Proposal under the Small Community Air ServiceDevelopment Program,Docket DOT-OST-2011-0119Fort Collins – Loveland Municipal Airport4900 Earhart Road, Loveland, CO 80538Phone: (970)962-2850Fax: (970)962-2855Duns No. 076481407, CO-004Small Community Air Service DevelopmentProgram: Docket DOT-OST-2011-0119Page|2Fort Collins – Loveland Municipal AirportContact InformationFort Collins – Loveland Municipal Airport4900 Earhart Road, Loveland, CO 80538Phone:(970) 962-2850Fax:(970) 962-2855www.fortloveair.comJason LiconAirport DirectorSmall Community Air Service Development Program: Docket DOT-OST-2011-0119Page|3Fort Collins – Loveland Municipal AirportExecutive SummaryThe Fort Collins – Loveland Municipal Airport (FNL) is a partnership between the municipalities ofFort Collins,Colorado and Loveland, Colorado.The airport was established as a separate entity, equally supported by both cities in the form of a subsidy. A Director hiredjointly by both citiesprovides on-site management of the day-to-day operations of theairport. Both communities also share the administration of theairport. Currently, theCity of Loveland is responsible for the budget, accounting, payroll, accounts payable, and the financial reporting.FNL is a forward thinking, innovative airport, who has used funds in the past to attract and market new services – growing itstraffic base by garneringan increasing share of its catchment area.The Cities of Fort Collins & Loveland, Colorado, under the direction of the Fort Collins-Loveland Municipal Airport is seekinga grant award in all orpart of $339,000. FNL will support the grant with a local match of10% of awarded funds, but also anticipates greater participation through localpartnership in the business community.With funds made available through the Small Community Air Service Development Pilot Program, FNL plans to develop and implementan aggressivecommunity based air service strategic planwith goals and objectives of meeting all of the growth needs of its aviation requirements (commercial,corporate and general aviation) needs for its citizens and business. This planwill work to increase awareness of airport initiatives, support incumbentcarriers, provide new jobs and improve the region’s access to the air transportation network.The Fort Collins – Loveland Municipal Airport was established in 1964 to serve Larimerand Weld Counties in Colorado, as well as Laramie and AlbanyCounties in Wyoming. Those counties continue to be the primary market. The airport has the potential to serve a population of573,692 in 217,035households.The secondary market stretches into counties in northeast Colorado, southwest Wyoming and western Nebraska. This segment of the market adds thepotential of serving another 592,930people in 214,392 more households.This region has been projected to grow at a faster rate than both the state andnational averages over the next 20 years.Currently, FNL is served by one airline to two destinations; Allegiant Airlines serves Las Vegason a non-stop basis 4 times per week and Mesa, Arizona2 times per week. As FNL has proven that itcan sustain air service andis committed to the air service needs of its communities (commercial,corporate, general aviation), its initialmarket intelligence has identified the nextsteps in growing the access for residentsto national air transportationnetwork. These include new destinations such as Los Angeles or Orlando and increased marketing efforts to bring travelers inbound to the NorthernFront Range.Small Community Air Service Development Program: Docket DOT-OST-2011-0119Page|4Fort Collins – Loveland Municipal AirportProject Proposal & CostsWith funds made available through the Small Community Air Service Development Pilot Program, FNL plans to develop and implementa communitybased air service strategic plan with goals and objectives of meeting the growth needs of its aviation requirements (corporate,general aviation andcommercial) needs for its citizens and business. This plan will work to increase awareness of airport initiatives, support incumbent carriers, provide newjobs and improve the region’s access to the air transportation network. This plan will also include substantial public engagement in the local airportsponsor communities to further enhance the relationship between the airport and community members, including the general publicand businessinterests.The Project Proposal is divided intothree (3) distinct strategic platforms:1.Corporate and General Aviation:The focus of this platform is the establishment of critical baseline data and development of a