Proposal Under the 

Small Community Air Service 

Development Program 

Date: August 2, 2011 

Applicants: Wilkes-Barre/Scranton International Airport 

 Luzerne County, PA; Lackawanna County, PA

DUNS Number: 042623728 

+4 Number: 7531 

Employee Identification Number: 23-1736989 

Congressional Districts: 10, 11 

Contact: Barry J. Centini 

 Wilkes-Barre/Scranton International Airport 

 100 Terminal Drive, Suite 1 

 Avoca, PA 18641 

 Phone: (570) 602-2000 

 E-mail: airport@flyavp.com 

Docket #: DOT-OST-2011-0119 
Page 2 of 29 

I. EXECUTIVE SUMMARY 

The Wilkes-Barre/Scranton International Airport and the Counties of Luzerne 

and Lackawanna are submitting this application for grant funds available under 

the Small Community Air Service Development Program to address the 

deficiencies in the Airport’s air service, including high fares and an insufficient 

level of service. These deficiencies are the result of the unique characteristics 

of the air transportation system in the Greater Northeastern Pennsylvania 

region. 

Air travelers using the Wilkes-Barre/Scranton International Airport (AVP) pay 

among the highest fares of any similar sized airport around the globe. AVP has 

aggressively recruited both legacy and low cost airlines to enter its market for 

many years, but few carriers are willing to enter even AVP’s top O&D markets. 

This is in part because there are multiple airports served by low cost carriers, as 

well as legacy carriers with more flights, which surround the WilkesBarre/Scranton International Airport. As a result, AVP’s fares are not only high, 

but they are not competitive with the other airports. The lower fares and 

increased number of flights at the surrounding airports are sufficient to lure 

passengers from Wilkes-Barre/Scranton International Airport to airports more 

than 100 miles away, but these airports are not close enough to genuinely offer 

convenient service. 

The Northeastern Pennsylvania Region is a diverse economic region worthy of 

attention. Within the Wilkes-Barre/Scranton MSA, AVP serves a population of 

over 1.7 million people. The Wilkes-Barre/Scranton MSA’s population is near 

500,000 on its own. Further fueling the region’s economic growth into the next 

20 years is the massive Marcellus Shale Industry. 

The Marcellus Shale is a black shale formation extending deep underground 

from Ohio and West Virginia northeast into Pennsylvania and southern New 

York. Although the Marcellus Shale is exposed at the ground surface in some 

locations in the northern Finger Lakes area, it is as deep as 7,000 feet or more 

below the ground surface along the Pennsylvania border in the Delaware River 

valley. In Pennsylvania, the development of these historic resources, while still 

in their infant stages, is credited with supporting nearly 140,000 jobs in 2010. 

In addition, the economic activity topped $11.2 billion in 2010. This growth is 

expected to increase rapidly over the next several years, which will provide the 

Commonwealth of Pennsylvania with a steady supply of affordable, cleanburning energy. 
Page 3 of 29 

The Wilkes-Barre/Scranton International Airport (AVP) is the gateway airport to 

the heart of the Marcellus Shale Industry in northeastern Pennsylvania and the 

Commonwealth of Pennsylvania as a whole. 

 

Successful attraction of a low cost air carrier to AVP’s key markets has a track 

record of improving the cost differential in some AVP markets. However, 

successfully retaining those low cost carriers long-term has proven difficult. 

Maintaining legacy air carrier service to other AVP key markets has improved 

cost differentials in those markets. However, the number of seats on the 

legacy carriers has been steadily decreasing, which is forcing air travelers to 

travel to another airport for their air service needs. Our described program is 

designed to address these concerns. 

With this in mind, the Airport continues to provide exceptional service to the 

region, while having no control or responsibility over the main variable in air 

travel – the customer. Currently, AVP has five legacy carriers, and three of 

those are handled by one airline. While airlines have in the past been more 

prone to provide their own employees for ground handling and customer 

support positions, the last few years have put that in jeopardy as airlines 

consolidate their employees at smaller airports. 

For several years, the U.S. airline industry has been struggling to control costs. 

Controllable costs have been dropping over the last half-decade, with carriers 

using methods, such as reducing airline employee wages and the actual 

outsourcing of on-airport jobs. Many carriers are opting not to start additional 

markets without the Airport and community picking up the charges for those 

start-up costs. Also, many carriers that have service at airports are decreasing 

their flights dramatically to control costs. 

The current trend is a continued increase in the AVP passenger market leaking 

to alternative airports and a serious imbalance in Pennsylvania’s airport system. 

With no air carriers operating in some of AVP’s top O&D markets, there is a 

significant gap between the demand for service and the level of service being 

provided. Past experience in these markets has proven they can be operated 

successfully and profitably, however, current carriers at AVP have chosen not to 

seek operating to those markets from AVP. 

The results of past efforts utilizing Air Service Development funds have been 

positive. Delta Connection’s (formerly Northwest Airlink’s) nonstop Detroit 

service, which began in April 2005, continues to provide a good destination to 

business travelers, with acceptable fares. 
Page 4 of 29 

Wilkes-Barre/Scranton International Airport and its supporting communities 

have continually been engaged in marketing the airport and look forward to 

improving the air service at AVP with the additional support of the DOT Small 

Community Air Service Development Program. 

II. SERVICE DESCRIPTIONS 

A. Wilkes-Barre/Scranton International Airport’s Service Area 

Wilkes-Barre/Scranton International Airport (AVP) is a non-hub airport 

located in Northeastern Pennsylvania serving a surrounding population of 

approximately one million residents. AVP is within a two-hour drive of 

several major east coast cities including Philadelphia and New York, is 

approximately eight (8) miles from Wilkes-Barre, PA and Scranton, PA, 

and is centrally located among four (4) major interstate highways. 

