June 11, 2012

Sponsor: Rochester International Airport – Rochester, Minnesota

Stephen W. Leqve, Airport Director

Congressional Code: MN - 01

Dun & Bradstreet Number: 077629467

Tax Identification Number (EIN): 416005494

Application for Federal Support for New Air Service via:

Revenue Guarantees

Advertising/Marketing Program

To Support New Non-Stop Service from Rochester, MN to Denver, Colorado 

ROCHESTER INTERNATIONAL AIRPORT, ROCHESTER, MN

Application Under the Small Community Air Service Development Program

Docket DOT-OST-2012-0069

Docket DOT-OST-2012-0069

TABLE OF CONTENTS
Rochester, Minnesota International Airport • Small Community Air Service Development Grant Proposal • June 2012 2

Letter of Introduction 3

Summary Information – Appendix C 4

Introduction 7

The Rochester, Minnesota Air Service Market 8

Current and Historical Air Service 11

Air Service Development Efforts 16

Air Service Needs and Deficiencies 17

Rochester’s Strategic Plan for New Air Service 20

Proposed New Route 20

Funding Plan 24

Implementation Timeline 24

Alternate Plan 25

Public/Private Partnership and Legal Sponsor 28

Summary 29

Frontier Airlines Letter of Support 30

This document has 30 pages. One page is the cover, one page is a community support letter

and three pages are the Summary of Information. The leaves 24 pages of Grant Application 

document plus one page is the Airline letter of support.

INTRODUCTORY LETTER OF SUPPORT

Section Page
Rochester, Minnesota International Airport • Small Community Air Service Development Grant Proposal • June 2012 3
Rochester, Minnesota International Airport • Small Community Air Service Development Grant Proposal • June 2012 4

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 Grant: ________________________________

Expiration date of Grant: _______________________

Federal Funds Requested: ______________________

Carrier(s) Service Obtained: ____________________

Destination(s) Served: __________________________

B. Public/Private Partnership

Public:

1. Rochester International Airport

2. City of Rochester

3. Olmsted County

Private:

1. The Mayo Clinic

2. IBM, Rochester

3. Rochester Area Chamber of Commerce

4. Rochester Area Economic Development, Inc

5. Rochester Area Conventions and Visitors Bureau
Rochester, Minnesota International Airport • Small Community Air Service Development Grant Proposal • June 2012 5

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: $ 500,000

2. State cash financial contribution: $ 0

Local cash financial contribution:

3a. Airport cash funds: $ 25,000

3b. Non-Airport cash funds: $ 200,000

3. Total local cash funds: $ 225,000

4. TOTAL CASH FUNDING: $ 725,000

In-Kind Contribution:

a. Airport In-Kind contribution: $ Various

Fee Waivers: One year waivers of landing and terminal fees

b. Other In-Kind contribution: $ na

5. TOTAL IN-KIND CONTRIBUTION: $ Undetermined

6. TOTAL PROJECT COST: $ 725,000
Rochester, Minnesota International Airport • Small Community Air Service Development Grant Proposal • June 2012 6

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.

Fee Waivers: One year waivers of landing and terminal fees (airport)

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
Rochester, Minnesota International Airport • Small Community Air Service Development Grant Proposal • June 2012 7

INTRODUCTION

Rochester, Minnesota and southeastern Minnesota have weathered the severe recession of 

2009 very well. Rochester’s unemployment rate is one of the lowest in the entire Upper Midwest 

region. Rochester is home to the world famous Mayo Clinic, the largest employer in Minnesota.

Despite one of the strongest economies in the Upper Midwest, Rochester air service is in decline. 

The Rochester International Airport has suffered significantly from the consolidation of the airline 

industry. Airline traffic at the Airport has declined 32% percent since 2007. This decline is driven by 

a sharp decline in RST airline capacity since 2007 and by a growing split between the average 

fare paid at Rochester and that paid 77 miles north at Minneapolis/St. Paul.

Leakage of both business and leisure traffic to MSP is 

at an all time high. Delta Air Lines, having acquired 

Northwest Airlines in 2008, has dramatically reduced 

small- and medium-sized market air service in the Upper Midwest and Rochester has not been 

immune to this service strategy shift by Delta. The carrier has dramatically reduced both 

capacity and frequency from Rochester to Minneapolis and eliminated nonstop service to 

Detroit. At the same time, American Airlines, Rochester’s other incumbent carrier, has provided a 

modest but stable service pattern at Rochester to Chicago O’Hare. This is the entire extent of 

Rochester air service. It is inadequate to the critical air service needs of the community.

The aforementioned Mayo Clinic is a national and global health care organization. Local air 

service is not just essential for the function and management of this vast healthcare and 

medical research network, it is essential to the efficient movement of patients and their loved 

ones to Rochester Mayo Clinic facilities, which draw over one million visitors each year. In 

addition to Mayo, Rochester is home to a major IBM facility and that facility is dependent on 

local air service to support its role within that global firm. A host of second- and third-tier product 

and service suppliers, in a vast spectrum of businesses, support these two local major employers.

In short, effective and reasonably priced air service is essential to the continued health of the 

Rochester economy. Currently, local air service is in decline and is inadequate for local needs.

This document offers a detailed proposal by which Rochester, using SCASD grant funds, can 

reverse its air service decline by recruiting new service, with a primary target of Denver and 

Frontier Airlines.

“Despite one of the strongest economies in 

the Midwest, Rochester air service is in 

decline.”
Rochester, Minnesota International Airport • Small Community Air Service Development Grant Proposal • June 2012 8

THE ROCHESTER, MINNESOTA AIR SERVICE MARKET

Location and Population – Rochester, Minnesota is the largest city in southeastern Minnesota. 

The city sits at the junction of I-90 and State Highways 52, 63 and 14. The city has a population of 

106,769 while the Rochester MSA has a population of 186,011. The 60-minute catchment area 

illustrated in red below has an estimated population of 286,840 while the 120-minute drive radius 

illustrated in blue, which includes much of the Twin Cities, has a population of 3,255,325. 

Breaking the stereotype of rural Midwestern population decline, the Rochester MSA population 

has grown 13% since 2000 and the city of Rochester has registered a 24% population growth 

during the same period. Rochester’s population is projected to grow at a 1.43% annualized clip 

between 2005 and 2040, according to Woods & Poole Economic estimates from 2011.
Rochester, Minnesota International Airport • Small Community Air Service Development Grant Proposal • June 2012 9

The nearby MSAs of La Crosse, Wisconsin, and Mankato, Minnesota, have also shown solid 

population growth in the past decade.

