PROPOSAL UNDER 

THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM 

DOCKET DOT- OST- 2010-0124 

GREATER NAPLES FLORIDA METROPOLITAN STATISTICAL AREA 

CITY OF NAPLES AIRPORT AUTHORITY 

DUNS 092230952 

CONGRESSIONAL DISTRICT – FL-014 

City of Naples Airport Authority 

Naples Municipal Airport 

160 Aviation Drive North 

Naples, Florida 34104 

Phone: (239) 643-0733 

Fax: (239) 643-4084 

Email: administration@flynaples.com
Introduction

The Naples Municipal Airport’s Air Service Development Program is centered on three key 

objectives: 

✈ To re-establish reliable scheduled air service to a major hub through an airport-airline 

business model 

✈ To create a self sustaining air service program within twelve months of inception 

✈ To develop a strong advertising and marketing campaign with the assistance from 

airport and local community resources 

 The Naples Airport Authority is requesting a grant of $280,000 to cover one-half of the 

purchase of common use airline equipment and one third of the marketing and advertising costs 

over a two year period. The Naples Airport Authority is requesting only a portion of the cost 

needed to secure our goals rather than the total cost. This ensures the commitment and initiative 

that the Naples Airport Authority and the community has to establish and sustain successful air 

service in our community. 

The Naples Municipal Airport is the only fully certificated Part 139 airport in Collier County, 

Florida, and is ready to support scheduled airline service to our community at its first 

opportunity. The Naples Airport Authority is a financially sound government agency focused on 

serving our community’s needs. This service is the number one goal of our Authority Board. 

The City of Naples Airport Authority respectfully requests the Secretary’s favorable approval of 

this Small Community Air Service Development Program Grant proposal. 

Synopsis of the Community’s Historical Service

The Naples Municipal Airport provided continuous scheduled air service from 1957 through 

2003, functioning as a non-hub airport with direct service to Miami, Orlando, Tampa and Key 

West. From FY 2000 through FY 2004, the amount of commercial passenger traffic declined by 

94% due to the loss of American Eagle in 2001 and the total loss of scheduled commercial 

service in FY 2003. During 2004, only seasonal service was available to Miami and Key West 

on nine passenger aircraft. 

From November 2004 through September 2007, Delta Connection provided scheduled air service 

with three flights per day to and from Atlanta with 40 passenger regional jets. Delta’s passenger 

load factors (number of passengers divided by the number of seats per flight) were over 70% 

which was high for new service and their revenue resulted in the $1 million community backed 

revenue guarantee not being used. However, despite the high load factors, Delta terminated 

service from Naples as of October 1, 2007 due to aircraft fleet utilization issues and capacity 

issues at Atlanta. 

Scheduled air service to Tampa was provided by Gulfstream (Continental Express) for a brief 

period in 2008, and scheduled air service to Key West was provided by Cape Air until April 

1 
2006 and resumed by Yellow Air Taxi from February 2007 through October 2008. Yellow Air 

Taxi added service to Ft. Lauderdale in early 2008, and stopped all service in October 2008, 

when they went out of business following several accidents. 

The availability of service drives the response of passengers at Naples, as the demand is everpresent. The market responded to a service high of seven airlines in 1995, generating 173,802 

passengers – more than the population of the Naples – Marco Metropolitan Statistical Area at 

that time! It is not the Naples community that has failed the airlines. The airlines have 

failed our community.

The following chart depicts the total passengers and number of airlines from 1990 through 2008: 

The following table depicts passenger enplanements for direct airline destinations from 1990 

through 2008: 

Destination 1990 1995 2000 2005 2006 2007 2008 

Miami 13,256 

22% 

41,928 

49% 

39,768 

67% 

Tampa 30,472 

50% 

19,768 

23% 

11,502 

19% 

1,680 

57% 

Orlando 17,585 

28% 

18,823 

22% 

2,876 

5% 

Key West 5,442 

6% 

5,600 

9% 

4,559 

15% 

1,554 

6% 

822 

4% 

1,247 

42% 

Atlanta 25,457 

85% 

25,004 

94% 

18,013 

96% 

19 

1% 

2 
The public’s response to the Delta service from Naples to Atlanta (2004 – 2007) proved that our 

community wants and expects scheduled air service at the Naples Municipal Airport. Our 

history also shows that the more direct connections to multiple hub airports increase the more 

rapidly our passenger traffic grows (1990 – 2000). 