 (Source – Google Maps) 

The Wilkes-Barre/Scranton/Hazleton metro-area has a population of over 

600,000. There are over one million potential air passengers within a 

one-hour drive time and just fewer than three million located within a 90-

minute drive time. 
Page 5 of 29 

 Within a One-Hour Drive Time is a Market of Over 1 Million Potential Air Passengers 

 (Source – SH&E Analysis, US Census, Maptitude) 

Wilkes-Barre/Scranton’s airport service is bound by Philadelphia 

International Airport and Lehigh Valley International Airport to the south, 

each offering substantially greater numbers of scheduled flights and often 

significantly lower fares. These two airports are approximately a 100- 

and 60-mile drive, respectively, from the Wilkes-Barre/Scranton 

International Airport. One factor of great concern to the Partnership 

submitting this application is that Southwest Airlines offers competing 

service at Philadelphia International Airport and is offering significantly 

lower fares to many of AVP’s top markets. An additional factor is that 

both AirTran/Southwest and Allegiant Air provide low fare options to 

leisure destinations at Lehigh Valley International Airport. 

To the east, John F. Kennedy International Airport, Newark Liberty 

International Airport, LaGuardia Airport and Stewart International Airport 

also compete with AVP, offering travelers numerous low fare options. As 

large hubs, John F. Kennedy International, Newark Liberty International 

and LaGuardia offer substantially more scheduled flights and direct 

service options both domestically and internationally. 

In addition, to the northwest, Allegiant Air provides low fare options to 

leisure destinations at Elmira Corning Regional Airport. 
Page 6 of 29 

B. Description of Economic Growth in Northeastern Pennsylvania 

As stated earlier, the region’s economic growth is being fueled into the 

next several decades by the massive Marcellus Shale Industry. The 

Marcellus Shale geological formation is the largest unconventional natural 

gas reserve in the world. 

Here are some recent key findings from a July 20, 2011 study from Penn 

State University: 

• During 2010, the Pennsylvania Marcellus Shale natural gas industry 

triggered $11.2 billion in economic activity, generated $1.1 billion in 

state and local taxes, and supported nearly 140,000 jobs. 

• The Pennsylvania Marcellus industry is projected to generate more 

than $12.8 billion in economic activity in 2011, leading to more than 

$1.2 billion in state and local taxes and supporting more than 156,000 

jobs. 

• As a result of Pennsylvania Marcellus production, residential electricity 

and natural gas bills across the Commonwealth are $245.1 million 

lower [$217.4 million from lower natural gas bills and another $27.7 

million from lower electricity bills]. 

• In 2010 alone, natural gas companies paid over $1.6 billion in lease 

and bonus payments to Pennsylvania landowners. 

• By 2015, Pennsylvania’s Marcellus Shale could produce more than 12 

billion cubic feet per day, second only to Texas in natural gas 

production. 

• Marcellus Shale natural gas production could reach 17 billion cubic 

feet per day in 2020, potentially allowing the Marcellus to become the 

single largest producing gas field in the United States, if real natural 

gas prices do not fall significantly. 

The Wilkes-Barre/Scranton International Airport (AVP) is the gateway 

airport to the heart of the Marcellus Shale Industry in northeastern 

Pennsylvania and the Commonwealth of Pennsylvania as a whole. 
Page 7 of 29 

Two of the sweet spots for tapping that natural gas are in Northeastern 

Pennsylvania and the Pittsburgh area. To reach the gas, drillers use a 

process called hydraulic fracturing – or fracking, for short – in which they 

shoot millions of gallons of water, laced with chemicals and sand, into the 

ground. Much of that water comes back to the surface along with the gas 

it releases. 

Companies eager to tap into the gas already have transformed large 

swaths of rural Pennsylvania, and future gas production has the potential 

to change residents’ lives for a generation or more. Marcellus shale gas 

has shifted global energy supplies, created instant wealth for some 

landholders, stimulated the state’s economy by creating jobs and raised 

environmental concerns about toxins going into the air and water. 

A problem that we are finding with the travel needs of these workers is 

the need to get across the Commonwealth of Pennsylvania. Northeastern 

Pennsylvania and the Pittsburgh area are the concentrated areas for 

drilling in the Commonwealth. To do business on both sides of the state, 

workers have to drive, rather than fly, losing valuable time in that fivehour trip, when they could fly in approximately one hour. 

As seen below, nearly 2/3 of the work being done within the Marcellus 

Shale in the Commonwealth of Pennsylvania is being performed in 

Northeastern Pennsylvania. 
Page 8 of 29 

 

 Source: Pennsylvania Department of Environmental Protection 

C. Description of Community’s Existing Air Service 

There are currently five (5) major airline networks serving the WilkesBarre/Scranton International Airport. These carriers are US Airways, 

Continental, Delta, United and American. Combined, these carriers serve 

a total of five (5) major hubs including Charlotte, Chicago, Detroit, 

Newark and Philadelphia. 

The table below indicates the type of aircraft flown by each carrier, 

equipment type, seats and frequency at AVP. It is important to note that 

all service to and from AVP is flown with either a regional jet or 

turboprop, yet O&D research and previous experience indicate that many 

AVP markets can support significantly larger aircraft such as Boeing 737 

or the Embraer 170/190 series. 

