June 11, 2012 

Sponsor: Springfield Airport Authority – Springfield, Illinois 

 Mark Hanna, Executive Director 

 Congressional Code: IL - 18 

 Dun & Bradstreet Number: 782263383 

 Tax Identification Number (EIN): 37-6002051 

Application for Federal Support to recruit New Air Service via: 

A Low Cost Ground Handling program 

Advertising/Marketing Program 

To Support New Non-Stop Service from Springfield, Illinois 

SPRINGFIELD AIRPORT AUTHORITY, SPRINGFIELD, ILLINOIS 

Application Under the Small Community Air Service Development Program, 

Docket DOT-OST-2012-0069 

Docket DOT-OS T-2012-0069 
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • June 2012 2

TABLE OF CONTENTS 

Section Page 

Introductory Letter of Support 3 

Summary Information – Appendix C 5 

Introduction 8 

Springfield: Location, Population and Economy 9 

Current and Historical Springfield Air Service 12 

 Current Air Service 12 

 Air Service History 12 

 Alternative Airports and Traffic Leakage 15 

Springfield Air Service Deficiencies and Needs 16 

A Strategic Plan to Restore Springfield Air Service 20 

 Proposed New Service 20 

 Springfield’s Ground Handling and Marketing Program 21 

 Grant Funding Plan 22 

 Implementation Timeline 22 

 Examples of Springfield Leisure Markets 23 

Air Service Recruitment Efforts and Marketing Support 24 

Previous Grant Awards 26 

Public/Private Partnership and Legal Sponsor 27 

Conclusion 28 

This document is 28 pages. The cover is one page, the letter of support is two pages and the 

Summary of Information is three pages, leaving an application length of 22 pages. 

 
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • June 2012 3

INTRODUCTORY LETTER OF SUPPORT 
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • June 2012 4
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • June 2012 5

SUMMARY INFORMATION – APPENDIX C 

Small Community Air Service Development Program 

Docket DOT-OST-2012-0069 

A. Applicant Information 

 Not a Consortium Community now receives EAS subsidy 

 Interstate Consortium Intrastate Consortium 

 Community previously received a Small Community Grant 

 If previous recipient, Date of First Grant: 9/5/2006 

 Expiration date of Grant: 9/5/2009 but closed 6/13/2008 

 Federal Funds Requested: $390,000 

 Carrier(s) Service Obtained: United Express Washington IAD 

 Destination(s) Served: Target was Washington D.C.____________

 Date of 2nd Grant: 9/19/2008 

 Expiration of 2nd Grant: 12/31/2011 extended to 1/31/2012 

 2nd Grant closed 4/17/2012 

 Federal Funds Requested: $750,000 

 Carrier (s) Service Obtained: American Eagle to Dallas DFW 

 Destination Served: Dallas___________________________________

 

B. Public/Private Partnership

Public:

1. Springfield Airport Authority 

2. City of Springfield, Illinois 

3. Sangamon County 

4. Springfield Convention and Visitors Bureau 

Private: 

1. Greater Springfield Chamber of Commerce 

2. Q5 Quantum Growth Partnership, Economic Development Group 
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • June 2012 6

C. Project Proposal 

 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 (Specify) 

D. Existing Landing Aids at Airport

 Full ILS Outer/Middle Marker Published Instrument Approach 

 Localizer Other:

E. Project Cost 

1. Federal amount requested: $ 250,000 

2. State cash financial contribution: $ 0

Local cash financial contribution: 

 3a. Airport cash funds: $ 50,000 

 3b. Non-Airport cash funds: $ 50,000 

3. Total local cash funds: $ 100,000 

4. TOTAL CASH FUNDING: $ 350,000 

In-Kind Contribution: 

a. Airport In-Kind contribution: $ 35,000 

Utilization of Airport owned marketing assets ($35,000) 

First year of airport terminal and landing fee waivers per route ($ unknown) 

b. Other In-Kind contribution: $ 35,000 

In-kind finacial co-op advertising and awareness with private media 

5. TOTAL IN-KIND CONTRIBUTION: $ 70,000 

6. TOTAL PROJECT COST: $ 420,000 
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • June 2012 7

F. In-Kind Contributions

For funds in lines 4a (airport in-kind contribution) and 4b (other in-kind contribution), 

please describe the source(s) of fund(s) for each. 

4a Utilization of Airport owned marketing assets ($35,000) 

4a Wavier of first year Airport terminal and landing fees for each new route ($ unknown)

4b In-kind finacial co-op advertising and awareness with private media 

G. Is Application Subject to Review by State Under Executive Order 12372 Process?

 This application was made available to the State on ______. 

 Program is subject to review, but has not been selected by the State. 

 Program is not covered. 

H. Is Applicant Delinquent on any Federal Debt? 

 No 

 
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • June 2012 8

INTRODUCTIONINTRODUCTION 

The Springfield, Illinois, Abraham Lincoln Capital Airport has experienced firsthand the harsh 

realities of the airline industry. Springfield’s 2011 air service capacity was down 46% from 2004 

totals. And that was before the devastating loss of Direct Air public charter service in March of 

2012. Including Direct Air, six different airline brands have served Springfield since 2003, offering 

flights on nine different routes. But circumstances well beyond Springfield’s control have forced 

the elimination of many local air services, leaving Springfield today with only United Express 

service to ORD and American Eagle service to DFW. 

This has happened despite the Springfield market giving each of its services strong support. This 

has happened despite the Springfield Airport Authority having a 

laser beam focus on supporting its air service, with the lowest 

airport costs in Central Illinois and an aggressive and nimble 

advertising program that promotes local air service locally and 

regionally. This has happened despite the Airport’s tireless efforts to recruit new air service, 

including pioneering new service to Myrtle Beach, Punta Gorda and to Lakeland. In each case 

the new service was the first from Central Illinois to that airport and its leisure attractions. 

