## 1 APPLICATION UNDER

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT

- OST

- 201 3

- 0120

SUMMARY INFORMATION

All applicants must submit this Summary Information schedule, as the application coversheet , a completed standard form SF424 and the full application proposal on www.grants.gov

. For your preparation convenience, this Summary Information schedule is located at

http://www.dot.gov/policy/aviation

- policy/small

- community

- rural

- air

- service/SCA SDP

A. P ROVIDE THE LEGAL SPO NSOR AND ITS DUN AND BRADSTREET 

## (D&B) DATA UNIVERSAL

NUMBERING SYSTEM 

## (DUNS) NUMBER 

## , INCLUDING 

## +4, EMPLOYEE IDENTIFICAT ION NUMBER 

## (EIN) OR TAX ID



## . Legal Sponsor Name: Fort Wayne

- Allen County Airport Authority

DUNS Number: 791279636

EIN/Tax ID: 351641643

B. L IST THE 

## N AME OF THE COMMUNITY OR CONSORTIUM OF COM MUNITIES APPLYING 

## :
1. F ORT 

## W AYNE 

## , I NDIANA



## 2.

3.

4.

C

. P ROVIDE THE FULL AIRP ORT NAME AND 

## 3

- L ETTER 

## IATA A IRPORT 

## C ODE FOR THE

APPLICANT 

## ( S 

## ) AIRPORT 

## ( S 

## ) (O NLY PROVIDE CODES FO R THE AIRPORT 

## ( S 

## ) THAT ARE ACTUALLY

SEEKING SERVICE 

## ).

1. Fort Wayne International Airport (FWA ) 2

. 3

. 4

.

## 2 D. L IST THE 

## 2

- DIGIT CONGRESSIONAL DISTRICT CODE APPLIC ABLE TO THE SPONSORI NG

ORGANIZATION 

## , AND IF A CONSORTIUM 

## , TO EACH PARTICIPATIN G COMMUNITY



## . 1. IN

- 03 2

. 3

. 4

.

E. A PPLICANT 

## I NFORMATION 

## : (C HECK 

## A LL 

## T HAT 

## A PPLY 

## )

Not a Consortium Interstate Consortium Intrastate Consortium
Community now receives subsidized Essential Air Service
Community (or Consortium member) previously received a Small Community Air Service Development Program Grant

If previous recipient: Year of g rant(s): 2002/2010

F. P UBLIC 

## /P RIVATE 

## P ARTNERSHIPS 

## : (L IST 

## O RGANIZATION NAMES 

## )

PUBLIC PRIVATE

1. Fort Wayne

- Allen County Airport Authority 1. Greater Fort Wayne Chamber of Commerce

2. City of Fort Wayne 2.

3. 3.

4. 4.

5. 5.

G. P ROJECT 

## P ROPOSAL 

## : ( CHECK ALL THAT APPLY 

## )
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 (explain below)

H

. E XISTING 

## L ANDING 

## A IDS AT 

## L OCAL 

## A IRPORT 

## :
Full ILS Outer/Middle Marker Published Instrument Approach

Localizer Other (specify : CAT II ILS, REIL, PAPI, VOR )

## 3 I. P ROJECT 

## C OST 

## : D O NOT ENTER TEXT IN SH ADED AREA



## L INE 

## D ESCRIPTION 

## S UB 

## T OTAL 

## T OTAL 

## A MOUNT



## 1 Federal amount requested $600,000

2 State cash financial contribution $0
Local cash financial contribution

3a Airport cash funds $0

3b Non

- airport cash funds $1,460,000

3 Total local cash funds ( 3a + 3b ) $1,460,000

4 TOTAL CASH FUNDING ( 1+2+3 ) $2,060,000

In

- Kind contribution

5a Airport In

- Kind contribution** $512,620

5b Other In

- Kind contribution** $0

5 TOTAL IN

- KIND CONTRIBUTION
( 5a + 5b ) $512,620

6 TOTAL PROJECT COST ( 4+5 ) $2,572,620

J. IN

- KIND CONTRIBUTIONS**
For funds in lines 5a (Airport In

- Kind contribution) and 5b (Other In

- Kind contribution), please describe the source(s) of fund(s) and the value ($) of each.
5a: Fee waivers including landing fees ($77,850) , apron fees ($ 15,570)

, variable common space ( $ 367,090 ), and boarding security ( $52,110)

5b: N/A

## 4 K. I S 

## T HIS 

## A PPLICATION 

## S UBJECT 

## T O 

## R EVIEW 

## B Y 

## S TATE 

## U NDER 

## E XECUTIVE 

## O RDER 

## 12372

P ROCESS 

## ?

a. This application was made available to the state under the Executive Order 12372

Process for review on (date) _____________.

b. Program is subject to E.O. 12372, but has not been selected by the state for review.

c. Program is not covered by E.O. 12372.

L. I S 

## T HE 

## A PPLICANT 

## D ELINQUENT 

## O N 

## A NY 

## F EDERAL 

## D EBT 

## ? (I F 

## “Y ES 

## ”, P ROVIDE



## E XPLANATION 

## )

No Yes (explain)

______________________________________________________________________________

______________________________________________________________________________

# A PPLICATION 

# U NDER THE 

# S MALL 

# C OMMUNITY



# A IR 

# S ERVICE 

# D EVELOPMENT 

# P ROGRAM

Docket DOT-OST-2013-0120



# Fort Wayne International Airport Fort Wayne, Indiana

Legal sponsor: Fort Wayne-Allen County Airport Authority

Contact: Jessica Miller 3801 W Ferguson Rd, Suite 209, Fort Wayne, IN 46809
260-446-3423 · jmiller@fwairport.comAPPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMFORTWAYNEINTERNATIONALAIRPORT

Prepared by 

# T ABLE OF 

# C ONTENTS

Section 1. Application Highlights ..................................................... 1
Air Service Deficiency to the East Coast ........................................................ 1 Solid Strategic Plan with Signif icant Community Commitment....................... 1 Experienced and Successf ul Partnership ...................................................... 2
Material B enefits ............................................................................................ 2



### Section 2. Air Service Environment ................................................. 3

FWA Catchment Area .................................................................................... 3 Proximity to Other Airports ............................................................................. 3 Robust Economy ............................................................................................ 4 

### Section 3. Air Service – Existing/Historical ..................................... 6
Existing Air Service ........................................................................................ 6
Historical Ai r Service ...................................................................................... 6
Past Air Service De velopment E fforts ............................................................ 8