Carrier Market Code A/C Stops Daily Daily Monthly Monthly Seats/

 Type Depts Seats Depts Seats Flight 

AA Chicago ORD ERD 0 1.7 77 54 2,376 44 

CO Newark CLE DH2 0 2.6 143 120 4,440 37 

DL Detroit DTW CRJ 0 2.9 144 89 4,450 50 

UA Chicago ORD ER4 0 3.9 132 82 4,100 50 

US Charlotte CLT CR7 0 1.0 70 31 2,170 70 

US Charlotte CLT CRJ 0 0.9 47 29 1,450 50 

US Philadelphia PHL CRJ 0 4.2 211 131 6,550 50 

US Philadelphia PHL DH3 0 0.2 10 6 300 50 

US Philadelphia PHL DH8 0 1.6 61 51 1,887 37 

TOTALS 19.1 894 593 27,723 47 

Source: OAG Schedule Tapes, August 2011, via Sabre Airline Solutions 
Page 9 of 29 

The chart below shows the cities serviced by AVP’s current airlines from 

AVP. 

 Source: OAG Schedule Tapes August 2011 

AVP Primary Catchment Area Usage, Retention & Total Booked

Rank Market PDEW 

AVP 

Retention 

AVP Primary 

Leakage 

Total 

Booked 

1 ORD 28.5 59% 20.2 48.7 

2 DFW 27.7 50% 27.8 55.5 

3 LAS 25.8 40% 39.3 65.1 

4 MCO 25.8 22% 89.4 115.2 

5 TPA 19.6 35% 36.0 55.6 

6 PHX 17.2 36% 30.9 48.1 

7 LAX 16.9 39% 25.9 42.8 

8 ATL 16.6 43% 21.6 38.2 

9 DEN 14.3 44% 18.0 32.3 

10 CLT 13.0 62% 8.0 21.0 

11 FLL 11.4 17% 53.9 65.3 

12 SAN 10.7 41% 15.5 26.2 

13 SEA 10.5 40% 15.9 26.4 

14 SFO 10.2 36% 18.2 28.4 

15 RSW 10.0 31% 21.8 31.8 

16 DTW 9.9 61% 6.3 16.2 

17 IAH 9.8 33% 19.6 29.4 

18 STL 9.7 72% 3.8 13.5 

19 MSP 9.2 44% 11.8 21.0 

20 BNA 9.0 45% 11.2 20.2 

21 MCI 8.7 57% 6.5 15.2 

22 PBI 8.6 31% 19.0 27.6 

23 MSY 7.7 51% 7.4 15.1 

24 IND 7.5 64% 4.2 11.7 

25 JAX 7.5 39% 11.7 19.2 

26 CVG 7.2 32% 15.5 22.7 

27 SAT 7.0 44% 9.0 16.0 

28 MIA 7.0 22% 24.5 31.5 

29 SNA 6.8 54% 5.9 12.7 

30 AUS 6.1 31% 13.6 19.7 

 Subtotal 380.0 35% 712.5 1,092.5 

 Other 220.3 31% 498.9 720.0 

 Total 600.3 33% 1,211.4 1,812.5 

 Source: Adjusted SABRE MIDT and D.O.T. 10% Coupon Sample 
Page 10 of 29 

For 2010, Wilkes-Barre/Scranton International Airport reported 433,972 

combined enplaned & deplaned passengers. However, the true Primary 

Catchment Area size is estimated to be triple that number (see table 

above), which indicates that AVP is leaking passengers to surrounding 

airports, with the primary reasons, based on market research, being 

competition from low-fare markets, frequency and available seats. 

US Airways has traditionally dominated the AVP market. Delta 

Connection recently eliminated flights over the past couple years, which 

increases opportunities for other airlines. In 2009, Delta Connection 

eliminated Cincinnati service (January 2009), which was AVP’s #9 O&D 

Market for CY 2008, and eliminated Atlanta (August 2009), which was 

AVP’s #5 O&D Market for CY 2008. In addition, United Express is 

decreasing it’s service to Chicago O’Hare in August 2011 (from three daily 

flights to two), and American Eagle is decreasing it’s service to Chicago 

O’Hare in August 2011 (from two daily flights to one daily flight plus one 

flight four times a week).

New service in the past several years include: United Express to 

Washington Dulles in October 2004; Continental Connection to Boston in 

March 2005; Hooters Air to Orlando, Fort Lauderdale, St. Petersburg in 

October 2005; Myrtle Beach Direct Air to Myrtle Beach in June 2008; 

Continental Connection to Newark in October 2008; American Eagle to 

Chicago O’Hare in June 2010; and Delta Connection to Atlanta in 

September 2011. 

Source: OAG Schedule Tapes August 2011; Wilkes-Barre/Scranton International Airport, YE May 2011 
Page 11 of 29 

AVP New Service During the Past Several Years

New Service Airline Began Ended Reason for Ending (1)

Washington-Dulles, DC United Express October 2004 August 2005 Shuttle America became US Airways 

carrier – United did not have other 

aircraft to maintain route 

Detroit, MI Northwest Airlink April 2005 N/A 

Orlando, FL Hooters Air October 2005 March 2006 Rising Fuel Costs 

Fort Lauderdale, FL Hooters Air October 2005 March 2006 Rising Fuel Costs 

St. Petersburg, FL Hooters Air October 2005 March 2006 Rising Fuel Costs 

Myrtle Beach, SC Hooters Air March 2006 March 2006 Rising Fuel Costs 

Boston, MA Continental Connection March 2005 March 2007 Reduction of Continental Connection 

flights into BOS system wide 

Pittsburgh, PA US Airways Pre-1980 June 2007 Reduction of US Hub 

Myrtle Beach, SC Myrtle Beach Direct Air June 2008 August 2008 Seasonal service 

Cleveland, OH Continental Connection October 2008 Moving AVP’s service from #3 CO Hub 

to #1 CO Hub 

Newark, NJ Continental Connection October 2008 N/A 

Cincinnati, OH Delta Connection March 1995 January 2009 Reduction of DL Hub 

Atlanta, GA Delta Connection May 2002 August 2009 Poor load factors; AVP-ATL route over 

700 NM (too far for CRJ) 

Chicago, IL (O’Hare) American Eagle June 2010 N/A 

Atlanta, GA Delta Connection September 2011 N/A 

(1) “Reasons for Ending” comments were given by Airline Representatives to AVP 

AVP Outbound Seats History

 Annual Percent 

 Outbound Change vs. 

