APPLICATION UNDER THE SMALL COMMUNITY AIR 

SERVICE DEVELOPMENT PROGRAM, 

DOCKET OST-2012-0069 – COVER PAGE

Legal Sponsor and Airport Information:

Corpus Christi International Airport

DUNS: 782001259

Tax Identification Number: 74-6000574

Congressional District Code: 27

June 2012
Corpus Christi International Airport

Department of Aviation

1000 International Drive 

Corpus Christi, Texas 78406 

Tele: (361) 289-0171 

Fernando (Fred) Segundo

Director of Aviation (361) 289-0171, #1213

freds@cctexas.com

City of Corpus Christi Economic Development Office

Director - Irma Caballero

(361) 826-3850 

IrmaCa@cctexas.com

Legal Sponsor, Community and Contact Information

2

Small Community Air Service Development Program DOT-OST-2012-0069 
 The Corpus Christi catchment area is about 624,000 people within a 60 minute drive of CRP, but 

the airport only enplanes approximately 319,000 passengers annually.

 Since 1996, while U.S. traffic has climbed 26%, CRP’s enplaned passenger volume has declined 

21%. Likewise, CRP’s departing seat volume declined 31% since 1996, while U.S. capacity has 

increased 20%.

 The result has been that CRP’s average fare paid since 1996 has increased over 100%, while the 

U.S. average fare paid has risen less than 20% - a more than 5-fold faster rate of growth. For CY 

2011, the U.S. average round trip paid air fare was $364, while CRP’s was $462 (27% greater).

 Currently, only 57% of passengers booked from the Corpus Christi area originate air travel from 

CRP; the other 43% primarily utilize SAT or IAH/HOU. 

 With funds made available through the Small Community Air Service Development program, CRP 

will more aggressively market the airport in an effort to reduce current “leakage” rate. We 

would also use funds as part of a broader package to help recruit new air service.

 Corpus Christi has the support of a citizen-based public-private partnership that is dedicated to 

bringing the benefits of quality air service to their community.

Executive Summary

3

Small Community Air Service Development Program DOT-OST-2012-0069 
Air Service Initiatives

 2009: Meetings with Southwest & Allegiant Airlines

 2010: Presentations & meetings with: Aeromar Airlines, Volaris Airlines, Delta Air 

Lines & Allegiant Airlines

 2011: Meetings with: Allegiant, United, Sun Country Airlines & Southwest Airlines 

 2011: CRP aggressively marketed community support of air service through radio 

campaign. Leveraged a 3 month radio buy, got twice the spots by working a trade 

deal for radio company advertising in airport terminal. 

 2012: CRP worked to reach out to more customers via social media advertising. 

Increased our reach on facebook by 40%. Direct avenue for marketing messages.

 2011-2012: CRP worked to reach target audience/customers by advertising in 

Convention and Visitor publications and local magazines. 

 2012: CRP launched a new website that encourages use of service and customer 

feedback.

 2011-2012: CRP made presentations to business and civic groups encouraging use 

of existing air service from hometown airport.

4

Small Community Air Service Development Program DOT-OST-2012-0069 
CRP Service Profile: About 20 daily departures and 

about 1,360 daily seats

Source: U.S.D.O.T.Report T-100 for CY 2011

Daily

Carrier Hub Departs Seats

Load Factor 

(YE1Q09)

Southwest 

(WN)

Houston Hobby 

(HOU) 4.4 593 51%

American 

(AA)

Dallas/ Fort Worth 

(DFW) 7.4 339 73%

United

(UA)

Houston Bush 

(IAH) 8.7 430 74%

TOTAL 20.3 1362 66%

5

Small Community Air Service Development Program DOT-OST-2012-0069 
CRP Top 20 O&D Markets

