APPLICATION UNDER 

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT-OST-2014-0133

SUMMARY INFORMATION

All applicants must submit this Summary Information schedule, as the application 

coversheet, a completed standard form SF424 and the full application proposal on 

www.grants.gov. 

For your preparation convenience, this Summary Information schedule is located at 

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

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: City of Alamogordo

DUNS Number: 0868548250000

EIN/Tax ID: 85-000099

B. List the Name of the community or consortium of communities applying: 

1._City of Alamogordo___________________________________ 

2._________________________________ 

3._______________________________ 

4.____________________________________________________ 

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. Alamogordo -White Sands Regional 

Airport ALM

2.

3. 4.

D. List the 2-digit congressional district code applicable to the sponsoring organization, 

and if a consortium, to each participating community. 
1. NM-2 2.

3. 4.

E. Applicant Information: (Check All That Apply) 

 X 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. City of Alamogrodo 1. 

2. 2.

3. 3.

4. 4.

5. 5.

G. Project Proposal: (check all that apply) 

X Marketing Upgrade Aircraft X New Route

Travel Bank Service Restoration Subsidy

Surface Transportation X Regional Service X Revenue Guarantee

Launch New Carrier X Start-up Cost Offset First Service

Study Secure Additional Service Other (explain below)

H. Existing Landing Aids at Local Airport: 

Full ILS Outer/Middle Marker Published Instrument Approach 

Localizer Other (specify)

I. Project Cost: Do not enter text in shaded area 
Line Description Sub Total Total Amount

1 Federal amount requested $456,950

2 State cash financial contribution 0

Local cash financial contribution

3a Airport cash funds 0

3b Non-airport cash funds $150,000

3 Total local cash funds (3a + 3b) $150,000

4 TOTAL CASH FUNDING (1+2+3) $606,950

In-Kind contribution

5a Airport In-Kind contribution** $64,931

5b Other In-Kind contribution** $28,119

5 TOTAL IN-KIND CONTRIBUTION 

(5a + 5b)

$93,050

6 TOTAL PROJECT COST (4+5) $700,000

J. IN-KIND CONTRIBUTIONS** 

For funds in lines 5a (Airport In-Kind contribution) and 5b (Other In-Kind contribution), please 

describe the source(s) of fund(s) and the value ($) of each.

The funds in lne 5a stem from airport personnel funds to account for the time that airport personnel will

be engaged in implementing the marketing plan.  

The funds for 5b stem from general local municipal funds accounting for the time city personnel will be  

assist in the implementation of the marketing plan.

 

K. Is This Application Subject To Review By State Under Executive Order 12372 Process? 

NO 

• This application was made available to the state under the Executive Order 12372 

Process for review on (date) _____________. 

• Program is subject to E.O. 12372, but has not been selected by the state for review. 

• Program is not covered by E.O. 12372. 
L. Is The Applicant Delinquent On Any Federal Debt? (If “Yes”, Provide Explanation) 

No Yes (explain) 

___No________________________________________________________________________

______________________________________________________________________________

___ 
A PROPOSAL TO THE 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

Community Proposal 

City of Alamogordo, New Mexico 

DUNS # 08-685-4825 

 A PROPOSAL UNDER THE 

 SMALL COMMUNITY AIR SERVICE DOCKET DOT-OST-2014-0113 

Under 49 U.S.C. § 41743 et. seq 

Mr. Matt McNeile 

Assistant City Manager 

City of Alamogordo 

1376 E. Ninth Street 

Alamogordo, NM 88310 

INTRODUCTION (Summary Information) 

The City of Alamogordo, a municipal corporation within the State of New Mexico, is in 

the process of publishing a Request for Proposals (RFP) to solicit carriers interested in 

providing services to and from the Dallas/Fort Worth, TX metropolitan area. This RFP is 

being carried out after a commercial airline service company expressed a strong interest 

in providing services to the area. Alamogordo, in collaboration with communities in the 

Otero-Lincoln County area, is submitting this proposal to the Small Community Air 

Service Development Program to fund a revenue guarantee pool and to support initial 

marketing. The investment for this grant will allow for the City to develop selfsustaining regional jet service for the area. It is anticipated that the selected airline carrier 

will use a 70 passenger Embraer Regional Jet nineteen (19) times a week. 

The Alamogordo-White Sands Airport has a long record of providing commercial air 

services. Prior to deregulation in 1978, several major airlines provided well-used service. 

After deregulation, the Essential Air Service (EAS) program provided air service but to 

destinations that had little to no interest by prospective air travelers. Transitioning to an 

unsubsidized regional jet service is a long delayed step in providing an important service 

to the community while supporting economic development in the area. 

