APPLICATION UNDER

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT-OST-2014-0133 

SUMMARY INFORMATION1

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: 

Name of Signatory Party for Legal Sponsor:

DUNS Number:

EIN/Tax ID:

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

1.____________________________________________________ 

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. 2.

3. 4.

 

1 Note that the Summary Information does not count against the 20-page limit of the SCASDP application.
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 (explain)

______________________________________________________________________________

______________________________________________________________________________ 

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

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

1. 2.

3. 4.

E. APPLICANT INFORMATION: (CHECK ALL THAT APPLY) 

Not a Consortium Interstate Consortium Intrastate Consortium

Community currently receives subsidized Essential Air Service

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

Service Development Program Grant

If previous recipient: Provide year of grant(s):_______________________________; and, 

the text of the grant agreement section(s) setting forth the scope of the grant project:

_________________________________________________________________________ 

_________________________________________________________________________ 

_________________________________________________________________________ 

_________________________________________________________________________ 

_________________________________________________________________________ 

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

PUBLIC PRIVATE

1. 1.

2. 2.

3. 3.

4. 4.

5. 5.
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 Services2

Other (explain below)

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 

 

2 “Professional Services” involve a community contracting with a firm to produce a product such as a marketing 

plan, study, air carrier proposal, etc.
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

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)

In-Kind contribution

5a Airport In-Kind contribution**

5b Other In-Kind contribution**

5 TOTAL IN-KIND CONTRIBUTION 

(5a + 5b) 

6 TOTAL PROJECT COST (4+5)

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.
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)

______________________________________________________________________________

______________________________________________________________________________ 

APPLICATION CHECKLIST

INCLUDED? ITEM

For Immediate Action

Determine Eligibility

New Grants.gov users must register with www.grants.gov.

Existing Grants.gov users must verify existing www.grants.gov account has not expired 

and the Authorized Organization Representative (AOR) is current.

For Submission by 5:00 PM EDT on July 31, 2014

Communities with active SCASDP grants: notify DOT/X50 of intent to terminate 

existing grant in order to be eligible for selection in FY2014 

Complete Application for Federal Domestic Assistance (SF424) via www.grants.gov

Summary Information schedule complete and used as cover sheet (see Appendix B)

Application of up to 20 one-sided pages (excluding any letters from the 

community or an air carrier showing support for the application), to include:

• A description of the community’s air service needs or deficiencies.

• A strategic plan for meeting those needs under the Small Community Program.

• A detailed description of the funding necessary for implementation of the 

community's project. 

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

for which the community received SCASDP funds (if applicable). 

• Designation of a legal sponsor responsible for administering the program.

• A motion for confidential treatment (if applicable) – see Appendix D below.
Application Under the Small Community Air Service 

Development Program

Docket DOT-OST-2014-0113

July 30, 2014

Gulfport-Biloxi International Airport

14035-L Airport Rd

Gulfport, MS 39503

Tel: 228-863-5951

Fax: 228-863-5953

Gulfport-Biloxi Regional Airport Authority

DUNS – 088924246

TAX ID - 64-0602544

Congressional District Code – MS 04
Table of Contents

SECTION 1 Air Service Needs 

SECTION 2 Strategic Plan

SECTION 3 Project Funding Plan

SECTION 4 Previous SCASDG Comparison

SECTION 5 Public – Private Partnership

SECTION 6 Summary
1

1 – AIR SERVICE NEEDS

The past nine years have presented numerous economic challenges for the MS Gulf Coast. 

First, we experienced the worst natural disaster in American history Hurricane Katrina, 

followed by record fuel prices and most recently, the largest man-made disaster in our nation’s 

history the Deepwater Horizon Oil Spill that was compounded by the economic meltdown of 

the Great Recession. The resilience of the MS Gulf Coast has been put to the ultimate test. 

Air service levels from the Gulfport-Biloxi International Airport (GPT) have suffered as a result

of these challenges. The noted declines in air service will continue to negatively affect the 

ability of the local economy to fully recover. 