MSA POPULATION GROWTH 2000 – 2010: US CENSUS

Rochester’s economy – The local economy is centered on the Mayo Clinic, which employs 

about 34,000 locally. Complementing the Mayo Clinic is IBM, the multinational technology and 

consulting corporation, which has a large research and production facility in Rochester. 

Rochester is also home to a branch of the University of Minnesota and there are a total of ten 

colleges and universities within a one hour drive of Rochester. These ten institutions of higher 

learning have over 34,000 full time students and another nearly 10,000 faculty, administration 

and staff.

This strong local economy generates strong demand for

workers. Between 2001 and 2010 the Rochester area’s

labor force grew at a rate above that of both the nation

and Minnesota as a whole.

Solid population growth and consistent job creation mean

a low unemployment rate and the Rochester MSN has one

of the lowest in the Upper Midwest.

127,020 127,604 128,194 128,614 128,782 129,267 129,842 131,010 131,728 132,923 133,410

85,850 86,695 87,414 88,214 88,760 89,434 90,877 91,761 92,576 93,234 93,591

164,427 166,678 169,486 171,822 174,510 176,068 178,749 180,773 183,394 185,618 186,011

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Population

La Crosse Mankato Rochester
Rochester, Minnesota International Airport • Small Community Air Service Development Grant Proposal • June 2012 10

At the end of 2011 the Rochester MSA, along with the nearby Mankato and La Crosse MSAs, had 

the lowest unemployment rates in the region, well below that of the Twin Cities or Minnesota.

MSA Unemployment: Rochester, and Nearby MSAs

Rochester’s economy is anchored by the Mayo Clinic and IBM. Other key economic sectors 

include food processing, light manufacturing and education.

Rochester MSA

Rochester MSA

3%

4%

5%

6%

7%

8%

9%

2003 2004 2005 2006 2007 2008 2009 2010 2011

Annual Unemployment Rate

Rochester MSA La Crosse Mankato Minnesota Minneapolis Name Employees Business Type

Mayo Clinic 32,000 Medical/Hospital

IBM 4,400 Electronics-Computer

Rochester Public Schools 2,144 Education Services

Olmsted County 1,177 Government

Olmsted Medical Center 1,063 Medical/Hospital Services

McNeilus Truck & Manuf. 850

Mobile concrete mixers, garbage 

trucks

City of Rochester 834 Local Government

Charter Communications 690

Cable Television/High Speed 

Internet

Crenlo 640 Fabricated Metal

Interstate Hotels & Resorts 590 Hotel/Restaurant Services

RCTC 500 Post Secondary Education

Federal Medical Center 460 Corrections/Medical

Seneca Food 255 Food Processing

Benchmark Electronics 420 Contract Mfg/Design/Engineering

Hiawatha Homes 380 Res. Services/Dev. Disabilities

Samaritan Bethany, Inc. 360 Health Care of the Aging

Kemps 345 Food Processing

Pace Dairy 320 Food Processing

Schmidt Printing 300 Printing/Publishing

Rochester Post Office 269 Postal/Delivery Service

ROCHESTER AREA MAJOR EMPLOYERS 2012
Rochester, Minnesota International Airport • Small Community Air Service Development Grant Proposal • June 2012 11

CURRENT AND HISTORICAL ROCHESTER AIR SERVICE

Air service at Rochester began in 1929 when Northwest Airlines Ford Trimotors began operating, 

ironically to Chicago and the Twin Cities (St. Paul). From the 1940s to the 1970s service was 

provided by Braniff, North Central/Republic and Ozark in addition to Northwest. The location of 

the airport was moved to its current site in 1960. American Airlines began Rochester service in 

the 1980s. Rochester has lost an air carrier and air service several times due to industry 

consolidation. The merger of Northwest and Republic in 1986 cost Rochester a carrier and some 

service. TWA had just started St. Louis service at Rochester in 2001 when the merger with 

American occurred and that service was promptly eliminated. Delta’s 2008 merger with 

Northwest has been the most recent blow to Rochester’s efforts to retain and expand its air 

service.

Current Air Service – Currently Rochester has Delta Air Lines regional jet service to Minneapolis/St. 

Paul (MSP) and American Eagle regional jet service to Chicago (ORD).

Rochester, Minnesota Air Service 2012

Delta regional jet service to MSP consists of five round trips per day; however, the carrier makes 

liberal use of day of week no-ops except for during peak travel periods such as the summer 

months. Thus, on some days of the week, Rochester only has three or four round trips to 
Rochester, Minnesota International Airport • Small Community Air Service Development Grant Proposal • June 2012 12

Minneapolis. American Eagle regional jet service to Chicago has, for the past year, consisted of 

four round trips per day during winter months and five round trips per day for the balance of the 

year, all with significantly fewer day-of-week reductions than Delta employs.

Rochester Domestic Network, Allegiant and International Traffic by Year: 2003 - 2011

Traffic History – Rochester traffic peaked in 2008 at 324,833 O&D, with 83% of that traffic being 

domestic network, 9% Allegiant and 8% international. Allegiant provided RST – LAS service twice 

per week from late 2007 to early 2010. Allegiant service had little impact on network service.

The decline in Rochester traffic from the 2008 peak is glaring. Many domestic airports suffered 

traffic declines during the great recession of 2009. Most also saw a significant economic 

slowdown and curtailment of travel demand during that period. Most have seen traffic recover 

or at least begin to recover in 2011. Rochester and its diverse health care, education and high 

tech economy, saw little economic slowdown, and unemployment peaked well below 7% and 

has since recovered to around 5%. Yet Rochester’s traffic decline continues, despite a strong 

economy and ample local air travel demand.

Domestic Capacity, Traffic and Average Fare - Rochester’s traffic decline is traceable to a sharp 

decline in capacity coupled with a significant split between the higher average fares paid in 

Rochester and the lower average fares paid in Minneapolis. Rochester network carrier capacity 

has declined 32% since 2007. In the same timeframe average domestic fare has climbed 20%. As 

a result, domestic network traffic is down 32% in that period, despite a strong local economy. 