The projected market area has a robust service and retail industry that is primarily driven 

by a very strong Air Force and Army military-based industry as well as tourism. All of 

the requested funds will initially be used for a revenue guarantee, but the City is 

optimistically anticipating that not all of the funds may be needed. Those projected un1 
used funds will first be used to support a revenue guarantee for a second destination and 

any remaining funds will eventually be used for marketing and promotion. The City has 

formed a team of marketing professionals who will implement a marketing plan designed 

to drive up passenger demand based on a tier system, taking in account funding 

availability. 

City of Alamogordo – White Sands Air Service Projected Market Area 

The City of Alamogordo believes that this application precisely meets the criteria and 

spirit of the Small Community Air Service Development Program and eagerly awaits a 

positive response to effectively implement this proposal. 

Please send correspondence regarding this application to: 

Mr. Matt McNeile 

Assistant City Manager 

City of Alamogordo 

1376 E. Ninth Street 

Alamogordo, NM 88310 

On behalf of the residents of Alamogordo, I thank you for this opportunity and urge a 

speedy approval of our request. 

City of Alamogordo, NM 

Susie Galea 

Mayor of Alamogordo 

2 
A PROPOSAL TO THE 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

CITY OF ALAMOGORDO 

PROPOSAL UNDER THE 

SMALL COMMUNITY AIR SERVICE 

ALAMOGORDO-WHITE SANDS REGIONAL AIRPORT 

AIRLINE SERVICE TO DALLAS/FORT WORTH, TEXAS 

3 
Community Proposal 

Under 49 U.S.C. § 41743 et. seq 

City of Alamogordo, New Mexico 

DUNS # 08-685-4825 

DOCKET DOT-OST-2014-0113 

Table of Contents:

I. Alamogordo -White Sands Regional Airport History.................. 5 

II. Airport Needs and Deficiencies.......................................... 6 

III. Project Sponsor ............................................................. 7 

IV. Proposal...................................................................... 8 

V. Community Profile........................................................... 9 

VI. Air Service History.......................................................... 12 

VII. Material Benefits/Market Analysis ...................................... 12 

VIII. Program Goals ................................................................ 13 

IX. Program Timeline............................................................ 13 

X. Funding/ Budget.............................................................. 14 

XI. Monitoring Program........................................................ 15 

XII. Marketing Plan Outline.................................................................... 15 

4 
I. Alamogordo-White Sands Regional Airport History 

The Alamogordo-White Sands (ALM) Regional Airport is a general aviation airport 

owned and operated by the City of Alamogordo in accordance with Section 3-39-1 

NMSA 1978. The airport is located at 32’ 50” N 105” 59” W at an elevation of 4197’. 

Airport construction began in 1954 and the airport opened in 1958 as the Alamogordo 

Municipal Airport, with commercial air service provided by Continental Airlines. 

Initially, the airport only had a 7,005’ long by 150’ wide asphalt paved runway but from 

1960-1969 major development projects occurred, including the construction of the 

commercial terminal building, auto parking and access roads, an asphalt paved parallel 

taxiway to 3-21, an aircraft parking apron, a 3,500’ by 200’ dirt crosswind runway, as 

well as several other improvements. In 1974 the heavy aircraft parking apron and the 

U.S. Forest Service (USFS) airtanker base - including three slurry load pits - was 

constructed. The airport name was changed in 1974, to Alamogordo-White Sands 

Regional Airport, and at this time a VOR instrument approach was established and a taxiapron project was completed. 

As indicated, Alamogordo-White Sands Regional Airport has had a long tradition of 

providing commercial service to the Otero-Lincoln region. Commercial airlines such as; 

Continental Airlines (1958-1962), Frontier Airlines (1962-1979), Volare Air Charter 

(2001-2004), Rio Grande Airlines (2003-2004), Westward Airways (2005), and Mesa 

Airlines (2006-2008) provided commercial air services using ALM. The latest, 

commercial airline, New Mexico Airlines – Pacific Wings, began commercial air service 

in October 2008. They made two departure fights a day to Albuquerque and one arrival 

flight seven days a week. These services were provided under the Essential Air Service 

(EAS) program, and became unavailable in April 2012, when funding was eliminated. 

The critical limiting factor with the EAS service was that the flights did not provide for 

the customer's primary need – flight to a major airline hub where they could connect with 

nationwide or international flights. This point cannot be over-emphasized! The major air 

carrier who has expressed a very strong desire in establishing RJ service at ALM is 

primarily motivated to do so due to the very large number of official military air 

travelers. Yet, during the over three decades of EAS provided service at ALM, the 

military had almost no use of the EAS flights! 

After the airlines were deregulated in the late 70s, the major air carriers gradually 

transitioned from a point-to-point to a hub based system. Yet the various local EAS 

service providers didn't respond resulting in a dwindling number of passengers while the 

actual local demand for airline service increased dramatically. The transition from EAS 

service to regional jet service direct to a hub will provide a sustainable business model by 

appealing to a large base of air travelers with a wide range of needs. We expect that this 

service will not require long term subsidies to be successful. 