Year Seats Prior Year

2001 366,429 

2002 390,586 6.6% 

2003 293,017 -25.0%

2004 338,714 15.6% 

2005 396,224 17.0% 

2006 331,991 -16.2%

2007 291,678 -12.1%

2008 278,908 -4.4% 

2009 265,041 -5.0% 

2010 268,488 1.3% 

 Seats

Month ('11 vs. '10) Diff (+/-) % Change

January 1,849 8.8% 

February 2,772 16.3% 

March 3,756 17.6% 

April 4,549 21.5% 

May 5,422 25.4% 

June 3,011 13.0%

Total for Period 21,359 17.1% 

 

Source: Wilkes-Barre/Scranton International Airport
Page 12 of 29 

Losses in the past several years include: United Express to Washington 

Dulles in August 2005; Hooters Air to Orlando, Fort Lauderdale, St. 

Petersburg and Myrtle Beach in March 2006; Continental Connection to 

Boston in March 2007; US Airways to Pittsburgh in June 2007; Myrtle 

Beach Direct Air to Myrtle Beach in August 2008; Continental Connection 

to Cleveland in October 2008; Delta Connection to Cincinnati in January 

2009; and Delta Connection to Atlanta in August 2009. 

With these losses, plus the increase in passenger enplanements (shown 

below), an increase in load factors, and the economic growth in 

Northeastern Pennsylvania, the problem arising is the limited amount of 

seats remaining in the market, which will, in turn, force air travelers to, 

once again, use other nearby airports for their air travel needs. 

AVP Enplanement History 

 Percent 

 Annual Change vs. 

Year Enplanements Prior Year

2001 189,036 

2002 202,178 7.0% 

2003 181,715 -10.1%

2004 201,765 11.0% 

2005 221,348 9.7% 

2006 212,865 -3.8%

2007 220,893 3.4% 

2008 223,130 1.3% 

2009 207,168 -7.2%

2010 217,706 5.1% 

 

Enplanements

Month ('11 vs. '10) Diff (+/-) % Change

January 1,094 7.0% 

February 1,393 10.4% 

March 1,959 11.6% 

April 2,291 13.2% 

May 3,518 20.0% 

June 2,024 10.4%

Total for Period 12,279 12.2% 

 

Source: Wilkes-Barre/Scranton International Airport

As seen below, since the loss of nonstop Orlando service in 2006, AVP has 

been on a steady decline of passengers to its #1 O&D Market – Orlando. 

In 2005, AVP had over 45 PDEWs to Orlando, retaining nearly 50% of the 

Primary Catchment Market. Now, AVP captures almost 26 PDEWs, 

retaining only 22% of the Primary Catchment Market. With low cost 
Page 13 of 29 

service to Orlando surrounding the AVP market, this has become a major 

detriment to AVP. 

AVP – ORLANDO PROFILE

 Source: U.S. DOT O&D Survey, via Database Products, YE 1Q 2011 

To the south of AVP, Lehigh Valley International Airport has been 

increasing seats, which we feel is a detriment to AVP. Within the past 

year at ABE: 

• AirTran has increased service to Orlando from one less-than-daily 

flight to two daily flights using 117- and 137-seat aircraft 

• AirTran has added new service to Fort Lauderdale with 117-seat 

aircraft 

• Allegiant Air has added seasonal service to Myrtle Beach, and 

moved its Florida service from Orlando to Sanford with 150-seat 

aircraft 

• American Eagle added new service to Chicago O’Hare with three 

daily flights using 50-seat aircraft 

• Delta has increased seat capacity to Atlanta from one daily 50-seat 

aircraft to three daily 50-seat aircraft 

• Delta has increased service to Detroit from three to four daily 

flights using 50-seat aircraft 

• United has increased service to Chicago O’Hare from four to five 

daily flights using 50-seat aircraft 

• United has increased service to Washington-Dulles from three to 

four daily flights using 34-seat aircraft 

• US Airways has increased daily seat capacity to Philadelphia with 

50-seat aircraft 
Page 14 of 29 

D. Analysis of Greater Northeastern Pennsylvania Needs and 

Deficiencies 

Over the past several years, AVP experienced a severe reduction in jet 

service to Philadelphia and Pittsburgh, which included a reduction in the 

number of seats available. Additionally, the region does not currently 

have competitive year round low fare service to its number one O&D 

market: Orlando. Service to Orlando performed well when it was 

introduced in 2004, with the positive trend continuing in 2005 and 2006, 

until Hooters Air discontinued all air service due to multiple factors, 

including internal scheduling problems, rising fuel costs, airline scheduling 

problems and problems with their service model. 

Atlanta, another AVP top O&D market, continued to perform well since 

returning to AVP in 2002, but ended in August 2009. Delta’s primary 

reason for discontinuing the flight is that the stage length was too long 

for a regional jet. 

As seen below, AVP is ranked as #6 by Delta’s Load Factors at ATL. 

Delta Ranking by Load Factor at ATL

Source: U.S. D.O.T. Report T-100 YE Dec 2009. 

 

Continental and US Airways remain at constant capacity, with no future growth 

on the horizon. 

