Application Under the Small Community Air 

Service Development Program, Docket DOTOST-2012-0069 

by the 

Metropolitan Airport Authority of Peoria 

for the 

General Wayne A. DowningPeoria International Airport 

 

DOCKET DOT-OST-2012-0069 

Duns 049139736 

Illinois 18th Congressional District 

Prepared 

June, 2012 
PIA	SCASDP	Application	 Page	2	

TABLE OF CONTENTS 

Section 1 Executive Summary Page 3 

Section 2 PIA Background Page 4 

Section 3 Immediate Air Service Issues Page 11 

Section 4 Proposed SCASD Program For PIA Page 14 

Section 5 Summary Information Sheet Appendix A 

 
PIA	SCASDP	Application	 Page	3	

EXECUTIVE SUMMARY 

Peoria and its Central Illinois service area have been adversely affected by changes in the 

airline industry over the past few years. Analysis of origin and destination data for the 

Central Illinois and Peoria market areas reveals significant leakage to other airports from 

the Peoria market area. 

As the largest city in Central Illinois, Peoria is a critical and vital air transportation link 

for Central Illinois. More than 1.6 million people live within the service area of the 

General Wayne A. Downing Peoria International Airport. The service area of the Airport 

encompasses a radius of 75 miles. Peoria's core MSA population is over 379,000 within 

25 miles of the General Wayne A. Downing Peoria International Airport. 

The Metropolitan Airport Authority of Peoria (MAAP), in cooperation with the Peoria 

Area and Pekin, IL Chambers of Commerce, are beginning efforts to extensively market 

the General Wayne A. Downing Peoria International Airport with two goals in mind: 

first to maintain the service levels currently enjoyed in the community, and second, to 

identify gaps in air service that need to be filled to fully serve the economic development 

and transportation needs of the service area. 

In order to meet these goals, MAAP and the two Chambers have embarked on a project 

to work with area businesses to more closely identify their existing travel patterns and 

future needs. A detailed air service study is needed to carry this effort beyond the 

memberships of the two Chambers and beyond the two communities directly involved. 

MAAP is requesting $350,000 to carry out this study, which will be matched by 

$100,000 of MAAP funds as well as an as-yet to be determined in-kind match of staff 

time of MAAP and the two chambers. 

 
PIA	SCASDP	Application	 Page	4	

GENERAL WAYNE A. DOWNING PEORIA INTERNATIONAL AIRPORT 

BACKGROUND 

The General Wayne A. Downing Peoria International Airport is a Non-Hub Airport 

which carried 513,573 total passengers in 2011 (258,425 enplaned passengers and 

255,148 deplaned passengers). The Peoria MSA is home to the world headquarters of 

Caterpillar, Maui Jim Sunglasses, RLI Insurance and many other important economic 

interests. Peoria’s economy is diversifying and includes gains in the medical, retail, 

finance, and other industries. 

MAAP embarked on a process to improve the airline terminal infrastructure in 2005. 

This process resulted in the construction of a new terminal building which opened in 

April, 2011. The old terminal is being partially demolished and converted into a 

temporary stand-alone Air Traffic Control Tower while we pursue funding for a new 

replacement tower. In addition, the Airport Authority is working aggressively on 

retaining and improving air service for the community. 

 PIA Current Schedule 

      Average       

Airline Destinations Frequencies Aircraft Seats

Allegiant Las Vegas, NV 4 per week MD‐80 150/166

Allegiant

Tampa‐St. Petersburg,

FL 3 per week MD‐80 150/166

Allegiant Phoenix‐Mesa, AZ 2 per week MD‐80 150/166

Allegiant

Punta Gorda‐Ft. Myers,

FL 2 per week MD‐80 150/166

American Chicago‐ORD, IL 4 daily

Embraer RJ

series 50/44

American Dallas‐Ft. Worth, TX 3 daily

Embraer RJ

series 50/44

Delta Atlanta, GA 3 daily CRJ‐200 50

Delta Detroit‐DTW, MI 4 daily CRJ‐200 50

Delta

Minneapolis‐St. Paul,

MN 1 daily CRJ‐200 50

United Chicago‐ORD, IL 4 daily CRJ‐200 50

United Denver, CO 2 daily CRJ‐200 50

For more than 75 years, Caterpillar Inc. has been building the world's infrastructure and, 

in partnership with its worldwide dealer network, is driving positive and sustainable 

change on every continent. Caterpillar is a technology leader and the world's leading 

manufacturer of construction and mining equipment, diesel and natural gas engines and 

industrial gas turbines. A majority of all Caterpillar sales are generated from international 

business. Caterpillar experienced a pull-back due to the recession at the end of 2008, 

which impacted travel until late in 2009. Cat’s travel returned to normal levels in 2010, 

and has increased again in 2011 and 2012. 
PIA	SCASDP	Application	 Page	5	

Despite Peoria's strong industrial and commerce base, Peoria has struggled for years to 

compete with neighboring regions to provide convenient and affordable access to the 

national air transportation system. In order for Peoria, its economy, trade, commerce and 

tourism to compete globally, it is essential that the General Wayne A. Downing Peoria 

International Airport offer air service that competes in terms of access, price, and 

reliability with other available alternatives within its region. Peoria's limited access to 

the national transportation system (specifically to the West, Northeast, and the nation’s 

capital) impacts all communities in its service area. 