The Alamogordo-White Sands Regional Airport’s mission is to provide a necessary 

transportation hub for the continued growth of Alamogordo, the surrounding 

communities, Holloman AFB (HMN) and White Sands Missile Range (WSMR). The 

mission also requires the airport to maintain the highest standards of safety and utility, 

5 
and to preserve the airport for future general aviation. With this in mind, the City 

Commission of Alamogordo has assigned the Alamogordo Airport Advisory Board, 

made up of five board members, two of which must be licensed pilots, who have the 

responsibility of providing policy recommendations to the governing body on matters 

pertaining to the airport. 

The Alamogordo-White Sands Regional Airport is one of eight (8) regional airports 

within the state of New Mexico, and consists of two runways, a terminal building, 

maintenance shop, fire station and 1,500 acres of fenced-in property. The primary 

runway is a 7005’ paved runway that will be extended another 2200’ over the next few 

months. This regional airport is designated as a United States Forest Service Fire Tanker 

Base, hosting 109 based aircraft; of which Neptune Aviation (the largest tenant) will soon 

house seven P-2 and one Bae-146 airtankers as well as accomplish all of their aviation 

training 

Airport fees are subject to §4-06-060 of the Alamogordo Municipal Code. Airport user 

landing fees for commercial operators over twelve thousand five hundred pounds, who 

are not covered by a lease or agreement, must pay $0.20 per thousand pounds per 

landing. The code also requires a fee of $30.00 a month for an aircraft over twelve 

thousand five hundred pounds for parking. Airport users’ landing transient or overnight 

rates are charged $10.00 per night for aircraft over twenty five thousand pounds. 

The primary goals of the Alamogordo-White Sands Regional Airport are: 

1. maintain current airport services 

2. increase the use by wildland aerial firefighting organizations 

3. establish regional jet service to Dallas followed by Phoenix 

4. support and increase general aviation to include medical transport, shipping 

and cargo, business and personal air service 

II. Airport Needs and Deficiencies 

South-Central New Mexico is adversely affected by a lack of capacity access from ALM 

to a major commercial airline hub. Currently, ALM has no commercial air passenger 

services. Otero and Lincoln residents must either drive 90 miles to El Paso, TX or 210 

miles to Albuquerque, NM to board a plane that will take them to an airport. A round trip 

drive to El Paso takes 4 hours and 8 hours for Albuquerque. Connecting flights from El 

Paso to Albuquerque are few or non-existent. 

The airport is also in need of implementing a strategic marketing plan to promote both its 

proposed regional jet services to Dallas to the traveling public and existing services in 

order to improve patronage at the airport. 

III. Project Sponsor 

The City of Alamogordo is the official sponsor of this application. 

6 
IV. Proposal 

The City of Alamogordo is contributing a total of $243,050 for the proposed project: 

which includes $150,000 as cash match from local non-airport revenue fund sources, and 

$93,050 of in-kind services. The proposal consists of providing regional jet services 

nineteen (19) times per week, whereby flights will be landing and departing three times a 

day except for Wednesday and Saturday when service will be accomplished twice daily. 

The air service will be direct non-stop flights to and from the Dallas/Fort Worth 

International Airport (DFW) using 70 seat Embraer Regional Jets. All US DOT funds 

will be matched 35/65 - City to DOT - and used as a revenue guarantee to the air service 

provider to offset any financial shortfalls. Similarly, a marketing plan will be carried out 

to promote the proposed air service to DFW and airport services being offered at ALM. 

Initially, the City of Alamogordo will allocate all the cash - six hundred and six thousand 

nine hundred and fifty dollars ($606,950) - for the financial revenue guarantee. After ten 

(10) months of providing commercial air services, the City will conduct a monthly 

financial assessment of the revenue guarantee expenses and decide if they want to agree 

with the air service provider's desire to add Phoenix as an additional destination. If so, 

excess funds will be used as a portion of a second revenue guarantee for the service to 

Phoenix. After another ten (10) month financial assessment, any excess funds will be 

diverted to marketing and promotions prior to the end of the three-year grant period. 

The City feels confident that once established, the regional jet service will become a 

successful, self-sustaining industry. This is based on several factors, the three primary 

reasons being: an early 2013 survey on passengers needs, a Spring 2013 study conducted 

by Boyd Group International and a Fall 2013 visit by a representative of the interested 

major air carrier. 

In February 2013 a market study was conducted to evaluate the area’s ability to support 

regional jet service. The 6-question survey was conducted in 31 organizations whose 

members well represented a cross section of the community. There were 699 responses 

that covered the flying habits of 2,722 individuals resulting in a sample size of 3.2% of 

the 85,000 population. The data was analyzed using 16 household income levels from 

the 2010 Census data then extrapolated to the population size of 85,000. The results 

show that there are about 120,000 enplanements per year, 4 times the 30,000 required to 

sustain and make the service profitable. In addition, about a third are for business travel 

and a tenth for international travel - the type of travel the airlines are most interested in 

due to the average cost of those tickets. 

