1 

# Proposal under the Small Community Air Service

Development Program

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Delta County Airport 3300 Airport Road Escanaba, MI 49829

Legal Sponsor: County of Delta 3300 Airport Road Escanaba, MI 49829

DUNS # 08 6182953 Congressional District Code # 0123456 

## T

able of Contents

Appendix B: Grant Application Summary Informati on Form

I. Grant Proposal and Major Objectives

II. About Delta County

III. Delta County’s Existing Air Service

IV. Delta County’s Historical Service

V. Air Service Needs or Deficiencies

VI. Delta County’s Strategic Plan for Meeting those Needs

VII. Necessary Funding for Implem entation of Delta County’s Project

VIII. How Delta County Will Monitor the Success of the Program

IX. A Description of Continuing the Project if not

Self

- sustaining

X. Community’s Air Service Development Efforts Over

Past Five Years

XI. Designation of a Legal Sp onsor Responsible for Administering the Program

XII. Summary

ATTACHMENTS:

Attachment A : Letters of Support

Attachment B : Annual Enplanement Charts

Attachment C : Legal Sponsor and Contact Information7 Delta County Airport

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## I. Grant Proposal and Major Objectives

Grant Proposal Amount: $72

, 5 00 .00

Major Objectives: (1) Increase passenger boardings to 10,000 (2) Developing a new campaign, “FLY ESC, Escape via Delta County Airport ” , that will market our selec ted EAS air carrier for Delta County Airport , putting the emphasis on their upcoming

c hanges to the air services being provided, and customer

co nvenience for the next year. (3) Stop passenger leakage through an aggressive marketing

campa ign to publicize and market Delta County’s air service at a better dollar value by flying locally rather that driving to Marquette, MI or Green Bay, WI.



## I. About Delta County

The cities of Escanaba and Gladstone are the population centers of t he county and reside within 10 miles of each other. The airport is located just inside the city limits of Escanaba. The population of Delta County is about 38,000. Escanaba, Michigan is approximately 100 miles north of Green Bay, Wisconsin on Lake Michiga n. Since Delta County is part of the Michigan’s Upper Peninsula, Escanaba is 375 miles from the state capital in Lansing and 435 miles from Detroit, a major destination for residents of the Upper Peninsula.

Though the area is not considered remote, long stretches of desolate areas lie between population centers. With this unique demographic, the airport is a n essential , vital and valuable asset for the community to maintain connectivity.



## III. Delta County’s Existing Air Service

Delta County is an Esse ntial Air Service community and has been since 2002 when Skyway/Midwest Connect filed for EAS status after Mesaba /Northwest pulled out.

Delta Airlines is now servicing the Delta County Airport . Northwest Airlines started June 5, 2008 and Delta and Northw est Airlines announced a merger and was completed by December 2009. Both Northwest and Delta Airlines have had passenger boardings

continu ing to in crease slightly, with holiday and summer vacation numbers showing appropriate rises.

Our carrier service ov er the past year has seen increased stability and enjoyed the loyal

customer base. With more time and con tinued efforts to educate the public through8 Delta County Airport

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marketing grants such as this one, De lta County Airport believes our enplanements could get back to the 10,000. Delta Airlines, in July 2010 was awarded another two year EAS contract for Delta County and has since added a second flight departing to Detroi t, allowing more flexibility and conv enience to our passengers. Currently we have service to two major hubs, two (2) departures to Detroit and one ( 1 ) departure to Minneapolis.

Delta County Airport has recently been notified of Delta Airlines changing its service to

all of its 24 EAS communi ties. One of these changes if that their SAAB 340 fleet is being retired. Another change is that the air carrier is looking to discontinue service to some to a number of their communities. Delta County has been in contact with Delta Airlines and we are p leased that De lta County Airport will still be serviced by Delta Airlines, two flights daily to Detroit (arrivals and destinations directly out of Escanaba; we are no longer sharing our flights with Ford airport (IMT). Going from 33 seats shared

to a CRJ Jet with 50 seats independently, we believe this will definitely aid us in our goal

of incr easing our enplanements, recapt uring the leakage to other hubs, and now have the opportunity to gain more passengers from other airports that will have their service discontinued by Delta Airlines.