### Section 4. Air Service Needs and Deficiencies ............................... 9

Underserved Market to the Ea st .................................................................... 9
Lack of Seat Av ailabilit y ............................................................................... 10 Higher Than Average Airfares ...................................................................... 10 

### Section 5. Strategic Plan – Air Service ......................................... 12
Project G oals ............................................................................................... 12 Proposed Air Se rvice ................................................................................... 12 Market Analysis ............................................................................................ 12
Alternate Plan .............................................................................................. 14 Previous Grant Recipient - New Project an d Goals ..................................... 14


### Section 6. Strategic Plan – Implementation and Funding ............ 15

Public-Private Partnersh ip............................................................................ 15
Incentive and S upport P lan .......................................................................... 15 Strategic Plan Funding ................................................................................. 17 Project Continuation an d Sustainabi lity ........................................................ 17


### Section 7. Schedule and Monitoring .............................................. 18
Strategic Plan Schedul e and Milest ones ...................................................... 18 Strategic Plan Moni toring Prog ram .............................................................. 19


### Appendix A. Letters of Support ...................................................... 20APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMFORTWAYNEINTERNATIONALAIRPORT

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# S ECTION 

# 1. A PPLICATION



# H IGHLIGHTS

he Fort Wayne-Allen County Airport Au thority, the sponsor of this Small Community Air Service Development Program (SCASDP) grant application for Fort Wayne International Airport (FWA ), in cooperation with its private partners, is requesting $600,000 in fede ral assistance to implement a $2,572,620 air service initiative. The City of Fort Wayne, Greater Fort Wayne Chamber of Commerce, and the Fort Wayne-Allen CountyAirport Authority have formed a publicprivate partnership. This partnership has a hi story of air service success, including a 2002 and 2010 SCASDP grant awards. This application is requesting assistance with a different project and goal than either of those previous grants.

The goal of this grant application is to acquire nonstop eastbound service to a major connecting hub. To achieve this goal, the Strategic Plan targets nonstop service by American Airlines/US Airways to Philadelphia International Airport.



### A IR 

### S ERVICE 

### D EFICIENCY TO THE 

### E AST 

### C OAST

With significant business needs to cities in the East/Northeast, the Fort Wayne area has a need for nonstop access to a major East Coast destination and connections to destinations beyond. Eastbound capacity from FWA has declined signi ficantly over the past decade, leaving a significant need for t he Fort Wayne community. Without nonstop service, Fort Wayne area air travelers destined for the east and northeast markets are forced to connect over Detroit, circuitous connections over Chicago or Atlanta, or drive to alternate airports, creating significantly longer travel times and higher travel costs. FWA’s average, one-way domestic airfares are $18 higher than the average for the state of Indiana, $25 high er than the Great Lakes region average, and $29 higher than the national average. Ai rfares have increased 34 percent over the last 10 years.



### S OLID 

### S TRATEGIC 

### P LAN WITH 

### S IGNIFICANT 

### C OMMUNITY 

### C OMMITMENT

The Strategic Plan for meeting the project goal is sound, sustainable, and supported by the Fort Wayne community. The Strategi c Plan is supported by the following:

 : For calendar year 2012, Philadelphia was one of the largest Large market connect markets from FWA, with an average of 12.1 passengers daily each way (PDEW) or over 8,800 origin and destination passengers annually. A further 25.7 PDEW, or over 18,700 annu al passengers, are utilizing other 

# T This section addresses:



###  Project goals



###  Description of the

Strategic Plan



###  Highlights of the grant

application



## Non-airport revenue sources are funding 71 percent, $1,460,000, of the cash requirement.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMFORTWAYNEINTERNATIONALAIRPORT

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2 airports such as Indianapolis International Airport for travel needs to Philadelphia (i.e. leaked passengers).

 : To support the Tested and proven support programStrategic Plan, the risk sharing plan proposed by the publicprivate partnership includes a community-funded marketing campaign, fee waivers, and a revenue guarantee.

 Non-airport revenue source s funding 71 percent of cash : Seventy-seven percent of total project funds requirement will be contributed by the Fort Wayne community including: $1,460,000 cash from non-airport revenue sources, and $512,620 from FWA for in-kind fee waivers.

 : The schedule proposed will ensure timely use of Realistic timetable grant funds.



### E XPERIENCED AND 

### S UCCESSFUL 

### P ARTNERSHIP

The City of Fort Wayne, the Fort Wayne- Allen County Airport Authority, and the Greater Fort Wayne Chamber of Commerce are a proven partnership. These partners have experience with air service development efforts and have been instrumental in the recruitment and growth of Allegiant Ai r at FWA. This public-private partnership worked together on two successful gran ts, a 2002 award that brought in ATA Connection service to Chicago Midway and a 2010 award that was used to install joint-use infrastructure at each gate.

Since 1998, through a partnership with the Greater Fort Wayne Chamber of Commerce, the Airport Authority has employed an individual dedicated to air service development. Additionally, in partnership with the Economic Alliance, an individual is dedicated to the area of airport development. Both these individuals play key roles within the business community, while promoting the best interest of FWA.



### M ATERIAL 

### B ENEFITS

The FWA catchment area includes a popul ation of 1,166,840. Within a 60-minute drive the population is 750,000 and expands to greater than 1.8 million within a 90- minute drive. Fort Wayne has a robust and diverse economy, from manufacturing to
medical to financial services. One of the la rgest employers in the Fort Wayne area is General Motors, which employs over 3,600 people. BF Goodrich also has a major facility in the Fort Wayne area. The two largest employers are Parkview Health Systems and Lutheran Health Network. Co mbined to employ over 9,000, these are major players in the local economy with high air travel needs.

There are more than a dozen colleges and universities surrounding Fort Wayne with over 34,000 enrolled students. Indiana Univ ersity-Purdue University Fort Wayne has more than 14,000 students and nearly 1,000 faculty and staff. The air service improvement plan proposed in this grant ap plication will benefit a broad segment of the traveling public, including business, educational institutions and tourism. 

## The City of Fort Wayne, the Fort Wayne-Allen County

Airport Authority, and the Greater Fort Wayne Chamber of

Commerce are a proven partnership.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMFORTWAYNEINTERNATIONALAIRPORT

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# S ECTION 

# 2. A IR 

# S ERVICE



# E NVIRONMENT

his section provides a profile of t he Fort Wayne community highlighting the economic and demographic attributes of the FWA catchment area. It identifies the businesses, institutions, government bran ches, and population that will benefit from improved access to the national air transportation network.



### FWA C ATCHMENT 

### A REA

FWA’s airport catchment area is made up of the Allen County area, extends north to the Michigan border and east into Ohio. Overall , the catchment area (identified in blue in
Exhibit 2.1 ) includes a population of 1,166,840. Wi thin a 60-minute drive the population is 750,000 and expands to greater than 1. 8 million within a 90-minute drive.

