PROPOSAL UNDER THE SMALL COMMUNITY

AIR SERVICE DEVELOPMENT PROGRAM

Docket Number OST-2013-0120

Prepared for:

U.S. Department of Transportation

Docket Operations and Media Management Division

Prepared by:

Applicant Community:

City of Wichita, Wichita Airport Authority

455 N. Main

Wichita, Kansas 67202

Legal Sponsor:

Wichita Airport Authority

2173 Air Cargo Road

Wichita, Kansas 67209

DUNS # 124970641

July 2013
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Wichita Metro Area Demographics

Wichita Metropolitan Statistical Area (MSA) encompasses Sedgwick, Butler, Harvey and 

Sumner counties, and is the largest metro area in Kansas with 2012 population of 

628,242 persons.

Wichita houses a variety of industries, providing products and services that are 

recognized world-wide. Thousands of talented, creative entrepreneurs also call Wichita 

home. There are approximately 15,000 business establishments in the Wichita metro 

area, 97% of which are small-to medium-sized firms with less than 100 employees.

Companies in Sedgwick County are responsible for more than 60 percent of the world's 

general aviation aircraft, but Wichita's diverse exports reach well beyond airplanes. 

Manufacturers here produce everything from motorcycles to computer storage devices, 

earning Sedgwick County companies the Kansas Exporter of the Year Award for the 

past two years.

Wichita is the regional economic hub of south-central Kansas and northern Oklahoma. It

provides financial, medical and business services to more than half a million people in 

the Wichita MSA alone. Manufacturing accounts for roughly 19% of Wichita metro area 

employment – over double the national percentage (10%.) 

According to a Milken Institute study, Wichita has the highest concentration of aircraft 

and aircraft parts manufacturing employment (skills) in the nation. Wichita area 

manufacturers also utilize these precision production skills to produce high value-added 

products such as industrial-commercial machinery, computer equipment, fabricated 

metal products, instrumentation and controls, photographic equipment, plastic and 

composite products, chemicals, petroleum refining equipment and electronic equipment.

Because of the diverse industry and high concentration of manufacturing in Kansas, 

affordable and convenient access to the air transportation system is vital to the 

businesses of Kansas.

Wichita Mid-Continent Airport

The Wichita Mid-Continent Airport is a small hub airport, as designated by the FAA, 

which carried 731,033 enplanements in 2012. Wichita ranks 98th in the U.S. in terms of 

domestic O&D passengers. 

Wichita Mid-Continent Airport is isolated from large hub airports. 
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Mileage & Drive Times to Competing Airports from Wichita:

Kansas City 217 Miles 3.3 Hours

Oklahoma City 173 Miles 2.7 Hours

Tulsa 187 Miles 2.9 Hours

Amarillo 417 Miles 6.4 Hours

Wichita Mid-Continent Airport is the largest airport in the State of Kansas. Its natural 

catchment area geographically covers roughly two-thirds of the state, a portion of 

northern Oklahoma and more than 2.8 million residents.

POPULATION IN PRIMARY CATCHMENT AREA IS 963,293; 

TOTAL CATCHMENT IS : 2,853,118

Primary

Secondary
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Air Service Needs/Deficiencies

Wichita has lost 19% of its capacity since 2008 and nonstop service to 3 cities: 

Memphis, St. Louis and Detroit. Enplanements are down 7% from 2008, which was a 

record year for ICT.

Although ICT is isolated from other airports, 32% of passengers in ICT’s catchment area 

leak to out-of-state airports, namely Kansas City and Oklahoma City. Inbound and 

outbound leakage amounts to 491 PDEW.

 MCI has over 4.5 times the number of daily nonstops

 With nearly 4.9 times as many O&D markets, MCI is more attractive

Atlanta is the second top destination from ICT and is served only by Delta Air Lines on a 

non-stop basis. AirTran Airways served the Atlanta market from May 2002 until June 1, 

2013 and provided competitive fares to Atlanta and a majority of eastern destinations. 