Direct Air’s shutdown in March has left Springfield with only six network carrier regional jet 

departures per day to two hubs. In August of 2012 Springfield capacity will be down 14% from 

August of 2011, due to the loss of Direct Air. As already noted above, this is on top of 2011 

market capacity being down 46% from 2004 levels. Also, the shutdown of Direct Air comes just 

before this summer’s already announced withdrawal of AirTran service from nearby 

Bloomington. On a regional basis, Central Illinois low fare capacity in August of 2012 will be down 

39% from August of 2011, despite modest AirTran replacement services starting at Bloomington. 

To address this devastating loss of low fare capacity, both locally and regionally, the Springfield 

Airport submits this Grant proposal. Building on our proven ability to recruit and support air 

service we propose to use modest Grant funding of $250,000 (with a $100,000 local cash match 

and $70,000 in local in-kind contributions) to fund a first year no-cost ground handling and 

marketing program to support a new low cost air service at Springfield. The air service we recruit 

will replace the locally popular Direct Air service in form, if not exact destination, and provide 

low fare air travel options for residents of Springfield, the St. Louis metro area and all of Central 

Illinois including Decatur, Champaign, Bloomington and Peoria. 

“Springfield’s 2011 air 

service capacity was 

down 46% from 2004 
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • June 2012 9

SPRINGFIELD: LOCATION, POPULATION & ECONOMYINT

Location and Population – Springfield is located in central Illinois, about 100 miles from St. Louis 

and 200 miles from Chicago. It is the state capital and has the largest population of any city in 

Illinois outside the Chicago metro area. Springfield lies aside the main interstate (I-55) and 

passenger rail lines between Chicago and St. Louis and has always been a transportation center 

for the region. It is the regional health care and retail trade center for an area 40 miles in any 

direction and even further to the west. Interstate highway I-55 meets I-72 and state highways 29, 

54 and 125 at Springfield. 

The one hour drive radius for the Springfield Airport has a population of 417,451 and includes 

nearby Decatur. The two hour drive radius from the Airport has a population of 3,266,524 

because it encompasses much of the St. Louis area, as well as Bloomington, Champaign, and 

Peoria. It is this location, convenient to both St. Louis and the rest of Central Illinois, that makes 

Springfield an optimum location for low fare air service. The Airport is convenient to all major 

highways and 3.3 million people live within an easy and mostly freeway drive of two hours or less. 
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • June 2012 10

Springfield’s Economy – Springfield is blessed with a diverse and somewhat recession resistant 

economy anchored by the State government of Illinois, a large heath care and health 

education infrastructure and the Illinois 

National Guard headquarters facility. 

Altogether the State government and the 

various education, health care, military 

and social services functions in the metro 

area account for 44% of total area 

employment. 

Other key economic sectors include 

insurance and financial services, light 

manufacturing and telecommunications. 

The stable economy means population 

growth, the Springfield MSA population is 

up 4% between 2001 and 2010. 

The diversity of the economy and sizable portion that is government or health care related 

means Springfield handled the 2008 - 2009 recession relatively well. Unemployment only rose 

modestly during the recession and has started the downward arc related to recovery. It 

currently stands as the second lowest rate in the state of Illinois. 

SPRINGFIELD'S UNEMPLOYMENT RATE IS THE SECOND LOWEST IN ILLINOIS

SPI SPI

SPI SPI SPI

SPI SPI

SPI

SPI

0%

2%

4%

6%

8%

10%

12%

14%

2003 2004 2005 2006 2007 2008 2009 2010 2011

Annual Unemployment Rate

SPI BMI CMI DEC PIA Illinois

Employer Workers Sector

State of Illinois 18,300 Government

Memorial Health System 6,047 Health Care

St. Johns Hospital 3,004 Health Care

Springfield Clinic 2,075 Health Care

Illinois National Guard 1,819 Military

Southern Illinois Univeristy 1,587 Education

University of Illinois Springfield 1,166 Education

Blue Cross/Blue Shield 1,146 Health Care

Horace Mann Companies 1,050 Insurance

AT&T 852 Telecommunications

The Hope Institute 620 Education

American General Life 410 Financial Services

Express Personnel Services 401 Employment Services

Freeman United Mining 400 Mining

Lincoln Land Community College 400 Education

Levi, Ray and Shoup, Inc 400 Software

Bunn‐O‐Matic 300 Beverage Equipment

Honeywell Hobbs 200 Auto Parts

SPRINGFIELD MAJOR EMPLOYERS: 2011
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • June 2012 11

Springfield and the surrounding region are home to a dozen institutions of higher learning, all 

within 90 miles of Springfield. These colleges and universities have a total of nearly 114,000 full 

time students, supported by about 25,000 faculty, administration and support staff. 

Springfield is also a tourism destination in its own right. Eight major local tourism sites document or 

pay tribute to the life of Abraham Lincoln. In 2011 just over 2.1 million visitors were recorded at 

the eight sites listed below. This equates to 5,756 visitors per day divided over 365 days. 

Springfield’s economy is one of the strongest in Illinois. Transportation is important to most of the 

key sectors of this economy, the state government, health care and universities, the National 

Guard headquarters and inbound tourism. Unfortunately, and for a variety of reasons beyond 

Springfield’s control, its local air service has not kept pace with local and regional economic 

growth. 