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2003 2004 2005 2006 2007 2008 2009 2010 2011

245,770 242,660 248,150 260,070

285,220 270,030

228,000

203,780 185,520

11,660 28,330 

28,630 

3,500 

24,350 26,930 

25,810 27,600 

27,340 26,200 

23,410 

25,240 

25,640 

Annual Domestic O&D (Ex-Allegiant) Annual Domestic O&D (Allegiant) Annual International O&D
Rochester, Minnesota International Airport • Small Community Air Service Development Grant Proposal • June 2012 13

Rochester Domestic Traffic PDEW, SDEW and Average Fare: 2003 - 2011

Capacity and Service Comparison – A review of Rochester air service operational statistics from 

2007, 2011 and those projected for 2012 clearly illustrate the ongoing decline of service.

Overall, 2011 segments flown are down 23.6 percent from 2007. Offered seats are down a 

whopping 39.6% in the same period. Unfortunately, projected 2012 statistics promise more of the 

same with segments flown projected to be down 12.3% and offered seats to decline 14.1%. 

There may end up being some variation in the American seat count to Chicago in that 

American Eagle employs both 50-seat and 44-seat regional jets on Rochester flights and the 

precise mix of those can vary from period to period. The loss of Detroit service drives the bulk of 

2012’s year over year decline, it appears that 2012 capacity to MSP and ORD will be, finally, 

relatively stable from the previous year.

722 715 697 694

729 708

617

559

493

337 332 340 357

375

331

273 274 254

$182 $193

$179 $179

$175

$210

$176 $184

$210

$0

$50

$100

$150

$200

$250

$300

$350

$400

0

100

200

300

400

500

600

700

800

2003 2004 2005 2006 2007 2008 2009 2010 2011

Average One-Way Fare

Seats and Passengers per Day Each Way

Seats per Day Each Way Domestic PDEW Domestic Avg Fare

Carrier Route 2007 2011 Change 2012 Change

American ORD Segments 4,239 3,175 -25.1% 3,190 0.5%

Seats 274,864 143,679 -47.7% 143,550 -0.1%

Delta DTW Segments 703 839 19.3% 0 -100.0%

Seats 35,045 41,949 19.7% 0 -100.0%

Delta MSP Segments 4,595 3,272 -28.8% 3,199 -2.2%

Seats 274,864 167,519 -39.1% 159,950 -4.5%

Total Segments 9,537 7,286 -23.6% 6,389 -12.3%

Seats 584,773 353,147 -39.6% 303,500 -14.1%

Projected

ROCHESTER AIR SERVICE FREQUENCY AND CAPACITY: 2007, 2011 AND PROJECTED 2012

2007 and 2011 data per DOT T100 Reports

2012 data projected from Q1 actual and Q2,Q3 and Q4 for sale schedules 
Rochester, Minnesota International Airport • Small Community Air Service Development Grant Proposal • June 2012 14

Top Domestic Markets – Rochester’s top twenty domestic market group is topped by Chicago 

and also includes six eastern cities, seven southern cities and six western cities.

Rochester’s Top Twenty Domestic Markets: Year 2011

Top Domestic Market Average Fares – Average fares paid in fifteen of Rochester’s top twenty 

domestic markets are over $200 one way. The sub-$200 average fare to Chicago and St. Louis 

can be attributed to the relatively short distance involved in travel to those destinations.

Average Fares in Rochester’s Top Twenty Domestic Markets: 2011

0 5,000 10,000 15,000 20,000 25,000 30,000

ORD

PHX

DCA

DTW

DFW

LGA

ATL 

DEN 

BOS

MCO

JAX

LAX

SFO

PHL

IAH

MIA

STL

SAN

EWR

LAS

27,020

6,050

5,910

5,680

4,950

4,870

4,100

4,080

4,030

3,770

3,340

2,830

2,730

2,720

2,440

2,320

2,260

2,200

2,190

2,180

37.0

8.3

8.1

7.8

6.8

6.7

5.6

5.6

5.5

5.2

4.6

3.9

3.7

3.7

3.3

3.2

3.1

3.0

3.0

3.0

Annual O&D PDEW

$0 $50 $100 $150 $200 $250 $300

ORD

PHX

DCA

DTW

DFW

LGA

ATL 

DEN 

BOS

MCO

JAX

LAX

SFO

PHL

IAH

MIA

STL

SAN

EWR

LAS

$139

$183

$205

$205

$210

$217

$209

$156

$250

$186

$218

$247

$260

$232

$205

$229

$159

$210

$287

$211
Rochester, Minnesota International Airport • Small Community Air Service Development Grant Proposal • June 2012 15

Airport Carrier Market Share – Delta has managed to retain Northwest’s position as Rochester’s 

number one carrier in terms of share of domestic passengers. In 2011 Delta garnered 56.5% of 

RST’s domestic traffic while American carried 43.5%

Domestic Traffic Distribution by Region – Rochester’s nationwide distribution of traffic shows an 

orientation to the east, which is somewhat reflective of its current service, which is to MSP (north) 

and Chicago (east). Only 33% of Rochester’s 2011 domestic traffic was to destinations west of 

the Mississippi.

Alternative Airports – For all practical purposes there is one alternative airport for Rochester 

residents in that City Hall is 77 miles from the Minneapolis/St. Paul International Airport.

MSP drive time can vary greatly depending on Twin City metro area traffic conditions. While La 

Crosse is only a little over an hour away, it currently offers the same airlines and routes as 

Rochester. Both Mason City and Waterloo have recently been abandoned by Delta under the 

auspices of the EAS program, with Great Lakes B1900s assuming Mason City service and 

American Eagle regional jets assuming Waterloo service. Sioux Falls is 3.5 hours distant.

Share of

Region States RST Traffic

New England ME, NH, VT, MA, RI, CT 4%

Mideast NY, PA, NJ, DE, MD 16%

WV, VA, KY, NC, SC, TN 

GA, AL, FL, MS, AR, LA

Great Lakes OH, MI, IN, IL, WI 24%

Plains MN, IA, MO, KS, NE, SD, ND 4%

Southwest OK, TX, NM, AZ 13%

Rocky Mountain CO, UT, WY, ID, MT 5%

Far West WA, OR, NV, CA 11%

RST reported DOT domestic traffic by region

Southeast 22%

ROCHESTER DOMESTIC TRAFFIC BY REGION: 2011

Airport Drive Time Distance Airlines

MSP 1:22 77 All

LSE 1:11 74 DL & AA

MCW 1:25 92 ZK

ALO 2:06 108 AA

FSD 3:27 228 AA, DL, UA, F9, G4
Rochester, Minnesota International Airport • Small Community Air Service Development Grant Proposal • June 2012 16

ROCHESTER’S AIR SERVICE DEVELOPMENT EFFORTS

The Rochester International Airport understands that small- and medium-sized airports must 

aggressively market their air services and have continuous dialogue with both incumbent airlines 

and potential new entrant airlines.