In the spring of 2013, Boyd Group International, a leader in aviation consulting, research 

and forecasting, was contracted by the City of Alamogordo to conduct an Air Service 

Feasibility Analysis. Their report, presented in May 2013, showed that Alamogordo was 

in a singularly unique position for a community of its size. Alamogordo provides the 

essential characteristics highly desirable by American Airlines: a very large military 

presence resulting in high-yield military airline tickets. In addition, the German Air 

Force's presence at Holloman drives extensive high-yield international travel to Europe 

by employees and family members. This report served as the catalyst for the later visit 

by American Airlines. 

7 
In September 2013, the American Airlines (AA) VP for Regional Jet service throughout 

North and Central America visited Alamogordo. Over several days, he had the 

opportunity to meet with representatives from a wide variety of local communities and 

organizations. During this mix of private and public meetings, a number of critical points 

were learned: 

 American Airlines' primary emphasis for establishing RJ service in Alamogordo is on 

military travelers. RJ service to a community of Alamogordo’s size and location 

would not be considered without it. 

- Holloman AFB has traditionally had more than 11,000 airline travelers on 

official orders per year. 

- Military fares are all refundable fares which are higher than normal – the 

primary reason American is interested in this service. 

- Although almost 85% of Holloman tickets are eastward bound, the “City 

Pairs” contract will result in close to 100% of all official Holloman airline 

travel using ALM as the departure point, even when traveling to the west. 

- Our estimate is that there are at least as many military travelers on official 

orders purchased from other locations with Holloman as the destination. 

These travelers will quickly learn about the ALM connection – even without 

any marketing – and begin using the new service in a short period of time. 

 The secondary emphasis is on international travel, primarily by the members, 

dependents, family and friends of the Holloman based German Air Force (GAF). 

- The GAF has a major presence at HAFB including Tornado Primary training, 

Tornado Weapons School and Headquarters for the GAF in the United States. 

- Other significant GAF facilities in the USA that fall under the HAFB GAF 

and are visited on a regular basis include: 

- Primary flight screening program at Goodyear, AZ 

- Undergraduate Pilot Training at Sheppard AFB, TX 

- Undergraduate Navigator Training at Corpus Christie, TX 

- Air Defense School at Ft Sill, OK 

- Every active duty GAF member, each contractor and all of their dependents 

are paid for one round trip back to Germany per year. 

- The majority of Germans in Alamogordo have frequent visitors from 

Germany during their stay in Alamogordo. 

 The American Airlines representative felt that service should consist of a newer 

model 70 passenger RJ three times a day (possibly only two on Wednesday and 

Saturday) to Dallas. In addition, he felt the market was significant enough to also 

have the same type of service to the AA hub in Phoenix. However, the City of 

Alamogordo would like to delay the Phoenix connection until the Dallas service is 

well established and proves economically sustainable. 

- The larger RJ aircraft includes a First Class section that the AA representative 

felt would be well used in this location. 

- Although larger than planned, the 70 seat aircraft operational costs are 

comparable to the smaller, older model RJs. 

8 
- Holloman’s new mission of F-16 training falls under the control of Luke AFB 

near Phoenix, AZ. For that reason, the military traffic between Alamogordo 

and Phoenix will build to significant numbers over the next couple years as 

the F-16 training builds to its full planned size. 

 Several important points were learned about the cost of the tickets which will have 

major positive effects on potential customers using RJ service from Alamogordo. 

- There will be no additional charge for the connection. The ticket price from 

ALM to DFW will be comparable to the price from El Paso to DFW. 

- The price of domestic airline travel between American Airlines and Southwest 

Airlines should be roughly equivalent and improving in American’s favor as 

Southwest’s business model changes over the next few years. 

- American will have international connections from Alamogordo while 

Southwest from El Paso will offer primarily domestic with some Caribbean 

connections. 

The American Airlines representative left the City with two concerns about setting up 

new RJ service at Alamogordo: the merger and lack of pilots. In September 2013, 

American Airlines and US Airways were in the middle of their merger. Unexpectedly, 

they were sued in mid-August by the DOJ and the future was unclear. Since that time, 

the suit has been settled, the merger has been completed and the New American Airlines 

is operating. The second concern is still not solved. At the beginning of August 2013, 

the FAA issued a new requirement that increased the required flight time for a newly 

hired co-pilot in the right seat of an RJ from 250 to 1500 hours. This has had a 

devastating effect on the entire commercial airline industry. In a time when an increasing 

number of Viet Nam era pilots are reaching the mandatory 65 year retirement age, there 

is no way of replacing them due to the new 1500 hour requirement. It has resulted in an 

increasing number of cancellations of flights and aircraft parked on the tarmac. Although 

this is the issue that is delaying further action on RJ service at Alamogordo, it is a 

problem on the national level and can't be controlled or influenced from the local level. 

However, due to the severity of this issue to the commercial airline industry, we expect a 

resolution to the issue before the end of the year and have modified our schedule 

appropriately. 