EXHIBIT 2.1 AIRPORT CATCHMENT AREA



### P ROXIMITY TO 

### O THER 

### A IRPORTS

Based on a study completed by Mead & Hunt for calendar year 2012, an estimated 30 percent of FWA catchment area passengers, 446,536 origin and destination passengers annually, use Indianapolis International Airport and an additional 476,440 annual passengers use other airports including Chicago, Columbus, Dayton, Detroit and South Bend instead of the local airport. 

# T This section addresses: Description of the Fort Wayne community in
relation to air service to
demonstrate the benefit of the Strategic Plan to a broad segment of the traveling public.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMFORTWAYNEINTERNATIONALAIRPORT

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4 The closest alternate airports to the Fort Wayne community are almost 100 miles distant, most requiring over a two-hour, one-way
drive. Table 2.1 provides a comparison of the mileage and drive time from Fort Wayne proper. FWA is a non-hub airport. The closest medium hub airport is Indianapolis at 135 miles distant or over a twohour drive. The closest large hub airport is Chicago O’Hare which is almost 200 miles away and over a 3.5 hour drive. Excessive drive distances to alternate airports along with high airfares are the key determinates of the need for improved air service.



### R OBUST 

### E CONOMY

The Fort Wayne community is focused on economic and business development. Fort Wayne has a robust and diverse economy, from manufacturing to medical to financial services. As an area of the country that was hit hard by the economic downturn in 2008, the current economy continues to grow and prosper. The area’s key employers dependent on air service are shown in Table 2.2

.



### Manufacturing/Telecommunications

Fort Wayne is home to many manufacturers, all of which have significant travel needs. One of the largest employers in the Fort Wayne area is General Motors, which employs over 3,600 people at its full-size, pick-up manufacturing plant. BF Goodrich also has a major facility in the Fort Wayne area, producing automotive tires. There are significant aerospace manufacturers, including BAE Systems Platform Solutions and Raytheon Systems. The telecommunication industry is also strong with Frontier Communications and ITT Exelis each employing more than 1,200 people.



### Financial

Financial firms generate a significant amount of air travel. One of the larger employers in the Fort Wayne area is Lincoln Financia l, employing nearly 2,000 people. Lincoln Financial’s corporate headquarters is in the Philadelphia area and generates significant travel demand between Fort Wayne and Philadelphia.



### Medical

The two largest employers in the Fort Wayne area are Parkview Health Systems and Lutheran Health Network. Combined to employ over 9,000, these are major players in the local economy with high air travel needs. Nearby Warsaw, Indiana is generally known as the orthopedic capital of the world. With many orthopedic manufacturers and support companies, these businesses also need better eastbound access. TABLE 2.1 DRIVE TIMES TO ALTERNATE AIRPORTS

AIRPORT MILES DRIVE TIME Toledo, OH (TOL) 99 1:45 South Bend, IN (SBN) 96 2:07 Indianapolis, IN (IND) 135 2:13

Dayton, OH (DAY) 119 2:22 Columbus, OH (CMH) 161 3:07

Chicago, IL (ORD) 190 3:37 Source: Microsoft MapPoint 2010

TABLE 2.2 LARGE AIR SERVICE DEPENDENT EMPLOYERS INDUSTRY/COMPANY EMPLOYEES Manufacturing General Motors 3,610

BF Goodrich 1,580 BAE Systems Platform Solutions 1,015 Vera Bradley 955 Raytheon Systems 950 Financial/Telecom Lincoln Financial 1,970 Frontier Communications 1,564 ITT Exelis 1,203

Healthcare/Education Parkview Health Systems 4,710 Lutheran Health Network 4,301 Depuy Orthopaedics, Inc. 1,200 Zimmer, Inc 2,800 Biomet, Inc 1,700APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMFORTWAYNEINTERNATIONALAIRPORT

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5 

### Local Government and Higher Education

Not only will improved air service be used by manufacturing, financial, and medical industries, it will serve a broad spectrum of government and institutional employees as well. These sectors are growing to support the needs of the expandi ng population. There are more than a dozen colleges and universities surrounding Fort Wayne with over 34,000 enrolled students.

One of those universities is the Indiana University-Purdue University Fort Wayne with more than 14,000 students and nearly 1,000 faculty and staff. Other colleges in the area include:

 University of St. Francis

 Indiana Tech with over 5,000 students

 ITT Technical Institute

 Ivy Tech Community College with a FAA-certified Aviation Maintenance Technology program

 Trine University for technical education

 Harrison College for business education



### Tourism

As Indiana’s second-largest city, Fort Wayne is home to world-class attractions, events, and family getaways. Fort Wayne is known as the “City of Festivals”. All year long, residents and visitors enjoy festivals and community events, including: Johnny Appleseed Festival, Three Rivers Festival, GermanFest, RiverFest, BBQ Ribfest, Greekfest, Grabill Country Fair, Taste of the Arts, Vera Bradley Outlet Sale and

many more. 

## Fort Wayne Accolades:

 “First in the Nation for Job Creation” Fiscal Times

 “One of the Best Cities in the Nation” National League Cities; three-time All American City Winner

 “Best Place to Raise Your Kids!” Business Week

 “Fifth Safest City in the US!” Insuranceproviders.

comAPPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMFORTWAYNEINTERNATIONALAIRPORT

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# S ECTION 

# 3. A IR 

# S ERVICE



# – E XISTING 

# /H ISTORICAL

his section presents a record of existing and historical air service at FWA. The existing air service discussion highlights: nonstop destinations, airlines, service frequency, and equipment types. The historical air service section includes a description of historical destinations, traffi c levels, service providers, and extenuating
factors that have affected air service. FWA’ s past air service development efforts are
also covered in this section.



### E XISTING 

### A IR 

### S ERVICE

Four airlines served FWA during the first half of 2013: Allegiant Air, American Airlines, Delta Air Lines, and United Airlines ( Table 3.1 ). Allegiant offers twice we ekly service to four markets: Myrtle Beach, Orlando-Sanford, Punta Gorda, and St. Petersburg with 166-seat
MD-80 aircraft. American offers service to two destinations with regional jets: Chicago O’Hare
and Dallas/Fort Worth. Delta serves three destinations with 50-seat regional jets: Atlanta, Detroit, and Minneapolis. Finally, United operates regional jet service to Chicago O’Hare. Looking forward, there are few air service changes currently scheduled in
the FWA market.