0

100,000

200,000

300,000

400,000

500,000

600,000

PIA Total Passengers

0

100,000

200,000

300,000

400,000

500,000

600,000

200020012002200320042005200620072008200920102011

PIA Total Passengers
PIA	SCASDP	Application	 Page	6	

PIA Service Area 

The impact is a negative economic development impact and a higher cost of securing air 

travel due to a high degree of canceled and delayed flights via one of the Airport's key 

hubs at Chicago O'Hare. The General Wayne A. Downing Peoria International Airport is 

the most convenient gateway for businesses and travelers traveling to and from the 

Central Illinois region. This limited access weighs heavily in the proliferation of the 

current negative impact Peoria's air service has on economic development. It is the goal 

of the Metropolitan Airport Authority of Peoria to utilize the Small Community Air 

Service Grant program in conjunction with its community partners to secure additional 

air service. 
PIA	SCASDP	Application	 Page	7	

PIA Current Route Map 

The proposal seeks to improve air service to and from the Peoria and Central Illinois 

region by funding a market analysis study to determine what the roadblocks are to 

obtaining new service. In addition, this study will identify the hubs and flights that 

would stand the best chance of supporting service over the long term, and which would 

not harm the existing service currently enjoyed by the community. One key item in this 

study is to quantify the leakage from the Peoria market and identify to which airports this 

leakage is occurring. Leaked passengers pose the greatest potential for sustaining new 

service. 

 
PIA	SCASDP	Application	 Page	8	

CURRENT CHALLENGES TO ACCESSING THE NATIONAL AIR TRANSPORTATION 

SYSTEM 

Most of Peoria's service is to the immediate North and South and accesses relatively 

congested hubs. 

GREATER PEORIA SERVICE AREA POPULATION 

Communities within Peoria's Service Area MSA Population 

Peoria 377,000 

Champaign -Urbana 217,320 

Springfield 204,468 

Bloomington-Normal 156,879 

Decatur 111,175 

Galesburg 72,737 

Pontiac 39,208 

Canton 37,658 

Lincoln 30,717 

PEORIA'S CURRENT AIR SERVICE 

 PIA retains the greatest share of passengers located in and immediately 

surrounding the city of Peoria (referred to as Primary Catchment). 

 These passengers are considered the core traffic for PIA. This is an important area 

as it makes up 79% of the total catchment's booking activity. 

 In 2008, leakage from PIA was estimated to be 51.5% to competing airports (21% 

to Chicago Airports), mainly to ORD. 

 Currently, PIA generates about 678 passengers daily each way. A total of 623 

(91.9%) of these are domestic passengers, and 55 (8.1%) are international, a 

significantly larger proportion than other small-hub or non-hub airports in the 

state. 

 The number that is not known is the proportion of boardings from the Peoria 

region that are taking place at other airports, including those nearby as well as 

directly to major hubs. 

 Legacy carriers such as AA, DL, and UA are likely to consider continuing to 

reduce system capacity. This could affect PIA. 

 As recently as 2008, PIA enjoyed service from five airline brands. Due to airline 

mergers, PIA's current service consists of four carriers providing flights to nine 

destinations (two carriers serve ORD), with no one carrier dominating the market. 

 At the same time, existing PIA carriers are operating under severe financial 

distress and have been reducing capacity system-wide. 

 About 83% of PIA's capacity is provided by Regional Jet (RJ) aircraft (50 seats or 

smaller). 
PIA	SCASDP	Application	 Page	9	

 PIA's year to date load factor is 76%. 

 From 2003 to 2005, PIA's enplanements grew by 39%, due mainly to the 

introduction of G4's low fare service to LAS. In addition to its primary service 

area, the Airport draws passengers from as far as 100 miles away (population of 

this geographic range is 2.5 million) 

 From the summer of 2005 monthly available seats grew until a peak of 38,336 in 

December of 2007. Monthly seats were reduced by the airlines in September of 

2008, and they fluctuated up and down, averaging 28,281 until February of 2012. 

With the returned vigor of the Peoria area economy, monthly available seats has 

increased to 35,610. This is 25% above the 2008-2012 average, but still about 

7.1% below the number of seats available in December of 2007. 