Our tourism based economy has suffered a decline due to the loss of low cost air service in 

our market. The $1.7 billion dollar MS Gulf Coast tourism industry makes up 18 percent of all 

employment on the Mississippi Gulf Coast. It is not just important to the local economy; it 

represents the largest tourism economy in all of Mississippi. Nonstop low fare air service 

crucial in sustaining this vital tourism sector.

The loss of AirTran Airways low cost service in March 2011 marked the beginning of a 

precipitous decline of nearly 18% in passenger enplanements at GPT from 2010 through 2013. 

Enplanements through June of 2014 are off an additional 9.8%. 

Due to recent airline mergers and acquisitions, the scheduled air service offerings from GPT 

have declined considerably. However, an exciting and realistic opportunity presents itself to 

reverse the decline in air service at GPT. Sun Country Airlines will operate from GPT to PIE, 5 

times a week beginning in August 2014. This service is a 1-to-1 replacement for service

recently lost when Vision Airlines, operating on behalf of the Beau Rivage Casino, ceased 

operations in June 2014.

The entry of Sun Country into the GPT market provides a unique and innovative opportunity

to enhance the air service offerings at GPT. Our proposal is to begin 3x a week service from 

GPT to Minneapolis/St. Paul, Minnesota (MSP). This service will both increase the low fare 

offerings at GPT and enhance the economic opportunities on the Mississippi Gulf Coast by 

providing direct, non-stop service from Minneapolis/St. Paul to the Coast. Minnesota has more 

golfers per capita than any other state in the country and the Mississippi Gulf Coast has many 

of the finest golf courses to be found anywhere in the country designed by the likes of: Tom 

Fazio, Jack Nicklaus, Davis Love and others. This service may also become the lynchpin of a 

potential package of service that the carrier could offer from GPT. If this service is successful 

Sun Country may consider additional opportunities to connect GPT to other key markets.

The MS Gulf Coast Community and Gulfport-Biloxi Regional Airport Authority believe that 

funds awarded through the SCASDP will provide the support needed to attract and retain

critical air service to target underserved markets. We believe that our proposal meets the 

requirements of the Small Community Air Service Development Program. The funds 

requested will address a major air service deficiency in the MS Gulf Coast Region.
2

The Gulfport-Biloxi Regional Airport Authority is truly grateful for this opportunity and we thank 

you for considering our application. 

Location and Population

The Gulfport-Biloxi International 

Airport (GPT) is the only commercial 

service airport on the MS Gulf Coast. 

GPT is centrally located in Harrison 

County, the commercial, industrial, 

and entertainment focal point of the 

area. Within 30 miles of GPT there 

are over 279,000 people with an 

Average Household Income (AHI) of 

$49,615. Within 60 miles, there are 

857,000 people with an AHI of 

$50,787.

Current Air Service

GPT 2014 ROUTE MAP

GPT is currently served by 

American Airlines, Delta Air Lines, 

United Airlines and US Airways. As 

stated above, Sun Country Airlines 

will begin service in August 2014 to 

PIE under contract to the Beau 

Rivage. Once Sun Country service 

begins, GPT will have nonstop 

service to 4 hubs and 5 flights per 

week to St. Petersburg-Clearwater, 

FL (PIE). 
3

Air Service Deficiencies

Over the past 6 years, the national trend for many small hub airports has been one of 

continuous decline. There are numerous obstacles, most of which are outside the airports’

direct control. The need for additional support at GPT is premised on obvious significant 

declines in air service levels. A major component of the MS Gulf Coast market is leisure 

inbound customers. The ability to capture this traffic is hinged on the availability of nonstop 

low cost air service options. 

GPT has suffered significant declines in air service options since 2008. Nonstop destinations

fell from 10 in 2008 to only 5 today. As a result, total operations per week are down -51% and 

seats available per week are down -48% in Q1 2014 compared to Q3 2008. 

 

GPT AVERAGE GROSS FARE COMPARISON

As a result of declining competition levels and the loss of AirTran Airways service, in 2011

GPT average fares are significantly higher than the national average and remain at near 

record levels. DOT reports indicate average O&D one way fare increased to an all-time high of 

$266 in Q1 2012. 