The past few years have been a confused r oad for our customers to travel. We believe that this marketing grant is critical to increasing our enplanement numbers and educating

our multi

- communities about these latest chan ge s , which will allow Delta County passengers more choices, opening up travel “anywhere in the world”.9 Delta County Airport

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Our enplanement s72 have continued on an upward trend since Delta A irlines started service in July 2010 as Delta Airlines. We believe that this trend will continue as we are confident that our final enplanement numbers will surpass 10,000 boardings. With the possible new changes taking place by the end of this year, jet service will allow for more passengers boarding through Delta County, even as our schedule number of departures are decreasing by one.10 Delta County Airport

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## IV. Synopsis of Delta County’s Historical Service

Before 9/11 Delta County Airport was served by two airlines and passenger boardings approached 20,000. Mesaba served the community with at least six flights a day to Detroit and Minneapolis using the Saab 340. Skyway Airlines also served the area with

t hree flights using Beech 1900’s nonstop to Milwaukee.

After 9/11 Mesaba decided to apply for EAS funding for their service to Escanaba. The funding was denied because Skyway /Midwest also operated from Escanaba. Mesaba discontinued service and enplanemen t numbers fell drastically in 2002. Since then, Skyway slowly increased boardings to almost 10,000.

Also, during this time period, terminal renovation was started and completed in 2005. The community can take pride in its contribution to this FAA assis ted project. The terminal provides a great front door to the community and is very functional. With the help from FAA funding the community has also been able to invest in maintaining an excellent airside facility.

Delta County is an Essential Air Servic e community and has been served by Skyway/Midwest Connect. Midwest Connects’ EAS contract expired May 31, 2007. They decided against submitting a bid for another two years, but continued to serve until a replacement airline was named to service Escanaba. Great Lakes Airlines was awarded the EAS bid in late 2007. After much delay, they lost their award and our EAS

contr act was once again reopened. Northwest Airlines/Mesaba was then awarded the EAS bid in early 2008. They announced a start date of June 5, 2008. With the understanding that Midwest Connect would continue commercial air service until our new carrier could start, we were continuing to inform the community of changes as they happened. Midwest Connect then suspended service as of April 5, 2 008, only giving the community a one

- week notice before termination. Northwest Airlines service did start June 5, 2008, but not before the airline filed a 90

- day Termination Notice with the FAA, stating financial issues because of the severe increases in jet fuel costs . Once again, Delta County’s commercial airline service was in jeopardy. The community had had enough, believing that Delta County Airport would not be able to offer a stable service, creating increased drops in enplanement numbers and los i ng customer faith and loyalty. With Northwest Airlines finally in service, numbers started to slowly increase. Delta and Northwest Airlines then announced a merger. As both Airlines worked to have Delta’s name emerge and still coexist, passengers were m ore confused because ticketing was showing both airline names and customers weren’t sure who they were flying with. December 2009, the merger was completed, Delta Airlines was the only company and we felt relief as our boardings started to slowly increase again. Delta Airlines has since been awarded the new EAS contract as of July 2010.

As of July 30, our enplanement numbers have steadily increased; we believe that this trend will continue, allowing us to reach our goal of 10,000. With the current cha nges Delta County Airport has been informed about, we feel this marketing grant program is critical to keep our multi

- community passengers informed of these changes. With the

confusion of Delta Airlines retiring their SAAB 340 Fleet, that will mean some11 c ommunities will also see their commercial service discontinued. Delta Airlines has committed to continuing to service Delta County Airport; service will be changed to two (2) flights daily to Detroit bring in jet service for both flights and no longer hav ing to share these flights with Ford Airport (IMT).