V. Community Profile 

The targeted service area for this proposal is the Otero-Lincoln counties in the SouthCentral section of the state of New Mexico, which has a combined population of 86,350 

(U.S. Census: 2012). Economically, this region consists primarily on a service and retail 

based economy. The service and retail industry in this region is supported traditionally 

by a strong military-based industry driven by both active-duty and retired military 

personnel. In addition, it attracts its customers from tourists drawn to its magnificent 

natural sites and rich Western and Southwestern New Mexican history. 

9 
Otero County 

Otero County, with a population of 66,041, has three municipalities: the City of 

Alamogordo (county seat), the Village of Cloudcroft, and the Village of Tularosa; and the 

Mescalero Apache Indian Reservation that relies heavily on the service and retail 

industry. The City of Alamogordo (population 31,300, U.S. Census 2012), which acts as 

the economic center and county seat of Otero County, is a significant component to the 

economic drive of the region and one of the key places where the service and retail based 

industry for the region has coalesced. 

Otero’s military-based industry is an important economic contributor to service retail. 

Otero County is home to the U.S. Holloman Air Force Base (including a German Air 

Force Base Tactical Training Center), and a number of White Sands Missile Range 

(WSMR) tests sights. It is estimated that the U.S. Holloman Air Force Base provides 

support to more than 17,000 military and civilian personnel. The base objective is to 

defend national security and provides combat-ready military personnel, F-16 Falcon jet 

fighter training, and MQ-1 Predator and MQ-9 Reaper training for pilots and sensor 

operators to fulfill such objective. The WSMR, in contrast, is the U.S. Army's largest 

range, dedicated primarily to testing by all military services but also hosting significant 

training of which a portion of the site is within the Otero County. Military and civilian 

personnel frequently conduct military test firing operations. These active-duty personnel 

and their families contribute to the local economy while in the area and many retired 

military personnel, after experiencing the area, opt to make it their home. In addition to 

the civilian business community, the presence of the U.S. Air Force and the German Air 

Force contributes significantly to the need for regional jet service from the AlamogordoWhite Sands Regional Airport. 

In addition to the military industry, RJ service will support regional annual events that 

contribute to the local tourism industry, including: the Balloon Festival, the Cottonwood 

Festival, the Earth Day Celebrations, Southern New Mexico Wine Festivals, the Otero 

County Fair, and the October Fest – Holloman Air Force Base Air Show and other 

military activities assist to further contribute to the regional service and retail industry. 

Additionally, the Village of Cloudcroft draws tourists throughout the region with the 

Lodge Resort and Spa and events such as the May Fair, July Jamboree, Lumberjack Day, 

the October Art Fest, and Marti Gras. The Village of Tularosa attracts tourist with its 

annual Rose Festival that includes a Rose Queen, arts and crafts, the Fiesta of St. Francis 

de Paula, and for Christmas Eve luminarias line the church plaza. The Mescalero 

Apache’s rich culture and history, native crafts, jewelry, and the Inn of the Mountain 

Gods Casino and four-star hotel, and Ski Apache ski area is a major attraction, drawing 

tourists from all over the United States and as far south as Chihuahua, Mexico. Finally, 

the Village of Ruidoso draws a very large number of tourists and vacation home owners 

based on their cool mountain climate, Ruidoso Downs horse racing and neighboring 

Mescalero reservation recreational activities. The beginning of Space Tourism flights out 

of Spaceport America, projected to begin either in late 2014 or in 2015, may bring 

unimaginable levels of tourism to the region. Although Spaceport America is located 

more than two hours away, the Alamogordo area is in the center of the projected space 

10 
tourism sites due to its close association with the first launches of the initial space 

program after World War II. The New Mexico Museum of Space History's location in 

Alamogordo is due to that critical phase in the development of manned space flight. 

The City of Alamogordo alone has over 1,900 registered businesses. Tourist attractions, 

such as the New Mexico Museum of Space History, and the Clyde W. Tombaugh 

Planetarium and Omnimax Theater, and the Alameda Park Zoo have become iconic 

destination columns and economic engines for the city. Businesses such as: 1st National 

Bank, Caldwell Banker, Bank 34, Western Banking, Desert Sun, Vision Ford, Lowes, 

Desert Lakes Golf Course, franchise, restaurants, hotels, retails stores, churches of many 

denominations and RV camp grounds are part of the economic mix. Also, a significant 

contributor to Alamogordo’s economy is its education institutions facilities, such as its 

public school system, the New Mexico School for the Blind and Visually Impaired, and a 

branch of New Mexico State University. Present are other federal, state, and local 

government entities, such as: U.S. Border Patrol, the US Forest Service, the NM National 

Guard, the Otero County building and the Alamogordo City Hall. 