American is cutting back beginning in August 2011. American is going from 

two daily flights to one daily flight plus one flight four times a week.
Page 15 of 29 

Delta has had no growth to Detroit since they began with three daily flights in 

April 2005. In October 2005, the Detroit flights decreased to twice daily 

because of problems with Mesaba Airlines. The third daily flight was reinstated 

in February 2009 after Delta discontinued all service from AVP to Cincinnati. 

However, Delta will be adding one daily flight to Atlanta in September 2011. 

United has had no growth to Chicago since they began with three daily flights 

in October 1998. In May 2003, the Chicago flights decreased to twice daily, 

and United has been satisfied with the performance to date with no additional 

increase in service. In April 2011, the third daily flight was added, however, in 

August 2011, the flights return to twice daily. 

US Airways has had recent growth to Charlotte. The service began with one 

daily flight in April 2005, and went to twice daily in January 2011, and has been 

performing well. 

As seen below, AVP is ranked as #3 to Charlotte, #10 to Detroit, #19 to 

Chicago O’Hare (UA), #29 to Chicago O’Hare (AA), and #43 to 

Philadelphia.

US Airways Ranking by Load Factor at CLT

Source: U.S. D.O.T. Report T-100 YE Dec 2010 
Page 16 of 29 

Delta Ranking by Load Factor at DTW

Source: U.S. D.O.T. Report T-100 YE Dec 2010 

United Ranking by Load Factor at ORD

Source: U.S. D.O.T. Report T-100 YE Dec 2010 
Page 17 of 29 

American Ranking by Load Factor at ORD

Source: U.S. D.O.T. Report T-100 YE Dec 2010 

US Airways Ranking by Load Factor at PHL

Source: U.S. D.O.T. Report T-100 YE Dec 2010 

Although there has been little or no growth at AVP to these destinations 

listed above, airports near AVP, i.e. Lehigh Valley International or Elmira 

Regional, have been gaining seats, even though there load factors are 

lower than AVP’s. 
Page 18 of 29 

From the charts listed above: 

• ATL, AVP was ranked #6 YE2009; ABE was ranked #72 YE2009 

o Note: ABE is currently ranked #47 with Delta and #49 of 56 

with AirTran 

• CLT, AVP is ranked #3; ABE is ranked #18 

• DTW, AVP is ranked #10; ELM is ranked #20; ABE is ranked #55 

• ORD (UA), AVP is ranked #19; ABE is ranked #25 

• ORD (AA), AVP is ranked #29; ABE is ranked #48 

• PHL, AVP is ranked #43; ELM is ranked 58; ABE is ranked #70 

As seen below, here are the latest load factors from AVP to specific 

destinations, most destinations have load factors at 80% or higher or a 

12 month period. 

Sources: U.S. D.O.T. T-100 Reports and Wilkes-Barre/Scranton International Airport 

Another challenge for AVP is the fact that competing airports are 

marketing their low-fare service to travelers in the AVP market area, 

through television, newspaper, radio and billboard (as seen below). The 

billboard below was actually placed less than 1⁄2 mile from the entrance 

to AVP. 

In light of these circumstances, AVP continues to actively pursue 

competitive low-fare service, as well as maintaining or even increasing 

legacy air service, to its top markets. 

AVP’s air fares remain extraordinarily high for the level of service offered 

and the economic demographic of the area as evidenced in the table 
Page 19 of 29 

below. As shown on the charts below, AVP’s fares remain above average 

and significantly higher than select markets with similar sized O&D 

passengers. 

AVP vs. Selected World Cities - O&D Passengers & Avg. Fare

 

 Total Daily Avg. O&D Daily O&D

Rank Market Code Enp. Psgrs Enp. Psgrs Fare Psgrs Psgrs

1 Juba, Sudan JUB 217,410 596 $380 450,351 1,234 

2 Shreveport, LA SHV 216,270 593 $321 427,359 1,171 

3 Grand Junction, CO GJT 216,058 592 $219 433,321 1,187 

4 Wilkes-Barre/Scranton, PA AVP 219,107 600 $213 435,935 1,194 

5 Palmerston North, New Zealand PMR 216,512 593 $197 434,947 1,192 

6 Daytona Beach, FL DAB 226,581 621 $192 451,485 1,237 

7 La Paz, Mexico LAP 226,640 621 $189 452,629 1,240 

8 Redmond, OR RDM 219,492 601 $187 439,104 1,203 

9 Ixtapa/Zihuatanejo, Mexico ZIH 217,210 595 $182 432,151 1,184 

10 Bloemfontein, South Africa BFN 222,290 609 $178 447,113 1,225 

11 Huatulco, Mexico HUX 216,226 592 $183 367,852 1,008 

12 Rimini, Italy RMI 217,383 596 $164 434,759 1,191 

13 Freeport, Bahamas FPO 216,930 594 $157 434,190 1,190 

14 Belo Horizonte, Brazil PLU 216,723 594 $143 433,477 1,188 

15 Tsushima, Japan TSJ 219,146 600 $131 438,338 1,201 

16 Oujda, Morocco OUD 223,914 613 $125 438,698 1,202 

17 Londonderry, United Kingdom LDY 223,567 613 $98 447,363 1,226 

18 Iquitos, Peru IQT 218,555 599 $98 438,713 1,202 

19 Karup, Denmark KRP 221,096 606 $92 443,165 1,214 

20 Pohang, South Korea KPO 222,343 609 $87 444,634 1,218 

21 Monteria, Colombia MTR 221,913 608 $73 439,764 1,205 

 

Average 219,779 602 $172 436,445 1,196 

(Source: O&D Survey YE May 2011, via Sabre Airline Solutions, OAG Schedule Tapes 

AVP vs. Selected North American Cities - O&D Passengers & Avg. Fare

 