Institution Undergrad Post Grad Faculty/Staff Total

University of Illinois 32,200 9,300 11,000 52,500

Illinois State 18,400 2,600 3,500 24,500

Eastern Illinois 10,000 1,700 2,000 13,700

Western Illinois 11,300 2,300 2,200 15,800

Lincoln Land CC 8,860 800 9,660

Bradley University 5,301 800 1,320 7,421

University of Illinois Springfield 3,200 2,000 1,200 6,400

Millikin University 1,950 450 1,400 3,800

Quincy University 1,169 200 1,369

Benedictine University Springfield 900 100 500 1,500

Illinois College 1,000 400 1,400

Southern Illinois Med School 610 400 1,010

Area Total 94,280 19,860 24,920 139,060

SPRINGFIELD AREA INSTITUTIONS OF HIGHER LEARNING

2011 Visitors

Site Attendance Per Day

Dana Thomas House 31,140 85.3

Illinois State Museum 174,310 477.6

Lincoln Herndon Law Office 46,580 127.6

Lincoln Presidential Museum 409,877 1,123.0

Lincoln's Home 476,510 1,305.5

Lincoln's Tomb 373,820 1,024.2

New Salem 422,119 1,156.5

Old State Capital 166,480 456.1

Total Area Visitor Events 2,100,836 5,756

SPRINGFIELD TOURISM SITE VISIT PROFILE 2011
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • June 2012 12

CURRENT AND HISTORICAL SPRINGFIELD AIR SERVICENT

Air Service: Current air service at Springfield consists of United Express regional jet service to 

Chicago ORD, American Eagle regional jet service to DFW and a summer seasonal twice weekly 

Vision Airlines 737 service to Myrtle Beach. The 

Vision Myrtle Beach service is a hastily 

conceived stopgap service, put together in 

cooperation with the Myrtle Beach Chamber 

of Commerce, to attempt to fill the gap left in 

a host of Myrtle Beach markets by the sudden 

March 2012 shutdown of Direct Air. The service runs until late August of this year. The shutdown of 

Direct Air has had a significant negative impact on Springfield air service, with the loss of summer 

Myrtle Beach service, year round Lakeland, Florida, service and winter only Punta Gorda service. 

The network carrier services shown operate year round, however, United Express has indicated 

they will reduce ORD service from four daily trips to three from October of 2012 to May of 2013. 

Air Service History: Looking at the past nine years, Springfield air service saw huge capacity 

declines from 2003 to 2006 and then a stable capacity picture from 2006 through 2011. 

Springfield Capacity, Domestic Traffic and Average Fare: 2003 ‐ 2011

The capacity stability of the past few years reflects gradual increases in capacity from new 

Direct Air service basically cancelling out continuing capacity reductions by network carriers 

592

504

385

299 288 308

286 299 317

341

305

225 178 169 155 161 168

198

$138 $140

$172

$187

$183

$190

$172 $173

$182

$100

$110

$120

$130

$140

$150

$160

$170

$180

$190

$200

0

100

200

300

400

500

600

700

2003 2004 2005 2006 2007 2008 2009 2010 2011

Average Fare

Seats and Passengers per Day Each Way

Seats per Day Each Way Traffic PDEW Domestic Avg Fare 

    Weekly

Carrier Route Frequency Seats

United Express ORD 54 2,700

American Eagle DFW 26 1,144

Vision Air MYR 4 544

84 4,388

SPRINGFIELD AIR SERVICE: JUNE 2012

Total June 2012
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • June 2012 13

United Express and American Eagle. In the midst of all the network capacity declines and 

gradual Direct Air service increases, overall market traffic has grown from a low of 155 PDEW in 

2008 to 198 PDEW for year 2011, a 28% increase! (note: capacity SDEW and O&D PDEW on the 

traffic chart reflect the operations and traffic of all carriers. The average fare shown is for 

domestic network carrier O&D only, as average fare data is not publically available for the 

Direct Air services at Springfield for 2009 – 2011). 

Low cost carriers had no operations at Springfield from 

2003 to 2006. Allegiant Air had a brief Las Vegas 

operation in 2007 and again there were no low cost 

carrier operations in 2008. In 2009, Springfield successfully 

recruited Direct Air to begin the first nonstop service from 

anywhere in Central Illinois to Myrtle Beach (summer) and 

Punta Gorda (winter). After a tentative first year this 

service expanded in 2010 and, in 2011, year round Lakeland Florida service (another pioneering 

effort) was added and low cost service constituted 19% of total Springfield capacity, even 

though Lakeland service did not start until summer. 

The loss of Direct Air is another unfortunate chapter in Springfield’s continuous efforts to recruit 

and support air service. 

American Trans Air Midway service was very popular; however the carrier went bankrupt. Big Sky 

Airlines operated briefly and inconsistently to Midway, exited the market, and then shut down. 

Allegiant entered the Las Vegas market in 2007 as part of a regional strategy to combat AirTran 

expansion at Bloomington. Fuel prices rose and Allegiant stopped Springfield service. Springfield 

worked very hard to recruit and support the pioneering services of Direct Air. Springfield was a 

strong market for Direct Air, however, the carrier shut down in March of 2012. 

Destination 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

ORD UA UA UA UA UA UA UA & AA UA & AA UA UA

MDW TZ TZ GQ GQ

STL AA AA AA AA AA AA    

DFW AA AA

IAD UA UA

LAL D1

LAS G4

MYR D1 D1 D1 D1

PGD D1 D1 D1 D1

SPRINGFIELD AIR SERVICE HISTORY: 2003 TO 2012

Year Network Carrier Low Cost Carrier

2003 100% 0%

2004 100% 0%

2005 100% 0%

2006 100% 0%

2007 95% 5%

2008 100% 0%

2009 93% 7%

2010 91% 9%

2011 81% 19%

Capacity percent

CAPACITY ALLOCATION BY CARRIER TYPE
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • June 2012 14

St. Louis service was lost due to a merger. Midway service was lost to a bankruptcy. The sudden 

shutdown of Direct Air cost Springfield dearly. In 2011 22% of Springfield O&D traffic was Direct 

Air. The carrier was generating record traffic volumes on all SPI routes at the time of shutdown. 

SPRINGFIELD TRAFFIC: 2001 ‐ 2011

Top Markets and Average Fares: Three of Springfield’s 2011 top markets were Direct Air markets. 