### H ISTORICAL 

### A IR 

### S ERVICE

Air service at FWA over the last 10 years has markedly declined, with the loss of two eastbound hubs, Cincinnati and Cleveland. The following subsections discuss historical destinations and service providers as well as extenuating factors that have impacted air
service at FWA. 

# T

TABLE 3.1 CURRENT AIR SERVICE

HUB CARRIER AIRCRAFT WEEKLY FLIGHTS WEEKLY SEATS Atlanta, GA (ATL) Delta Regional Jet 21 1,050
Chicago, IL (ORD) American Regional Jet 27 1,224 United Regional Jet 21 1,050 Dallas, TX (DFW) American Regional Jet 14 700 Detroit, MI (DTW) Delta Regional Jet 34 1,700 Minneapolis, MN (MSP) Delta Regional Jet 14 700 Myrtle Beach, SC (MYR) Allegiant Narrow body 2 332
Orlando, FL (SFB) Allegiant Narrow body 2 332 Punta Gorda, FL (PGD) Allegiant Narrow body 2 332 St. Petersburg, FL (PIE) Allegiant Narrow body 2 332

Total 139 7,752 Source: Diio Mi; July 2013 This section addresses:



###  Description of existing

air service



###  Synopsis of historical

air service



###  Description of air

service development
effortsAPPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMFORTWAYNEINTERNATIONALAIRPORT

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### Destinations, Service Providers, and Traffic Levels

Historically, FWA has offered service to 17 different destinations over the past 10 years. In 2004, FWA had service to significantly more connecting hubs, with service to nine different hubs on six airlines. In 2013, FWA has service to only six connecting hubs. Since 2004, the number of annual departures has decreased 50 percent, from 12,649 annual departures to just 6,377 ( Table 3.2 ). Seats peaked in 2004 with 532,241, while 2013 has just 359,032 scheduled annual seats.
Exhibit 3.1 provides a comparison of seats with onboard passengers. While seats have declined, passengers have remained relatively steady and have recently increased showing strong market demand.

EXHIBIT 3.1 HISTORICAL SEATS AND PASSENGERS

TABLE 3.2 HISTORICAL DESTINATIONS AND SERVICE PROVIDERS

DESTINATION AIRLINE SCHEDULED ANNUAL DEPARTURES 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Atlanta, GA (ATL) Delta 1,096 1,301 1,047 1,023 1,029 725 764 920 1,121 1,060 Chicago, IL (MDW) American Trans Air 834 55
Chicago, IL (ORD) American 1,457 1,452 1,453 1,715 1,661 1,133 1,046 1,255 1,235 1,297 United 1,535 1,767 1,765 1,656 1,307 1,036 1,067 1,066 1,052 1,035 Cincinnati, OH, (CVG) Delta 2,494 2,099 1,451 1,263 1,054 967 694 418 Cleveland, OH (CLE) Continental 1,111 1,189 1,226 1,262 1,213 656

Dallas, TX (DFW) American 729 796 730 856 713 730 730 769 822 716 Detroit, MI (DTW) Delta 2,506 2,402 1,875 1,773 1,813 1,735 1,663 1,629 1,576 1,500 Fort Lauderdale, FL (FLL) Allegiant 6 43

Indianapolis, IN (IND) American Trans Air 267 Las Vegas, NV (LAS) Allegiant 102 21 Minneapolis, MN (MSP) Delta 241 229 154 302 421 376 Myrtle Beach, SC (MYR) Allegiant 42 26 26 26 Orlando, FL (SFB) Allegiant 105 97 109 131 124 120 119 Phoenix, AZ (AZA) Allegiant 12 52 Pittsburgh, PA (PIT) US Airways 887 Punta Gorda, FL (PGD) Allegiant 53 110 St Petersburg, FL (PIE) Allegiant 71 66 126 149 145 147 138 Total departures 12,649 11,328 9,547 9,844 9,310 7,446 6,440 6,654 6,573 6,377 Total seats 532,241 509,855 417,118 459,967 457,917 380,060 346,002 360,359 359,244 359,032

Source: Diio Mi 200,000 250,000 300,000 350,000 400,000 450,000 500,000

2006 2007 2008 2009 2010 2011 2012 2013

12-Months Ended Onboards SeatsAPPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMFORTWAYNEINTERNATIONALAIRPORT

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### Extenuating Factors That Have Affected Air Service

Several factors have affected air service at FWA. First, geographic location has always been a major influence. The Fort Wayne community is located in northeast Indiana, with Chicago to the northwest, Indianapolis to the southwest, Toledo to the northeast and Columbus to the southeast. This leads to a significant number of passengers driving to other airports instead of using FWA. FWA has also been greatly impacted in the last decade by airline bankruptcies and mergers. Most of the destinatio ns that FWA has lost during this time have been due to airlines ceasing operations or scaling back operations at hubs after mergers.



### P AST 

### A IR 

### S ERVICE 

### D EVELOPMENT 

### E FFORTS

Over the last decade, the Fort Wayne-Allen Co unty Airport Authority and the Greater Fort Wayne Chamber of Commerce have been very active in air service development efforts ( Table 3.3 ). Despite those efforts, air service has been declining with the loss of
Cincinnati and Cleveland service in the last four years. While hub service has declined, the community has had success in recruiting Allegiant Air point-to-point service in several
new markets.

TABLE 3.3 PAST AIR SERVICE DEVELOPMENT EFFORTS

YEAR INITIATIVE

2013 Air Service Education (AAAE National Air Service Conference, Community Meetings) Airline Conferences (Network U SA, ACI-NA Jumpstart, Allegiant) Airline Meetings (Delta Air Lines HDQ Meeting) Market Analyses (Leakage Study, Busine ss Travel Survey, Route Forecasts) Monitoring (Quarterly, Airfare) Regional Air Service (Committee Formation, Host Regional Air Service breakfast)

2012 Airline Conferences (Allegiant Air, Netw ork USA, ACI-NA JumpStart, 2012 Airport Roundtable Conference, Air Service Luncheon) Airline Meetings (United Airlines, Americ an Airlines, Delta Air Lines HDQ Meetings) Market Analysis (Washingt on, DC Air Service Study)

2011 Airline Conferences (Allegiant Air, Ne twork USA, ACI-NA JumpStart, Boyd Conference, Air Service Luncheon) Airline Meetings (United Airlines, Americ an Airlines, Delta Air Lines HDQ Meetings) Airport Development (Installation of Shared -Use IT Platform for Airline Counters & Gates)

2010 Airline Conferences (Allegiant Air, Ne twork USA, ACI-NA JumpStart, Boyd Conference, Air Service Luncheon) Airline Meetings (United Airlines, Americ an Airlines, Delta Air Lines HDQ Meetings)APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMFORTWAYNEINTERNATIONALAIRPORT

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# S ECTION 

# 4. A IR 

# S ERVICE 

# N EEDS

AND 

# D EFICIENCIES

he Air Service Needs and Deficiencies sect ion identifies the deficiencies in air
service at FWA and what air service im provements are needed to correct these
deficiencies. This section demonstrates that the Fort Wayne community is underserved, and the average airfares in this community are higher than other comparable communities.