 Even with the reduced seats available, Peoria has experienced the second best 

March ever attained in March 2012, and the second best April ever attained in 

2012 (best April in 33 years. 

 

Peoria's current service pattern is heavily weighted to the North and South. Of the 9 nonstop destinations, none are to the Northeastern United States. 

This deficiency is forcing travelers to add additional drive time; it also increases their 

safety risk factors and increases their cost of accessing the national air transportation 

system from having to use airports outside their service area (mainly Chicago O'Hare and 

Midway Airports). 

PIA DAILY DEPARTING SEATS 

Total capacity at PIA has decreased2To/o since peaking in 1999, atwhich time TW 

provided over 500 seats per day to STL and Access Air provided over 420 seats per day 

from 

the market. 

CURRENT MARKET COMMENTARY 

 Under the existing dynamics, PIA is disadvantaged 

 PIA continues to be in more of a "defensive" position 

 PIA has done well in comparison with neighboring airports in maintaining seat 

availability. PIA has also maintained its LCC, while neighboring airports have 

lost theirs due to corporate acquisitions. 

 Existing PIA carriers are operating under severe financial distress (with one in the 

midst of bankruptcy proceedings. The current financial climate for the airlines 

increases the risk of Peoria losing seats or possibly even entire hub cities. 

 Congestion and flight delays at ORD continue to plague Peoria, which makes 

flying from PIA appear unreliable. Access to alternative hubs is imperative to 

maintain our reliability factor as compared to drivable hubs. 

 Service to these hubs could harm existing service. Planning is critical to target 
PIA	SCASDP	Application	 Page	10	

the appropriate new service that would be additive, not duplicative. 

 Exception: Allegiant Airlines service to LAS, PIE, and AZA continues to perform 

very well and is among Allegiant's best routes. This service has performed well 

enough for G4 to add service from Peoria to PGD. 

 
PIA	SCASDP	Application	 Page	11	

IMMEDIATE AIR SERVICE ISSUES FOR 

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM 

PIA exists to serve the business and leisure travelers of Central Illinois. An increasingly 

diversified economy demands as much point-to-point and hub and spoke service as can 

be profitable. 

 Caterpillar has expanded plants in Texas, has acquired a company and facilities 

in Milwaukee, and has an increasingly international focus on its operations and 

profits. 

 Many business travelers are forced into double-connecting flights or driving 

significant distances to conduct their business. 

 Access to European and Latin American hubs has become much more important 

in recent years. 

 Price competition still exists after the departure of Air Tran from regional 

markets. Several carriers are following in the wake of LCC departures to pick up 

market segments abandoned through corporate mergers and acquisitions. 

 Allegiant Airlines is expected to grow sharply over the next few years -including 

new Florida, Caribbean and/or Mexico service. 

 The removal of large jets and the overall reduction in capacity in the Peoria 

market, coupled with the air traffic delays at Chicago O'Hare has caused 

significant changes in travel patterns for Peoria and Central Illinois travelers. 

 Capacity in the region's airports has declined since 2001. These emerging trends 

in the Central Illinois region suggest increased downward pressure on the ability 

for businesses to conveniently and competitively access key markets throughout 

the United States. 

AIR SERVICE DEVELOPMENT STRATEGIC PLAN 

The Metropolitan Airport Authority of Peoria has had an air service development plan in 

place for the past six years. The plan works to identify community air service deficiencies 

and needs. It works to provide all airlines the support required to ensure short and long 

term success in Peoria and Central Illinois. 

Our current air service plan provides an effective amount of marketing support and 

airport operational cost abatements for the first year of new service. This plan also 

provides incentives for existing airlines to grow their service portfolio at PIA. 

Our strategic plan for meeting our community's needs through the Small Community Air 

Service Development Program involves a community outreach effort between the 

Metropolitan Airport Authority of Peoria, the local business community, and local 

Chambers of Commerce. 

In developing this strategic plan, the Airport Authority's management staff, in 
PIA	SCASDP	Application	 Page	12	

conjunction with its community partners, routinely conducts a series of meetings with 

key shareholders in the Peoria business community to solicit input and travel data to 

identify gaps in air service availability. The deficiency in this process is a lack of data for 

who is flying from somewhere else. 

Available Resources: 

 The experiences, knowledge and airline network of the Director of Airports and 

Air Service Development Manager 

 The resources of the local area governments, chambers and businesses. 

 The support and commitment of Airport Authority Board members. 

 Resources of the Federal Government (i.e. SCASD Program designed to help 

smaller communities to enhance their air service). 