Springfield’s Top 20 Domestic Destinations: 2011

0

50,000

100,000

150,000

200,000

250,000

2003 2004 2005 2006 2007 2008 2009 2010 2011

210,105

171,497 163,765

130,001 114,463 112,484 108,448 107,554 112,546

38,944 

51,192 

8,517 

9,150 14,921 

31,736 

Network O&D Low Cost Carrier O&D

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000

Punta Gorda

Dallas

Lakeland

Myrtle Beach

Washington D.C. DCA

San Francisco

Los Angeles

San Diego

Phoenix

Orlando

Minneapolis

New York LGA

Boston

Denver

Philadelphia

Seattle

Austin

Las Vegas

Houston IAH

San Antonio

14,363

12,260

10,637

6,746

4,440

2,650

2,460

2,330

2,310

2,220

2,180

2,160

2,080

2,050

1,990

1,970

1,880

1,860

1,780

1,740

38.4

14.2

11.7

8.2

8.1

8.0

7.3

6.7

6.6

6.4

6.1

5.9

5.6

4.4

4.1

3.6

3.3

3.1

3.0

2.9

Annual O&D PDEW
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • June 2012 15

Direct Air average fares for Punta Gorda, Lakeland and Myrtle Beach are estimated. 

Average Fare in Springfield’s Top 20 Markets: 2011

Alternative Airports and Traffic Leakage: There are six commercial air service airports within a two 

hour drive of Springfield. However, air service at these airports varies greatly, and as will be 

discussed in the Air Service Deficiencies and Needs Section, is changing. 

A 2010 Springfield leakage study concluded that Springfield retains only 14.8% of its true traffic 

generation. The Study estimated that nearly 

60% of Springfield’s traffic generation leaks to 

St. Louis. Changes in air service patterns in 

the Springfield region will cause modest shifts 

in leakage patterns. Springfield’s Direct Air 

service was actually reversing some leakage, 

but that service is no longer in operation. 

Airport Distance Drive Time Air Service

Decatur DEC 38 :50 EAS

Bloomington BMI 66 1:07 AA, DL, G4, F9

Peoria PIA 71 1:13 AA, DL, UA, G4

Champaign CMI 85 1:36 AA

St. Louis STL 98 1:51 AA, DL, UA, US, WN, F9

Quincy UIN 112 2:00 EAS

SPRINGFIELD ALTERNATIVE AIRPORTS

$0 $50 $100 $150 $200 $250

Punta Gorda

Dallas

Lakeland

Myrtle Beach

Washington D.C. DCA

San Francisco

Los Angeles

San Diego

Phoenix

Orlando

Minneapolis

New York LGA

Boston

Denver

Philadelphia

Seattle

Austin

Las Vegas

Houston IAH

San Antonio

$110

$154

$87

$112

$192

$201

$177

$183

$189

$153

$183

$190

$176

$195

$187

$178

$189

$183

$169

$191

Airport of Use O&D Capture Percent of Total

SPI 106,830 14.8%

STL 427,405 59.2%

BMI 82,574 11.4%

PIA 69,999 9.7%

ORD/MDW 26,002 3.6%

CMI 6,214 0.9%

Other Airports 2,545 0.4%

Total O&D 721,569 100.0%

SPRINGFIELD TRUE TRAFFIC LEAKAGE: 2010
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • June 2012 16

SPRINGFIELD’S AIR SERVICE DEFICIENCIES AND NEEDS 

Springfield’s Air Service Deficiencies – The shutdown of Direct Air has left Springfield, on an 

annualize basis, without 20% of its air service seat capacity. Compounding the impact of this loss, 

north of Springfield at Bloomington, AirTran has ended all service as of June, 2012. South of 

Springfield in St. Louis American Airlines has eliminated all semblance of the once large TWA 

connecting hub and only operates 30 departures per day (excluding 26 daily Cape Air code 

share EAS flights). Southwest Airlines has become St. Louis’s largest airline, in part by buying 

AirTran, which eliminates any pricing competition between those two carriers. 

In short, all of these events and circumstances leave measurably less air service capacity at 

Springfield and nearby airports and combined, the result is, and will continue to be, higher 

airfares. 

This August Springfield capacity will be down 14% from August of 2011. It would be down 25% if 

not for the hastily arranged Vision Air twice-weekly Myrtle Beach service, which was patched 

together by the Springfield Airport Authority working closely with the Myrtle Beach Chamber of 

Commerce in April of 2012. As a side note, the very last advance booking report received by 

Springfield from Direct Air, dated 3/5/2012 showed 1,847 advance bookings for Myrtle Beach 

service the summer of 2012, with June already booked to 40% load factor. 

The picture of the winter of 2013, in comparison to the winter of 2012, is even more depressing for 

Springfield. On top of losing Lakeland and Punta Gorda service provided by Direct Air, SkyWest 

has indicated to Springfield that they will reduce ORD service from four daily trips to three during 

that period. The net result is Springfield’s February 2013 capacity, compared to that month in 

2012, is projected to be down 36%. 

Route 2011 Seats 2012 Seats Change Route 2012 Seats 2013 Seats Change

ORD 12,000 12,000 0.0% ORD 10,400 8,400 ‐19.2%

DFW 6,200 5,104 ‐17.7% DFW 4,578 4,576 0.0%

LAL 1,946 0 ‐100.0% LAL 2,480 0 ‐100.0%

MYR 2,598 2,448 ‐5.8% PGD 2,700 0 ‐100.0%

Total 22,744 19,552 ‐14.0% Total 20,158 12,976 ‐35.6%

August 2011 to August 2012 February 2012 to February 2013

SPRINGFIELD CAPACITY COMPARISON
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • June 2012 17

The impact of the loss of Direct Air cannot be understated. At shutdown the carrier was in its third 

winter of Punta Gorda service and about to start its fourth summer of Myrtle Beach service while 

year round Lakeland service, having just started in June of 2011, was showing solid load factor 

performance. 

The first season of Punta Gorda service showed a 71% load factor, the second year an 83% load 

factor and the third year, although cut short, would have been at least 85%. (red indicates 

advance bookings at shutdown). 