Another of Otero County’s attributes is its natural attractions of national and state 

significance. Places such as: White Sands National Monument, Lincoln National Forest, 

the Sacramento Mountains, and the Oliver Lee State Park are frequented tourist 

attractions. Considered one of the world’s greatest natural wonders, White Sands 

National Monument, is 275 square miles of natural white gypsum sand dunes in the 

middle of the New Mexican desert that has created an ecosystem of its own, attracts over 

450,000 tourists a year. The Lincoln National Forest, which consists of over a million 

acres that stretches over four different counties and is known as the birth place to the 

world-famous Smokey Bear, attracts thousands of tourists who come to enjoy the camp 

grounds, avoid the harsh heat of the Chihuahuan Desert or simply enjoy its natural 

wonders. In turn, the Oliver Lee Memorial State Park was an early Apache stronghold 

located in the Sacramento Mountains that is known for its quiet green oasis where water 

flows year round in Dog Canyon. 

Lincoln County 

Lincoln County’s service and retail based economy stems largely from its superb natural 

wonders, and rich historical sites. Although Carrizozo is the county seat, the largest 

community in the county is Ruidoso, with 8,029. Other towns in the county include 

Ruidoso Downs, Capitan, and Corona, and communities such as Alto, Ancho, Lincoln, 

Nogal, White Oats, and Robsart. Ruidoso is known as a tourist destination as it lies 

within the Lincoln National Forest and is home of the Ruidoso Downs Racetrack and 

Casino, and Grindstone Lake. Lincoln County has similar amenities as the City of 

Alamogordo in the retail sector while the service sector is geared more towards catering 

to the tourism industry due to the Apache Ski Resort and camp grounds, as well as other 

popular visitor destinations. 

11 
VI. Air Service History 

As indicated, Alamogordo-White Sands Regional Airport has had a long tradition of 

providing commercial service to the Otero-Lincoln region. Commercial airlines such as; 

Continental Airlines (1958-1962), Frontier Airlines (1962-1979), Volare Air Charter 

(2001-2004), Rio Grande Airlines (2003-2004), Westward Airways (2005), and Mesa 

Airlines (2006-2008) provided commercial air services using ALM. The latest, 

commercial airline, New Mexico Airlines – Pacific Wings, began commercial air service 

in October 2008. They made two departure fights a day to Albuquerque and one arrival 

flight seven days a week. These services were provided under the Essential Air Service 

(EAS) program, and became unavailable in April 2012, when funding was eliminated. 

The critical limiting factor with the EAS service was that the flights did not provide for 

the customer's primary need – flight to a major airline hub where they could connect with 

nationwide or international flights. This point cannot be over-emphasized! The major air 

carrier who has expressed a very strong desire in establishing RJ service at ALM is 

primarily motivated to do so due to the very large number of official military air 

travelers. Yet, during the over three decades of EAS provided service at ALM, the 

military had almost no use of the EAS flights! 

After the airlines were deregulated in the late 70s, the major air carriers gradually 

transitioned from a point-to-point to a hub based system. Yet the various local EAS 

service providers didn't respond resulting in a dwindling number of passengers while the 

actual local demand for airline service increased dramatically. The transition from ESA 

service to regional jet service direct to a hub will provide a sustainable business model by 

appealing to a large base of air travelers with a wide range of needs. We expect that this 

service will not require long term subsidies to be successful. 

VII. Material Benefits/Market Analysis 

Providing commercial air services to and from Dallas/Fort Worth, TX through the 

Alamogordo-White Sands Regional Airport, will allow a new market to easily access the 

Otero-Lincoln region and will afford a broad segment of the locally based traveling 

public direct commercial air service. Given the military industry in the region, military 

personnel and contractors will be able to use the Alamogordo-White Sands Regional 

Airport to travel to the Dallas/Fort Worth, TX International Airport and board other 

national and international connecting flights. Similarly, business members in the 

community, as well as those throughout the nation and abroad, will now have direct 

access to and from the Alamogordo-White Sands Regional Airport, reducing travel time 

and ground travel cost. Educational institutions both at the state and local levels, as well 

as employees of local, state, and federal governmental units will also stand to benefit 

when they are required to travel to fulfill their duties and responsibilities. 

Members of the general public and tourists will now have the option to use the 

Alamogordo-White Sands Regional Airport. This option will allow the public convenient 

travel times, help obviate the need to drive long distance, reduce travel cost, and have 

direct access to other destinations. For communities in the Otero-Lincoln region, a 

commercial air service from the Alamogordo airport will mean increased job creation that 

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stems not only as a result to the new air services, but from the air travel and community 

access. This will allow communities to promote the Otero-Lincoln region to new 

markets, and will most likely result in an increase in service and retail sales, such as in 

the hotel and restaurant industry. 