Description of the community’s existing air service

As stated above, the Naples Municipal Airport lost all scheduled air service in October 2008. 

The Authority’s Executive Director and the Fly Naples Team have been working diligently on 

securing scheduled air service with an airline offering a credible business plan. One of the 

Executive Director’s goals, as set by the Board of Commissioners is “Work aggressively to 

regain schedule commercial air service.” 

As mentioned in the Introduction, the Naples Municipal Airport is a fully certificated Part 139 

commercial service airport. We have maintained our relationship with the Transportation 

Security Administration (TSA) and have been assured that once an airline has committed to 

scheduled commercial air service at Naples; the TSA will be ready to move their staff and 

equipment back into the Commercial Airline Terminal in a timely manner. The TSA currently 

maintains office space at the airport. 

The Commercial Airline Terminal is located in the South Quadrant of the Naples Municipal 

Airport and consists of 21,190 square feet with 5 gates and 540 auto parking spaces. There is 

one restaurant, four rental car companies, and only one aircraft charter company operating out 

the Terminal. 

The Authority understands that expenses incurred prior to the award of a grant are not 

reimbursable. 

Description of the community’s air service development efforts and the results of 

those efforts

With the loss of the airport’s major carrier in 2001, the Board of Commissioners appointed one 

of its members as the Air Service Liaison to provide formal Board presence in meetings with air 

carrier representatives. Further losses of air service during 2002 and 2003 prompted the call to 

the community and key business organizations to formally join the effort. In 2003, a partnership 

of public and private agencies, the Fly Naples Team, the first of its kind in the metro area, was 

established in support of air service development at the airport. 

Authority staff members, along with the Air Service Liaison, met with airline route planners. 

From 2001 through today, Authority staff members and the Air Service Liaison have had dozens 

of face-to face meetings with “legacy” carriers, as well as start-up carriers interested in new 

markets. The Fly Naples Team assisted with hosting visiting airline representatives by providing 

free accommodations, meals and other amenities and by meeting with the representatives and 

“selling” our community and our need for air service. 

 

3 
Since being formed, the Fly Naples Team launched a very successful effort to bring the first 

interstate regional jet service to Naples. This was accomplished because these organizations 

realized that by working together as a “Team” (through marketing and advertising) this goal 

could be accomplished. The Airline Incentive Program was expanded to include not only a 

waiver of all landing, common use and rental fees, but complete ground handling support 

services. The addition of ground handling services provides a significant cost savings for 

airlines. In order to support this incentive, the Authority hired staff, purchased equipment and 

provided airline specific training to all ramp services personnel. The estimated annual cost of 

this incentive was $400,000—a significant expenditure for a small airport. In June 2004, the 

Authority finalized a revenue analysis and revenue guarantee program which was offered to the 

first airline providing reasonable jet and/or turbo-prop service to a Southeastern hub. Delta 

Airlines agreed to enter the Naples market in 2004 in exchange for a two-year revenue guarantee. 

The success of the Delta service was a result of aggressive marketing of the new service during 

the launch period and continued marketing and promotion of the service to local residents, local 

business travelers, and travel/tourism promoters. Several events, both public and private, were 

held in Naples to celebrate and market the inception of Delta service to Atlanta. The Authority 

focused on local print and radio marketing and public speaking, the Convention and Visitors 

Bureau focused their portion of the marketing on locations where our visitors live, and Fly 

Naples Team members focused on personal marketing to the community. 