Oct Nov Dec Jan Feb Mar Apr Season

O&D 983 1,266 1,524 2,014 1,808 2,425 1,603 11,623

Load Factor 40.9% 48.9% 77.7% 82.0% 84.9% 85.9% 74.3% 70.7%

Segments 16 17 13 16 14 20 14 110

O&D 686 1,704 2,178 1,923 2,177 2,024 10,692

Load Factor 76.3% 63.1% 80.7% 91.5% 94.1% 90.1% 82.6%

Segments 6 18 18 14 18 16 90

O&D 1,892 1,993 1,866 2,226 2,647 2,647 2,993 16,264

Load Factor 66.3% 81.4% 74.9% 93.0% 98.0% 97.0% 82.0% 84.7%

Segments 18 16 16 16 18 16 16 116

2009 ‐ 2010

SPRINGFIELD ‐ PUNTA GORDA MARKET METRICS

2010 ‐ 2011

2011 ‐ 2012

May Jun Jul Aug Sep Oct Season

O&D 468 1,208 1,617 1,329 549 206 5,377

Load Factor 55.7% 72.0% 86.0% 70.2% 52.3% 50.3% 69.3%

Segments 8 16 18 18 10 4 74

O&D 107 1285 1,658 1,631     4,681

Load Factor 53.4% 87.5% 87.7% 80.0%     84.2%

Segments 2 14 18 19     53

O&D 359 2,312 2,187 1,611 275 6,744

Load Factor 66.8% 89.2% 84.4% 62.0% 45.7% 78.8%

Segments 4 18 18 18 4 62

O&D 132 962 738 415 38 2,285

Load Factor 15.0% 40.0% 27.0% 15.0% 15.0% 24.0%

Segments 6 16 18 18 2 60

2012 ADVANCED BOOKINGS AT SHUTDOWN MARCH 2012

2009

SPRINGFIELD ‐ MYRTLE BEACH MARKET METRICS

2010

2011
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • June 2012 18

Like Punta Gorda in the winter, the summer season Myrtle Beach route built up traffic and load 

factor from year to year. 

The first summer had a 69% load factor, the second an 84% load factor and the third a 79% load 

factor, with the carrier choosing to operate into September with disappointing results. The 2012 

numbers (in red) indicate advance bookings and operational plan as of the March 5, 2012 

Direct Air booking report, just prior to the carrier’s shut down. 

Lakeland service did not perform as well as Punta Gorda or Myrtle Beach, however it was part of 

the first air service ever at Lakeland, was flown year round and involved some capacity 

allocation errors by the carrier, notably in the late summer and early fall of 2011. Despite all that, 

Lakeland service had a 66% load factor in 2011 and February and March of 2012 combined 

exceeded 90%, either actual or on the books. 

So the sum of Direct Air’s service history at Springfield is one of pioneering air service that 

produced solid load factors, despite occasional capacity missteps by the carrier. But all that is 

gone now and Springfield must to start from scratch and rebuild its low fare air service. 

Direct Air’s shutdown has occurred as leisure market air fares in St. Louis, which is Springfield’s 

primary leakage point, have increased dramatically. St. Louis is no longer characterized by low 

fares and extensive competition. American’s withdrawal of hub operations (now down to 30 

mainline or regional jet flights per day and only to American hubs or focus cities) combined with 

Southwest acquiring AirTran (which combined the two main LCCs at that airport) has 

measurably reduced the intensity of competition in that market. 

Jun Jul Aug Seo Oct Nov Dec Season

O&D 428 2,847 762 1,138 1,463 2,016 1,983 10,637

Load Factor 63.1% 73.2% 49.6% 65.0% 51.2% 63.2% 76.1% 65.8%

Segments 5 28 10 14 22 22 19 120

Jan Feb Mar Apr May Jun Jul Period

O&D 1,647 1348 2,861 1,658 966 2,207 1,262 11,949

Load Factor 53.4% 87.5% 95.0% 61.0% 40.0% 61.0% 32.0% 63.3%

Segments 18 16 20 18 16 24 24 136

SPRINGFIELD ‐ LAKELAND MARKET METRICS

2011

2012
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • June 2012 19

Comparing 2009 to 2011, in only two years the changes in primary St. Louis leisure markets are 

significant: 

 Capacity is down 15%, declines are double digit at Orlando, Las Vegas and Fort Myers. 

 Traffic is up 1% overall and only down significantly in Fort Myers. 

 Average fare for the group of leisure markets is up 17% and up by double digits in all 

markets. 

 The St. Louis – Fort Myers city pair now has more PDEW than SDEWS, implying large scale 

connect flow in a traditional leisure market. 

Springfield’s Air Service Needs – Springfield is the State Capital of Illinois. Illinois is the fifth largest 

state in the Union in terms of population and by most common economic metrics. Air service is 

essential for a city of this importance. 

Yet today Springfield clings to its two network carriers and a total of six regional jet flights a day 

(five in winter) to two network hubs. The loss of Direct Air eliminated about a fifth of Springfield’s 

air service. In 2011 Direct Air service generated about 16,000 enplanements and 32,000 total 

market O&D. This matters because low cost carrier service creates critical mass at the Springfield 

airport; it has a magnetizing effect on the entire region and in that manner it helps preserve and 

grow the network regional jet service that is essential to the function of the state capital of the 

fifth largest economy in the nation. 

Springfield needs to rebuild its low fare air service. We worked very hard to create what we had 

and the failure of Direct Air management means it is gone. We are working hard to recruit 

replacement low fare service. We believe our strategic plan to do so will be successful. The 

proposed Grant funding and recruitment plan will enable us to restore what we have lost and 

thus preserve the whole of our network air service. 

2009 2011 Change 2009 2011 Change 2009 2011 Change

MCO 799 592 ‐26% 498 493 ‐1% $107 $126 18%

LAS 644 504 ‐22% 414 424 2% $139 $163 17%

PHX 847 778 ‐8% 372 379 2% $139 $156 12%

TPA 309 280 ‐9% 252 273 8% $121 $137 13%

RSW 265 165 ‐38% 213 191 ‐10% $112 $140 25%

SE FL 515 555 8% 394 404 3% $124 $145 17%

Total 3,379 2,874 ‐15% 2,143 2,164 1% $124 $145 17%

MAJOR ST. LOUIS LEISURE MARKET CAPACITY, TRAFFIC & AVERAGE FARE

SDEW PDEW AVG FARE
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • June 2012 20

A STRATEGIC PLAN TO RESTORE SPI AIR SERVICE 

The Springfield Abraham Lincoln Capital Airport is perfectly positioned to offer low cost carriers’ 

access to both Central Illinois and the St. Louis metro area. Decatur is less than an hour’s drive, 

Bloomington, Champaign and Peoria are in the range of a 90-minute drive or less and Quincy 

and much of the huge St. Louis metro area is less than a two hour drive from SPI. This optimum 

location drew high traffic counts to Direct Air service to Florida and Myrtle Beach. The Springfield 

Airport Authority, working with its public and private partners, believes that low cost service can 

be recruited to replace Direct Air. 