### U NDERSERVED 

### M ARKET TO THE 

### E AST

Like most airports of its size, FWA has a number of air service needs. Based on a study by Mead & Hunt of retention/diversion and input from the community, the most critical need for both business and leisure travelers is nonstop service to a major East Coast hub. With significant numbers of passengers traveling to the east, northeast and internationally, additional capacity and connecting options are needed from FWA to the East Coast.

On average, 63 percent of FWA catchment area travelers use an alternate airport. When reviewing retention by FAA region, the East and Northeast regions had some of the lo west retention levels of any area ( Table 4.1 ). FWA’s leakage to other airports continues to increase with 50 percent fewer departures today at FWA compared to 2004.

There is a clear need for additional connecting opportunities at a major hub to allow for passengers to utilize the local airport. Service to Philadelphia will help add better
connections to the East and Northeast re gions, and therefore help to facilitate an improvement in retention for FWA.

TABLE 4.1 RETENTION BY FAA REGION

FAA REGION FWA RETENTION % TRUE MARKET PASSENGERS Southeast 45 438,425

West 30 250,876 East 31 182,130 Southwest 38 174,380 International 31 147,420 Northwest 30 102,774 Great Lakes 51 82,633 Northeast 35 53,302

Central 43 35,826 Alaska 32 3,453 Total 37 1,471,218 

# T This section addresses: Description of the Fort Wayne community’s air
service needs and
deficiencies.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMFORTWAYNEINTERNATIONALAIRPORT

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### L ACK OF 

### S EAT 

### A VAILABILITY

In 2012, FWA’s load factors to markets providi ng eastern connectivity were very high. Without nonstop service, Fort Wayne area air travelers destined for the east and
northeast markets are forced to connect over Detroit or make circuitous connections over Chicago or Atlanta. Table 4.2 shows the average load factors by month from January through December 2012. The hubs that provide the primary eastern connectivity are highlighted for reference. While Detroit loads averaged a reasonable 76 percent in 2012, Detroit connecting opportu nities have been declining. Atlanta, while circuitous, experienced loads exceeding 80 pe rcent in nine months of the year, with three of those months greater than 85 percent.

With the existing service being provided on smaller regional jets with 50 seats or less, high load factors on aircraft of this size mean there are few if any seats available, especially on the higher demand morning flight s. This suggests that rejected demand occurs on many flights. These high load fact ors indicate there is a significant need for improved connectivity to eastern destinatio ns. The option of connecting via an additional hub for eastbound travel would greatly improve the quality of catchment area air service and aid economic and market development.

TABLE 4.2 FWA AVERAGE LOAD FACTORS BY MARKET

MONTH LOAD FACTOR ATL DFW DTW MSP MYR ORD PGD PIE SFB Jan-12 83 69 71 58 67 96 95 Feb-12 83 76 75 65 74 95 96 Mar-12 81 79 75 75 72 95 95 Apr-12 80 76 69 68 69 89 88 May-12 81 78 79 77 80 76 93 93 Jun-12 78 80 76 80 90 74 92 92 Jul-12 72 78 67 77 91 72 93 92 94 Aug-12 71 72 73 80 86 71 88 91 90 Sep-12 86 74 81 84 77 87 84 84 Oct-12 88 80 81 89 75 91 92 94 Nov-12 88 79 81 85 71 91 89 87 Dec-12 84 78 78 79 70 87 87 88 Average 81 76 76 77 88 72 89 92 91
Source: Diio Mi



### H IGHER 

### T HAN 

### A VERAGE 

### A IRFARES

The Bureau of Transportation Statistics (B TS) database for calendar year 2012 shows FWA with an average gross roundtrip fare of $447, significantly higher than the national average of $374. Allegiant Air’s low-fare poin t-to-point service significantly reduce FWA’s average fare, and excluding Allegiant Air, the average fare for 2012 according to Diio would have been 13 percent higher.

When looking specifically at the fares to Phil adelphia, FWA’s average fare is also higher than average. For markets between 450 and 650 miles from Philadelphia, the average one-way fare according to Diio Mi for 2012 was $203. FWA, at 529 miles, had an average one-way fare to Philadelphia of $238, or 17 percent higher than average.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMFORTWAYNEINTERNATIONALAIRPORT

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11 Exhibit 4.1 provides a regional comparison of average fares. Since 2005, FWA’s average fare (excluding Allegiant) has exceeded all other comparison airports with the exception of Toledo. FWA’s average fare is significantly higher than Indianapolis which is the primary diversionary airp ort for the catchment area.

EXHIBIT 4.1 REGIONAL AVERAGE FARE COMPARISON

Source: Diio Mi

Table 4.3 provides a comparison to Indianapolis and South Bend, two of the primary diversionary airports. Comparisons are also provided for the state of Indiana, GreatLakes region, and US average. FWA’s domestic average fare is $17 and $22 higher oneway than South Bend and Indianapolis, respectively, for calendar year 2012. FWA’s average domestic fare also exceeds the st ate, region and national averages. FWA’s fares have increased 34 percent over the 10-year period.

TABLE 4.3 AVERAGE ONE-WAY FARE PAID AVERAGE DOMESTIC FARE FWA $ DIFF 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 FWA $154 $150 $174 $202 $189 $189 $164 $180 $195 $205 Indianapolis, IN $124 $122 $123 $140 $141 $146 $133 $147 $169 $184 $22 South Bend, IN $132 $139 $159 $159 $154 $164 $149 $166 $179 $188 $17
Indiana $129 $128 $131 $147 $147 $152 $138 $153 $173 $187 $18 Great Lakes Region $137 $134 $136 $146 $145 $159 $141 $157 $171 $180 $25 US $134 $131 $135 $147 $147 $157 $143 $157 $170 $176 $29 Source: Diio Mi; Domestic only

$120 $140 $160 $180 $200 $220 $240 $260 $280

FWA

TOL

DAY

SBN

IND

CMH

ORDAPPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMFORTWAYNEINTERNATIONALAIRPORT

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12 

# S ECTION 

# 5. S TRATEGIC 

# P LAN



# – A IR 

# S ERVICE

he previous section, Air Service Needs and Deficiencies, identified nonstop East Coast service as the Fort Wayne community’s primary air service need. This section establishes the project goal and lays out a plan for its achievement. An indepth analysis of the proposed air service is summarized in this section along with an alternate plan. Because FWA participated in tw o prior grant awards, a summary of those projects and how they differed from and complim ent this application is presented at the
end of this section.