During the time Delta was operating, the Authority continued to market for additional 

commercial air service and was successful in attracting Yellow Air Taxi with service to Key 

West, a popular get-a-way destination that was previously served by Cape Air from Naples. The 

Authority continued to provide marketing support for Yellow Air Taxi, however, Yellow Air 

Taxi pulled out of Naples in October 2008, following several aircraft accidents and the carrier 

declaring insolvency protection under Chapter 7. 

The Authority and the Fly Naples Team continue to work to secure scheduled air service to a 

major hub in an effort to support the community’s desire for air service from Naples. Beginning 

in 2009 - 2010, we expect to serve over 106,000 passengers to and from our community. 

Description of the community’s air service needs or deficiencies

A 2006 passenger demand analysis prepared by Mead & Hunt reported that Naples is a rapidly 

growing catchment area with population estimated at approximately 340,000. “It is an affluent 

area capable of and willing to pay above average airfares. The Naples area is a popular leisure 

market destination for discriminating visitors from the Upper Midwest, Northeast, and MidAtlantic population centers who are seeking the less commercialized natural attractions of 

Florida. This combination of factors has created an estimated air travel true market potential of 

over 2.3 million origin and destination passengers.” 

The latest report by the U.S. Department of Commerce’s Bureau of Economic Analysis shows 

Naples-Marco Island ranked second in the country for personal income. The report shows a 1.7 

4 
percent increase from 2007 to 2008. This data represents the financial strength of our community 

that, in turn, will sustain strong commercial air service. 

A survey conducted by SEA Polling and Strategic Design in November 2007 of 400 City of 

Naples registered voters showed that Naples wants more airport, not less. More than 70% of 

Naples residents fly more than three times a year with more than 50% flying more than five 

times a year. Of those polled: 

✈ 63% said that it was important to offer passenger service out of Naples 

✈ 73% would use the airport more if a greater variety of flights were offered 

✈ 92% identified location and convenience of the airport as important when flying 

Based on the FY 2000 passenger levels, Naples Municipal Airport has the potential to serve over 

120,000 passengers from our local community. 

The Naples community would be best served with service to several hub airports such as, 

Atlanta, Charlotte, Miami, Orlando or Tampa. 

In order to best serve those hubs, the Naples Airport Authority has budgeted $4 million to 

increase the take off length of its primary runway to better serve and attract regional jet service at 

Naples. This project will enhance the performance and load factor for regional jet aircraft. In 

turn, this will bring a high percentage of profitability and sustainability to the airline. 

Strategic plan for meeting those needs under the Small Community Program

New route service is very risky for airlines, especially in view of the current economic 

conditions, and while a revenue guarantee does, in the airlines’ view, mitigate this risk, the 

Authority and the Fly Naples Team are not supportive of a revenue guarantee after our 

experience with Delta. We believe that by providing complete support services, including 

personnel, equipment and marketing, a significant amount of risk has been alleviated for the 

airline, and probably more so than with a revenue guarantee. 

As stated in the Introduction, the Naples Municipal Airport’s Air Service Development Program 

is centered on three key objectives (goals): 

✈ To re-establish reliable scheduled air service to a major hub through an airportairline business model 

✈ To create a self sustaining air service program within twelve months of inception 

✈ To develop a strong advertising and marketing campaign with the assistance from 

local community resources 

5 
 Our first goal is to re-establish reliable scheduled air service to a major hub through an 

airport-airline business model which includes: 

✈ Above wing services (counter and ticketing personnel) 

✈ Below wing services (ground handling personnel) 

✈ Common use passenger processing (boarding passes, bag processing, etc.) 

✈ Ground service equipment 

✈ Fee waivers (rent, landing fees, background checks) 

✈ Security requirements (local law enforcement) 

✈ Marketing and advertising support 

Above and Below Wing Services: The Authority has been providing below wing services to 

the air carriers and has found this to be an effective way of providing cost savings to the air 

carrier while utilizing Authority personnel effectively. We plan to increase this support by also 

providing above wing services with Authority personnel, thereby decreasing one of the highest 

operating costs for air carriers. 