 

Proposed New Service – For Springfield and Central Illinois the well established leisure 

destinations are Florida, Myrtle Beach, Las Vegas and Phoenix. Four low cost carriers specialize in 

providing less-than-daily service to these destinations: Allegiant, Spirit Air, Sun Country and Vision 

Airlines. In the wake of Direct Air’s demise one or more additional new carriers of this type may 

emerge, such as Metjet, which has proposed less-than-daily service at Green Bay, Wisconsin. 

Springfield proposes to re-establish local low fare air service, targeting all airlines that specialize 

in that type of service. Targeted routes will include Florida, Myrtle Beach, Las Vegas and Phoenix. 
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • June 2012 21

Springfield’s Ground Handling and Marketing Program – Carriers that operate low fare service of 

this type are typically very focused on the cost of operation for new services. They are less likely 

to want minimum revenue guarantee arrangements than network carriers; indeed, Allegiant Air 

does not even seek or accept minimum revenue guarantee arrangements. These carriers do 

usually insist upon free or reduced-cost airport ground handling and operating fee 

arrangements during new route startup and they want airports and communities to invest 

heavily in local marketing and promotion efforts, since most onboard traffic is of local origin. 

Springfield is prepared to invest heavily in a comprehensive ground handling and regional 

marketing program in support of a new low cost carrier. This Grant proposal envisions that Grant 

funding, combined with local funding, would allow Springfield to offer a low cost carrier a SCASD 

funded turnkey new service startup package, including a start-up phase zero-cost ground 

handling arrangement and a multidimensional marketing and promotional effort. 

Springfield operates its own ground handling program and provides above and below wing 

service for daily American Eagle regional jets. This same team provided those services for Direct 

Air prior to its shutdown. For an eight month period, the airport’s true average cost to provide this 

service was $414 per turn plus a $60 FBO fee for in-to-plane fueling, a total of $474 per turn. 

Springfield has always aggressively marketed its air service, both network and leisure oriented. 

For each new leisure route the Airport believes that $75,000 should be spent the first year of 

service on a year-round route and $35,000 on a seasonal route. In the second year, or second 

season of a new route, a minimum of $30,000 per year-round route and $20,000 per seasonal 

route should be allocated. 

Promotional funds would be spent across a wide spectrum of media venues. The allocation of 

funding varies as media costs and penetration patterns change. Springfield uses traditional 

media such as newspaper, billboards and radio or TV as well as Facebook, Twitter and website 

promotions. Local sponsorships and ticket giveaways are also deployed with carrier 

participation. The Airport has an email blast list of 4,500 local area residents for promoting fare 

sales or new service. Springfield uses face-to-face sales calls and promotional calls on key leisure 

travel generators such as Travel Agencies and Institutions of Higher Learning. Springfield has not 

hesitated to promote its leisure services in nearby metro areas, including spot purchases in the St. 

Louis Post/Dispatch metro additions and radio or TV spots that cover all of Central Illinois. 
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • June 2012 22

A four route program is outlined below. Springfield understands that all four routes may not start 

the same year but might be staggered in start-up over a two or three year period with the 

success of initial routes paving the way for the success of the latter routes. In the example below 

four routes receive a first year nurturing to success at a total cost of only $350,824. 

Grant Funding Plan – This Grant application requests $250,000 in Department funding. Springfield 

will provide $100,000 in matching cash funding and another $70,000 of in-kind funding, making 

total Grant funding of $350,000 in cash and 

$70,000 of in-kind or $420,000 in total value. 

Springfield’s local cash match is $50,000 

from the Chamber and the Q5 Quantum 

Growth Partnership and $50,000 from the 

Airport Authority’s non-aeronautical fund. 

Iin-kind funding consists of $35,000 of local 

private co-op advertising and $35,000 in project related use of airport owned marketing assets. 

Implementation Timeline – Springfield aggressively recruits new air service, meeting with airlines 

at conferences, on the phone and in headquarters meetings. We know that the recruitment 

process can sometimes be fast but more often it is slow. We hope that Grant funding structured 

as outlined herein will enable us to secure new leisure air service in time for the winter of 2012 – 

2013. We are so confident in our market and in the ground handling and marketing program we 

have developed that we propose that a Grant award be only until the end of 2013. If we have 

not seen start-up of at least one Grant supported route by December 31, 2013, we will surrender 

the Grant back to the Department. Our implementation timeline is built by month. It can be 

repeated from month one to month six if Grant funding is used for a second, third or fourth new 

market, in 2013 or beyond that. 

Service Annual Covered Annual Marketing Total Year

Route Type Turns Cost/Turn Turn Cost Spend One Off Set

Orlando/Lakeland Annual 52 weeks 104 $474 $49,296 $75,000 $124,296

Las Vegas or Phoenix Annual 52 weeks 104 $474 $49,296 $75,000 $124,296

Punta Gorda Winter 21 Weeks 42 $474 $19,908 $35,000 $54,908

Myrtle Beach Summer 13 Weeks 26 $474 $12,324 $35,000 $47,324

276 $474 $130,824 $220,000 $350,824

EXAMPLE: NEW SERVICE MARKETING AND AIRPORT COST YEAR ONE OFF SET

Total

Entity Funding Percent of Total

DOT $250,000 71.4%

Private Sector Cash Funding $50,000 14.3%

Airport Non‐Aeronautical $50,000 14.3%

Total Cash Funding $350,000

Local In‐Kind Contributions $35,000

Airport In‐Kind Contributions $35,000

Grant Total Funding $420,000

GRANT FUNDING PLAN
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • June 2012 23

Examples of Springfield Leisure Markets – Direct Air service demonstrated that Springfield is 

ideally positioned to be a successful leisure service gateway. Springfield, Central Illinois and St. 