The Alamogordo-White Sands Regional Airport Master Plan is in the process of being 

updated. AS part of the update, an Air Service Feasibility Study was conducted by the 

Boyd Group International. The study concluded that it is estimated that the ALM 

extended service area generates approximately 45,000 annual enplanements, or passenger 

boardings. Of the estimated 45,000 annual enplanements, a large percentage are high 

yielding military traffic and international traffic due to the presence of the German Air 

Force Tactical Training Center in Alamogordo. It is estimated that ALM would achieve 

approximately a 74% load factor with two daily flights on 50 seat regional jets to DFW, 

but could be higher given the levels of military traffic that the region experiences. 

Although the load factor would be less with a 70 seat regional jet, American Airlines 

prefers to fly this size of aircraft due to the fact that the operational costs are similar and 

there is a market for first class seating. 

XIII. Program Goals:

1. Create a self-sustaining air service program to and from Dallas/Fort Worth, TX 

 by providing a minimum financial guarantee of up to $606,950 to the air 

 service provider for any potential revenue shortfalls. 

2. Provide a marketing program, with any prior year allocated unspent 

 guarantee funds, that supports the new air service, with initiatives targeted 

 o the local Otero–Lincoln Counties and the Dallas/Fort Worth area by: 

 a. Attracting the public with the convenience of using the Alamogordo 

 Regional Airport, targeting passengers who are using the more distant El 

 Paso and Albuquerque Airports. 

 b. Promoting economic growth in the area by demonstrating that the City can 

 support more travel and tourism through the benefit of regional jet service. 

XIV. Program Timeline: 

The City of Alamogordo is ready to implement the plan as soon the grant agreement is in 

place. The project has the support of our U.S. Congressional delegation, the New Mexico 

Governor, as well as regional, and community support. The marketing plan will start 

immediately and air services can begin by April 2016. By the time the US DOT 

announces the grant awards, the City of Alamogordo will have approved an air service 

contract agreement. Once the grant agreement is in place, the City of Alamogordo will 

complete the project within no later than three (3) years. 

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Date Activity 

________________________________________________________________________ 

Aug 2015 - Finalize Request for Proposal (RFP) document 

Sep 2015 - Publish RFP 

Oct 2015 - Select Air Service Carrier & Draft Agreement 

Oct 2015 - Approve Contract between City & Air Carrier 

Oct 2014 – Mar 2016 - Make provisions for Part 139 Cert, TSA ops, etc 

Nov 2015 - Implement the Marketing Plan using local in-kind 

Apr 2016 - Begin RJ Operations 

Jan 2017 - Implement Phase II of the Marketing Plan 

Oct 2017 - End of three-year grant 

________________________________________________________________________ 

XV. Funding/Budget: 

 Funding: 

Federal Share: $456,950 

Local Direct Cash: $150,000 

Local In-Kind: $93,050 

____________________________________________ 

Total Project Costs: $700,000 

The City of Alamogordo will commit a combined total of $243,050 of both direct cash 

and in-kind services and is requesting the assistance of U.S. DOT of $456,950 to 

complete the project. 

Budget 

Financial Guarantee/Marketing $606,950 

Marketing/Promotions (Local In-Kind $93,050 

______________________________________________ 

 Total Project Costs: $700,000 

The proposed project will fund a financial guarantee of up to $606,950 for any potential 

revenue shortfalls to the air service provider for services to and from Dallas/ Fort Worth, 

TX. After ten (10) months of air services, the City of Alamogordo will conduct a 

financial assessment to determine if and how much funds will be transferred to the 

marketing and promotion component of the project. The funds for marketing and 

promotion will then be used consistently with the marketing plan. 

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In-Kind 

Alamogordo will be contributing $93,050 as in-kind contribution for the proposal. The 

$93,050 is derived from city employees who will be part of a marketing team. 

Employee: % of Annual Hours Years Total 

1. Airport Manager 30% 3 $64,931 

2. Public Information Officer 5% 3 $ 7,177 

3. Community Service Exec. 

 Assist. & Film Liaison 10% 3 $ 13,594 

4. Grants Coordinator 5% 3 $ 7,348 

Total In-Kind Contribution $93,050 

The marketing team will be responsible for implementing the marketing plan and consist 

of the Airport Manager, Public Information Officer, and the Community Services 

Executive & Film Liaison. In addition, an addition amount is included to account for the 

monitoring of the grant by the Grants Coordinator. 

XVI. Monitoring Program: 

The monitoring program consists of providing quarterly updates to the U.S. DOT of the 

marketing plan and the financial guarantee, proof of advertising, paid invoices and an 

outline of services rendered during this period. Booking performance dates will be traced 

weekly with monthly financial reports. 

XVII. Marketing Plan Outline 

Current Status: 

The City of Alamogordo is in the process of publishing a Request for Proposals (RFP) to 

solicit carriers interested in providing services to and from the Dallas/Fort Worth, TX 

metropolitan area using the Alamogordo-White Sands Regional Airport. It is anticipated 

that the selected air service carrier will be using a 70 passenger Embraer Regional Jet to 

provide services. The service will operate nineteen (19) times a week with three flights 

per day except Wednesday and Saturday when flights may be decreased to two daily. 