Delta County Airport believes that Delta Airlines will continue to service our airport and our surrounding communities; this grant will ensure the success for both of us.



## V. An Analysis of Air Service Needs or Deficiencies

The Delta County Airport has now had air carrier service provided by Delta Airlines (merged with Northwest Airlines in December 2009) for just over two year s . We have utilized a limited advertising budget and enplanements have bee n slightly increasing.

Since 2001, changes at the Delta County Airport have had the general public feel like they are walking through a revolving door, not knowing which air carrier will be here or for how long. These latest changes need to be marketed through a very strong advertising With funding from this marketing grant, we plan to implement new ways to educate and familiarize the community with Delta Airlines and some of their practices such as ticketing services, schedules, friendly agents, and t he direct and indirect benefits of “Flying from Your Local Delta County Airport ”. The airport provides free parking, travel time savings, and economic benefits for the entire community. We plan to support

our air carrier service and continue to help incr ease local enplanements

.



## VI. Delta County’s Strategic Plan for Meeting those

Needs :

Proposed Marketing Campaign:

“Fly ESC, Escape via Delta County Airport”

The overall goal of this proposal’s funding is to increase enplanements at the Delta

Count y Airport. The airport plans to establish an aggressi ve new marketing campaign “Fly ESC, Escape via Delta County Airport” help maintain and improve existing air service and educate the public on Delta County’s available air service and the benefits of

fl ying from Delta County versus driving elsewhere to catch a flight. Components of the

one year plan include, but are not limited to:

• A multi

- media advertising campaign, including TV, radio, newspaper, and billboards

. • A target mailing to key business p rofessionals that are not currently using Delta County Airport.

• Establish a Committee of individuals t o aid in the advertising and promotion of Delta County Airport, including making presentations to local civic groups, and

Chamber events

.

• E

- mail o n a consistent basis to Chamber members in Delta County as well as the surrounding area12 Delta County Airport

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• Update Delta County Airport’s webpage highlighting our new campaign, current flight

schedule s and other airline information, security information and tips about

ways to fly smart and stress

- free

.

• A customer

- service program, presenting and speaking about the airport and airline facilities and services to organizations and business groups in surrou nding

counties around Delta County Airport that do or could use Delta County Airport

as the start

.

The Airport staff, specifically airport assistant manager, has an extensive background in marketing. From this position she has been able to develop and implement a marketing plan that was in past years funded by the state. The airport was able to use the assistant manager’s skills, bypassing the need for a local marketing firm, and achieved excellent value on direct dollars spent. The assistant manager will now be responsible for the implementation and development of this marketing proposal. She will monitor the plans impact and results and be responsible for reports. Analysis and adjustments to the plan will be made in cooperation with the Delta Count y Airport Advisory Board. Reporting to the Department of Transportation will take place quarterly showing the p rogress being made. Promotional and advertising materials will be provided to the D.O.T. as well. A final report will be prepared at the end of t he project showing what the grant funding was

used for at the Delta County Airport , due mostly to the grant funds being awarded

. The salary and benefit package of this administrative marketing position will be the in

- kind contribution from the Airport.



## V II. An Analysis of the Necessary Funding for Implementation of Delta County’s Project

Delta County Airport will launch an extensive two

- year marketing campaign for our EAS carrier, immediately after notification of award. These funds will al low us t o primarily

focus on three areas: 1) inc rease our passenger boardings, 2) to continue to increase awareness of Delta County Airport’s new “Fly ESC, Escape via Delta County Airport” campaign, showing the economic impact to our multi county area and aid in introducing the upcoming changes to the same; and 3 ) the recapturing of passengers lost to

M arquette, MI and Green Bay, WI

Below is a syn opsis of our plan. Our media advertising consists of eight radio stations, two television companies, billboards, ne wsletters, and one countywide newspaper. The commitment of these companies in the past has proven unlimited; the current proposals are the same high quality. Other packages include web