The Airport has spent an average of 

$32,302 annually for the past five 

years on air service marketing and 

promotion. 2011 spending was 

$39,662, up 46% from 2010.

The Airport recognizes that the art 

and science of advertising is 

changing. The Airport now

participates in social media venues, 

such as Facebook and Twitter, and 

experiments with different mixes of 

media spend, always seeking the 

best return on advertising dollars.

In January of 2012 Sixel Consulting facilitated local community meetings to discuss air service 

retention and recruitment. In March of 2012 Rochester attended the Network Conference and 

had meetings with American, Delta, Allegiant Air and Sun Country airlines. 

2009 March Met with Delta Air Lines at their HQ in Atlanta

March Air service study 

April Met with United Airlines at their HQ in Chicago

April Met with American Airlines in Dallas

February Submitted proposal to Allegiant Air

March Met with Delta, Frontier and SkyWest at Small Community Air Service conference

June Submitted proposal to Frontier Airlines

September Met with United Airlines at their HQ in Chicago

January Community meetings on local air service with Sixel Consulting Group facilitating

March Attended Network 2012, met with American, Allegiant, Delta and Sun Country

2010

2012

ROCHESTER AIR SERVICE RECRUITMENT AND AIRLINE DIALOUGE 2009 - 2012

2011

Venue 2007 2008 2009 2010 2011

Youth Hockey $1,000 $1,000 $1,000 $1,000

Facebook $560 $8,730

County Fair $500 $500

Golf Course $1,250

Posters $560 $320

Print Ads $9,710 $8,031 $8,998 $2,926

Materials $1,528 $948 $924

Radio $12,399 $8,410 $4,160 $12,324

Rochester on Tour $1,250 $1,500 $1,500 $1,850

Theater $2,499 $7,016

TV $3,333 $5,002 $5,013

Website $829 $11,744 $1,334 $519

Total $1,000 $30,049 $32,435 $27,061 $39,622

Enplanements 162,110 162,417 140,020 116,260 105,580

Per Enplanement $0.01 $0.19 $0.23 $0.23 $0.38

ROCHESTER INTERNATIONAL ADVERTISING: 2007 - 2011

Y/Y Advertising 

Budget Change

2904.9% 7.9% -16.6% 46.4%
Rochester, Minnesota International Airport • Small Community Air Service Development Grant Proposal • June 2012 17

ROCHESTER AIR SERVICE DEFICIENCIES AND NEEDS

Rochester’s Air Service Deficiencies – Rochester enplanements have declined by 35% since 

2007. This decline has occurred despite the Rochester area economy weathering the great 

recession rather well. Rochester’s economy pivots on the fortunes of the Mayo Clinic and IBM 

and both world renowned firms have continued to grow the scope of their businesses and 

services in the past five years. Yet, both American and Delta have measurably reduced 

Rochester capacity since 2007, and Delta has ended Detroit hub service, leaving RST with only 

MSP and ORD hub access. At the same time Rochester average domestic fares have increased, 

especially in relationship to Minneapolis average fares. The combination of huge losses in 

capacity, the loss of Detroit service, and significant average fare differences with nearby 

Minneapolis has put Rochester’s economically essential local air service in serious decline.

Rochester recognizes that network 

airlines have reduced service in 

many cities. But even in comparison 

to other cities in the Upper Midwest 

that have service from at least two 

airlines, Rochester has suffered the 

largest capacity loss in the group. 

Rochester has lost more than a third 

of its seat capacity in the period. 

Duluth has lost a quarter of its seats in 

the period, Cedar Rapids has lost 

20% and the balance of the group 

has lost measurably less than that.

Year Segments Change SDEW Change Segments Change SDEW Change

2007 4,239 298 5,298 421

2008 4,429 4.5% 298 0.0% 5,388 1.7% 390 -7.4%

2009 3,882 -12.4% 258 -13.4% 4,796 -11.0% 344 -11.8%

2010 3,654 -5.9% 237 -8.1% 4,563 -4.9% 312 -9.3%

2011 3,175 -13.1% 197 -16.9% 4,111 -9.9% 279 -10.6%

07 to 11 -25.1% -33.9% -22.4% -33.7%

American Delta

ROCHESTER CAPACITY DECLINE: 2007 - 2011

2007 2011

CID 1,499,541 1,194,686 -20%

DLH 528,595 389,325 -26%

DSM 2,554,877 2,296,405 -10%

FSD 1,081,512 1,115,943 3%

LSE 385,329 324,846 -16%

MLI 1,294,216 1,089,332 -16%

MSN 2,173,865 1,799,774 -17%

MSP 40,913,034 37,097,105 -9%

RST 548,855 359,738 -34%

COMPARISON OF CAPACITY LOSS

Measured in Carrier Seats Offered per Year
Rochester, Minnesota International Airport • Small Community Air Service Development Grant Proposal • June 2012 18

Rochester’s inadequate airline capacity is 

also illustrated in the measure of airline 

seats offered per capita. Again, measured 

against the eight other cities in the region 

with service from at least two network 

carriers, Rochester’s service deficiency is 

clear. Only Duluth has fewer seats per 

capita and both Duluth and Rochester 

rank well below the rest of the group. 

Unfortunately Rochester does little better in a comparison of current average domestic fares 

with the same group of Upper Midwest cities with service from at least two network carriers.

It must also be emphasized that this 

fare comparison is not one of 

apples to apples, in the sense that 

Rochester is only 77 miles from 

Minneapolis. All the other cities 

listed are substantially, to one 

degree or another, located much 

further from any major hub airport.

Rochester’s 2011 average fare is 

$23 or 13% higher than that at 

nearby Minneapolis/St. Paul.

Rochester’s significant capacity decline and high average fare, especially in comparison to 

nearby MSP, show that the community has a clear and pressing deficiency of air service, 

especially in light of the continuing strength of the local economy.