### P ROJECT 

### G OALS

The goal of this SCASDP application is to acquire nonstop East Coast service to adequately serve the FWA catchment area ’s needs and reduce the number of passengers diverting to other airports.



### P ROPOSED 

### A IR 

### S ERVICE

The Fort Wayne area would be best served with nonstop service to Philadelphia International Airport provided by American Airlines/US Airways. With the pending merger between American and US Airways, which is set to be completed in the third quarter of 2013, the new American Airlines will have a major hub in Philadelphia with more than 474 daily departures to 119 destinations worldwide. This places Philadelphia as one of the larger hubs in the US.



### M ARKET 

### A NALYSIS

A detailed market analysis has been completed for American Airlines/US Airways service to Philadelphia International Airport. Key points of the analysis are described below. Projections were completed for a two roundtrip schedule on a 50-seat Canadair Regional Jet 200. The operating and market assumptions are listed below:

 A share of the existing passengers for calendar year 2012 was allocated to the new service. Passenger retention improvement is based on the 2013 Passenger Demand Analysis for FWA.

 The analysis uses calendar year 2012 average fares for FWA.

 American Eagle/US Airways Express fully allocated operating costs between FWA and Philadelphia were estimated using Diio Mi Form 41 data for American Eagle, adjusted by the manufacturer’s cost curve and feedback from operating carriers. 

# T This section addresses:



###  A Strategic Plan for

meeting FWA’s air
service needs and
deficiencies



###  A discussion of how

the new goal materially
differs from FWA’s previously awarded projects



###  Alternate plan to meet

the goalsAPPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMFORTWAYNEINTERNATIONALAIRPORT

Page

13 Table 5.1 provides a summary of the American Airlines/US Airways Philadelphia market analysis for two roundtrips per day on a 50-seat regional jet. Passenger projections were
based on a mature market (i.e., passenger projections would be at 100 percent on the first day of service). Two roundtrips per day are projected to generate $1,863,207 (18 percent margin) in segment profit for American Airlines. The FWA-Philadelphia route is fore cast to be a strong economic performer for both American Eagle and American after ramp-up is complete. With such a strong segment and system profit margin, this market will be self-sustaining.

Although it is estimated that American Airlin es/US Airways will earn a profit after the FWA-Philadelphia market matures, American/US Airways will not generate this amount of profit at start-up. New markets typically have losses during the first year or two of operation; hence the need for a revenue guar antee to temper the airline’s risk. The uncertainty in the airline industry including the fl uctuating cost of fuel will play a large part in the revenue guarantee negotiations with American/US Airways.

For purposes of estimating the shortfall, for the first month of service, it is estimated that 60 percent of the projected passengers in a mature market will be attained. It is
estimated that the market will reach full ma turity after the first nine months of service. The ramp-up period is speculative and may differ depending on the effectiveness of the marketing campaign. To calculate the effe ct of the ramp-up period on net profit, Table
5.2 shows revenue by month with an April 2 014 start date, the as sociated cost per month, and the net shortfall. With a first year estimated cost of $8.4 million, the service will incur an estimated shortfall of over $900,000.

TABLE 5.2 SERVICE RAMP-UP/START-UP PERIOD

MONTH ESTIMATED PAX RAMPUP % RAMP-UP ADJ PAX LOAD FACTOR REVENUE ESTIMATED COST NET SURPLUS/SHORTFALL April 4,277 60.0% 2,566 43% $394,894 $690,060 ($295,166) May 4,664 64.4% 3,006 48% $462,539 $713,062 ($250,523) June 5,578 68.9% 3,842 64% $591,303 $690,060 ($98,757) July 5,411 73.3% 3,968 64% $610,622 $713,062 ($102,440) August 5,362 77.8% 4,170 67% $641,785 $713,062 ($71,277) September 4,712 82.2% 3,874 65% $596,193 $690,060 ($93,867)

October 5,117 86.7% 4,435 72% $682,437 $713,062 ($30,625) November 4,645 91.1% 4,232 71% $651,227 $690,060 ($38,833) December 4,265 95.6% 4,076 66% $627,195 $713,062 ($85,867) January 4,232 100.0% 4,232 68% $723,612 $713,062 $10,550 February 4,095 100.0% 4,095 73% $700,257 $644,056 $56,201

March 4,708 100.0% 4,708 76% $804,984 $713,062 $91,922
Total 57,065 N/A 47,204 65% $7,487,049 $8,395,730 ($908,681)
Note: Ramp-up = 60 percent first month increasing up to 100% in the first nine months with a 10% reduction in fares during the start-up period. TABLE 5.1 FWA-PHILADELPHIA MARKET ANALYSIS ITEM STATISTICAL CATEGORY FWA-PHL

1 Roundtrips 2 2 Seats/departure 50 3 Onboard passengers 57,065 4 Annual seats 73,000 5 Load Factor 78.2% 6 Average Segment fare $171 7 Segment 1 revenue $10,258,937 8 System revenue $16,528,118 9 Segment 1 cost $8,395,730 10 System cost $10,769,433 11 Segment 1 profit/loss $1,863,207 12 Segment 1 margin 18% 13 System profit/loss $5,758,685 14 System margin 35%APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMFORTWAYNEINTERNATIONALAIRPORT

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14 

### A LTERNATE 

### P LAN

If the public-private partnership is unable to obtain American Airlines/US Airways service to Philadelphia, the secondary targets are:

 United Airlines’ service to Washington Dulles International Airport or Newark International Airport

 Delta Air Lines service to New York’s John F. Kennedy International Airport.

Other hub airports on the East Coast that can improve connections and reduce leakage will also meet the goals of this project.



### P REVIOUS 

### G RANT 

### R ECIPIENT


### - N EW 

### P ROJECT AND 

### G OALS

Building on the community’s previous air service successes, this project will alleviate the most pressing air transportation constraints facing the Fort Wayne community. Table 5.3 compares this application with prior SCASDP projects.