 Total Daily Avg. O&D Daily O&D

Rank Market Code Enp. Psgrs Enp. Psgrs Fare Psgrs Psgrs

1 Shreveport, LA SHV 216,270 593 $321 437,359 1,171 

2 Appleton, WI ATW 267,235 732 $236 531,214 1,455 

3 Rapid City, SD RAP 272,956 748 $224 548,313 1,502 

4 Peoria, IL PIA 236,089 647 $219 475,225 1,302 

5 Grand Junction, CO GJT 216,058 592 $219 433,321 1,187 

6 Wilkes-Barre/Scranton, PA AVP 219,107 600 $213 435,935 1,194 

7 Key West, FL EYW 274,314 752 $207 541,589 1,484 

8 Medford, OR MFR 278,768 764 $197 557,301 1,527 

9 Daytona Beach, FL DAB 226,581 621 $192 451,485 1,237 

10 Cozumel, Mexico CZM 241,248 661 $189 443,133 1,214 

11 La Paz, Mexico LAP 226,640 621 $189 452,629 1,240 

12 Redmond, OR RDM 219,492 601 $187 439,104 1,203 

13 Comox, BC, Canada YQQ 184,255 505 $186 368,476 1,010 

14 Juneau, AK JNU 268,292 735 $185 537,268 1,472 

15 Huatulco, Mexico HUX 216,226 592 $183 367,852 1,008 

16 Allentown, PA ABE 420,313 1,152 $182 841,583 2,306 

17 Newburgh, NY SWF 196,077 537 $178 391,469 1,073 

18 Bloomington-Normal, IL BMI 273,280 749 $168 550,351 1,508 

19 Abbotsford, BC, Canada YXX 245,917 674 $159 493,275 1,351 

20 Aguadilla, PR BQN 229,140 628 $146 453,576 1,243 

21 Nantucket, MA ACK 142,494 390 $95 288,229 790 

 

Average 257,297 662 $194 478,033 1,308 

(Source: O&D Survey YE May 2011, via Sabre Airline Solutions, OAG Schedule Tapes 
Page 20 of 29 

III. STRATEGIC PLAN FOR USING GRANT FUNDING 

A. Program Goals 

The primary goals of this grant proposal are to increase enplanements at 

AVP by attracting new service and expanding current service, to address 

insufficient air service by attracting replacement service for such services 

recently lost, and to address unreasonably high fares to AVP’s prime 

markets by increasing competition between existing air carriers and new 

air carriers. Currently, the AVP markets are underserved and it is 

apparent that travelers in and outside the region are choosing to use 

alternative airports offering more scheduled service to a broader range of 

destinations with lower fare service. 

Historically, the Northeastern Pennsylvania market has supported new 

service as it enters the region and it is anticipated by all Partners in this 

program that this trend will continue with a high level of success. 

 Specifically, the four program goals are as follows: 

1. Secure service to leisure destinations, i.e. but not limited to, 

Central Florida Region (Orlando/Tampa/St. Petersburg), Fort 

Lauderdale, West Palm Beach, Punta Gorda, Las Vegas, and/or 

Myrtle Beach). 

2. Restore daily service to: 

a. Pittsburgh International Airport 

b. Washington-Dulles International Airport 

c. Boston Logan International Airport 

3. Entice existing air carriers at AVP to expand their service with 

additional flights/markets. 

 

From the successful implementation of these program goals, AVP 

anticipates a direct affect of reduced fares in key markets and a 

significantly increased level of service. 
Page 21 of 29 

B. Target Audiences 

The following is a list of target audiences for AVP: 

• Low-fare carriers 

1. Allegiant Air 

2. Direct Air 

3. jetBlue Airways 

4. Southwest Airlines 

5. Spirit Airlines 

6. Sun Country Airlines 

7. Vision Airlines 

• Legacy carriers 

1. American Airlines 

2. Delta Air Lines 

3. United Air Lines / Continental Airlines 

4. US Airways 

• Regional carriers 

1. Cape Air 

2. Colgan Air 

3. Gulfstream International Airlines 

4. Public Charters, Inc. 

5. Streamline Air 

C. Plan Implementation and Timetable 

Key milestones for the Program will be: 

• Securing meetings with carriers to negotiate new service (October 

2011 – March 2012). 

• Announcing new service with local community marketing campaign 

(January 2012 – June 2012). 

• Starting up new service (January 2012 – October 2012). 

• Monitoring and analyzing monthly traffic numbers of new service 

(January 2012 – June 2013). 

• Monitoring and analyzing fares to the target markets (January 2012 

– June 2013). 
Page 22 of 29 

IV. AIRPORT AND BI-COUNTY PARTNERSHIP FUNDING AND 

MONITORING ASSURANCES 

The Wilkes-Barre/Scranton International Airport will act as the sponsor of the 

program. The sponsorship will be managed by Barry J. Centini, Airport 

Director, and the program will be managed by an airport administration and bicounty partnership representing the counties of Luzerne and Lackawanna. The 

partnership will meet on a regularly scheduled monthly basis to review the 

progress and schedule of the program and more often when the program 

requires it. 

At each meeting, goals, objectives, and milestones will be evaluated to measure 

progress. Additionally designated members of the Partnership will be assigned 

to evaluate any changes in the current market environment and to identify any 

potential obstacles. The Partnership will prepare and submit quarterly reports 

to provide assurances that both the DOT and community funding are being 

spent in the manner proposed. At the time that new service is secured and the 

funding is successfully allocated, the quarterly reports will provide the DOT 

updates on the success of the service. 