- site update and maintenance, direct mail program, and passenger promo tions, along with sponsored events at the Airport for the community to get a real sense of what we offer to the local area.13 Delta County Airport

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HOW ADVERTISING CAMPAIGNS ARE SUCCESSFUL

National Research has shown that targeting customers through demographics is a great place to start...but a poor place to stop. Whether you are an advertiser in a major metropolitan city or in the Upper Peninsula of Michigan, where we are, there is a lot

more to the marketin g landscape that just age and sex data.

Here are key findings where advertising takes place on radio, in print or on television:

1) Successful Advertisers run a high number of commercials per week. Radio listeners will listen to many radio stations week ly, but will spend 75% of their time with their favorite radio station. Newspaper print needs minimum of 3 ads per week, creating repetition for the reader and also familiarity with the same type of ad or using the same logo. Billboards are proven to onl y have a 7 second window of viewing, so the design is critical with vibrant colors, large print and short messages. Using optimum effective scheduling, advertisers will get more value for the dollar, increasing the number of readers and listeners, which w ill ultimately increase the number of enplanements, the Delta County Airport’s top priority. Enplanement number increases reflect SUCCESS of our aggressive marketing campaign.

Delta County Airport Proposed Budget

– One

- year Marketing Campaign

SCAS D CASH MATCHING/

A DVERTISING FUNDS IN

- KIND The Daily Press (newspaper) $100 00.00 $ 3000.00

Radio Results Network (5 radio stations) 15 000.00 10000.00 KMB Broadcasting, Inc. (2 radio stations) 10000.00 5 000.00 WLUC TV 6 (TV and In ternet coverage) 100 00.00 30 00.00 Charter Media (cable coverage) 10000.00 1500.00 Other weekly print material 5000.00

PUBLIC RELATIONS/COMMUNICATIONS /RETENTION

Brochures/Direct Mail 2500.00 Passenger Recruitment/Promotion/

Web

- Sit e Update and Maintenance/ Passenger Surveys/Giveaways/

Promotional Events/Presentations/ Speaking/Chamber Events 10000.00

County o f Delta (Allocation

– cash) 10000.00

D elta County Airport (cash) 5000.00 Airport Staff (In

- Kind) 5000.0 0

Totals $72 ,500.00 $15,000.00 $ 2 7 ,50 0.0014 Delta County Airport

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The Delta County Airport notes that the planned expenditures for each element of the marketing activities may shift marginally as the act ivities are executed and results of different components are measured. Prior to any measurable change in allocation of project funds, the Airport will consult with the D.O.T.

Based on the economy of Delta County, Tourism is the #2 Industry. The media pa ckage is designed to have direct contact with this group at every level of their visit; to reach them whether in the car, in the motel, or participating in one of the many local events that take place throughout the year.



## VIII. A Description of How Delt a County Will Monitor the Success of the Program

The success of the program will be validated by a steady increase in enplanements and the completion of the program milestones. With a year

- long program, we believe that the

i mpact of the campaign will be more reaching and longer lasting. Delta County will continually monitor and make modifications as necessary to insure success.

Milestones: (1) Grant notification day, initiate the marketing process

, contacting vendors and finalizing development of material an d campaign schedule. (2) Monitor enplanements monthly for increase, indicating program success. (3) Monitor destinations to determine if new hubs are being added or considered (4) Evaluate and make adjustments to continue aggressive marketing plan. (5) Survey passengers a nd continue monitoring enplanements monthly for an

increase. By continually evaluating the marketing campaign, weaknesses can be omitted. Since

Delta/ Northwest Airlines complete d their merger , they have created a loyal customer
base. As enplanements are monitored, the success of the program will be determined

with increased numbers and sustainability , being the Delta County’s #1 priority.