Common Use Passenger Processing: The common-use standard, dating back to 1984, has not 

been updated in many years. Additionally, a proliferation of different providers and their 

respective platforms and/or implementation methodologies made support of airline applications 

and airport environments difficult. Our goal is to implement a common system platform that 

reduces the support costs and enables integration with other airport systems such as flight 

information display. Once implemented, it will provide the incentives such as a computerized 

passenger handling system that is adaptable to all airlines, more effective and efficient utilization 

of existing counter space and management of the total system by Authority personnel. 

The advantages of common use equipment and personnel are significant. The equipment 

purchased by the Authority would be used more frequently than if owned by one carrier, plus 

there would be a huge reduction in the initial capital outlay that an airline has to make in order to 

start up service. Airport staff is already cross trained to work in several areas, therefore 

increasing staff productivity. 

The Authority is in the process of issuing a Request for Qualifications and Statement of Interest 

for a company to design and build this system. We understand that any expenditure made 

before the award of the grant is not eligible for reimbursement. 

Ground Service Equipment: As stated above, the Authority has been providing below wing 

services to the air carriers and therefore has most of the equipment (tugs, baggage carts, and 

ground power units) on hand and ready to go. Depending on the aircraft used by the airline, we 

anticipate purchasing a loading bridge and an air-start unit. 

Fee Waivers: The Authority will continue to waive all rents, landing fees, and background 

check fees for the airline during the first twenty-four months of service. 

6 
Security Requirements: The Authority will continue to bear the costs of providing local law 

enforcement personnel required for air carrier operations. It is not clear at this time if the 

Authority will be able to receive any reimbursement on any portion of these costs through the 

TSA. 

Marketing and Advertising Support: Our marketing and advertising plan that was used to 

launch and support the previous Delta service was very successful. As with Delta, a variety of 

advertising and promotional efforts will be used: special events, print, display and radio 

advertising, public speaking, and personal efforts by the Fly Naples Team. Costs for marketing 

and advertising support will be provided by the Authority with the assistance of grant proceeds 

and the Greater Naples, Marco Island and Everglades Convention and Visitors Bureau. 

This Airline Incentive Program will make airline operational costs at the airport almost nonexistent, eliminating or reducing start up operational costs and significantly improving overall 

operational efficiencies. Having personnel and equipment readily available at no cost to the 

carrier makes the airport more marketable to airlines considering starting new service in our 

community. 

The type of air service and the timing of air service start-up are critical. To qualify under this 

program the airline must have a Part 121 or Part 135 (with scheduled service waiver) Operating 

Certificate, provide year-round service to a major hub, and provide connecting service from the 

major hub or have interline agreements with a carrier operating from the major hub. To be 

successful, the commercial air service would need to start no later than November or December 

in order to take advantage of our seasonality. A two to three month lead time before service 

commenced would be necessary to properly promote the availability of service both locally and 

in regions where our visitors reside. 

Our second goal is to create a self sustaining air service program within twelve months of 

inception. 

During the initial twelve month start up period, the flying public will become aware of the 

Naples service and begin using this service on a regular basis. This will be especially true as it 

relates to travelers booking their own flight through various internet web pages, such as, Expedia 

and Travelocity. They will know to check for flights originating or ending in Naples, instead of 

Ft. Myers, Tampa, Miami or Ft. Lauderdale, and therefore save anywhere from 1 to 3 hours of 

travel time to or from the airport. They will enjoy hassle-free security, and know that they will 

have smooth-connection boarding and baggage transfers at hub airports during their air travel 

experience. They will also be aware that while ticket prices from Naples are a bit higher, the free 

parking and convenience is well worth it. 

Also during the twelve month start up period, the airline will become assured that Naples service 

is viable and a money maker for them. We know from discussions with various airlines, that 

they would consider a per turn fee for the services offered by the Authority (full staffing and 

equipment support). 

7 
Our third goal is to develop a strong advertising and marketing campaign with assistance 

from local community resources. 