strategy totarget corporate and general aviation growth at FNL. The outcome will provide not only strategic data and planning but a strengthening of theairport’s presence in the region from a business partnership standpoint.2.Commercial Aviation:The focus of this platform is refinement of critical market data and the development of appropriate business initiativesto pursue the enhancement of commercial service options for the greaterthan 600,000 residents of theFNL Northern Colorado catchmentarea. It will also focus on the development of air service reciprocity by attracting passengers from the Nevada and Arizona markets toNorthern Colorado.3.Wingless Flight:FNL is leading a pioneering effort to expand options for travelers in Northern Colorado to allow ticketing, check-in, andsecurity screening at a regional location for service out of DEN.This effort provides a variety of potential wins including reducedenvironmental impacts, travelerconvenience, and reduced capitalinvestment potential for DEN. The “wingless flight” model mayprovidesubstantial transferability to other airports throughout the nation providing bothtravelers and airlines tremendous opportunities for marketgrowth and reduced environmental impacts.Small Community Air Service Development Program: Docket DOT-OST-2011-0119Page|5Fort Collins – Loveland Municipal AirportCorporate and General AviationPlatform Focus:The focus of this platform is the establishment of critical baseline data and development of a strategy to target corporate andgeneral aviation growth at FNL. The outcome will provide not onlystrategic data and planning but a strengthening of the airport’s presence in theregion from a business partnership standpoint.1.Develop a Strategic Assessment of Market Potential- This task provides the groundwork for any aviation developmentpresentations and will be presented to airport staff upon completion with a final written report following the presentation.a.Deliverables:Create a coalition of public/private partnersAn in-depth SWOT analysis of the corporate market in target areaNeed analysis from an air service development perspective for potential runway extension & control towerTarget strategic plan for growth and investment in the areas of finance, operations, customer service & marketing2.Identify Market and Support Operationsfor Corporate and General Aviation– Initiatives will include, but are not limited to,establishment of a corporate and general aviation air servicegoals & objectives for the community, financial and market sharesupport of new services growth and an understanding of the economic development value to the community of the Airport. Thiswill include development of proposal related to appropriate, market driven incentive considerations for corporate and generalaviation.a.Deliverables:Conduct in-depth competitive analysis of FNL’s current rates & chargesDevelop incentive plan to targetcorporate aviation companiesTotal Timeline:15 months from approval of grantTotal Cost:$117,500.00 grant$10,000.00 FNL in-kind fundingSmall Community Air Service Development Program: Docket DOT-OST-2011-0119Page|6Fort Collins – Loveland Municipal AirportCommercial AviationPlatform Focus:The focus of this platform is refinement of critical market data and the development of appropriate business initiatives to pursuethe enhancement of commercial service options for the greater than 600,000 residents of the FNL NorthernColorado catchment area.1.Growth of non-leisure commercial traffic, i.e. business travel- Establishment of a strategic communications/marketing strategytargeted to build corporate buy-in by the major employers in the service area.a.Deliverables:Update existing catchment area research and identify target business markets for attraction of business travel options to FNLIdentify cities to attract potential traffic thatis currently utilizing CYS (example DCA,ORD, DFW, SAN, ATL, LAX , MCO)Continue discussions with Allegiant Air for future service to identified citiesSeek additional carriers for future service to identified citiesIdentify facility improvementsneeded for increased trafficDevelop cost model, including funding options, for facility improvements related to air carrier service2.Identify in-bound leisure traffic toLoveland and define marketing strategies for those target markets. This will providethe groundwork for an on-going communications strategy targeted to communicating the value and need for corporate/community buy-in and support for the air service development efforts.a.Deliverables:Identify the target audience and engage local