Source: U.S. DOT, Origin-Destination Passenger Survey, via DIIO.
4

GPT O&D PASSENGER HISTORY

GPT O&D passenger counts have followed a steady path of decline since the peak in Q2 

2010. DOT reports indicate at peak Q2 2010 GPT served 91,275 passengers. Q1 2014 DOT 

data indicates a steep decline down to 53,105 passengers. The loss of low cost air service 

from AirTran is the primary cause for this decline. 

 

GPT 2013 LEAKAGE - 

33% of passengers who would prefer to use 

GPT make the trek to MSY instead.

Only 1% of the GPT Catchment uses MOB, 

which is a likely by-product of the higher fares at 

MOB compared to GPT.

If passengers in the GPT Catchment Area are 

choosing to forego GPT, they’re doing so mainly 

because of MSY’s lower fares and nonstop 

service options.

Source: U.S. DOT, Origin-Destination Passenger Survey, via DIIO.
5

Air Service Development Efforts – Past 6 Years

Over the past six years the Airport Authority has been proactive in its efforts to attract and 

retain air service. We have devised innovative approaches for supporting new and existing air 

service. Our air service development efforts include: airline incentive programs, aggressive 

marketing support initiatives, creation of public-private partnerships, air service development 

surveys and studies, composition of numerous business case proposals to key airline network 

planners.

We have employed consultants to provide support with conducting air service studies and also 

to compose data for business case presentations to targeted airlines. 

In 2006, immediately following Hurricane Katrina, we created and hosted an annual Economic 

Development Summit with a primary focus on air service development. The Summit has been 

a valuable tool in bringing both public and private entities together to initiate air service 

development efforts. We also meet to discuss existing and new service initiatives with airline 

network planners on a regular basis at either headquarter meetings or industry functions like 

Jumpstart, Network and Routes.

Airline Meeting History:

2009 2010 2011

Delta Air Lines Continental Airlines Spirit Airlines

US Airways Delta Air Lines Allegiant Air

American Airlines Spirit Airlines Frontier Airlines

AirTran Airways Vision Airlines US Airways

Allegiant Air Branson Air Express United Airlines

United Airlines Delta Airlines

2012 2013 2014

United Airlines Spirit Airlines Delta Airlines

Delta Airlines United Airlines United Airlines

American Airlines Delta Airlines Sun Country Airlines

US Airways American Airlines Attending Routes in Sept.

Spirit Airlines Sun Country Airlines

Southwest Airlines

In 2013 the Gulf Coast Regional Tourism Partnership, in coordination with the Gulfport-Biloxi 

Regional Airport Authority completed an Economic Impact Study. The study was authored 

by Ailevon Air Service Consulting with analytical support from Trillion Aviation.
6

SECTION 2 – STRATEGIC PLAN

A Unique Opportunity

As stated earlier in this proposal, Sun Country Airlines is operating under contract with the 

Beau Rivage to provide 5x per week service to PIE. In addition, Beau Rivage Resort & 

Casino, a MGM Resorts International property, currently flies passengers around twice per 

quarter from Minneapolis to Gulfport-Biloxi (GPT) on Sun Country Airlines. A transition from 

charters to scheduled service would provide a significant boost to the overall economy of an 

area that has seen a significant reduction in service in recent years. Beau Rivage supports 

this effort to transition to regularly scheduled service three days a week. Having lower air fares 

in the market will generate additional visitors and stimulate the local economy. Combining 

funding from the Small Community Air Service Development grant program with existing local 

support and incentives, this service would provide GPT the opportunity to open our market to 

new visitors traveling to the Mississippi Gulf Coast.

Goals

GPT has four goals with its Small Community Air Service Development Grant Proposal for 

service to Minneapolis/St. Paul (MSP).