TABLE 5.3 SCASDP PROJECT COMPARISONS YEAR GOALS PLAN OUTCOME STATUS

2002 Add low-cost carrier service ATA service to Chicago Midway Service initiated in 2004 and continued until ATA’s cessation of operations in 2005 Complete/ closed out

2010 Lower airline costs at FWA Install shared use IT platform at ticket counters and gates Successful implementation of the shared use IT platform. Complete/ closed out

2013 Acquire nonstop service to an eastern hub American Airlines/US Airways service to Philadelphia Pending Pending

The SCASDP has been very successful for Fort Wayne. The 2002 award to help bring in low-cost service with ATA was successful, wi th service initiation in 2004. The service was only in the market for less than a year ; however, service was pulled due to forces
outside of the control of FWA when ATA ce ased all operations in 2005. The 2010 award was also successfully implemented by FWA. The goal of reducing airline costs at FWA
was achieved after installation of a shared-use IT platform at ticket counters and gates in 2011/2012. This project clearly has diffe rent goals than the previous SCASDP grant projects.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMFORTWAYNEINTERNATIONALAIRPORT

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15 

# S ECTION 

# 6. S TRATEGIC 

# P LAN



# – I MPLEMENTATION AND 

# F UNDING

here the previous section provided details and analysis associated with the proposed service, this section, Strat egic Plan – Implementation and Funding, details the public-private partnership’s plan for effectively addressing the associated risk. Organization, community involvement, risk mitigation, and a plan to continue the project if it is not self-sustaining after t he grant expires are included.



### P UBLIC 

### -P RIVATE 

### P ARTNERSHIP

The Fort Wayne-Allen County Airport Authorit y, a public entity, administrator of FWA, and the sponsor of this application, has team ed up with the City of Fort Wayne and the Greater Fort Wayne Chamber of Commerce to create a public-private partnership. Letters of support are included in Appendix A to document each partner’s commitment to accomplishing the Strategic Plan. These three organizatio ns have a long history of working together to improve air service at FWA.

Reference Table 6.1 each member of the public-private partnership has an active role in the Strategic Plan. As the grant sponsor, the Fort Wayne-Allen County Airport Authority will manage the gran t, execute all federal grant offers, process all associated reimbursement requests, and submit quarterly progress updates to the US DOT, while the City of Fort Wayne will be a key contributor to the funding of the M inimum Revenue Guarantee. The Greater Fort Wayne Chamber of Commerce will develop and manage the marketing program.



### I NCENTIVE AND 

### S UPPORT 

### P LAN

As shown in Table 5.2 , page 13, it is highly unlikely that an airline will breakeven during the first year of service due to passenger ramp-up and service awareness. While FWA
has been able to demonstrate on its current route structure a cons istently profitable operation, this incentive and support plan has two primary objectives: first, to effectively market the service to the general public; and second, to offset an airline’s liability during the passenger ramp-up period. In short, the public-private partnership’s task is to market the improved service and cover the airline’s risk while passenger traffic builds. Exhibit
6.1 , next page, provides a depiction of the comprehensive incentive plan FWA will provide for nonstop Philadelphia service. 

# W

TABLE 6.1 ROLES OF THE PUBLIC-PRIVATE PARTNERS PARTNER ROLE Public:
Fort Wayne-Allen County Airport Authority (sponsor) Grant administration; Strategic Plan monitoring and performance tracking
City of Fort Wayne Support for funding Minimum Revenue Guarantee Private: Greater Fort Wayne Chamber of Commerce Develop and administer the marketing plan This section addresses:



###  Description of the

public-private partnership



###  Designation of a legal

sponsor



###  Funding necessary for

implementation of the Strategic Plan



###  Sustainability of the

project



## The Fort WayneAllen County Airport Authority/FWA, City of Fort Wayne and

the Greater Fort Wayne Chamber of

Commerce haveformed a publicprivate partnership.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMFORTWAYNEINTERNATIONALAIRPORT

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16 

### Revenue Guarantee

An airline’s consideration of nonstop service between FWA and Philadelphia depends heavily on financial support. In the current airline and economic environment, it has become expected that a small community share in an airline’s risk of service start-up. Depending on the aircraft used and frequency, airlines are typically requesting $500,000 to $1 million per year in revenue guarantees. Like most communities, Fort Wayne does
not have the full amount of funds availabl e to offer such a guarantee without the assistance of the US DOT through this program.

While a revenue guarantee will be necessary to entice an airline to serve the market, the community is confident that it is unlikely the monies will be used in their entirety as the number of passengers driving to other airports decreases.

Based on preliminary estimates of the s hortfall in the first year of service ( Table 5.1

, page 13) and recent information on revenue guarantees in other similar markets, it is anticipated that a minimum $2,000,000 reven ue guarantee will be required over a twoyear period of time. Terms of the revenue guarantee agreement are subject to further negotiations and changing industry conditions.



### Marketing Campaign

The goal of the marketing campaign is to incr ease visiting, local, and business traveler awareness of nonstop Philadelphia service. The Greater Fort Wayne Chamber of Commerce’s marketing plan is to target Fort Wayne area travelers and introduce them to
the new service. EXHIBIT 6.1 INCENTIVE AND SUPPORT PLAN



## To reduce airline risk and provide incentive to American Airlines to provide nonstop Philadelphia service, this Strategic Plan includes an airline revenue guarantee.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMFORTWAYNEINTERNATIONALAIRPORT

Page

17 A complete marketing/advertising plan will be developed prior to any expenditure of marketing dollars. The marketing plan will be structured for a 14-month program prior to and during the first year of service. The comprehensive plan will focus on public awareness of the new service. Emphasis will be placed on the ability of the new service
to make air travel more conv enient, less time-consuming, and less costly, while providing more direct access to primary destinations.



### Fee Waivers

The incentive program includes waiving of airport fees for a one-year period. Landing fees, apron fees, fees for variable common spac e, and boarding security fees will be waived by the airport, consistent with FWA’s current incentive program.



### S TRATEGIC 

### P LAN 

### F UNDING

The Fort Wayne-Allen County Airport Author ity is seeking $600,000 in US DOT funding as part of a support program associated with nonstop Philadelphia service. SCASDP grant funds will be used for a portion of the revenue guarantee. Fort Wayne’s publicprivate partnership will fund $1,400,0 00 of the revenue guarantee and the $60,000 marketing campaign.

Table 6.2 provides the Strategic Plan budget broken down by element and sources of funding. The community will fund 77 pe rcent of the total program Non-airport

. revenue sources will provide 71 percent of t he cash requirement and 57 percent of the funding for the total program including in-kind services. Cash contributions will be provided by Fort Wayne-Allen County Airport Authority (non-airport revenue) and the City of Fort Wayne.

