Southwest 

Florida being the prime targets (see map 3, 

routes in red). These markets are just far 

enough apart in Florida that they can be 

served simultaneously without poaching 

prospective passengers from each other. All three routes also have high, and increasing, 

average fares on current service at Lambert Airport.

In 2013, with its twice-weekly service on Allegiant, MidAmerica Airport was able to capture 6.3% 

of all St. Louis area passengers to and from Orlando (including all airports). With similar 

passenger retention on additional routes to and from Florida, MidAmerica can serve as both a 

convenient and profitable alternate with low cost service.

MAP 3: Target Routes for MidAmerica St. Louis Airport

Source: MidAmerica St. Louis Airport, July 2014
Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2014 12

The MidAmerica Airport 

catchment area, which 

consists of the Illinois side of the 

larger St. Louis metro area, 

generates 31% of all current 

Florida passengers to and from 

the region. In all, the 

MidAmerica Airport 

catchment area generates 

almost 329,000 annual passengers to and from Florida destinations (see figure 10), or an average 

of 450 passengers per day each way (PDEW), while the St. Louis area generates 1,442 PDEW. 

Orlando/Sanford is the largest origin and destination market in Florida to and from the St. Louis 

area, which is likely why Allegiant chose it as its first MidAmerica Airport destination (see figure 

10). The next three largest markets are the targeted markets for MidAmerica Airport – South 

Florida, through Ft. Lauderdale; Tampa/St. Petersburg; and Southwest Florida, through Punta 

Gorda. Each market generates at least 178 passengers per day each way (PDEW), so all are 

large enough to support new less-thandaily service without significant passenger 

stimulation.

The average fare from the St. Louis area to 

these Florida markets was $148 each way 

as of the year ended third quarter 2012 

(see figure 11). The Orlando/Sanford fare 

is the lowest, at $133 each way, but the 

fare at MidAmerica is much lower –

averaging just $65 each way in 2013. 

Allegiant loses money on its MidAmerica –

Orlando/Sanford fare, but makes money on its ancillary fees. Of the top four markets, South 

Florida and Southwest Florida support the highest fares – and also have the least non-stop 

service from Lambert Airport.

Fares between Lambert Airport and Florida markets keep rising. In the case of Orlando, 

MidAmerica represents the outlet for fare relief. In the last five years the average fare between 

FIGURE 10: Top O&D Markets from the St. Louis Area to Florida, YE3Q12

Source: Sixel Consulting Group BLV Study

FIGURE 11: Average One Way Fares in Top Florida Markets, YE3Q12

Source: Sixel Consulting Group BLV Study
Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2014 13

St. Louis and Orlando has risen by an average of $32 each way, or 29%, to an average of $141 

one way (see figure 12). At the same time, passengers using the route have declined slightly, by 

an average of ten passengers per day each way (PDEW).

The average fare between MidAmerica and Orlando, in the last year, was just 46% the average 

fare between Lambert and Orlando. While Allegiant averaged a $65 one way fare between 

MidAmerica and Sanford, all other carriers at Lambert averaged a one way fare of $141 (see 

figure 12). This illustrates how MidAmerica can effectively be the low fare airport for the region, 

especially to leisure destinations.

South Florida, which includes Ft. Lauderdale, Miami, and West Palm Beach, ranks as the St. Louis 

area’s second largest origin and destination market in Florida. It has also seen quickly increasing 

airfares and a loss of passengers due to those increasing fares. The St. Louis – South Florida 

market peaked in 2006, with an average of 441 passengers per day each way (PDEW) (see 

figure 13 on next page). At that time, the average one way fare between St. Louis and the 

South Florida airports was $114.

By the year ended third quarter 2013 the average fare between St. Louis and South Florida had 

risen to $153 each way, an increase of $39 each way since the peak year of 2006, or 34% higher 

(see figure 13 on next page). These fare increases have resulted in the suppression of 

passengers in the market, down by an average of 30 PDEW over the last eight years, or 7%.

FIGURE 12: O&D Passengers and Average One Way Fares, St. Louis – Orlando (All Airports)

Source: US DOT OD1A, Year Ended Third Quarter 2004 – Year Ended Third Quarter 2013
Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2014 14

The Illinois side of the St. Louis area generated almost a third of all demand between St. Louis 

and South Florida airports. In year ended third quarter 2013, the Illinois counties generated an 

average of 117 PDEW in the market, or 29% of all passengers (see figure 13).