 Attract more casino and golf tourism to the Mississippi Gulf Coast from MSP

 Lower fares and offer additional access to underserved markets 

 Reverse the decline in GPT’s O&D traffic

 Recapture traffic leaked to MSY

Action Plan

In today’s volatile economic environment, air carriers are extremely risk averse. Air carriers 

continue to ration capacity and opportunity for growth has become a competition between 

airports across the country. The addition of new air service in today’s environment requires a 

solid business case depicting substantial demand, it’s also backed by community support and 

in many cases a financial subsidy. The minimum revenue guarantee (MRG) has historically 

been one of the most effective tools in securing new air service.

With funds awarded through the Small Community Air Service Grant, GPT is confident that 

GPT – MSP service will be successful in the long run. 

Upon securing the air service through the use of a revenue guarantee, GPT will work with Sun 

Country as well as our public-private partners to devise an aggressive ad campaign to promote 

the new service in the MSP region. GPT will also create an aggressive ad campaign targeted 
7

at local customers in its air service influence area. The marketing / promotional campaign will 

launch a minimum of 90 days prior the service start date. 

GPT will assist in the preparation of an agreement with the Sun Country identifying the

revenue guarantee support allocation details. This will include:

 Definition of the revenue expectations for the route and what will constitute a fair 

revenue performance for the airline.

 The agreement will contain stipulations on scheduled air service capacity and 

frequency levels.

 It is intended that cost, revenue, and performance criteria will be monitored and 

reported on a monthly basis and that the final accounting of any revenue support will be 

made at the end of the first year of operation.

BUSINESS CASE FOR THE MISSISSIPPI GULF COAST BASED ON THE HARLINGEN (HRL) –

MINNEAPOLIS/ST. PAUL (MSP) PROXY

As discussed above, we believe we have the opportunity to leverage existing service with Sun 

Country into scheduled service to MSP. Harlingen, TX (HRL) is similar to the Mississippi Gulf 

Coast in many ways. We believe that the Sun Country experience in Harlingen, TX serves as 

an excellent proxy for how well service from GPT to MSP could perform. Sun Country’s 

experience at HRL along the Texas Gulf Coast suggests that GPT service would likely 

blossom into a similarly strong market.

Sun Country began service between Minneapolis/St. Paul and Harlingen, TX in November 

1999. The new service immediately resulted in strong demand to the Texas Gulf Coast, where 

there had previously been very few passengers. The MSP market grew steadily to more than 

100 daily passengers each way during the peak 1Q period.
8

The entry of Delta Airlines into the nonstop market in 2013 stimulated 1Q 2014 demand by an 

additional 35%, where the market now sits at 150 daily directional passengers: 

Presently, the base Gulfport – Minneapolis/St. Paul market is already larger in size than the 

off-peak Minneapolis/St. Paul – Harlingen market, suggesting that peak seasonal demand to 

Gulfport has the potential to be larger than Harlingen if Sun Country were to begin service:
9

During the previous four years of service, seasonal load factors to HRL have approached 90%. 

This is true even after Delta entered the market during 1Q14 and increased capacity by 124%:

Service to Gulfport from Minneapolis/St. Paul would not only benefit Gulfport, but also the 

other airports in the region. In fact, the Central Gulf Coast shows very strong demand to 

Minneapolis/St. Paul on an annual basis – not just on a seasonal basis. 
10

Thus, we believe that MSP-GPT could be more successful than HRL. Why? Current fares 

are quite high at over $200 each way, and with the introduction of service, fares will likely 

decline and create market stimulation to levels at or exceeding Harlingen:

The longevity of MSP-HRL, along with Delta’s entry into the market, indicates that similarly 

strong demand exists from MSP to the Mississippi Gulf Coast. However, the HRL market 

shows that for service to be successful, that service must be continuous and reliable. A 

SCASD grant would help ensure that Sun Country would be able to grow MSP-GPT into a 

strong, sustainable, profitable market.

In summary:

1. MSP-HRL is a successful market even with two-carrier competition.

2. MSP-GPT has a significant possibility of success given the existing size of the MSP-Central 

Gulf Coast Region, which already exceeds Harlingen’s off-peak demand.

3. The MSP-Central Gulf Coast Region is far less seasonal than MSP-HRL, making the 

feasibility of annual service more likely than in HRL. 