• O&D = True Origin-Destination 

Market

• Largest O&D markets are typically 

nonstop markets

• Dallas LUV: Significant demand on 

1-stop basis

• Las Vegas: Good demand without 

nonstop service

6

Small Community Air Service Development Program DOT-OST-2012-0069 

Rank Market Pax Fare Revenue

1 DFW 29,257 $137 $4,021,376

2 DAL 24,632 $130 $3,192,624

3 HOU 23,056 $118 $2,718,622

4 IAH 16,454 $159 $2,612,833

5 LAS 10,205 $193 $1,968,182

6 MSY 8,170 $205 $1,672,425

7 DEN 6,666 $197 $1,312,730

8 LAX 6,497 $245 $1,591,461

9 MCO 5,520 $207 $1,141,198

10 DCA 4,840 $223 $1,078,304

11 SAN 4,766 $242 $1,154,430

12 ORD 4,628 $211 $976,230

13 BWI 4,070 $217 $882,092

14 STL 3,972 $186 $739,726

15 PHX 3,957 $216 $854,882

16 OKC 3,885 $185 $719,127

17 MCI 3,864 $188 $724,958

18 TUL 3,644 $200 $730,224

19 LGA 3,629 $263 $955,767

20 PHL 3,596 $257 $923,698

Annual, One-Way
CRP passenger volume growth has badly lagged the 

U.S.’ rate of growth

Source: U.S.D.O.T.10% Coupon Sample 

7 

Small Community Air Service Development Program DOT-OST-2012-0069 

-

160% 

140% 

120% 

100% 

80% 

60% 

0 ('I "'¢ 

0' 0' 0' 

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Passenger Growth 

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- CRP- US 

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Meanwhile, CRP capacity has lagged U.S

Source: U.S.D.O.T. T-100 Report

8 

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... and CRP air fares have risen 5 times faster than 

for U.S.

80%

100%

120%

140%

160%

180%

200%

220%

1990199119921993199419951996199719981999200020012002200320042005200620072008200920102011

Air Fares: CRP vs. U.S. Indexed to 1990

US CRP

Source: U.S.D.O.T.10% Coupon Sample 

9

Small Community Air Service Development Program DOT-OST-2012-0069 
Corpus Christi Area – Population base of about 

624,000 people in total catchment 

• Catchment Area: Where demand for 

air service originates

• About 447,000 people in core area

• About 624,000 people in total 

catchment

10

Small Community Air Service Development Program DOT-OST-2012-0069 
CRP Retention by City

City

Share of Catchment 

Bookings Corpus Christi San Antonio

Houston 

Bush

Houston

Hobby Victoria Total

Corpus Christi 79% 69% 23% 6% 2% 0% 100%

Victoria 14% 1% 17% 78% 0% 4% 100%

Port O Connor 3% 1% 8% 52% 6% 32% 100%

Kingsville 3% 82% 15% 3% 1% 0% 100%

Beeville 1% 16% 55% 29% 0% 0% 100%

Total 100% 57% 22% 18% 2% 2% 100%

• The City of Corpus Christi generated 79% of bookings from its catchment area; 69% 

flew out of Corpus Christi and 23% from San Antonio.

o Biggest “leakage” to West Coast markets

o Fare differential/Better service at San Antonio

11

Small Community Air Service Development Program DOT-OST-2012-0069 
Booked Market Sizes: Westbound Destinations

• Las Vegas generates 19,378 annual one-way passengers in booked demand. This is 

more than many markets with nonstop service

• Los Angeles: Currently 7,191 annual one-way passengers and 12,615 booked demand

Rank Market 

Corpus Christi Usage 

(Annual OW) 

Corpus Christi

Retention 

"Leaked“ 

Annual OW

Booked Market 

(Annual OW) 

1 Las Vegas 10,658 55% 8,720 19,378

2 Los Angeles 7,191 57% 5,424 12,615

3 Denver 7,921 73% 2,930 10,850

4 San Diego 5,767 71% 2,356 8,123

5 Seattle 3,322 31% 7,393 10,715

6 Phoenix 5,037 68% 2,370 7,407

7 El Paso 3,212 71% 1,312 4,524

8 Honolulu 1,168 38% 1,906 3,074

9 Albuquerque 3,358 64% 1,889 5,247

10 Oakland 2,555 48% 2,768 5,323

12

Small Community Air Service Development Program DOT-OST-2012-0069 
Average Air Fares (and relative service) explains 