Louis together generate significant traffic to leisure destinations. 

Springfield service need only capture between 6% and 10% of available regional traffic to 

Orlando, southwest Florida or Las Vegas to hit load factor targets. In 2011 Springfield’s nonstop 

service to Myrtle Beach captured about two thirds of total regional traffic for that destination. 

Timeframe Milestone

Grant Award

Grant Contract Signed

Ongoing Carrier Recruitment Process

Ongoing File Quarterly DOT reports

Month One Agreement with New Carrier

Month Two Announcement of First New Service

Month Four Begin marketing and promotion

Month Five New Service Begins

Second, Third and Fourth New Route

Follow Month One to Six Process for each

Meet with carrier and local

stakeholdersto plan startup and

marketing process

Month Three

Monitor bookings/adjust marketing

efforts as needed

Month Six

GRANT IMPLEMENTATION TIMELINE

Base Month

   

Variable LAL/MCO/SFB LAS MYR PGD/RSW

Season Annual Annual Summer Annual

Frequency 2 RT per week 2 RT per Week 2 RT per Week 2 RT per Week

Segments 208 208 52 84

Seats @ 150 per Flight 31,200 31,200 7,800 12,600

85% Load Factor 26,520 26,520 6,630 10,710

2011O&D Traffic

SPI (including Direct Air) 12,857 1,860 6,766 14,653

Central Illinois 79,280 69,630 720 20,680

STL 363,710 314,750 2,180 76,270

Total 455,847 386,240 9,666 111,603

68.6% 9.6%

SPRINGFIELD LEISURE SERVICE OPERATING PLAN

SPI Share of Total

Traffic for 85% Load

Factor

5.8% 6.9%
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • June 2012 24

AIR SERVICE RECRUITMENT AND MARKETING SUPPORT 

 

The Springfield Airport Authority prides itself on aggressively supporting its incumbent airlines, 

aggressively recruiting new air service where it can be viable and keeping airport costs as low as 

possible. 

Springfield Air Service Recruitment – Springfield is extremely active in recruiting new air service, 

from both its incumbent carriers and potential new entrant carriers. 

2009:

February – SPI announced twice weekly Direct Air non-stop seasonal service to Myrtle Beach. 

March – Attended Network USA, met with American Eagle, Delta Airlines and Trans States. 

April - Headquarters meeting in Myrtle Beach, SC, with Direct Air. Airport and consultants met 

with Direct Air senior staff to discuss future service and market potential to various Florida 

markets, in particular Ft Myers area and Orlando areas. 

May - Direct Air begins summer seasonal twice weekly service to MYR. 

June – Attended Jumpstart Conference, met with Gulfstream, Pinnacle/Colgan and Republic. 

October - Direct Air starts new non-stop seasonal service to Punta Gorda, FL 

2010: 

February – Market presentation to Allegiant Air. 

June – Presentation made to Direct Air regarding Orlando area service. 

July – Comprehensive Community Air Service Survey conducted 

October – Attended Sixel Consulting Air Service Conference, presentations made to Direct Air, 

SkyKing, Pinnacle/Colgan, Republic Airways, Vision and Cape Air. 

October – Headquarters meeting with SkyWest Airlines, presentation made regarding service 

and market opportunity to Denver, Washington and sustaining stable service to Chicago. 

December – Presentation prepared and submitted to Sun Country Airlines. 

2011:

February – Springfield Ticket Lift and True Traffic Demand and Leakage Study completed 

February – Attended Network USA, presented to Southwest, Vision, Branson Express, Spirit, 

Allegiant Air, Pinnacle, and Air Tran. 

March – Attended Sixel Consulting Air Service Conference, meetings with Frontier and SkyWest. 

April – American Eagle terminates SPI-ORD route and adds SPI-DFW route. 
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • June 2012 25

June – Attended Jumpstart Conference, met with Southwest, United, US Airways, Allegiant Air, 

Republic and Vision Airlines. 

June – Direct Air begins three times weekly year around service to Lakeland, Florida 

October – Met with Direct Air principals in Myrtle Beach, SC. Discussions about market 

opportunities to Nassau, Bahamas and Gulfport, MS. 

November - Attended Sixel Consulting Air Service Conference, met with Frontier and US Airways. 

December – Updated presentations prepared and provided to Allegiant Air and Spirit Airlines 

December – Community Air Service Survey conducted 

2012: 

March – Update presentation sent to Allegiant suggesting service to Las Vegas, Phoenix/Mesa, 

Tampa/St Petersburg and Sanford/Orlando 

March – Attended Network USA, met with Allegiant, Spirit, US Airways, United, and PeoplExpress. 

March – Direct Air abruptly terminated all service to all markets 

March/April – Vision Airlines secured to fly the remaining seasonal schedule between SPI and Ft. 

Myers FL (RSW). 

April – Attended Sixel Consulting Group Air Service Conference, met with US Airways, American 

Eagle, and SkyWest Airlines. 

May – Vision Airlines resumed the summer seasonal route to Myrtle Beach, SC, abandoned by 

Direct Air 

June – Attended ACI Jumpstart Air Service Conference, met with United, US Airways, Allegiant, 

PeoplExpress, Spirit and Sun Country. 

Annual Marketing Budget – The Springfield Airport Authority supports its airlines with a robust and 

aggressive marketing effort. Marketing efforts in 2011 supported both network carriers and Direct 

Air. 