## IX. A Description of Continuing the Project if not Self

sustaining

With an aggressive marketing plan, we can achie ve the goal of reaching our enplanement potential. As enplanements increase, we will work closely with our EAS air service to gain better connectivity to our national transportation system, particularly access to state

and business endeavors in Lower Mich igan. We expect the economic health and community awareness of the airport benefits to improve with increased usage. As the economic benefits are realized, Delta County will be in a more attractive position to encourage business growth. Enplanements wil l continue to be closely monitored and an advertising budget maintained accordingly.15 Delta County Airport

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## X . A Description of the Community’s Air Service Development Efforts Over the Past Five Years

In the past , the State of Michigan supported the airports be making available a $25,000.00 Marketing grant with a 10% local match. Delta County Airport always participated in this program. A local marketing firm was a part of this plan for a number of years. Rece ntly, our Assistant Airport Manager was hired specifically for her marketing experience and was soon able to implement the airport marketing plan directly

a chieving greater value per advertising dollar. The Assistant Manager maintained an

excellent relat ionship with the State administrator with follow

- up reports and advertising achievements. During this period, enplanements showed steady increases. Due to budget constraints the State is no longer able to offer this program.

Delta County area is a small rural community, and we take pride in what we have been able to do with our facility. Maintaining an excellent airside facility and renovating the terminal building was a huge community commitment. Working with our EAS carrier by keeping their operatin g costs at a minimum has helped to keep our community very competitive.



## XI. Designation of a Legal Sponsor Responsible for Administering the Program

The County of Delta, is the s ponsor of the grant application; the Delta County Airport will be responsib le for the overall administration of the program. The County of Delta and Delta County Airport staff will, if granted federal funds, live up to all elements outlined in the assigned agreement and will provide all required reports to US DOT regarding the p rogress or achievement of the goals of our Strategic Plan, as well as an accounting of funds used in the pursuit of our objectives.



## XII. Summary

The Delta County Community is very proud of their new terminal building and airport facility. Delta County requires funding to market the airport and work to establish increased enplanements with our air carrier De lta Airlines. With increased enplanements

, cooperative efforts can be made to work with our EAS carrier for possible service to requested destination s. This grant will be crucial to make this happen

.

Any partial funding for this proposal in this grant cycle would be greatly appreciated. Thank you for your consideration.16 

# ATTACHMENT A

Small Community Air Service Development Program

Grant Pro posal

Docket OST

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LETTERS OF SUPPORT 1) Representative Ed McBroom (mailing separately)

108 th 

# District, State of Michigan

2 ) Delt a County Commerce Center (mailing separately) a) Delta County Chamber of Commerce b) Delta County Economic D evelopment

Alliance c) Bays de Noc Convention & Visitors Bureau

3 ) City of Escanaba, Michigan (mailing separately)

4 ) City of Gladstone, Michigan (mailing separately)

5 ) Senator Carl Levin (mailed separately)

US Senate

– Michigan

6 ) State o f Michigan

– Bureau of Aeronautic (mailed separately)17 

# ATTACHMENT B

DELTA COUNTY

ENPLANEMENT FIGURES1819 

## A TTACHMENT C

DELTA COUNTY AIRPORT

CONTACT INFORMATION

Legal Sponsor



### T homas Elegeert Nora Viau Chairman, Board of Commissioners Administrator County of Delta County County of Delta 310 Ludington Street 310 Ludington Street Escanaba, MI 49829 Escanaba, MI 49829

906

- 789

- 5100 906

- 789

- 5100

Grant Project Dir ector

Connie Ness, Manager Delta County Airport 3300 Airport Road Escanaba, MI 49829

906

- 786

- 4902 airport@deltacountymi.org

Primary Contact/ Grant Administrator

Kelly Smith, Assistant Manager

Delta Count y Airport 3300 Airport Road Escanaba, MI 49829

906

- 786

- 4902 ; airport@deltacountymi.org