V. FUNDING DESCRIPTION 

A. An airline or airlines to provide service to one or more nonstop leisure 

destinations, i.e. but not limited to, Central Florida region, Fort 

Lauderdale, West Palm Beach, Punta Gorda, Las Vegas and/or Myrtle 

Beach, minimum two (2) flights per week per destination. Risk 

abatement subsidy, as well as ground handling and start-up costs for 

provided service. 

 FAA: $ 200,000 

 Luzerne County: $ 50,000 

 Lackawanna County: $ 50,000 

 Airport: $ 50,000

 Total: $ 350,000

B. An airline to provide nonstop Pittsburgh, Washington (DC) and/or Boston 

service, minimum two (2) daily flights per weekday per destination. Risk 

abatement subsidy for weekday service up to six (6) months. 

 FAA: $ 125,000 

 Luzerne County: $ 25,000 

 Lackawanna County: $ 25,000

 Total: $ 175,000
Page 23 of 29 

C. Local Market Advertising to provide needed baseline support for new 

and/or restored airline service with a new or present airline, as well as 

support of additional flights with present airline service. 

 FAA: $ 175,000 

 Luzerne County: $ 25,000 

 Lackawanna County: $ 25,000 

 Airport: $ 50,000

 Total: $ 275,000 

D. TOTALS: 

FAA: $ 500,000 

 Luzerne County: $ 100,000 

 Lackawanna County: $ 100,000 

 Airport: $ 100,000

Total: $ 800,000 

VI. COMMUNITY ACTIVITIES 

 The Airport and supporting community organizations have been aggressively 

and actively marketing the airport for several years. This effort has included 

many initiatives all undertaken to ensure that the Northeastern Pennsylvania 

community is served in the best possible way. 

 Specific activities have included: 

 * Direct subsidy to carriers 

 * Targeted carrier meetings 

 * New service cost reduction incentives including: 

- Advertising and marketing assistance for, but not limited to, 

television, radio, and newspaper coverage 

- Waiving of landing fees and space rentals for a negotiated period 

- Donate local billboard advertising space and county bus system 

promotion 

- Develop and direct a new service information mailing initiative to 

local travel agents and community businesses 

 * New service kick-off and promotional meetings with local travel agents 

 * New service local community marketing support initiatives 

* Annual attendance and participation at ACI’s annual Marketing 

“JumpStart” conference and Network USA conference 
Page 24 of 29 

VII. RESULTS OF PAST AIR SERVICE DEVELOPMENT EFFORTS 

The results of past efforts utilizing Air Service Development funds are positive. 

Service continues to Detroit, MI, via Delta Airlines’ express carrier Pinnacle 

Airlines with load factors averaging 80% during 2008, and averaging 88% 

during 2009, and averaging approximately 89.2% for the first seven months of 

2009. Detroit service began at AVP in April 2005. Service to Orlando, FL, did 

better than expected despite Hooters Air’s end of service in March 2006 due to 

its own internal financial issues, with load factors averaging in the 83% to 86% 

range by the end of their tenure at AVP. 

The Detroit service continues to provide a good destination to business 

travelers, with acceptable fares. The Orlando service provided a great level of 

service for business and leisure travelers, with a very competitive fare structure. 

With our past history and experience of being able to utilize funds for positive 

gains, we are confident that an award to Wilkes-Barre/Scranton International 

Airport will bring positive results. 

VIII. PROGRAM SPONSORS 

 Program Legal Sponsor: Program Partners: 

 Barry J. Centini, Airport Director Luzerne County, PA 

 Wilkes-Barre/Scranton Lackawanna County, PA 

 International Airport Greater Pittston Chamber of Commerce 

100 Terminal Drive Greater Pocono Chamber of Commerce 

Avoca, PA 18641 Greater Scranton Chamber of Commerce 

570/602-2000 – Phone Greater Wilkes-Barre Chamber of Commerce 

570/602-2010 – Fax Lackawanna Co. Convention & Visitors Bureau 

bcentini@flyavp.com Luzerne Co. Convention & Visitors Bureau 

 Wilkes-Barre/Scranton Penguins AAA Hockey 

Attachments: 

1) Attachment 1 – Allegiant Air Letter of Support 

2) Attachment 2 – Gulfstream International Airlines Letter of Support 

3) Attachment 3 – Delta Air Lines Letter of Support 

4) Attachment 4 – Program Partners “In-Kind” Contributions 
Page 25 of 29 

ATTACHMENT 1 

Page 1 

Order: 2011-7-1 

Docket DOT-OST-2011-0119 

 July 28, 2011 

Ms. Aloha Ley 

Associate Director 

Office of Aviation Analysis 

U.S. Department of Transportation 

8

th Floor, Room W86-310 

1200 New Jersey Avenue SE, 

Washington D.C. 20590 

RE: SUPPORT OF WILKES-BARRE/SCRANTON INTERNATIONAL AIRPORT’S

SMALL COMMUNITY GRANT APPLICATION

Dear Ms. Ley, 

The purpose of this correspondence is to express Allegiant Air’s support of the Wilkes-Barre/Scranton International 

Airport’s (AVP) grant application under the Small Community Air Service Development Program. 

By way of background information, Allegiant Air is a low-cost, commercial air carrier, offering non-stop jet service to 

more than seventy (70) airports throughout the country. We are currently seeking to expand our network to airports that share 

our commitment to low costs and that fit within our business model. 

To that end, we have identified AVP as a potential Allegiant airport. As you know, initiating new air service can be 

quite risky. The availability of a small community grant to offset initial marketing costs, as well as lower airport operating 

expenses, can be immensely helpful in mitigating some of that risk. 

Of course, initiating service at AVP will depend on numerous other factors, including, among other things, the 

economic market, aircraft availability, and the cost of fuel. 