It has already been noted that Rochester domestic traffic is significantly oriented to the east 

(page 15), with only 33% of total Rochester domestic traffic in 2011 involving destinations west of 

the Mississippi. This imbalance is caused by two factors:

 The location and orientation of RST’s two hubs with MSP being north and ORD being east.

 An even wider average fare gap between RST and MSP when only western and southern 

destinations are measured.

$187

$190

$191

$198

$198

$210

$210

$219

$270

$0 $50 $100 $150 $200 $250 $300

MSP

FSD

MLI

MSN

DSM

DLH

RST

CID

LSE

2011 AVERAGE FARE

MSA Population Seats Offered Per Capita

CID 260,575 1,194,686 4.6

DLH 279,815 389,325 1.4

DSM 580,255 2,296,405 4.0

FSD 232,433 1,115,943 4.8

LSE 134,488 324,846 2.4

MLI 381,342 1,089,332 2.9

MSN 576,467 1,799,774 3.1

MSP 3,318,346 37,097,105 11.2

RST 187,612 359,738 1.9

SEATS PER CAPITA

2011 Census Estimates and 2011 Seats Offered
Rochester, Minnesota International Airport • Small Community Air Service Development Grant Proposal • June 2012 19

Rochester’s fare gap with MSP when only western and southern destinations are considered is 

even more pronounced than the overall gap between the two airports.

Average Fare to 50 Western Destinations: MSP vs RST

The graph at right measures the MSP vs. 

RST average fare to 50 cities west and 

south of Rochester for years 2007 to 2011. 

The 50 cities are all west of the Mississippi,

but exclude any in Iowa, Nebraska or the 

Dakotas.

The fare gap has widened from $19 and 

12% in 2007 to $34 and 19% in 2011.

One element of Rochester’s traffic decline 

is increased leakage to MSP due to the 

average fare gap. That gap is even more

of an issue when destinations to the west 

and south are considered.

Rochester’s Air Service Needs – Rochester has seen a dramatic decline in network carrier 

capacity in the past five years. The average fare gap with MSP has widened in that timeframe 

as well, especially when destinations to the west and south are considered.

Rochester needs an injection of additional airline capacity and an additional destination airport. 

The current situation is reaching a critical stage. Capacity reductions and a widening average 

fare gap vs. MSP create more traffic leakage to MSP. More leakage to MSP reduces RST 

enplanements, which in turn has caused more Delta and American capacity reductions. It is a 

negative cycle and threatens to become a death spiral that leads to first one, then perhaps 

even the other of the incumbent carriers dropping all service.

That outcome is unacceptable to the Rochester International Airport, the City of Rochester, the 

key economic drivers of the Mayo Clinic and IBM, the surrounding communities and the citizens 

of the Rochester area. Effective and competitively priced air transportation is essential to the 

community’s and regions overall economic health. The Airport and the communities that rely on 

it are determined to recruit additional air service to reverse the current declines.

$182

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$197

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$163

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$149

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$130

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$150

$160

$170

$180

$190

$200

$210

$220

2007 2008 2009 2010 2011

Average Fare

RST AVG FARE MSP AVG FARE
Rochester, Minnesota International Airport • Small Community Air Service Development Grant Proposal • June 2012 20

ROCHESTER’S STRATEGIC PLAN FOR NEW AIR SERVICE

The Rochester International Airport, with the support of its public and private partners, intends to 

reverse the alarming declines in local air service capacity and traffic. The Airport intends to 

recruit new air service to a new destination while continuing to work with incumbent carriers to 

reverse traffic declines on existing routes.

Proposed New Route – The Airport has identified that new service that would be most 

complementary to existing MSP and ORD hub routes would be to the west or south. The number 

one target new destination is Denver, where both Frontier and United Airlines have connecting 

hub operations. Other potential new destinations that would be consistent with Rochester’s 

goals are Dallas/Fort Worth, where American has a large connecting hub, Atlanta, where Delta 

Air Lines has a large connecting hub and Phoenix, where US Airways has a connecting hub.

Of the four potential target new destinations, Denver is the closest to Rochester, which does aid 

new route cost metrics. From Rochester, Denver provides efficient connections to the entire 

western half of the nation, from the Great Plains to the Pacific Coast.

Frontier Airlines has written a letter of support for this Grant application. That carrier and Denver 

service will be the primary target of this application. The other route/carrier options outlined 

above will be discussed in the Alternative Plan section of this application.

The Rochester International Airport and its community and private sector partners propose to 

use a combination of local, non-airport funding ($200,000), airport marketing funding ($25,000) 

and a DOT Small Community Air Service Development Grant in the amount of $500,000, plus 

various airport related new service fee waivers, to support new Frontier service to Denver.

Frontier is an evolving airline. The airline has just completed the combining of Frontier and 

Midwest Airlines and is in the process of an ownership change, with Republic Airways planning a

spin-off of Frontier from the Republic family. Frontier’s evolution does not stop there. The carrier is 

changing its product offering, route structure and service frequency model. The carrier already 

has low costs compared to its peers; it is now seeking to emulate Spirit Airlines and move into the 

Ultra Low Cost category of carrier. The bulk of carrier operations are concentrated at Denver, 

where a traditional hub/spoke operating system is deployed.
Rochester, Minnesota International Airport • Small Community Air Service Development Grant Proposal • June 2012 21

Another element of the carrier’s evolution is the deployment from the Denver hub of 99- to 

136-seat aircraft in single frequency service from small- and medium-sized cities nationwide.

It is this aspect of Frontier’s business model that fits 

perfectly with Rochester’s goal of stopping traffic leakage 

by introducing a new route and new capacity into the 

market. Frontier has introduced this single frequency 99- to 

136-seat service model to at least 18 cities since 2010.

Note that of the eleven new routes of this type introduced 

in 2010 or 2011, six have seen frequency increases as of 

this writing, some to double daily service status (gold 

highlight).

Of the 18 new markets listed, eight are markets wherein 

the Frontier service is the first nonstop service to Denver. 

Another, Provo, Utah, (PVU) was a market without any air 

service prior to Frontier and Denver.

While only preliminary year over 

year DOT traffic and average 

fare data is available on many of 

the markets and none is available 

on those introduced in late 2011 

or in 2012, data that is available 

for markets east of Denver, that 

are similar to Rochester, is 

illuminating.

Knoxville and Newport News are 

two markets where Frontier 

service is the first Denver nonstop. 