DESCRIPTION OF PEORIA'S AIR SERVICE DEVELOPMENT EFFORTS 

Recent Air Service Successes: 

 2012 – April, Allegiant announces new service from PIA to Punta Gorda/Fort 

Myers, FL to begin June 28. 

 2012 – April, Delta resumes direct service to Atlanta, which ended in July 2009 

due to the merger with Northwest (load factors were in the high 70% range). 

 2011 – MAAP initiates feasibility study for constructing a US Customs Federal 

Inspection Service facility. 

 2011 – April, new terminal opens and goes into full operation. 

 2008 – Construction begins on new passenger airline terminal. 

 2007 -Secured new non-stop service to Detroit via Northwest Airlines and new 

nonstop service to Denver via United. 

 2006 -Secured additional service from American Eagle to DFW & additional 

service and increase in aircraft type from United to ORD, both efforts increased 

the available seat capacity for residents and businesses in Peoria and Central, 

Illinois. 

 2006 -Secured an additional daily non-stop flight to LAS from Allegiant Airlines. 

 2006 -Secured new low-fare non-stop service to PIE (a new destination for PIA) 

from Allegiant Airlines. This service regained access to Central Florida for the 

residents and businesses of Peoria and Central Illinois. 

 2004 -Allegiant Airlines initiates non-stop low-fare jet service to Las Vegas with 

5 weekly departures. Daily passengers grew from 10 passengers per day in the 4'n 

quarter of 2003 (PDEW) to 101 passengers per day (PDEW) in the 2no quarter of 

2005. The fare in this market decreased 31%. 

 2004 -American initiates non-stop service to Dallas-Fort Worth, doubling the 
PIA	SCASDP	Application	 Page	13	

local PIA-DFW passenger demand. 

 2001 -Delta Air Lines initiates non-stop service to Atlanta. Local passenger 

demand increased 145%. 

PLAN FOR CONTINUED SUCCESS 

Communications with local corporations, travel agents, and business leaders have 

indicated the need for additional hub connections. Additional connections to the south, 

northeast, and the nation’s capital have been suggested as desirable. A market analysis is 

needed to determine the feasibility of these requests, as well to forecast as the effect these 

actions would have on existing levels of service. 

 
PIA	SCASDP	Application	 Page	14	

PROPOSED SCASD PROGRAM FOR PIA 

FINANCIAL SUPPORT 

The goal of the Metropolítan Airport Authority of Peoria and its public/private partners is 

to secure air service from one of the potential airlines (existing or new) that will provide 

regional jet service flights to a new destination hub. This project is proposed to be an 

analysis of market data, trends, and other methods to determine which targets would be 

best approached, and what additional travel new hub service would generate. The 

Airport Authority is requesting $350,000 in funding from the SCASD program and will 

provide $100,000 in matching funds to carry out this program. 

PROPOSED FUNDING REQUEST 

The Airport Authority's Marketing and Development Department, under the direction of 

the Airport Authority's Director of Airports will have responsibility for development and 

management of this program. The Airport Authority and its public/private partners 

request a $350,000 grant under the terms of The Small Community Air Service 

Development Program to attempt to secure competitive air service to a new hub 

destination within the United States. The $350,000 of requested federal money is being 

matched by a contribution of $100,000 or 28% of the federal funds requested. 

We are asking the Department to help Peoria and our business travel partners identify and 

quantify our next marketing and air service development efforts and begin the process of 

consolidating the gains we have made in the last two years. 

 

TOTAL PROGRAM FUNDING BREAKDOWN 

Public Private Federal Contribution Contribution Contribution 

Consultant fees $300,000 

Data Costs 50,000 

Marketing Costs 100,000 

TOTAL PROGRAM FUNDING $450,000 
PIA	SCASDP	Application	 Page	15	

APPENDIX A 

Summary Information Sheet 
SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT-OST-2012-0069

SUMMARY INFORMATION

All applicants must submit this information with their proposal, along with a completed form 

SF424 on www.grants.gov.

A. APPLICANT INFORMATION: (CHECK ALL THAT APPLY)

Not a Consortium Interstate Consortium Intrastate Consortium

Community now receives EAS subsidy

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

 

If previous recipient: Date of grant: Expiration date of grant:

Federal Funds Requested: 

Carrier(s) Service Obtained: 

Destination(s) Served: 

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

PUBLIC PRIVATE

1. 1.

2. 2.

3. 3.

4. 4.

5. 5.

C. 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)
D. EXISTING LANDING AIDS AT LOCAL AIRPORT:

Full ILS Outer/Middle Marker Published Instrument Approach

Localizer Other (specify)

E. 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)

F. 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) for each.
F. 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.

G. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT? (IF “YES”, PROVIDE 

EXPLANATION)

No Yes (explain) 

______________________________________________________________________________

______________________________________________________________________________