In light of the aforementioned uncertainties, it is particularly helpful to have a small community grant that can provide 

stability and some certainty to a new market. As such, Allegiant strongly endorses LGU’s application under the small 

community program. 

Once you have had an opportunity to review the foregoing, please feel free to contact me with any questions, comments, 

or concerns. In that regard, I look forward to speaking with you. 

Best Regards, 

E. Keith Hansen 

Manager, Airport Planning 

Allegiant Air 
Page 26 of 29 

 ATTACHMENT 2 

Page 1 

Order: 2011-7-1 

Docket DOT-OST-2011-0119 

Ms. Aloha Ley Date: August 1, 2011 

Associate Director 

Office of Aviation Analysis 

U.S. Department of Transportation 

8

th Floor, Room W86-310 

1200 New Jersey Avenue SE, 

Washington D.C. 20590 

Dear Ms. Ley, 

I am writing today in support of Wilkes-Barre/Scranton International Airport and their application for a Small Community Air 

Service Development Grant. 

As you may be aware, the dissolution of the former US Airways hub in Pittsburgh has left a huge hole in terms of regional air 

service in western Pennsylvania. More than thirty cities within 350 miles of Pittsburgh that formerly enjoyed non-stop service 

remain without that link. Besides being the second largest city in Pennsylvania, Pittsburgh is a true regional business center and 

while the Greater Pittsburgh International Airport has done a tremendous job of restructuring itself as a true Origin/Destination 

traffic generator, it is noteworthy that the only other Pennsylvania city being served by air from Pittsburgh is Philadelphia. 

Despite being the anchor of western Pennsylvania business, cities such as Latrobe, Erie, Wilkes-Barre/Scranton, Williamsport, 

and even the State Capital in Harrisburg remain without a direct air link. Pennsylvania is the sixth largest state in the union in 

terms of population and this lack of regional access is problematic and economically restrictive. 

Gulfstream International Airlines continues to work diligently to restore service from the Greater Pittsburgh International Airport 

to airports throughout the region and would welcome the possibility of adding Wilkes-Barre/Scranton as a destination. 

Conceived in cooperation with the Greater Pittsburgh International Airport, the “Pittsburgh Connector” has the intent of restoring 

service in several regional markets, focusing on Pittsburgh International Airport as its “hub”. We remain very interested in 

serving the Wilkes-Barre/Scranton – Pittsburgh market and restoring that community’s link to the business center of western 

Pennsylvania. 

As with any new venture, the start-up costs constitute a good deal of our forecast outlay. We fully endorse Wilkes-Barre/ 

Scranton’s effort to secure a SCASD Grant to aid in launching and marketing this venture. We are confident that the restoration 

of this vital air link will benefit economic development in Pennsylvania. These funds will assure a means to grow and promote 

this new travel option and allow Gulfstream International to focus on providing seamless connectivity and operational reliability 

to assure this new service succeeds and the people of Pennsylvania benefit. 

Very truly yours, 

Mickey Bowman 

Vice President of Essential Air Service 

Gulfstream International Airlines 

1100 Lee Wagener Blvd., Suite 201 

Ft. Lauderdale, FL 33315 
Page 27 of 29 

 ATTACHMENT 3 

Page 1 

Order: 2011-7-1 

Docket DOT-OST-2011-0119 
Page 28 of 29 

 ATTACHMENT 4 

Page 1 

Order: 2011-7-1 

Docket DOT-OST-2011-0119 

In-Kind Contributions 

Wilkes-Barre/Scranton International Airport 

Small Community Air Service Grant 

Luzerne County Convention and Visitors Bureau 

In-Kind Item Amount 

Staff Fulfillment $2,080.00 

Mailing and Distribution of Visitor Guide $820.00 

Attendance at Trade Shows $2,500.00 

Ad Placement - Annual Visitors Guide $2,500.00 

Ad Placement - Pennsylvania Pursuits Magazine $1,000.00 

 Total In-Kind: $8,900.00 

Lackawanna County Convention and Visitors Bureau 

In-Kind Item Amount 

Staff Fulfillment $3,500.00 

Mailing and Distribution of Visitor Guide $1,200.00

Attendance at Trade Shows $2,000.00 

Half Page Ad Placement - This Week in The Poconos $1,300.00 

 Total In-Kind: $8,000.00 

Greater Pittston Chamber of Commerce 

In-Kind Item Amount 

Insert in Monthly Newsletter for 12 months $3,500.00 

 Total In-Kind: $3,500.00 

Greater Pocono Chamber of Commerce 

In-Kind Item Amount 

Ad Placement - Annual Bizzy Awards $2,500.00 

Ad Placement – Annual Dinner Program $1,000.00 

 Total In-Kind: $3,500.00 

Greater Wilkes-Barre Chamber of Commerce 

In-Kind Item Amount 

Full Page Ad Placement - Annual Dinner Program $500.00 

Full Page Ad Placement - Legislative Breakfast $500.00 

Full Page Ad Placement - Awards Luncheon Program $500.00 

Staff Fulfillment $2,000.00 

 Total In-Kind: $3,500.00 
Page 29 of 29 

ATTACHMENT 4 

Page 2 

Order: 2011-7-1 

Docket DOT-OST-2011-0119 

Wilkes-Barre/Scranton Penguins AAA Hockey Team 

In-Kind Item Amount 

Distribution of Airport Fliers at Two Home Games $2,500.00 

 Total In-Kind: $2,500.00 

Greater Scranton Chamber of Commerce 

In-Kind Item Amount 

Ad Placement in News Briefs Newsletter $2,000.00 

Web Site Exposure 

 Total In-Kind: $2,000.00