TABLE 6.2 STRATEGIC PLAN BUDGET

DESCRIPTION FUNDING SOURCE

TOTAL US DOT AIRPORT REVENUE NON-AIRPORT REVENUE CASH CASH IN-KIND CASH IN-KIND Revenue Guarantee $600,000 $1,400,000 $2,000,000 Marketing Campaign $60,000 $60,000
Fee Waivers: Landing Fees $77,850 $77,850 Apron Fees $15,570 $15,570 Common Space - Variable $367,090 $367,090 Boarding Security $52,110 $52,110
Total $600,000 $0 $512,620 $1,460,000 $0 $2,572,620 Percent of Total Project 23% 0% 20% 57% 0% 100% Percent of Cash Contribution 29% 0% N/A 71% N/A 100%



### P ROJECT 

### C ONTINUATION AND 

### S USTAINABILITY

The preliminary analysis indic ates that after the ramp-up period, daily jet service to Philadelphia International Airport will be pr ofitable (i.e. self-sustaining). However, a continued rise in fuel costs or any number of factors could result in fewer passenger or less ticket revenue than anticipated. Depending on the specifics at the time, the publicprivate partners will consider other appropri ate support mechanisms if the service is not self-sustaining after the two-year revenue guarantee.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMFORTWAYNEINTERNATIONALAIRPORT

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18 

# S ECTION 

# 7. S CHEDULE AND



# M ONITORING

realistic timetable has been developed to achieve the goals of this SCASDP application. This section provides critical milestones to be achieved by the public-private partnership, including targ et dates for: the marketing campaign development and initiation; nonstop Philadel phia service start-up; alternate plan; and revenue guarantee contract completion. A monitoring program is also provided to track the progress of the project.



### S TRATEGIC 

### P LAN 

### S CHEDULE AND 

### M ILESTONES

The following target dates are proposed to track the progress of this air
service initiative:

TABLE 7.1 STRATEGIC PLAN SCHEDULE

DATE ACTION
ITEM DESCRIPTION

October
2013 - January 2014 Airline meetings/negotiations After grant award, FWA will meet with American Airlines/US Airways at their headquarters to discuss nonstop Philadelphia service. Upon airline interest, the terms of the airline incentive package will be negotiated.

January - February

2014 Marketing campaign development Development of the marketing campaign will be completed in February/March 2014 in order to begin the marketing campaign 60 days prior to
new service initiation.

February

2014 Marketing initiation It is anticipated that the marketing campaign will begin by February 2014 and continue throughout

the first year of nonstop Philadelphia service.

April 2014 Nonstop Philadelphia
service The service start date is the critical date for the rest of the Strategic Plan. It is anticipated that, with successful airline negotiations, service would start in April 2014. Service start-up is dependent on airline route planning and aircraft availability
for the FWA market.

December

2014 Alternate plan If American/US Airways has not implemented nonstop Philadelphia service by December 31, 2014, the public-private partnership will contact other potential carriers to provide service to an eastern hub which would meet the goals of this grant application. 

# A This section addresses:



###  How the community will

monitor the progress of the project



###  The plan/schedule for

timely completion of the projectAPPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMFORTWAYNEINTERNATIONALAIRPORT

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19 TABLE 7.1 STRATEGIC PLAN SCHEDULE

DATE ACTION
ITEM DESCRIPTION

March
2016 Revenue guarantee contract completion At the end of the second year of nonstop service, with a service start date of April 2014, the revenue guarantee will be calculated. If the

service start date changes due to airline circumstances and/or equi pment availability, the

revenue guarantee contract term will change accordingly.



### S TRATEGIC 

### P LAN 

### M ONITORING 

### P ROGRAM

The monitoring program includes: servi ce performance tracking; assessing the effectiveness of the marketing campaign; impact on airfares; and determining the
influence of eastern hub serv ice on retention at FWA. Table 7.2 provides the action items and frequency to monitor the Strategic Plan.

TABLE 7.2 STRATEGIC MONITORING FREQUENCY ACTION ITEM DESCRIPTION

Quarterly Airfares Track walk-up, business, and leisure published fares for the top 25 markets to ensure fares are competitive with competi ng airports. Fare issues

will be communicated to incumbent airlines.

Airline performance Load factors by flight, enplanements, flight
cancellations Market performance Passenger ramp-up Revenue guarantee
indicators Ticket revenue, cost, drawdown

Annually True Market Estimate Complete a true market estimate to evaluate the use of FWA by local travelers compared to their

use of alternate airports. Analyze output and
communicate with airline.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMFORTWAYNEINTERNATIONALAIRPORT 

# A PPENDIX 

# A. L ETTERS OF


# S UPPORT

Appendix A includes letters of support for the Fort Wayne-Allen County Airport Authority’s application to the US DOT for nonstop Philadelphia service. Support letters were submitted by each of the members in the public-private partnership and local businesses. Additional letters of suppo rt will be submitted separately from the application. The letters of support are included on the following pages of this Appendix A

.

Public-private partnership Fort Wayne-Allen County Airport Authority (see cover letter) City of Fort Wayne Greater Fort Wayne Chamber of Commerce

Businesses

Lincoln Financial Network This section addresses: Letters of support frommembers of the publicprivate partnership and
local businesses.

## July 12

, 2013

Brooke Chapman, Associate Director Small Community Air Service Development Program U.S. Department of Transportation 1200 New Jersey Ave, SE W86

- 310 Washington, DC 20590

Dear Ms. Chapman

,
I am writing in support of th e Fort Wayne

- Allen County Airport Authority (FWACAA) application for funding through the Small Community Air Service Development Program.

The greater Fort Wayne area continues to have significant leakage to nearby airports. Sixty

three percent of catchment area passengers, equating to 922,976 annual passengers are opting to drive two hours or more to get to alternate airports with more flights and cheaper fares. FWACAA and the Fort Wayne community ha ve determined that additional service to a new eastbound hub is of utmost importance to help reduce that leakage and bring those passengers back to the Fort Wayne International Airport.

With fewer airlines and shrinking fleets, there is increased pressure from the airlines to the communities to offset a portion of t he risk to startup a new route. The FWACAA and Fort Wayne community are continuing their long

- term a ir s ervice d evelopment efforts with the current endeavor to bring US Airways/American Airlines service to the Phila delphia International Airport. The Small Community Air Service Development Program grant funds requested will be matched with significant local dollars that will be used for airline incentives
to reduce the risk to start this service.

We hope that you give the FWACAA proposal full consideratio n and award the funds requested to help Fort Wayne improve its access to the National Transportation System by attracting service to Philadelphia on the new American Airlines/US Airways

.

Sincerely,

Thomas C. Henry Mayor