Similarly, the 18 Illinois counties in the greater St. Louis area generate 30% of demand between 

St. Louis and Tampa/St. Petersburg (see figure 14). That passenger share represents 83 of the 282 

PDEW traveling between St. Louis and Tampa in an average day as of the year ended third 

quarter 2013.

Passengers between St. Louis and Tampa/St. Petersburg have been flat for the last decade. 

Rising fares are likely the reason the market has not seen any sustained growth. Since the year 

ended third quarter 2008 the average fare between St. Louis and Tampa/St. Petersburg has risen 

from $121 each way to $143 each way – an increase of 18% (see figure 14).

FIGURE 13: O&D Passengers and Average One Way Fares, St. Louis – South Florida (FLL+MIA+PBI)

Source: US DOT OD1A, Year Ended Third Quarter 2004 – Year Ended Third Quarter 2013

FIGURE 14: O&D Passengers and Average One Way Fares, St. Louis – Tampa/St. Petersburg

Source: US DOT OD1A, Year Ended Third Quarter 2004 – Year Ended Third Quarter 2013
Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2014 15

The St. Louis – Southwest Florida market (served currently through Ft. Myers) is much smaller than 

either the South Florida or Tampa markets. Moreover, it has been suppressed by 12% in the last 

five years, primarily by rising fares. The average one way fare between St. Louis and Ft. Myers is 

up by $40 each way in the last five years, to an average of $151 each way (see figure 15).

MidAmerica St. Louis Airport’s True Market Study shows that 34% of all passenger demand 

between the St. Louis area and Southwest Florida is generated in the 18-county “metro east” 

(see figure 15). MidAmerica’s side of the greater St. Louis area generates an average of 65 

passengers per day each way (PDEW).

It is clear that rising fares are suppressing passengers in virtually all St. Louis markets to and from 

Florida destinations. Overall, St. Louis – Florida average fares are up by 25% in the last five years, 

with passengers down just under 10%. Allegiant’s low cost service at MidAmerica Airport has the 

opportunity to re-stimulate the market, bring average fares down, and provide an alternative to 

expensive network service at Lambert Airport.

For additional Allegiant service to be successful, MidAmerica Airport must break consumer 

habits. Even people in the “metro east” are trained to cross the Mississippi River to access flights 

at Lambert Airport, regardless of the cost differential. Marketing is paramount to breaking the 

habit – especially in cases where service from MidAmerica is more convenient and cheaper.

MidAmerica Airport is seeking its first federal Small Community Air Service Development Grant in 

support of additional non-stop destinations on less-than-daily low cost carriers. The total project 

cost is $250,000, with $50,000 coming from non-airport local sources, including the Leadership 

Council of Southwestern Illinois and the Greater Belleville Chamber of Commerce. The funding 

FIGURE 15: O&D Passengers and Average One Way Fares, St. Louis – Ft. Myers (RSW)

Source: US DOT OD1A, Year Ended Third Quarter 2004 – Year Ended Third Quarter 2013
Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2014 16

will be used as a marketing incentive to a carrier beginning non-stop service to a market without 

current non-stop service from MidAmerica.

The Airport’s marketing plan for new 

service would include a wide range 

of media, based on the success the 

Airport has seen in building its load 

factors on Orlando/Sanford service. 

For Allegiant’s reinstatement of 

service, the Airport provided a 

number of marketing efforts, 

including targeted web-based 

advertising (see figure 16). The 

Airport will continue to build upon 

the low fare message it has 

developed, as it works to become 

the low fare alternate airport for the 

St. Louis metro area.

The anticipated timeline for the 

project assumes a Grant would be 

awarded in September of 2014 (see 

figure 17). If the Grant agreement 

with the DOT is finalized in October 

of 2014, during the fall of 2014 and 

into the spring of 2015, the Airport will 

work to recruit less-than-daily, low 

cost air service through the 

incentives offered under this 

program. The Airport has met, in person, with Allegiant Air planners in the last eight weeks to 

discuss additional service. As soon as that service is launched, the campaign in support of that 

new service will launch. The Airport anticipates closing the Grant by September of 2016, if not 

before.