The acquisition of AirTran by Southwest helped to bring Southwest Airlines service to 

Wichita in June 2013. However, Southwest Airlines is not serving the Atlanta market. 

Fares to Atlanta have increased substantially:

 For example, a 14-day advance purchase fare in April on Delta was $225.80; 

 In July, the 14-day advance purchase fare on delta.com was $721.80, a 180% 

increase.

Denver is the third top destination from ICT and is served only by United Airlines on a 

nonstop basis. Frontier Airlines, operated by Republic Airways, served the Denver 

market from October 2007 until November 2012 with Embraer aircraft. Frontier 

provided competitive fares to Denver and a majority of western destinations. Frontier 

discontinued the service due to lack of aircraft availability, as Republic which owns 

Frontier had obligated the Embraer aircraft to other airlines. Also, Frontier, knowing 

700,000

720,000

740,000

760,000

780,000

800,000

820,000

2008 2009 2010 2011 2012

Enplanements

0

200000

400000

600000

800000

1000000

1200000

1400000

2008 2009 2010 2011 2012

Capacity 2008-2012
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that Southwest was going to enter the Wichita market, decided to place their aircraft in 

other markets. Fares to Denver have increased substantially:

 A 14-day advance purchase fare to Denver used to cost about $168 

(flyfrontier.com); 

 In July, the 14-day advance purchase fare on united.com was $654 (a 289% 

increase).

Phoenix is our fourth top destination and is not served on a daily basis by any airlines. 

Allegiant Air serves the Phoenix-Mesa airport on a by-weekly basis. There is sufficient 

demand for daily nonstop service to Phoenix. There were 71,560 O&D passengers to 

Phoenix in 2012.

Wichita Mid-Continent Airport is served by five airlines: Allegiant Air, American Airlines, 

Delta Air Lines, Southwest Airlines, and United Airlines. American, Delta and United 

have a history of charging high fares in our market. Although Allegiant Air is a low-fare 

carrier, their service is not daily, does not offer connections, and does not impact a 

majority of destinations. Southwest Airlines is needed to keep the competitive pressure 

on fares to a majority of destinations offered on all airlines.

Southwest began service in Wichita on June 2, 2013 to Dallas Love, Chicago Midway, 

and Las Vegas, bringing much needed capacity and competition to our market. United 

and American competes with Southwest on the Chicago route, and American competes 

with Southwest on the Dallas route. With rising fuel, labor, and other costs, airlines 

need to be profitable within one year after starting service in a new market, or the 

service will terminate.

In order for Kansas businesses, its economy, trade, commerce and tourism to compete 

globally, it is essential that Wichita Mid-Continent Airport offer quality, affordable air 

service that competes with alternate levels of air service within its region and with 

similar communities on the national level.

Any air service development efforts over the past 3 years and the results of those 

efforts (including marketing and promotional efforts)

Prior to 2002, average one-way airfares at Wichita Mid-Continent Airport were $219 -

the 10th highest in the nation. Whenever a low-fare airline had entered the Wichita 

market, the legacy carriers lowered their fares, added frequency, and/or increased 

aircraft size, in order to compete. Passengers were then split between the airlines, 

resulting in less revenue for the airlines yet costs remain high. The low-fare airline is 

unable to sustain the losses and leaves the market, causing fares to increase. 
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After several unsuccessful attempts to convince the airlines to lower fares, the business 

and community leaders throughout our catchment area launched a travel bank 

campaign called “Fair Fares” with the goal of attracting low-fare carrier(s) to Wichita 

Mid-Continent Airport that would lower fares to eastern and western destinations and to 

Chicago.

The Fair Fares campaign was successful in attracting AirTran Airways in May 2002 and 

Frontier in September 2003. Frontier’s operating carrier had operational issues and left 

the Wichita market in April of 2004 before returning in October 2007. The City of 

Wichita, later joined by Sedgwick County, provided the revenue guarantee funds for 

AirTran and Frontier.