travelagencies as partners to market the airport.Utilize local and regional economic development offices to market FNLCreate marketing tools for campaigning other low cost carriersDevelop partnerships with existing regional marketing efforts, including but notlimited to the Fort Collins Visitors andConventions Bureau, City of Loveland Marketing Commission, Larimer County Ranch, and regional Chambers of CommerceTotal Timeline:18 months from approval of grantTotal Cost:$115,000.00 grant$10,000.00 FNL in-kind fundingSmall Community Air Service Development Program: Docket DOT-OST-2011-0119Page|7Fort Collins – Loveland Municipal AirportWingless FlightPlatform Focus:FNL is leading a pioneering effort to expand options for travelers in Northern Colorado to allow ticketing, check-in, and securityscreening at a regional location for service out of DEN. This effort provides a variety of potential wins including reduced environmental impacts,traveler convenience, and reduced capital investment potentialfor DEN. The “wingless flight” model may provide substantial transferability to otherairports throughout the nation providing both travelers and airlines tremendous opportunities for market growth and reduced environmental impacts.Explanation:Under the Wingless Flight program passengers who have booked witha partner airline would depart and return to FNL as theirpoint of origination. Passenger ticket, check-in, and proceed through TSA security at FNL, entering the TSA sterile area for boarding. Passengers boardsecured motor coaches to proceed to DEN as in-bound “flight.” Passengers then disembark at DEN in the terminal area as if arriving via aircraft. Allbaggage having been previously secured enters the system as do the passengers.1.Support Development with Critical Partnersa.Deliverables:Create a coalition of critical partnersincluding DEN, TSA and airline partnersDefine responsibility for security –Complete TSA security approvalComplete operational plan and workbook for all partners, including on airfield operations at DENCreate/define RFP for transportation providersDevelop and refine pricing structure for all service componentsDevelop marketing plan for service and develop funding mechanisms for service launch and maintenanceTotal Timeline:17 months from approval of grantTotal Cost:$106,500.00 grant$10,000.00 FNL in-kind fundingSmall Community Air Service Development Program: Docket DOT-OST-2011-0119Page|8Fort Collins – Loveland Municipal AirportGrant funding will be used in whole or in part to fund the above strategies using consultantsand/or professional services forproject management.FNL strongly believes that if funding is provided additional funding to support the project, through local and regional business partnerships, willenhance the funding package and further leverage the grant funds provided.The Airport is willing to accept all or partial funding for its initiatives. If partial funding occurs, scope modification discussions will take place prior finalgrant funding.Small Community Air Service DevelopmentProgram: Docket DOT-OST-2011-0119Page|9Fort Collins – Loveland Municipal AirportSynopsis of Current SystemFNL:620,000people within 30 mile radiusX‐FNLTotal Bookings within the service areaMore than 620,000 people livewithin a 30 mile radius of theairport. The catchment areaextending beyond northeasternColorado in to Wyoming is hometo well over one million people.Residents of the area are highlyeducated and have a medianhousehold income of over$75,000.00.Small Community Air Service Development Program: Docket DOT-OST-2011-0119Page|10Fort Collins – Loveland Municipal AirportCommercial Air Service OverviewThe communities of Fort Collins, Loveland,Greeley, Cheyenne, Longmont, Northglenn, Thornton, Westminster, Sterling, Arvada andOgallalacombined generate 64,093 bookings or 39% ofthe researched service areatotal; giving FNL the greatestimmediate potential to pursue new commercialair service.Boulder generates 100,668 bookings or 60.0% ofthe researched service area bookings.Cheyenne (CYS) currently captures a significant portion of bookings from the northern FNL service area, zip codes; 82005 (17%),82001 (13%) and92009 (12%).In identifying potential markets to draw from whose airport of origin is Cheyenne (CYS), top markets are: DCA, ORD, DFW, SAN, ATL, LAX andMCO.The immediate markets that provide the greatest opportunities for success are LAX andSAN via service from FNL’s current airline, Allegiant.97.1% of all bookings in the analyzed FNL service area’s Airport of Origin is Denver.FNL generates 3,951 annual corporate or general aviation operations or 26% of the corporateand general aviation operations atthe 5 competingairports in the FNL region.Overall, research indicates a definite connection that aviation has on the local economy, from a global economic impact perspective.Small Community Air Service Development Program: Docket DOT-OST-2011-0119Page|11Fort Collins – Loveland Municipal AirportFNL Monthly Capacity TrendReflects Allegiant Airlines Capacity@ FNL, source: Innovata Schedules01,0002,0003,0004,0005,0006,000 Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10