We believe that MSP-GPT service would at a minimum be as successful as HRL. More 

realistically, GPT has the opportunity to be more successful thanks to a stronger demand 

base. Once stimulated by service and lower fares, MSP-GPT is likely to support profitable, 

year-round service. 
11

Project Timeline

ACTIVITY 2014 to 2017

Negotiate Revenue Guarantee Agreement September 2014

Announce Service October 2014

Publish Schedule October 2014

Market New Route October 2014 – June 2015

Monitor Advance Bookings October 2014 – June 2015

Begin Service February 2015

Monitor Route Performance Indefinitely

Submit Grant Status Reports to DOT Q1 2015 – Q1 2017

GPT will work with the public-private partnership to secure additional funding for promotional / 

marketing support. We will also work closely with the Sun Country and evaluate their 

requested needs to continue and sustain the service. If needed, the creation of a travel bank 

or seat block commitment from stakeholders will be initiated. 

Promotion - Seat Purchase Campaign

With today’s transportation challenges image advertising is not enough to entice customers to 

use available air service. There must be an aggressive approach that demands attention and 

presents itself as a valuable cost savings.

Historically the MS Gulf Coast Regional Convention and Visitors Bureau and Mississippi 

Development Authority have deployed innovative promotional strategies targeted at enticing 

visitors to the MS Gulf Coast. These strategies are premised on counteracting the negative 

effects of the increasing cost of transportation associated with escalating fuel prices. 
12

HISTORICAL REBATE PROMOTION SUMMARY

Book two nights at a hotel property on the MS Gulf Coast and receive a promotional gas card 

($75) or a cash gift card ($100).

AIR SEAT REBATE PROMOTION

GPT proposes a similar strategy for the Minneapolis/St. Paul service: Book two nights at a 

hotel property on the MS Gulf Coast and receive one free round trip airfare valued at $250. 

We request that $100,000 from the grant funds be allocated to this promotion for the sole 

purpose of purchasing air seats directly from Sun Country. We will aggressively market this 

offer with public-private partnership advertisement funding. 

SECTION 3 – PROJECT FUNDING PLAN

Project Description

The Gulfport-Biloxi Regional Airport Authority is seeking a grant in the amount of $350,000 

from the Small Community Air Service Development Program to provide revenue and 

marketing support for the development of nonstop service to MSP.

The grant funds will be matched with $150,000 from public-private partnership, $50,000 in 

Airport funds, and $81,600 in Airport In-kind funds.

Deliverables GPT Contribution Community Investment Grant Funds

Minimum Revenue Guarantee $250,000

Advertisment Local Destination

Promotion - Seat Purchase Campaign $100,000

Ad Campaign $50,000 $150,000

In-Kind

Landing Fee Waiver $81,600

Total $131,600 $150,000 $350,000
13

Contacts

Clay Williams Jim Foster

Executive Director Assistant Executive Director

Gulfport-Biloxi International Airport Gulfport-Biloxi International Airport

14035-L Airport Road 14035-L Airport Road

Gulfport, MS 39503 Gulfport, MS 39503

Tel: 228-863-5951 Tel: 228-863-5951

Fax: 228-863-5953 Fax: 228-863-5953

Email: cwilliams@flygpt.com Email: jfoster@flygpt.com

Project Sponsor

The official sponsor of this project is the Gulfport-Biloxi Regional Airport Authority.

Critical Milestones - Reporting

The effectiveness of the grant proposal objectives will be gauged through closely monitoring 

existing air service levels and ultimately through improvements in passenger volume and 

service levels.

GPT will closely monitor:

 Advanced bookings – through direct airline reports

 Quarterly DOT traffic data – O&D reports

 Strengths and weaknesses of ad campaign 

 Monitor financial performance of the route

GPT proposes the success of the Small Community Air Service Development Grant Award be 

evaluated based on the following milestones.

 Secure at a minimum 3 day per week nonstop air service to Minneapolis/St. Paul

 Annual O&D passenger growth of at least 7% after the first year of project 

implementation.