FIGURE 17: Project Timeline

Source: MidAmerica St. Louis Airport, July 2014

FIGURE 16: Example of Advertising Content

Source: MidAmerica St. Louis Airport

Activity/Project Milestone Estimated Date

SCASD Grant Award Announcement September 2014

Executive Grant Agreement with DOT October 2014

Meet with Airlines to Recruit Route Fall/Winter 2014 - 2015

Targeted Announcement Date for Service April 2015

Develop Creative/Launch Marketing April 2015

Targeted Start Date for Service June 2015

Submit Grant Status Reports to DOT Quarterly Q4 2014 - Q3 2016

Close Grant September 2016
Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2014 17

PUBLIC/PRIVATE PARTNERSHIP

This application for federal Small Community Air Service Development Grant funding is 

supported by several community partners who have pledged matching cash. These partners 

include the local Chamber of Commerce, the area economic development authority, and the 

county that owns and operates MidAmerica St. Louis Airport.

Greater Belleville Chamber of Commerce

The Greater Belleville Chamber of Commerce is a membership organization that supports and 

advances business and community interests, as well as the quality of life in Belleville and 

surrounding communities. The mission of the Chamber is to identify and serve the needs of 

businesses. That means working to increase prosperity by encouraging growth of existing 

businesses and fostering the establishment of new ones. In addition, it translates to providing 

representation in government affairs, and working with educational, cultural, civic and service 

organizations. The Chamber has supported each effort to bring scheduled air service to 

MidAmerica Airport.

Leadership Council of Southwestern Illinois

The Leadership Council of Southwestern Illinois is the premier organization fostering economic 

growth in Madison and St. Clair counties. It developed the first regional economic development 

agenda and, for almost 30 years, the organization has strengthened public/private partnerships 

throughout Southwestern Illinois to lay the foundation for job growth and retention. The 

Leadership Council’s membership includes approximately 150 top executives and decision

makers from the five sectors it unites, providing a level of diversity that makes the organization 

unique. The Council understands the importance of MidAmerica Airport to the economy of the 

region and continues to work with the Airport to recruit additional service.

St. Clair County

St. Clair County was one of the guiding forces in developing Scott Air Force Base into a joint use 

facility. The County was responsible for developing MidAmerica Airport’s passenger terminal 

and other facilities. While Scott Air Force Base pumps $2 billion each year into the region's 

economy, the addition of commercial service to the facility is the key to continued growth in the 

County.
Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2014 18

CONCLUSION

MidAmerica St. Louis Airport has seen success in its growing role as the low fare alternate airport 

for the greater St. Louis area. Lambert – St. Louis International Airport has seen its fares increase 

quickly as capacity has been slashed in the decade following American Airlines’ purchase of 

the assets of Trans World Airlines (TWA) – Lambert’s main hub airline.

Between June of 2013 and January of 2014, Lambert lost an average of 43 daily departures, or 

18% of all departing flights. Similarly during the period airlines cut an average of 5,387 daily 

departing seats at Lambert – representing 22% of all capacity. These capacity cuts have 

caused St. Louis fares to rise by 28% in the last five years. In 2013, St. Louis had the fifth highest 

average fare of all markets in Illinois, Indiana, and 

Missouri. St. Louis had the highest average fare of all 

airports in markets with 500,000 or more residents in the 

Midwest.

While Lambert Airport hosts a large Southwest Airlines 

operation, Southwest’s pricing in the market has 

changed dramatically in the last several years. Lambert 

does not offer low fares that would be expected at an airport with service from seven airlines. 

Moreover, Lambert has not seen any major expansion from airlines in several years, much less 

low fare carriers.

With an expansion of Allegiant service, MidAmerica Airport has the potential to be the low cost, 

low fare gateway to the Gateway to the West. Low cost carriers like Allegiant offer something 

unique in the region, and provide excellent competition against the established carriers serving 

Lambert Airport.

MidAmerica St. Louis Airport seeks a federal Grant of $200,000, matched by $50,000 in nonairport local cash, to offer a marketing program to low cost carriers launching service to new 

non-stop destinations. MidAmerica serves a large metro area, where advertising and marketing 

costs are much higher than the regional markets where most non-hub airports are located. This 

federal funding is the key to spreading the low cost message throughout the St. Louis area – on 

both sides of the Mississippi River.

“With an expansion of Allegiant 

service MidAmerica Airport has 

the potential to be the low cost, 

low fare gateway to the 

Gateway to the West.”