Monthly Departing SeatsYear EndedSmall Community Air Service Development Program: Docket DOT-OST-2011-0119Page|12Fort Collins – Loveland Municipal AirportFNL Annual Capacity TrendsReflects Allegiant Airlines Capacity @ FNL, source: OAG Schedules05,00010,00015,00020,00025,00030,00035,00040,00045,00050,000 Aug-04 Oct-04 Dec-04 Feb-05 Apr-05 Jun-05 Aug-05 Oct-05 Dec-05 Feb-06 Apr-06 Jun-06 Aug-06 Oct-06 Dec-06 Feb-07 Apr-07 Jun-07 Aug-07 Oct-07 Dec-07 Feb-08 Apr-08 Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10

Annual Departing SeatsYear EndedSmall Community Air Service Development Program: Docket DOT-OST-2011-0119Page|13Fort Collins – Loveland Municipal AirportFNL Allegiant EnplanementsReflects Allegiant Airlines @ FNL, Source: D.O.T. Report T-10005,00010,00015,00020,00025,00030,00035,00040,000 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10Small Community Air Service DevelopmentProgram: Docket DOT-OST-2011-0119Page|14Fort Collins – Loveland Municipal AirportTop FNL O&D Markets: 2009,source: D.O.T. 10% Coupon SampleFort Collins – Loveland Municipal Airport currently has anaverage of 81.8 passengers each way to Las Vegas, payingan average fare of $58.00 each way.Passengers Daily Each WayLaughlinRevenue Daily Each WaySmall Community Air Service DevelopmentProgram: Docket DOT-OST-2011-0119Page|15Fort Collins – Loveland Municipal AirportFNL O&D TrendsFNL Initiated TrafficGoal: Continue to grow number of in-bound travelers to FNL by increased service options

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Mainly by reducing the needto drive to DIA. Less drive means greater safety factors, savings on time andexpenses and less environmental impact on the region due to fewer cars onInterstate 25, supporting the state-wideGo GreenInitiativeSmall Community Air Service Development Program: Docket DOT-OST-2011-0119Page|20Fort Collins – Loveland Municipal AirportTop Destinations Details from Defined FNL Zip CodesAnnual DepartingPassengers YE APR09 Average Fare YE APR09Annual DepartingRevenue YE APR09DestinationTotalCOSCYSDIALARCOSCYSDIALARCOSCYSDIALARLGA571685956175$ 178$ 288$ 218$ 321$ 15,161$ 2,594$ 1,225,145$1,603LAX5613521355417$ 197$ 303$ 143$ 651$ 10,264$ 3,934$ 793,684$4,557SFO5599521055307$ 204$ 299$ 163$ 241$ 10,606$ 2,986$ 903,293$1,686PHX505911354487715$ 142$ 203$ 110$ 193$ 16,033$ 10,951$ 535,631$2,895ORD492210240476218$ 183$ 234$ 168$ 241$ 18,695$ 9,360$ 800,088$4,338SAN47914129471011$ 137$ 226$ 133$ 197$ 5,626$ 6,560$ 625,137$2,166LAS46205630452212$ 107$ 197$ 111$ 202$ 6,009$ 5,906$ 500,312$2,424DFW430622135403515$ 134$ 234$ 139$ 189$ 29,558$ 8,196$ 562,882$2,831MCO426216116407213$ 146$ 244$ 187$ 309$ 23,513$ 3,910$ 761,578$4,022DCA42186568407015$ 212$ 294$ 205$ 382$ 13,762$ 20,023$ 834,674$5,737ATL38543626377517$ 233$ 237$ 203$ 223$ 8,393$ 6,172$ 766,285$3,796BOS34799615335117$ 154$ 337$ 261$ 249$ 14,825$ 5,055$ 874,114$4,238SEA32775014319815$ 167$ 215$ 147$ 220$ 8,342$ 3,014$ 469,572$3,303SNA3125251930756$ 190$ 304$ 147$ 182$ 4,746$ 5,777$ 450,608$1,092IAD3061371030095$ 269$ 380$ 256$ 362$ 9,941$ 3,803$ 770,510$1,811MSP284910310272610$ 156$ 285$ 164$ 367$ 16,031$ 2,845$ 448,000$3,673ThecommunitiesofFortCollins,Loveland,Greeley,Cheyenne,Longmont,Northglenn,Thornton,Westminster,Sterling,ArvadaandOgallalacombinedgenerate64,093bookingsor39%oftheresearchedserviceareatotal.Small Community Air Service Development Program: Docket DOT-OST-2011-0119Page|21Fort Collins – Loveland Municipal AirportCorporate & General Air Service OverviewDestination Analysis – Corporate & General AviationIn an effort to further define the economic and Global reach directly related to aviation, a destination analysis of corporate& general aviationoperations was conducted on the following airports within the FNL service area: FortCollins/Loveland (FNL), Cheyenne (CYS), Front Range (FTG),Greeley/Weld County (GXY), Longmont (LMO), and Laramie (LAR)The time period analyzed was from 06/01/08 to 05/31/09. Flightsanalyzed were IFR flights only.The top 200 