CRP “leakage” to SAT

Market CRP SAT % Difference

LAS $193 $148 30%

LAX $245 $187 31%

SAN $242 $159 38%

SFO $280 $203 52%

PHX $216 $156 38%

Average One-way Fare Comparison: CRP vs. SAT

Source: U.S.D.O.T.10% Coupon Sample for CY 2011 

13

Small Community Air Service Development Program DOT-OST-2012-0069 
PROJECT PROPOSAL

The objective of CRP’s project proposal is to reduce the costs of prospective carriers, lowering 

the barriers to entry by sharing in the financial risk or initiating service to Corpus Christi 

International Airport 
 Hassle Free Theme was introduced in late 2011. This theme was used 

to illustrate CRP’s advantages

 No more long commutes to another airport and back home after you land 

 Convenient Parking and cost savings associated with CRP over other airports 

 Competitive fares when all factors of travel were calculated

 Supporting your local airport instead of someone else’s

 Paid Media includes a mix of regional radio and print plus social media, 

Website, Community Marketing through business and civic groups.

 We estimate that it will take a much more aggressive marketing effort 

to turn around CRP’s “leakage” problem. 

 CRP has a very limited budget for advertising. 

Overview of current Marketing

15

Small Community Air Service Development Program DOT-OST-2012-0069 
Project Goal

 Our goal for this two year Grant Program is to increase passenger use 

retention at CRP from 43 percent to 50 percent. The increase in 

passenger demand will ensure the current service is self-sustaining and 

will also be a catalyst for additional flights, larger aircraft and new 

destinations.

 To achieve this increase in traffic, four distinct types of marketing and 

advertising will be undertaken to help create a change in attitude with 

the population within the catchment area. This is one of the cornerstones 

outlined in the recently released FAA publication Marketing Guidebook for 

Small Airports.

16

Small Community Air Service Development Program DOT-OST-2012-0069 
 Traditional Media

 Website/Social Media/Web Advertising

 Community Marketing

 Passenger Loyalty/Reward Program

Proposal/Plan Overview

17

Small Community Air Service Development Program DOT-OST-2009-0149 
 TV and Radio spots will constantly drive home the benefits of using CRP. Each ad 

will emphasize particular benefits unique to the airport. Will push convenient 

parking, no long drives or long lines, free WI-FI and great connections from DFW 

and Houston airports. The tagline, FLYCorpusChristi – Your Airport, Your Choice is 

designed to generate loyalty at home. 

 Newspaper Ads will be used in Catchment areas within the region where leakage is 

most pronounced.

 Billboard advertising is the in-your-face, single quick message to the traveler. If 

correctly designed, it hits everyone traveling by the boards. A combination of 

locations will be used. Proposing 3 locations/4 x during 2 year program/3 month 

duration for each.

 Magazine ads will be placed in area lifestyle magazines.

Traditional Media

18

Small Community Air Service Development Program DOT-OST-2012-0069 
Web Site/Social Media/Web Advertising

 CRP will build on its’ new airport web design and user applications to reach customers in 

catchment communities. The web site Trip Calculator on the Home Page shows the actual costs of 

traveling when you choose to drive to far away airports. Publicizing this element and providing 

customers with updated information will strengthen airport position with customers.

 Some additional options for the website: low cost fare widgets for advertising on other websites, 

social media integration and email notification for low cost fares, social media advertising that 

sends customers to airport website for a chance to win airline gift cards. 

 Radio and TV advertising will include a push to the website so that customers have a direct avenue 

to CRP.

 The use of Social Media and social media advertising will help CRP continue to grow the market 

that we can directly communicate with. We plan to add video to our web and social media 

precense . The grant budget will allow CRP to extend our reach with positive messages about 

service and convenience at the airport. 

 Additionally, paid advertising on travel websites will help increase awareness and drive more traffic 

to the website, which should generate more flight bookings.

Small Community Air Service Development Program DOT-OST-2012-0069 

19
Community Marketing

20

Small Community Air Service Development Program DOT-OST-2012-0069 

 The Corpus Christi Chamber of Commerce, Hispanic Chamber and Black Chamber have been 

strong supporters of the airport. They will continue to support our efforts at more aggressive 

marketing of airport.