The airport, as the sponsor of this grant application, will be responsible for overall 

administration of this program.

The Gulfport-Biloxi Regional Airport Authority will provide quarterly reports to U.S. DOT 

regarding the progress of the ACTION PLAN objectives as well as an accounting of funds 

used.
14

Community Assurances

Assurances that the grant money would be spent in accordance with the grant program 

stipulations and the proposal outline would be in the form of an independent annual audit, 

transaction recording standards, functional oversight of transactions by Airport Authority Staff, 

reporting to elected and appointed officials (not on the Authority staff), and a contractual 

obligation that designates proper use and expected outcomes of the marketing efforts.

Since the primary partners for the airport are municipalities, the reporting and audit 

requirements are stringent. An annual audit is required to be performed by an outside audit 

firm. The airport transactions are subject to all sampling, testing, and audit standards applied 

by that audit firm to ensure that the information fairly and materially states the financial 

condition of the entity. All transactions are recorded using Generally Accepted Accounting 

Principles (GAAP) as established by the Governmental Accounting Standards Board. 

Compliance testing is performed to ensure that grant funds (considered restricted) are being 

used as designated by the awarding entity.

The Finance Department has an Accountant specifically assigned to monitoring grants and 

reporting their status quarterly. The Executive Director is responsible for approving all 

transactions on a day-to-day basis and reviewing the expenditures and performance 

measurement results. Monthly financial reports are delivered to the elected officials (Airport 

Board) and the Airport Steering Committee (advisory committee for the operations of the 

airport). These reports are available for public review.

A contract for marketing services will be written to include performance standards. These 

standards are intended to ensure that the grant money (should we be granted the opportunity) 

would be spent in a manner consistent with the requirements of this program and our proposal.

The Airport Authority is very successful with monitoring grant programs, given the tools and 

processes in place as standard operating procedure.

SECTION 4 – PREVIOUS SCASDG COMPARISON

The Gulfport-Biloxi Regional Airport Authority was awarded a SCASDG in 2005. The 2005 

grant was amended from our original proposal due to changing needs of the airport and region 

as a direct result of Hurricane Katrina. Our 2014 grant proposal is substantially different in that 

it seeks funding for a revenue guarantee program for a specifically identified air carrier, Sun 

Country Airlines, to provide access to Minneapolis/St. Paul, Minnesota.

2005 SCASG SUMMARY 

• Grant funds awarded in the amount of $750,000

• $700,000 – Revenue Guarantee 
15

• $50,000 – Marketing / Promo / Market Assessment

• American Eagle began nonstop service from GPT – ORD on December 13, 2007. 

• The revenue guarantee funds were depleted on April 2008. Due to increased 

operational costs associated with a significant increase in fuel costs, American Eagle

discontinued the nonstop ORD service in November 2008. 

GRANT FUNDING COMPARISON

2005 SCASG AWARD 

 Recruit and build air service to CVG, or other hub that provides travelers convenient 

access to a broad range of destinations, thru use of a revenue guarantee, subsidy, or 

other financial incentive.

 Establish a marketing program to advertise/promote the new service.

Revenue Guarantee (ORD)- $700,000

Marketing / promotion / Study - $50,000

Federal Amount- $750,000

TOTAL $750,000

2014 SCASD PROPOSAL

 Commence 3x per week service to Minneapolis/St. Paul, Minnesota with Sun Country 

Airlines.

 Establish a marketing program to advertise/promote the new service.

Minimum Revenue Guarantee - $250,000 – Federal amount

Seat Purchase Promotion - $100,000 – Federal amount

Tourism Partner Marketing - $150,000

Airport Marketing - $50,000

Airport In-kind (LANDING FEE WAIVER) - $81,600

TOTAL $631,600
16

SECTION 5 – PUBLIC-PRIVATE PARTNERSHIP

The Gulfport-Biloxi International Airport and the Mississippi Gulf Coast area businesses 

through a public / private partnership are working together to support air service development 

initiatives.