Since Wichita was attracting passengers from two-thirds of the State of Kansas, and 

because ICT provides a significant economic impact for the State with tax revenue, job 

creation, and enhanced economic development opportunities, legislators from South 

Central Kansas lobbied for and were successful in adopting the Affordable Airfares for 

Kansas program in 2006. This was a five-year program that provided $5 million each 

year in revenue guarantees from the State for affordable airfares in Kansas. The City of 

Wichita and Sedgwick County provide matching funds. The funds were used as a 

revenue guarantee for AirTran and to a lesser degree, Frontier.

The results of having affordable airfares at Wichita Mid-Continent Airport show 

significant success:

 Average one-way fares are 28% less from 4th quarter 2000 to 4th quarter 2012.

 Passenger traffic to low-fare destinations is up 31% since 2000.

 Passenger traffic to destinations without the low-fare impact is down 4% since 2000.

 With consolidation in the airline industry and capacity reductions, our passenger 

traffic is still up 23% over 2000.

 In 2001, 44% of the passengers from the Wichita catchment area used other 

airports. In 2011, that leakage rate has been reduced to 32%.

The Kansas Department of Transportation’s economic impact study in 2009 revealed 

2,325 jobs are supported by the spending of visitors arriving on commercial airlines at 

Wichita Mid-Continent Airport. In addition, the study revealed that the annual payroll 

from commercial visitor spending amounted to $52,135,400.

The State of Kansas has voted to extend the Affordable Airfares program another year. 

These funds will be available to Southwest Airlines if it chooses to apply for them. 

Since this program is subject to legislative action each year, the funding is uncertain 

each year. It is also uncertain as to whether or not Southwest or any airline will want to 

participate in this type of program. Ideally, the airline will be supported by the region 
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without a revenue guarantee program, which is our goal in applying for the SCASD 

grant.

Strategic Plan for Meeting those Needs under the SCASDP 

The grant money would be used to promote Southwest in our region. Our plan is multifaceted.

 With the assistance of the Wichita Chamber, business and civic leaders will lead the 

effort to educate the business community of the Southwest Airlines business travel 

programs and garner support for Southwest. A variety of meetings, networking 

opportunities, and receptions would be conducted with business leaders and 

Southwest Airlines representatives and the Wichita Airport Authority. 

 We would partner with area Chambers and tourism departments to promote

Southwest to their members. 

 A portion of the airport’s advertising budget of $450,000 will be used to advertise 

Southwest throughout our catchment area.

 Wichita Mid-Continent Airport will be offering a loyalty program in September which 

rewards travelers for shopping, dining and parking at the airport by earning one mile 

or point on their frequent flyer program for every dollar spent. For companies whose 

employees register with Southwest, the airport would double the miles or points

earned.

 The Airport will offer parking incentives to companies who contract with Southwest 

Airlines for a temporary period.

We believe these efforts will position Southwest for success and lead to service 

enhancements, which ultimately will lead to competitive fares to more destinations.

Detailed description of the funding necessary for implementation of the proposed 

project (federal and non-federal contributions)

This grant request is for $500,000 for a one-year project. In-kind contributions from the 

Wichita Chamber of Commerce will involve sponsorships including EXPOsure, the 

area's premier networking event and tradeshow featuring 200 exhibitors, 1,500 

attendees, and numerous face-to-face opportunities to showcase Southwest Airlines to 

businesses. Other grassroots efforts will include monthly networking events, meetings 

with business leaders, and the annual meeting. Grant funds would be used for 

miscellaneous expenses and materials for grassroots efforts, sponsorships, and other 

Chamber functions.

Go Wichita, Wichita’s tourism board, will provide in-kind contributions by providing inhouse marketing support, graphic design, collateral development, social and electronic 

media, to partner with the airport’s promotions.