 The airport will work to get free ads in publications that promote tourism, travel and quality 

of life in the community. This will help to extend our message and make the most of the 

advertising dollars we spend.

 CRP will work with The Chambers to include airport promotional material in all of the 

Newcomer Packets for military, business relocation and general population. 

 CRP Staff will work to increase the number of presentations made to business and civic groups 

in the community, focusing on those in the catchment areas.

 The City of Corpus Christi will run the airport TV spots on its TV channel. CRP will also design 

FLYCorpusChristi messaging for inclusion in utility bills that go out to practically every 

household in the city. 
Passenger Loyalty/Reward Program

 CRP will invest grant funds in a Customer Loyalty/Reward program that is designed to 

encourage passengers to fly out of this airport. Customers will be rewarded for joining the 

program and will be entered in drawings for prizes (airline gift cards) each time they 

FlyCorpusChristi! 

 By signing up on our website at www.corpuschristiairport.com or at the designated area in the 

main terminal, each traveler will automatically be mailed Member gifts and a Customer 

Loyalty Card that can be swiped every time they travel. CRP will place a kiosk on the secured 

side of the terminal so that only flying customers can use it. This program will require 

purchases of software and a kiosk plus staff time to manage the program. There will also be 

costs associated with mailing cards, gifts and rewards.

 CRP will partner with local businesses and organizations to provide some of the gifts and 

rewards for the program. Once implemented, partners could include the airlines, local 

restaurants, retailers, tourist destinations like the Texas State Aquarium and the USS Lexington 

Museum. 

 CRP will purchase some of the membership gifts and get others from Community partners.

Small Community Air Service Development Program DOT-OST-2012-0069 

21
 To help ensure the success of marketing plan, CRP will pursue cooperative 

support from area businesses. This support will come in the form of in 

kind advertising and exposure and donations to to the Loyalty program. 

 Some of the large employers and entities that CRP will work with on this 

air service growth initiative: 

Naval Air Station-Corpus Christi Bay, Ltd.

Christus Spohn Health System Del Mar College

H.E.B. Corporation Kiewit

Corpus Christi Army Depot Corpus Christi Independent School District

Port Industries Texas A&M University – Corpus Christi

CC Convention & Visitors Bureau Corpus Christi Chamber of Commerce

CC Hispanic Chamber of Commerce CC Regional Economic Development Corp

La Palmera Mall ClearChannel Radio – Corpus Christi

Business and Community Partners

22

Small Community Air Service Development Program DOT-OST-2012-0069 
Funding Needed for 2 year Implementation

 TV Ads: 2 Campaigns each year (5 week schedule for each) $ 52,000 

 Radio: 2 Campaigns each year (3 month schedule for each) $100,000

 Billboards: 3 Locations(3 month duration for each) 4 Cycles $ 72,000

 Loyalty 

Program: Software Design & Purchase for Managing Program $ 5,000

 Kiosk for Customer Participation $ 4,000

 Website Design & Integration $ 1,000

 Purchase of Gifts for each New Member $ 10,000

 Purchase of Airline gift Cards for Drawings $ 5,000

 Postage for mailing Membership Cards & Gifts $ 5,000

 Social Media: Year Round Ad Placement facebook/other $ 24,000

 Newspaper: 5 Regional Papers-2 x each year (3 month Run each) $ 52,000

 Magazines: Local and Regional placement $ 10,000

Total: $340,000

Small Community Air Service Development Program DOT-OST-2009-0149 

23
 Radio and TV Spots to begin almost immediately upon awarding of grant. Air Time 

Schedules will be negotiated with emphasis on lead up to peak travel/booking times in 

the Fall and Spring.

 Newspaper Ads will be placed in 7 Regional papers in the Catchment areas for periods of 

time that coincide with peak travel/booking seasons. These ads will push the hassle 

free and convenience factor message.

 Billboards will be placed in 3 strategic locations immediately upon design, production 

completion to coincide with the Radio and TV campaign. Fall and Spring, 2012-2014. 

Locations to vary each time and will be strategically chosen.