Des Moines, Madison and Sioux 

Falls are near Rochester but had 

United Denver service.

Year Market Initial Current

BKG - DEN 4 X 7 X

DSM - DEN 7 X 14 X

GRR - DEN 7X 7 X

MSN - DEN 7X 7X

PHF - DEN 4 X 7 X

SBA - DEN 7 X 14 X

FSD - DEN 6 X 7 X

LIT - DEN 4 X 7 X

PVU - DEN 4 X 7 X

RFD - DEN 4 X 4 X

TYS - DEN 4 X 4 X

BIS - DEN 5 X

BLI - DEN 7 X

BMI - DEN 4 X

CID - DEN 4 X

GTF - DEN 4 X

MDT - DEN 3 X

Weekly Frequency

2010

2011

2012

FRONTIER SINGLE FREQUENCY MARKETS 

Market Metric 2010 Q3/4 2011 Q3/4 Change 2010 Q3/4 2011 Q3/4 Change

O&D 11,110 29,000 161.0% 90,410 115,150 27.4%

Fare $271 $163 -39.9% $228 $205 -10.1%

Market Metric 2009 Q3/4 2010 Q3/4 Change 2009 Q3/4 2010 Q3/4 Change

O&D 7,380 21,180 187.0% 35,120 48,450 38.0%

Fare $154 $149 -3.2% $223 $216 -3.1%

Market Metric 2010 Q1/2 2011 Q1/2 Change 2010 Q1/2 2011 Q1/2 Change

O&D 21,630 30,320 40.2% 173,110 172,560 -0.3%

Fare $193 $180 -6.7% $158 $177 12.0%

Market Metric 2009 Q3/4 2010 Q3/4 Change 2009 Q3/4 2010 Q3/4 Change

O&D 19,000 31,160 64.0% 138,850 139,870 0.7%

Fare $203 $164 -19.2% $163 $181 11.0%

Market Metric 2010 Q3/4 2011 Q3/4 Change 2010 Q3/4 2011 Q3/4 Change

O&D 16,200 33,700 108.0% 63,780 93,680 46.9%

Fare $180 $120 -33.3% $188 $162 -13.8%

Denver Local Connect Flow Beyond Denver 

MSN

Denver Local Connect Flow Beyond Denver 

FSD

PHF

New markets where Frontier service is the first and only nonstop

New markets where Frontier service competes with United

Denver Local Connect Flow Beyond Denver 

DSM

Denver Local Connect Flow Beyond Denver 

TYS

THE FRONTIER EFFECT: STIMULATION EXAMPLES

Denver Local Connect Flow Beyond Denver 
Rochester, Minnesota International Airport • Small Community Air Service Development Grant Proposal • June 2012 22

The traffic stimulation rates and average fare reductions are impressive, most particularly in the 

Denver local market for all markets and in the connect market for Knoxville and Newport News 

where Denver is a new connecting hub with all the associated positive impacts on traveler 

options.

Frontier single frequency schedules for these various new markets range from 4 times a week to 7 

times a week, at start, and consist of midday turn timing or RON timing patterns.

For purposes of this analysis, a six-day-a-week RON 

timing pattern will be used for a Frontier E-190 to 

operate Rochester – Denver. This is a pattern the 

carrier is currently using in Sioux Falls (FSD).

This schedule will generate online connections to the entire Frontier system and that of code 

sharing partner Great Lakes in the intermountain and far west regions. 

Origin Destination Leave Arrive

RST DEN 6:30 7:36

DEN RST 19:30 22:36

RST - DEN SCHEDULE FOR FORECAST
Rochester, Minnesota International Airport • Small Community Air Service Development Grant Proposal • June 2012 23

This service pattern will generate 

612 annual segments and 60,588 

new seats at Rochester on 

1,193.4 block hours of flying.

For purposes of forecasting traffic results

from Frontier service, the Rochester 

catchment area is assumed to include 

La Crosse, WI, and Mason City, IA. Both 

cities are just a little over one hour’s 

freeway drive from RST. La Crosse fares 

are higher than at RST and the service 

pattern is similar: Delta to MSP and 

American to ORD. Mason City has lost its 

network service and now has high fare 

Great Lakes turboprop service.

The forecast summary at left assumes 

stimulation rates in line with what Frontier 

has achieved in other single frequency 

examples shown.

Results are for year 2013 with Frontier 

service assumed to be in operation 

during that year. The numbers at left 

imply an 81.9% load factor for Frontier at 

the assumed stimulation and share 

rates.

Gauging incumbent carrier reaction to a new carrier and new service at Rochester is difficult. In 

this instance American has little at stake, as their existing pattern of service is east to ORD and 

the bulk of their RST market capture is in that direction. Delta carries the bulk of RST’s current west 

and southwest bound flows; however the carrier already competes with Frontier, and Sun 

Country and Southwest, at MSP in many west and southwest city pairs. At Sioux Falls (2011) and 

Bismarck (2012) incumbent carrier reaction to Frontier single frequency service has been muted.

Distance Segments Blk Time Blk Hours Seats ASM

686 612 1.95 1,193.4 60,588 41,563,368

12 segments per week x 52 weeks x 98% on a 99-seat E-190

FRONTIER ANNUAL OPERATIONS STATISTICS: RST DEN

Year O&D PDEW AVG FARE F9 Share F9 Traffic

2007 14,170 19.4 $139

2008 11,070 15.2 $191

2009 9,160 12.5 $161

2010 10,990 15.1 $165

2011 11,810 16.2 $178

Stim 400% 0.0

2013 w F9 47,240 64.7 $120 50% 23,620

Year O&D PDEW AVG FARE F9 Share F9 Traffic

2007 156,590 214.5 $187

2008 160,380 219.7 $198

2009 134,940 184.8 $178

2010 112,730 154.4 $219

2011 96,510 132.2 $241

Stim 133% 0.0

2013 w F9 128,358 175.8 $180 20% 25,672

Year O&D PDEW AVG FARE F9 Share F9 Traffic

2007 2,640 3.6 $245

2008 2,860 3.9 $251

2009 2,650 3.6 $252

2010 2,010 2.8 $284

2011 2,900 4.0 $258

Stim 110% 0.0

2013 w F9 3,190 4.4 $200 10% 319

49,611

60,588

81.9%

Frontier Annual Seats

Estimated Frontier Load Factor

RST AREA - DEN LOCAL MARKET

RST AREA - DEN DOMESTIC FLOW TRAFFIC

RST AREA - DEN INTERNATIONAL FLOW TRAFFIC

Total Annual Frontier traffic
Rochester, Minnesota International Airport • Small Community Air Service Development Grant Proposal • June 2012 24