Grant funds would be used to reimburse the Airport for the enhanced loyalty program.
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Grant funds would be used to reimburse the airport for the revenue lost by providing 

parking incentives.

Grant funds would be used in the airport’s advertising programs.

The Affordable Airfares of Kansas program should also be taken into consideration as a 

statewide contribution, although this is not part of any matching funds.

An explanation of how the proposed project differs from any previous projects for 

which the community received SCASD funds.

Wichita Mid-Continent has never received a SCASD grant.

Designation of a legal sponsor responsible for administering the proposed 

project. (Must be a government entity).

The legal sponsor for administering this project under the Small Community Air Service 

Grant Program is the Wichita Airport Authority under Kansas Statutes Annotated K.S.A. 

3-166.

The Wichita Airport Authority, under the direction of the Air Service Development 

Manager, will have responsibility for development and management of this program on 

the local level. As the designated community sponsor of this public-private partnership, 

the Wichita Airport Authority will serve as a clearinghouse to submit and receive 

program funding from the department. For Federal funds allocated to this grant 

application, The Airport Authority of the City of Wichita, Kansas will adhere to the types 

of compliance requirements described in the U.S. Office of Management and Budget 

(OMB) Circular A-133 Compliance Supplement as it relates to Requirements Applicable 

to Major Federal Awards Programs.

The Airport Authority’s auditing firm will conduct audits on this grant program in 

accordance with auditing standards generally accepted in the United States of America; 

the standards applicable to financial audits contained in Government Auditing 

Standards, issued by the Comptroller General of the United States; and OMB Circular 

A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those 

standards and OMB Circular A-133 require the Authority’s auditing firm to perform an 

audit to obtain reasonable assurance about compliance requirements that could have a 

direct and material effect on the federal program(s).
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APPLICATION UNDER 

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT-OST-2013-0120

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: Wichita Airport 

Authority

DUNS Number: 124970641

EIN/Tax ID: 486000653

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

1.__City of Wichita___________________________________

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. Wichita Mid-Continent Airport ICT 2.

3. 4.
2

D. LIST THE 2-DIGIT CONGRESSIONAL DISTRICT CODE APPLICABLE TO THE SPONSORING 

ORGANIZATION, AND IF A CONSORTIUM, TO EACH PARTICIPATING COMMUNITY.

1. 04 2.

3. 4.

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. City of Wichita 1. Wichita Chamber of Commerce

2. Sedgwick County 2. Go Wichita Convention & Tourism

3. 3.

4. 4.

5. 5.

G. PROJECT PROPOSAL: (CHECK ALL THAT APPLY)

Marketing Upgrade Aircraft New Route

Travel Bank Service Restoration Subsidy

Surface Transportation Regional Service Revenue Guarantee

Launch New Carrier 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)
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I. PROJECT COST: DO NOT ENTER TEXT IN SHADED AREA

LINE DESCRIPTION SUB TOTAL TOTAL AMOUNT

1 Federal amount requested $500,000

2 State cash financial contribution

Local cash financial contribution

3a Airport cash funds

3b Non-airport cash funds

3 Total local cash funds (3a + 3b)

4 TOTAL CASH FUNDING (1+2+3) $500,000

In-Kind contribution

5a Airport In-Kind contribution**

5b Other In-Kind contribution** $30,000

5 TOTAL IN-KIND CONTRIBUTION 

(5a + 5b)

$30,000

6 TOTAL PROJECT COST (4+5) $530,000

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.

Other In-Kind: Chamber sponsorships, annual meeting, networking opportunities, business 

meetings: $15,000 in value

Go Wichita Convention & Tourism incentives to include in-house marketing support, graphics 

design, collateral, social and electronic media: $15,000 in value
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K. IS THIS APPLICATION SUBJECT TO REVIEW BY 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 APPLICANT DELINQUENT ON ANY FEDERAL DEBT? (IF “YES”, PROVIDE 

EXPLANATION)

No Yes (explain) 

______________________________________________________________________________

______________________________________________________________________________