As stated above, our marketing and advertising plan that was used to launch and support the 

previous Delta service was very successful and will be used for this project. The target 

audiences for the new service will include community residents, community business travelers 

and travel/tourism promoters. The community residents plan is designed to reach the 

community along the Marco Island-Naples corridor. Travelers would find it a great convenience 

to use the commercial service at Naples rather than driving to the east coast of Florida or driving 

I-75 North to fly from Ft. Myers. Even residents that do not travel often have an interest in 

knowing that scheduled commercial service is provided within their community so they can 

inform their out-of-town family and friends when coming to visit. The community business 

travelers plan is designed to reach local businesses. Due to the frequency of travel, business 

travelers stand to benefit most from the new service. They value the time savings of flying out 

of the local airport, and appreciate the conveniences of free parking, hassle-free security and 

smooth-connection boarding and baggage transfers from the connecting hub airport. 

The travel/tourism promoters plan is designed to reach the flying public that use these 

services. Travel agents and other tourism promoters are happy to tout Naples Municipal Airport 

as a more convenient alternative for Naples area travelers. They also find the benefits of free 

parking, hassle-free security and smooth-connection boarding and baggage transfers at the hub 

airport beneficial for their clients. They are influential advocates for the airport if they are aware 

of the scheduled commercial service. As with Delta, a variety of advertising and promotional 

efforts will be used: special events, print, display and radio advertising, public speaking, and 

personal efforts by the Fly Naples Team. 

Description of any public-private partnership that will participate in the project

The Authority understands that in order to be successful in re-establishing scheduled air service 

and to ensure the sustainability of the service, the strong support and commitment of key 

business organizations is essential. In 2003, a partnership of public and private agencies formed 

the Fly Naples Team with one goal: to strongly support air service development at the Naples 

Municipal Airport for the benefit of the community. 

Members of the Fly Naples Team include, but are not limited to: 

✈ City of Naples Airport Authority 

✈ Greater Naples Chamber of Commerce 

✈ Economic Development Council of Collier County 

✈ Greater Naples, Marco Island and Everglades Convention and Visitors Bureau 

✈ Collier County Lodging Association 

✈ Friends of the Naples Municipal Airport 

✈ Private Citizens 

8 
The FLY NAPLES TEAM launched a very successful effort to bring the first interstate regional 

jet service to the Naples community in 2004. They worked with various tourism and trade 

groups as it was realized that air service to and from our community had significant economic 

impact on the local Naples economy. 

The FLY NAPLES TEAM members, a public-private partnership, will continue to participate in 

the project. The Team, under the general guidance and direction of the City of Naples Airport 

Authority’s Executive Director, will provide overall community outreach and support, as well as 

general guidance toward the project. 

Below is a summary of the role that each organization will play and specific responsibilities they 

have toward the implementation of the project: 

City of Naples Airport Authority will provide oversight, guidance and direction to the FLY 

NAPLES TEAM members. Its specific responsibilities in implementation of the project are: 

✈ Overall administration of the operational elements of the project will be provided by 

the Operations Manager-Commercial Terminal & Security. 

✈ Fund administration will be provided through the Finance Department under the 

direction of the Director of Finance. 

✈ Planning and Implementation will be provided by the Operations ManagerCommercial Terminal & Security. 

The City of Naples Airport Authority is the lead partner on the FLY NAPLES TEAM and it will 

have sole administration and oversight of all grant funding and coordination of all air service 

marketing/advertising activities. The Authority will continue to use a significant portion of its 

communication budget to support commercial airline awareness. The Fly Naples Team has 

hosted several visiting airline representatives over the last several years and will continue to do 

so. The Fly Naples Team will continue to work closely with the Authority to attract and retain 

an air carrier and assist in additional marketing and advertising strategies. 

Greater Naples Chamber of Commerce has stated, as one of its goals, to support business 

growth and business retention in the Naples area. The Chamber supports air service efforts via 

its direct mail publication, which is distributed to more than 2,000 chamber members and the 

lucrative business travel market they support. In addition, the Greater Naples Chamber has a 

state of the art, multi-million dollar visitors’ center that provides advertising and rack displays, as 

well as internet advertising. 