 Social Media and Web ads to begin immediately following grant award. CRP will place 

emphasis on hassle free, no driving and convenience factor in ads that will be placed in 

front of unique users with a history of travel related web and search tendencies. 

Schedule constant, spread out. Less connected to peak travel/booking times.

 Loyalty/Rewards Program to be planned in August with equipment purchases and 

business partners secured in September. Anticipate a launch in October/November with 

a kick off Media Event held at the Airport. 

***Marketing program will be constantly monitored for effectiveness and tweaked as needed based on ability to 

reach the target audiences. 

Timing/Plan of proposed Marketing Program

24

Small Community Air Service Development Program DOT-OST-2012-0069 
Closing Thoughts

 Relative CRP air traffic growth has lagged comparable U.S. rates of 

growth for almost 20 years due to a lack of capacity growth and 

subsequent fare levels.

 CRP air fares have risen 5x faster than for the U.S. since 1996 and are 

currently 27% higher than the U.S. average fare paid

 Tied in part to the aforementioned lack of capacity growth, 

approximately 43% of passengers booked from Corpus Christi catchment 

area originate their travel from SAT or IAH.

 Corpus Christi is proposing an aggressive marketing program that is 

supported by the local community and is targeted to reduce Corpus 

Christi’s “leakage” issue over the next two years.

25

Small Community Air Service Development Program DOT-OST-2012-0069 
g) 

CORPUS CHRISTl 

CHAMBER OF COMMERCE 

Prosperity. Together. 

June 5, 2012 

The Honorable Ray LaH od 

Secretary, U.S. Departme t of Transportation 

400 ih St SW 

Washington, DC 20590 

Dear Secretary LaHood: 

The Corpus Christi Cham er of Commerce would like to extend support for the Corpus Christi 

International Airport's ( RP) application request for the Small Community Air Service 

Development Grant from 'he U.S. Department of Transportation. The Corpus Christi Chamber 

of Commerce believes this grant will have a significant impact on our region and state. 

There are three major airl nes providing service in and out of CRP: American, Southwest and 

United. Over the past sev ral years, the carriers have reduced capacity which has caused prices 

to rise. As a result, trave ers use San Antonio as their origin or destination airport to take 

advantage of lower fares l d direct service. If consumers continue to use other communities as 

their destination airport, it ffects the quality, quantity and price of air service. 

The Chamber understands hat if the CRP is awarded the grant, the money would be used for 

marketing the airport and c uld potentially be used to entice a low cost carrier to provide service 

out of Corpus Christi. Pric is important to customers and we depend on the air services CRP 

provides. The grant will he p our region take advantage of low-cost service and an increase of 

enplanements here at home. Because we are considered a destination community, these changes 

will support and shape the conomy of our City, and even our region, for decades. Like the US 

DOT, we believe the focus [transportation dollars must be on the people and communities who 

use the transportation syste 

Once again, the Corpus Chr sti Chamber of Commerce strongly supports the CRP grant request. 

We urge the DOT to suppo the Corpus Christi International Airports grant request and help us 

realize our full transportatio potential. 

Foster Edwards, 

President & CEO 

1501 North Chaparral Street Corpus Chris i, Texas 78401 361.881.1800 ph 361.882.4256 fax www.corpuschristichamber.org 
CORPUS CHRISTI HISPANIC CHAMBER OF COMMERCE 

A NEW WAVE OF OPPORTUNITY 

June 5, 2012 

The Honorable Ray LaHood 

Secretary, U.S. Department ofTransportation 

400 7th St SW 

Washington, DC 20590 

Dear Honorable Ray LaHood: 

The Corpus Christi Hispanic Chamber of Commerce is pleased to express our support of the Corpus 

Christi International Airport (CPR) as a recipient of the Small Community Air Service Development Grant. 

Currently, CRP has three major carriers who provide service, and is taking steps toward increased 

capacity and better serve our community. 

The grant funds would be used to market the airport, reduce the leakage to San Antonio that keeps our 

enplanement numbers down and could potentially be used to entice a low cost carrier to provide service 

out of CRP. 