Targeted Market: 

The Marketing plan focuses on two market areas: the Otero-Lincoln County area and the 

Dallas-Fort Worth, Texas area, with the idea of eventually expanding to other potential 

markets. The primary market objective is to focus on the Otero-Lincoln County to 

establish the air service market base. This marketing plan targets four local retail 

markets: military (military personnel and family members), local leisure travelers, 

tourists and visitors, and business and government travelers (to include military 

contractors). The marketing strategic plan aims to cross communicate the Fly White 

Sands-Alamogordo message using a broad marketing approach that incorporates retail 

advertising, sales and promotions, community sponsorship, and public relations to target 

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the specified markets. Businesses, government and non-profit organizations will be 

targeted using established communication channels via the chamber of commerce, trade 

and professional organizations, and other community organizations. 

The second market target is in the Dallas-Fort Worth business and leisure community. 

The marketing team, with the assistance of the Chamber of Commerce will develop 

relationships with the travel industry organizations, business, clubs, trade associations, 

media associations, and Chamber of Commerce in the Dallas-Fort Worth area. 

Finally, if funding permits, the marketing plan will also target other market areas such as 

the City of Las Cruces, NM, Truth or Consequences business and leisure communities 

aware of the Fly White Sands-Alamogordo air service. 

Marketing Organizational Structure 

The City of Alamogordo has a marketing team that consists of: the airport manager, the 

City of Alamogordo public information officer, the administrative assistant-film liaison, 

and other members of a coalition in the Otero-Lincoln County area to implement the 

marketing plan. The marketing team will be responsible for implementing the marketing 

plan consistent with the actual funding availability. 

Marketing Details 

The marketing plan is designed to follow a four (4) tier marketing and promotional 

structure that takes into account both funding availability and targeted markets. Each 

market will be assessed separately by the marketing team using this system. Each tier 

outlines specific marketing and promotional activities that are compatible in cost, with 

the least expensive in tier one and the most expensive in tier four. The tier system allows 

for tasks to be prioritized according to funding availability. 

The marketing team will begin by implementing Tier One of the marketing plan 

immediately after the grant agreement is approved. Activities in Tier One can begin 

quickly, since this piece of the project is being funded directly through a local in-kind 

contribution. Once Tier One begins, it is perceived that these activities will continue 

after the grant agreement expires as long as the air service carrier is providing services. 

Phase II of the marketing plan will start after the ten (10) month financial assessment, 

when the marketing team will reassess their approach based on the program’s funding 

availability for marketing and promotions. Using the 4 tier structure the team will 

implement marketing based on priority tasks, according to the available funds. If 

marketing funding is non-existent, given that the guarantee will require the entire grant 

amount and local cash match, the marketing team will continue to perform the activities 

in Tier One. If funding is limited after conducting the financial assessment, the 

marketing team will evaluate its options in Tier Two and engage in activities to meet the 

marketing plan objective with the available funding. The more marketing funding that is 

available, if few or no funds were spent in the financial guarantee, the broader the 

marketing team will expand their efforts, using the same market strategy for targeting 

additional markets but moving up the Tiers. 

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17 

1. Tier One – Public Relations & Community Outreach:

 General Market - 

a. Official Kick-Off & Press Conference. 

b. Press Releases. 

c. Utility Billing Notices. 

d. Email distribution list 

e. Mailer – City Bulletin. 

f. Include Air Service in City Website. 

i. Fly White Sands-Alamogordo (WSA) Air Service message and logo in 

City Website. 

ii. Include directions to airport (or map) & airport location. 

iii. Specify details of air service available at White Sands-Alamogordo 

Airport (WSA). 

iv. Create links to Fly White Sands-Alamogordo homepage. 

g. Facebook Campaign 

h. Add Fly White Sands-Alamogordo message to phone hold messages. 

Market Specific - 

i. Targeted Community Outreach and Public Relations – Attend and present to 

targeted organizations, such as: Chambers of Commerce, business groups, 

civic groups( Rotary Clubs, Elks Club, the Sertoma Club, etc), 

j. Development of a trade and consumer email database to send messages to a 

targeted group of air service supporters and consumers. 

2. Tier Two – Advertising A – Local Markets 

 (Otero-Lincoln Counties / Dallas Fort Worth) 

a. Produce professional promotional brochures and distribute to guest at checkin and concierge desks 

b. Banners at special events 

c. Tabletop collateral at guest rooms, front desk, and in restaurants. 

d. Affix Fly White Sands-Alamogordo sticker to envelops or mailings 

e. Radio 

f. Newspaper 

g. Billboards 

h. Arrange for travel agencies to promote and support service 

3. Tier Three – Advertising B – Local Markets 

 (Otero-Lincoln Counties / Dallas Fort Worth) 

a. Television Commercials 

b. Websites & E-media 

4. Tier Four – Outside Markets 

a. Radio 

b. Newspaper 

c. Billboards 

d. Television Commercials 

e. Websites & E-media