Economic Development Council of Collier County has specifically targeted 

aviation/transportation infrastructure as one of its key focuses for the Naples area. The EDC 

supports air service initiatives by assisting with marketing and demographic research. 

Greater Naples, Marco Island and Everglades Convention and Visitors Bureau will provide 

out-market advertising support to include cooperative promotional opportunities through its 

relationship with Visit Florida, the Official State Tourism agency. 

Collier County Lodging Association will assist with promotional venues and opportunities. 

9 
Friends of the Naples Municipal Airport serves as an important community goodwill 

ambassador for the airport and promotes the value of local air service via member involvement 

in numerous business and civic organizations. The Friends host tours and the community’s only 

Aviation Day/Airport Open House, which brings thousands of local residents (and potential air 

travelers) to the airport and the region. 

Private Involvement – In 2004, over fifty companies/organizations and individuals provided 

financial commitment in the form of a Revenue Guarantee to establish reliable air service. 

Detailed description of the funding necessary for implementation of the 

community’s project, including the federal and non-federal contributions

Airport Contributions (2 years) 

✈ Personnel (above and below wing) $1,612,000 

✈ Rent Abatement 275,000 

✈ Marketing and Advertising (66% match) 200,000

✈ Ground Support Equipment and Refurbishment 200,000 

✈ Landing Fee Abatement 150,000 

✈ Common Use Passenger Processing System (50% match) 180,000

✈ Common Use Airline Equipment Support (1 year) 100,000 

✈ Security Requirements 60,000 

✈ Additional Insurance, Legal Fees, Miscellaneous 60,000 

✈ Special Events 20,000 

 Airport Contributions Subtotal $2,857,000 

 

Fly Naples Team Support (2 years) 

✈ In-Kind Advertising $100,000 

 Fly Naples Team Support Subtotal $ 100,000 

 

Small Community Air Service Grant (2 years) 

✈ Common Use Passenger Processing System (50% match) $180,000

✈ Marketing and Advertising (33% match) 100,000 

Small Community Air Service Grant Subtotal $ 280,000 

Total Program Proposed Cost $3,237,000 

 

10 
11 

Explanation of how the community will ensure that its own funding contribution 

is spent in the manner proposed

The Authority will take the lead in monitoring the expenditures for this program. Authority staff 

has extensive knowledge in maintaining project budgets and controlling expenditures. The 

Authority’s financial commitment will be published in the Authority’s annual Operating and 

Capital Budget and reported in the Authority monthly financial reports to the Board of 

Commissioners. 

Description of how the community will monitor the progress of the grant project

The Authority will review actual enplanement and load factor data on a continuous basis and 

provide this information to the Board of Commissioners and the Fly Naples Team on a monthly 

basis. The Fly Naples Team will seek customer feedback on marketing efforts and may conduct 

surveys or focus groups to test advertising effectiveness. 

Critical milestones that must be met in order to succeed: 

✈ Load factors of 70% or greater needed during “season” (January – April) 

✈ Initial scheduled air service must commence no later than November to allow ample time 

for marketing and promoting the new service 

✈ A minimum of 3 – 5 flights per day with connecting service at hub airports 

The Authority will continually monitor these milestones and work with the airline 

representatives to meet these milestones. 

 

Description of how the community plans to continue with the project if it is not 

self sustaining after the grant award expires

At stated earlier, the Authority is committed to making scheduled air service successful and will 

continue to offer the fee waivers, and provide above-wing equipment and staff, ground handling 

equipment and staff, and marketing support for carriers providing year-round service to a major 

hub. 

 Designation of a legal sponsor responsible for administering the program

The City of Naples Airport Authority, operator of the Naples Municipal Airport, will serve as the 

legal sponsor of the grant. The City of Naples Airport Authority (the “Authority”) was created 

under Laws of Florida 69-1326, as amended, as an independent authority responsible for the 

operation of the airport located in Naples, Florida, or any other airport in Collier County, Florida, 

which the Authority may contract to operate. The Authority’s Air Service Development 

Program, outlined in this grant proposal, will be administered by the Executive Director.