Funding Plan – The City of Rochester Economic Development Fund will provide the $200,000 in 

local non airport Grant matching funds. The Airport will contribute $25,000 in marketing funds

outside of its normal marketing budget for 2013. The total Grant cash fund will then be $725,000, 

with 69% being from the DOT and 31% from the Rochester Air Service Fund and the Rochester 

International Airport. The Airport will also offer to the 

new carrier or new service its standard incentive 

package, which consists of $50,000 in dedicated 

marketing funding and a six-month waiver of airport 

fees. Since this is our standard incentive package 

we were not clear if we can count it as a matching fund. Should the Department deem it 

matching funds it would be added to the total Grant funding. Should additional local nonairport funding be needed to support new air service after Grant funding was over, the Air 

Service fund and local concerned parties from the Public/Private Partnership would provide 

those funds as appropriate. Prior to detailed discussion with the carrier the precise allocation of 

Grant funding between risk abatement and marketing is unknown. At a minimum, the $25,000 in 

grant funding provided by the Airport, combined with the $50,000 in standard first year 

marketing funds would provide a total of $75,000 in marketing money even if the carrier asked 

for a $700,000 risk abatement allocation. 

Implementation Timeline – The Rochester 

International Airport anticipates that new air 

service supported by the Grant can begin in 

2013. The following timeline is based on an 

assumption that the Department will issue its 

Grant awards in August and that Frontier, or 

an alternative carrier, would be able to start 

service promptly. The fickle nature of the 

airline industry can undo the best timeline 

plan. The bulk of this timeline would shift 

according when a carrier could commit to 

start service and actually start that service. For example, Frontier is interested in our market and 

the single frequency service concept is a proven and important element in the carrier’s business 

plan. At the same time, Frontier is being spun off by its owner, Republic Airlines, and the ultimate 

outcome of that spin-off is unknown. For that reason we request that any Grant award be for 

three years, in the event that carrier commitment takes longer than anticipated.

Source Amount Percent Total

DOT $500,000 69.0%

Rochester Air Service Fund $200,000 27.6%

RST Airport $25,000 3.4%

Total $725,000 100.0%

ROCHESTER SCASD GRANT FUNDING PLAN Event Projected Date

SCASD Grant Award August, 2012

Grant Agreement with DOT September, 2012

Meet with Target Airlines October, 2012

Conclude MRG New Service Agreement November, 2012

Submit First Grant Status Report to DOT December, 2012

Announce New Service starting March, 2013 December, 2012

Develop Detailed New Service Marketing Plan December, 2012

Begin New Route Marketing January, 2013

New Service Inaugural March, 2013

Second Grant Status Report to DOT March, 2013

Monitor Advance Bookings; Adjust Marketing 

as needed April, 2013

Monitor New Route Performance Balance of 2013

Submit Quarterly Grant Status Reports to DOT Balance of 2013

Close Grant 2014

February, 2013 Host Carrier Representatives; Community and 

Business Leader Meetings

ROCHESTER, MINNESOTA SCASD IMPLEMENTATION TIMELINE
Rochester, Minnesota International Airport • Small Community Air Service Development Grant Proposal • June 2012 25

Alternative Plans – Should Frontier, for any reason, be unwilling or unable to ultimately begin 

Rochester – Denver service in a prompt manner, the Airport has alternative plans for use of the 

Grant to bring critically needed new air service to Rochester. As noted on page 20, Rochester 

has identified three alternative options for bringing needed new air service to the community.

AMREICAN EAGLE SERVICE RST - DFW

American Airlines Service to 

Dallas/Fort Worth –

American has provided 

Rochester – Chicago 

service for more than two 

decades. The carrier is 

currently in restructuring 

and its American Eagle 

fleet is part of that 

restructuring. The carrier is 

not in a position to make 

any commitments 

regarding growth in the 

Rochester market during its 

restructuring. The carrier 

intends to emerge from Chapter 11 in 2013 and has bold plans to redevelop its Eagle operation, 

with lower costs and a broader array of more cost effective regional jet service options. DFW is 

American’s largest hub and will 

remain so after reorganization. 

American will continue to grow 

the DFW hub, especially in 2013 

and beyond, with new regional 

fleet cost metrics. Most 

Midwestern region American markets are linked to both the Chicago and Dallas hubs. It is

logical and consistent with American’s market strategies to see the potential for Rochester to 

gain DFW service, complementing ORD service, after American completes its reorganization 

and begins to again grow its domestic network. While space does not permit a full and detailed 

discussion of the potential for American service to DFW, in this example of RST – DFW service, a 

single daily regional jet service has only to capture 27% of existing potential traffic, not 

considering traffic stimulation, to achieve an 80% load factor.

Segments Seats

Distance Service at 98% at 50/Flt Blk Time Blk Hours

Operational Summary 798 1 Trip RJ 715 35,750 2.33 1,666.0

Traffic Potential O&D 2011 PDEW Avg Fare

Local Traffic 5,370 7.4 $208

Domestic Flow Traffic 85,620 117.3 $218

International Flow Traffic 16,280 22.3 $721

Total 107,270 146.9 $294

AMERICAN EAGLE SERVICE: RST - DFW

This proposed service would 

have to capture 27% of Traffic 

Potential (28,600 O&D) to 

achieve an 80% load factor.
Rochester, Minnesota International Airport • Small Community Air Service Development Grant Proposal • June 2012 26

Delta Air Lines Service to Atlanta – Delta’s Atlanta hub is the largest in the world, with 1,005 peak 

day departures to 208 domestic and international destinations. The Atlanta hub offers 

unmatched Delta network connections to every continent and a blanket of destinations in the 

Southeast and Atlantic 

seaboard region.

In this example of RST – ATL 

service a single daily large 

regional jet service would 

need to capture 42% of the 

existing traffic, not considering stimulation, to achieve an 80% load factor.

US Airways Service to Phoenix – US Airways operates a connecting hub at Phoenix with 274 daily 

departures to 77 domestic and international destinations. While Phoenix may not seem, on the 

surface, to be an optimal hub for Rochester, three nuances suggest that it could be one.