destinations generated 12,278 operations duringthe analyzedtime period.The overall destinations flown during thisperiod was 1,129 with at least one trip.The total number of trips (operations) during the period was 15,450The top 200 destinationsaccounted for 79.4% ofthe total operations.FNL accounted for 3,951 of the total operations or 26%It should be noted that Sabre was not able to ascertain the number of total passengers on each operation.FlightExploreronly tracks operationsDetails by Airport of Origin from Defined Zip Codes(Highlights note international operations)DestinationAirport NameCYSFNLFTGGXYLARLMOTOTALSCPR Casper 25453 10 21 439 8785APA Arapahoe County 224252 46 116 56 52746GCC Gillette, Wyoming 32390 27 7 145 3595BJCJeffco 144107 22 66 49 20408JACJackson Hole 11947 8 4 44 10232CYS Cheyenne 2646 10 4 106 18210ICT Wichita 7766 18 17 16 14208SLC Salt Lake City 13528 14 6 17 2202Small Community Air Service Development Program: Docket DOT-OST-2011-0119Page|22Fort Collins – Loveland Municipal AirportCOS Colorado Springs 2367 33 28 11 14176LAR Laramie, Wy 10416 8 10 37175ASE Aspen 1561 62 15 6 11170PUB Pueblo 1656 54 21 6 11164HDN Hayden 7133 14 6 2162RAP Rapid City 2148 45 19 7 8148GXY Greely/ Weld County 2028 48 36 2 8142OMA Omaha 3446 9 21 7 5122GJT Grand Junction 1745 17 14 7 13113COD Cody, Wy 5821 4 7 19 2111DEN Denver 1933 2 4 48 2108LNK Lincoln, Ne 2246 12 11 9 8108FTG Front Range 146 36 36 8 4104SDL Sundsvall Airport 2743 14 7 3 195EGE Eagle County 1026 32 11 8 390BOI Boise, Idaho 3618 6 17 10 289AAOAnaco, Venezuela 486 16 6 783BIL Billings, Mt 2710 11 9 19 581GLD Goodland , KS 18 27 2 1 4180PWA Wiley Post, OK City 2618 15 19 280BFF Scottsbluff, Ne 3014 17 5 9 378LAS Las Vegas, Nevada 1332 11 7 8 374SBS Steamboat Springs 429 2 9 7 574RIL Garfield County 526 21 14 369SNY Sidney, Ne 1515 15 18 3 369MKC Downtown Kansas City 837 1 15 1 567AMA Amarillo, Tx 718 15 14 1 964TUL Tulsa 1518 20 3 5 364HNDTokyo Haneda International 913 24 7 558ADS Addison, Tx 1529 5 4 356DAL Dallas Love 521 5 20 4 156Small Community Air Service Development Program: Docket DOT-OST-2011-0119Page|23Fort Collins – Loveland Municipal AirportSAF Santa Fe, New Mexico 1017 4 6 7 1256HOU Houston Hobby 2311 6 11 455BZN Bozeman, Mt 1114 5 3 18 354OGD Ogden, Utah 2013 5 9 5 254SLN Salina, Ks 129 19 7 3 454LIT Little Rock, AK 238 16 4 253DRO Durango 815 19 7 352GRI Grand Island, Ne 614 5 18 6 352LBL Liberal, Ks 217 7 9 2 1552PNAPamplona, Spain 295 4 10 351SUS Spirit of St. Louis 823 13 3 3 151DSM Des Moines, IA 1122 2 7 3 449GRB Austin Straubel Field 527 1749GCK Garden City, Ks 78 17 13 1 248FSD Sioux Falls, Ia 1013 2 7 1 1447OJCJohnson County, KS 914 15 4 547DIJDijon, France 341 4 6 146SJC San Jose, Ca 1120 4 4 645Source: SABRE Flight Explorer 6/01/08 – 5/31/09Small Community Air Service Development Program: Docket DOT-OST-2011-0119Page|24Fort Collins – Loveland Municipal AirportConclusionsFNL’s proposal will result in: new and increased passenger demand for the FNL Airport,increased jobs, infrastructure development and new airservice, resulting in millions of dollars in economic impact for the FortCollins - Loveland region.Through an aggressive public/private marketing initiative, FNL should be able to garner more of the domestic and connecting international travel thatis being generated out of its primary catchment/service areafurther increasing the economic impact to the region.In the area of potential new service (routes), FNL has identified several potentialmarkets that will require an aggressive marketing and promotionalefforts. The leading candidates are Southern California, andWestern Washington.But airlines require low risk opportunities in these economicallyuncertain times, hence the need for financial, community andmarketing support forairlines to deter startup and even ongoing operating costs. This will be the use ofproposed SCASD funds.Small Community Air Service Development Program: Docket DOT-OST-2011-0119Page|25Fort Collins – Loveland Municipal AirportAcknowledgementsThe Fort Collins Loveland Airport and the cities of Fort Collins and Loveland are grateful for the opportunity to apply for this grant. It is our beliefthat this money is critical to the future of our airport. Webelieve the opportunities to serve the public are substantial given the growth specific to ourregional market (evidence of that commitment is the substantial match weare willing to commit today). This “seed money” couldmake possibilitiesrealities. Thank you for your consideration. Please contact our airport director with any questions about our operation.