• The public / private partnership includes the Gulf Coast Business Council, MS Gulf 

Coast Regional Convention and Visitor Bureau, The Gulf Coast Chamber of Commerce, 

and the recently created MS Gulf Coast Tourism Partnership.

• Together, their support of committing financial resources allows GPT to sustain existing 

air service and help attract new air service. 

• Funds allocated ($150,000) through the partnership will be used on supporting an 

aggressive advertisement campaign in the targeted Florida market.

• The MS Gulf Coast Regional Convention and Visitors Bureau is a consolidated tourism 

entity representing three coastal counties (Hancock, Harrison, Hancock). 

• MS Gulf Coast Regional Convention and Visitors Bureau employ the services of an 

advertisement firm to assist in creating strategic ad campaigns. GPT will assist and 

provide the performance monitoring reports to gauge the effectiveness of the campaign. 

GPT will offer assistance in creative, media selection, and ad placement.

• We will use the expertise of these tourism development entities to formulate the 

strategic destination campaign focused in the Minneapolis/St. Paul metropolitan area.

• We will ensure that the mechanism to monitor the effectiveness of the campaign is in 

place and we will work with the public-private partnership to amend the strategy as 

necessary.
17

SECTION 6 - SUMMARY

 Detailed DOT fare information was provided depicting GPT’s average fares have 

increased sharply and have surpassed all-time highs (peak $266 for Q1 2012). 

 The community will provide a portion of the cost of the activity from local sources other 

than airport revenue sources by utilizing the public-private partnerships that we have in 

place.

 The community has established a public-private partnership to facilitate air carrier 

service.

 The assistance will provide material benefits to a broad segment of the traveling public, 

including business, education institutions, and other enterprises.

 Assistance will be used in a timely manner. (see project timeline)

 Geographic Location of each applicant, including proximity to larger centers of air 

service and low fare service alternatives. GPT is the only commercial service airport 

serving six counties on the MS Gulf Coast. Our largest competitor is MSY located 90 

miles to the west. MSY has low fare service from numerous carriers.

 The proposed federal grant amount requested is 55% of the project total.

 The applicant did previous receive an award in 2005 and includes an explanation of 

how the 2012 request is different.

 The community has demonstrated commitment to and participation in the proposed 

grant project has been illustrated through the destination marketing and promotional 

support presented.

The Gulfport-Biloxi International Airport and its partner communities are grateful for the 

opportunity to apply for this grant. It is our belief that these funds are critical to the future of

our airport and region. We believe the opportunities to serve the public are substantial given 

the potential for growth specific to our regional market.

July 28, 2014

The Honorable Anthony Foxx

Secretary, U.S. Department of Transportation

1200 New Jersey Ave, SE

Washington, DC 20590

Dear Secretary Foxx:

I would like to express my support for Gulfport-Biloxi International Airport (GPT)’s application for a Small 

Community Air Service Development Program Grant. The $350,000 grant is a critical element to helping GPT 

restore lost air service. Leisure and business customers are crucial to the recovery and sustainability of the MS 

Gulf Coast economy which has been deeply impacted in past years by Hurricane Katrina, the Gulf of Mexico 

oil spill and the nationwide economic downturn. 

Due to the declining levels of overall airline competition and the loss of Gulfport-Biloxi’s only low-cost carrier 

in March of 2011, the Mississippi Gulf Coast tourism industry is missing much needed tourism revenue. As a 

result of the decline in air service, low cost fares are unavailable to the Mississippi Gulf Coast. Also, the 

Mississippi Gulf Coast region and business are hampered by a decline in nonstop flights and increasing air 

fares.

The Gulfport-Biloxi International Airport is aggressively pursuing new air service in an effort to kick start the 

local economy. The ultimate goal is to target carriers that can positively impact this tourist destination. The 

Small Community Air Service Development Grant is critical in finalizing an agreement with a targeted air 

carrier. It is my hope that you will give their application every possible consideration.

Sincerely,

GULF COAST BUSINESS COUNCIL

Jack Norris

President

11975 Seaway Road, Suite A120

Gulfport, MS 39503

P: 228-897-2020 | F : 228-896- 8384

www.msgcbc.org