Year Advertising Spend Approximate Allocation of Spending

2009 $285,712 Newspaper/Print:             45%

2010 $366,818 Billboards:                            10%

2011 $348,493 Radio:                                     15%

Television:                           15%

Promotional:                       10%

Misc./Other:                          5%          

SUMMARY OF SPRINGFIELD AIR SERVICE MARKETING: 2009 ‐ 2011
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • June 2012 26

PREVIOUS GRANT AWARDS 

Springfield has been fortunate to be awarded two previous SCASD Grants. Both Grants were 

used to recruit new air service. 

The first Grant (awarded 9/5/2006) had project goals and objectives as follows: Increase 

enplanements, strengthen existing carriers at the airport, begin nonstop service to Washington 

D.C. and open up the Airport to new one-stop domestic and international routes. The Grant was 

in the amount of $390,000 and was matched by $975,000 in local cash and $100,000 in local inkind contributions. Springfield successfully recruited United Airlines to begin regional jet service to 

Washington Dulles. The service operated from April of 2007 to early July of 2008. Unfortunately, 

during this time fuel prices soared. Also, the United Airlines regional partner assigned to operate 

the flights had reliability and on-time performance issues. The Grant was closed on 6/13/2008. 

The second Grant (awarded 9/19/2008) had project goals and objectives as follows: Provide 

Central Illinois and its Capital City a third option to a major airline hub offering connections to 

top destinations, increase awareness about local air service and to increase availability of seats 

and provide more competitive airfares. The Grant was in the amount of $750,000 and was 

matched by $100,000 in local cash and $375,000 of in-kind contributions. The primary target 

carrier/route combination for the MRG funding of the Grant was Northwest Airlines and service 

to Memphis. Northwest merged with Delta Air Lines in late 2008 and did not have interest in the 

market and route concept. Springfield network service was reduced in 2009 to American Eagle 

and United Express both offering flights to Chicago ORD. In late 2010, Springfield and American 

Eagle proposed to the DOT that this Grant’s funding be put toward supporting American Eagle 

service from SPI to DFW. With DOT approval of that proposal, that service began in April of 2011 

and continues today. This Grant was closed on 4/17/2012. 

Both Grants were for risk abatement and marketing support of risk abated service. Springfield 

was able to recruit new service with both Grants and the service supported by the second Grant 

is still in operation. Springfield knows how to responsibly use Grant funding and how to be 

successful in recruiting new air service using Grant funding. 

This Grant proposal is for ground handling cost offsets and marketing of new low fare service to 

replace the devastating loss of the very popular Direct Air service to three leisure destinations. 
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • June 2012 27

PUBLIC PRIVATE PARTNERSHIP AND LEGAL SPONSOR 

Springfield’s Public Private Partnership for Air Service Recruitment – Springfield cares about its air 

service. From the halls of State Government to corporate offices to corner coffee shops, people 

in Springfield take pride in their city and that includes its air service. 

Joining the Airport Authority as public members of Springfield’s public/private Partnership for Air 

Service Recruitment are the City of Springfield, Sangamon County and the Greater Springfield 

Convention and Visitors Bureau. 

The private members of this partnership include the Greater Springfield Chamber of Commerce 

and the Q5 Quantum Growth Partnership. The Chamber has an active membership and air 

service is high on the list of infrastructure priorities. The Q5 Partnership is a key driver of local 

economic development. 

Legal Sponsor – The legal sponsor of this Grant application and the administrator of a Grant 

award will be the Springfield Airport Authority. The Executive Director of the Airport is Mr. Mark 

Hanna. Mr. Hanna has administered many grant projects and directly spearheads Airport efforts 

to recruit new air service and improve incumbent air service. 

Mr. Mark Hanna, Executive Director, 

Springfield Abraham Lincoln Capital Airport 

1200 Capital Airport Drive, 

Springfield, IL 62707 

217 788 1060 X 2211 

mhanna@flyspi.com

SPI's PUBLIC / PRIVATE PARTNERSHIP FOR AIR SERVICE RECRUITMENT

The Springfield Airport Authority

The City of Springfield

Sangamon County

Springfield Convention and Visitors Bureau

Greater Springfield Chamber of Commerce

Q5Quantum Growth Partnership

Private Members

Public Members
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • June 2012 28

CONCLUSION 

The Springfield Airport Authority is one of the most innovative in the nation in the matter of 

supporting incumbent air service and recruiting new air service. The Authority works closely with 

its incumbent carriers and is active in recruiting new carriers. Despite this innovation and hard 

work, the shutdown of Direct Air leaves Springfield without a vital piece of its air service. 

Replacing Direct Air, in form if not in exact service pattern is priority number one for the Airport. It 

is very important to provide low fare leisure service at Springfield, especially in light of the 

dramatic air service changes in the region, with St. Louis seeing much less competition and 

much higher fares and Bloomington losing AirTran this month. Springfield has the optimum 

location, less than a two hour drive from much of the St. Louis metro area and all of Central 

Illinois. No other airport in the region can make that claim. 

Replacing Direct Air, and having a low fare leisure service at Springfield, is also about helping 

preserve the Airport’s network carrier service, which is essential to the function of the Illinois State 

Government and local businesses and institutions. Low fare leisure air service magnetizes the 

Airport, draws travelers to it, and thus creates the critical mass needed to preserve and 

eventually grow the network service beyond the current two carriers and two hubs. 

This modest Grant funding proposal, coupled with the local matching funds, will enable the 

Airport to replace Direct Air promptly. The Grant funded ability to provide a virtually cost free 

market entry and first year of operation, combined with the proven leisure traffic generating 

capability Springfield has demonstrated, will ensure that we can replace Direct Air in 2013. 

Springfield has won two previous Small Community Air Service Grants and used both to recruit 

new air service. Both were for the more traditional risk abatement approach to supporting new 

air service. This Grant proposal, in keeping with Springfield’s innovative persona, is for a 

comprehensive program of ground handling and airport cost offsets and an aggressive and 

multidimensional new service marketing and advertising program. 

With Grant funding we will bring low fare leisure service to Springfield in 2013. If we do not we will 

return the Grant to the Department. We are that confident in our market and our proposal. We 

urge the Department to reward our confidence and help us promptly replace Direct Air.