Segments Seats

Distance Service at 98% at 76/Flt Blk Time Blk Hours

Operational Summary 831 1 Trip RJ 715 54,340 2.5 1,787.5

Traffic Potential O&D 2011 PDEW Avg Fare

Local Traffic 4,720 6.5 $219

Domestic Flow Traffic 80,540 110.3 $224

International Flow Traffic 17,941 24.6 $719

Total 103,201 141.4 $310

DELTA CONNECTION RST - ATL

This proposed service would 

have to capture 42% of Traffic 

Potential (43,472 O&D) to 

achieve an 80% load factor.
Rochester, Minnesota International Airport • Small Community Air Service Development Grant Proposal • June 2012 27

 The Mayo Clinic has a major satellite facility in Mesa, Arizona, with great demand for 

business travel between Rochester and Mesa. This demand currently leaks by car to MSP.

 The Mayo Clinic is committed to a major growth strategy for its facilities and services in 

Mexico and Central America, and the PHX hub can meet related traffic demand.

 US Airways has interest in a merger with American. There is much speculation that such a 

merger is a possible outcome of American’s reorganization. Such a merger would mean 

the combined carrier is 

simply “connecting the 

dots” with RST – PHX 

service.

Segments Seats

Distance Service at 98% at 67/Flt Blk Time Blk Hours

Operational Summary 1,274 1 Trip RJ 715 47,905 3.25 2,323.8

Traffic Potential O&D 2011 PDEW Avg Fare

Local Traffic 7,510 10.3 $182

Domestic Flow Traffic 43,680 59.8 $224

International Flow Traffic 14,580 20.0 $641

Total 65,770 90.1 $312

This proposed service would 

have to capture 58% of Traffic 

Potential (38,324 O&D) to 

achieve an 80% load factor.

US AIRWAYS RST - PHX
Rochester, Minnesota International Airport • Small Community Air Service Development Grant Proposal • June 2012 28

ROCHESTER’S PUBLIC PRIVATE PARTNERSHIP AND LEGAL SPONSER

The Rochester Airport Company operates the Rochester International Airport under a contract 

with the city of Rochester. The Airport Company works closely with all interested parties and 

stakeholders to ensure the entire community, both public and private, is engaged on the critical 

matter of the preservation and growth of local air service.

Rochester’s Public Private Partnership – Rochester’s public/private partnership for Air Service 

draws members from a wide cross section of the community. The Partnership receives regular 

communication from the Airport Company on air service matters. If Rochester is awarded a 

SCASD grant these partners will play an active role in assisting the airport in community wide 

communication regarding grant supported 

new air service. 

Among Partnership members from the public 

sector, the City of Rochester has taken a very 

active role in airport affairs via oversight of its 

contract with the Rochester Airport Company 

for operation of the airport. Olmsted County 

officials have no direct responsibilities related to the Airport and therefore take a less active role 

in its oversight. The Rochester International Airport’s interest in local air service is self evident.

Among Partnership members from the private sector; The Mayo Clinic and IBM considers local

air service absolutely essential to the mobility of its personnel to support its global operations. 

Mayo also depends on local air service for the movement of patients and their caregivers. The 

Area Chamber’s mission statement says that it will represent local business on economic and 

government issues. The mission of the RCVB is to foster a public/private partnership to promote 

Rochester. The RAEDI’s mission is to promote area economic development and effective local 

air service is essential to the success of that mission.

Legal Sponsor – The Rochester International 

Airport is the legal sponsor of this Grant 

application and will assume the role of 

administration and oversight for a Grant.

ROCHESTER INTERNATIONAL AIRPORT

Mr. Steven W. Leqve, Airport Director

7600 Helgerson Drive SW

Rochester, Minnesota 55902 

507-282-2328 sleqve@flyrst.com

RST AIRPORT PUBLIC PRIVATE PARTNERSHIP FOR AIR SERVICE

Government

Rochester International Airport

City of Rochester

Olmsted County

Private Sector

The Mayo Clinic

IBM, Rochester

Rochester Area Chamber of Commerce

The Rochester Area Economic Development, Inc. (RAEDI) 

Rochester Area Conventions and Visitors Bureau
Rochester, Minnesota International Airport • Small Community Air Service Development Grant Proposal • June 2012 29

SUMMARY

Rochester, Minnesota, is a city of great institutions, like the Mayo Clinic, and great businesses, like 

IBM. It has a strong economy and its Airport is convenient to a large area of southeastern 

Minnesota and northeastern Iowa. Despite its great medical and business infrastructure, local air 

service is in serious decline; capacity and traffic are down 32% since 2007.

The Airport and its community partners are determined to reverse the serious decline in traffic. To 

do nothing is to likely watch while local air service continues to decline until one of the two 

remaining carrier’s leaves, with the other one potentially right behind it. A tipping point where 

service and traffic declines accelerate may not be that far off.

This is an unacceptable outcome for Rochester. The world renowned Mayo Clinic, 

headquartered in Rochester and the largest employer in Minnesota, needs local air service to 

both move its personnel around the nation and the globe and to be able to offer the best 

possible experience to the hundreds of thousands of visiting patients and their loved ones and 

supporters who come to Rochester for the best medical care in the world. Many of these 

patients come from great distances domestically and throughout the world.

The Rochester International Airport and its public and private sector supporters are determined 

to recruit new air service to Rochester. A critical mass of local air service is essential to support 

the travel needs of the community and region.

This Grant application is a key step in the effort to draw new air service to Rochester. The 

business case outlined herein for Denver, and alternatively, but in less detail, for Atlanta, Dallas or 

Phoenix, demonstrates that Rochester has a good business case for new air service. However, 

Rochester must also deal with being in the shadow of Minneapolis and it is this shadow that 

causes potential new entrant carriers, or expansion by incumbents, to not make the risk-reward 

cut with prospective airlines.

Rochester has seen the pain of air service loss that has occurred in Toledo, Ohio, in a 

geographic situation similar to that of Rochester. We also note that last year the Department 

awarded Toledo a Grant for purposes similar to what this application has outlined. We believe 

our case of Grant funding is at least as strong, if not stronger, than that of Toledo. We urge the 

Department to award the Grant funding proposed in this application.
Rochester, Minnesota International Airport • Small Community Air Service Development Grant Proposal • June 2012 30