The Airport's three major carriers have all reduced capacity over the past few years which have caused 

prices to increase. Although we are fortunate to have these airlines serving CRP, we need to take steps 

to encourage stakeholders to support their hometown airport. We need to better articulate the tie-in 

between quality of air service, its impact on tourism, business development and the impact on the local 

economy. We believe that an increase in enplanements is the first step in getting the airlines to increase 

capacity at CRP. Lower fares would bring more passengers which in turn would lead to lower fares and 

better service. As an airport, we would be better positioned to affect the latter. 

The Corpus Christi International Airport has been actively engaged member with the Corpus Christi 

Hispanic Chamber of Commerce in working to grow our Coastal Bend community's economy and serves 

as a vital catalyst for economic opportunity. We support all the Airport's initiatives to help grow our 

local economy and are excited by the resurgence in excitement for our local Airport. 

We look forward to working with the other partners in the CBMAS Consortium to develop the plan for 

the future growth and development of our region. 

Sincerely, 

~~ Rosie Collin, 

President/CEO 

P.O. Box 5523, Corpus Christi, Texas 78465 

Website: www.cchispanicchamber.org Phone: 361.887.7408 Fax: 361.888.9473 
tr ,~, 

I 

LA PALMERA 

C 0 II t> lJ n (; II II I S I I 

June 6, 2012 

The Honorable Ray LaHood 

Secretary, U.S. Department of Transportation 

400 ihStSW 

Washington, DC 20590 

Dear Mr. Secretary: 

As the gateway for air service to the Coastal Bend of Texas, Corpus Christi International 

Airport is an invaluable and integral part of the South Texas infrastructure providing the 

opportunity for business and leisure air travel to and from the area. 

As a super-regional mall, La Palmera is also an integral part of the Coastal Bend, 

providing a highly valued retail shopping experience. Having invested $50 million in the 

renovation of La Palmera, we are also invested in our future here in the Coastal Bend. 

Although a good number of our customers are residents within the 120-mile radius we 

serve, we, like many other local businesses also depend on those traveling in and out of 

our community, particularly those here on vacation. Tourism remains a major driver of 

the local economy and the airport is an integral part of that. 

Although we currently have three major carriers providing service to Corpus Christi, 

some travelers in the fringe areas have begun to utilize other airports such as San 

Antonio International. As a result, the number of travelers in and out of CRP is down, 

which means, among other things, that prices have gone up. In an effort to remain 

viable, CRP is pursuing a Small Community Air Service Development Grant, which 

would be utilized by CRP to market the airport and potentially entice a low cost carrier to 

the airport. 

As a member of the local business community, we fully support the CRP grant request 

and recognize its importance to the continued success of CRP and the Coastal Bend 

region of Texas as a whole. 

Sincerely, 

eu 

Fred Walters 

General Manager, La Palmera 

5488 South Padre Island Dr. I Corpus C hristi, Texas 78411 I 361.991.3755 I 361.993.5631 fax I www.lapalmera.com 
$Kiewit 

/ 

June 6, 2012 

The Honorable Ray LaHood 

Secretary, U.S. Department of Transportation 

400 1'11 St SW 

Washington, DC 20590 

Dear Mr. LaHood, 

Kiewit Offshore Services, Ltd. ("KOS") offers this letter as an expression of support for an 

application by the Corpus Clll'isti International Airport ("CRP") for a Small Community Air 

Service Development Grant that they are pursuing from the federal DOT. 

If awarded to CRP, the money would be used to appropriately market the airport in order to 

reduce the leakage to San Antonio that keeps our enplanement numbers down and could 

potentially be used to entice a low cost carrier to provide service out of CRP. 

The full potential of the Corpus Christi area with respect to tourism, business development and 

the overall economy is not being realized due, in part, to the failure of our airport to provide 

quality, reasonably-priced air services. Clearly, an increase in enplanements is the first step in 

getting the airlines to increase capacity at CRP and get us moving in the right direction. 

Thank you in advance for your consideration of this application and please know that job growth 

of this region is dependent upon support such as this. 

Roy DeBolt 

Conn·acts Manager 

KIEWIT OFFSHORE SERVICES, LTD. 

2440 Kiewit Road, Ingleside, TX 78362 

(361) 775-4300 (361) 775-4431 - fax