Proposal under the Small Community Air Service Development Program

Docket DOT-OST-2013-0120

Town of Islip/Long Island MacArthurAirport

DUNS: 14-351-9200-0000

Congressional Code: NY-02

Sponsor:

Town of Islip, New York 

Operator of Long Island MacArthur Airport

Tom Croci, Town Supervisor

Robert Schaefer, Airport Commissioner
APPLICATION UNDER

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT-OST-2013-0120

SUMMARY INFORMATION (Appendix C)

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/SCASDP

A. PROVIDE THE LEGAL SPONSOR AND ITS DUN AND BRADSTREET (D&B) DATA UNIVERSAL NUMBERING SYSTEM (DUNS) NUMBER, INCLUDING 

+4, EMPLOYEE IDENTIFICATION NUMBER (EIN) OR TAX ID.

Legal Sponsor Name: Long Island Macarthur Airport/ Town of Islip

DUNS Number: 14-351-9200-0000

EIN/Tax ID: 11-6001931

B. LIST THE NAME OF THE COMMUNITY OR CONSORTIUM OF COMMUNITIES APPLYING:

1._TOWN OF ISLIP______________________________________

2.____________________________________________________

3.____________________________________________________

4.____________________________________________________

C. PROVIDE THE FULL AIRPORT NAME AND 3-LETTER IATA AIRPORT CODE FOR THE APPLICANT(S) AIRPORT(S) (ONLY PROVIDE CODES FOR THE 

AIRPORT(S) THAT ARE ACTUALLY SEEKING SERVICE).

1. Long Island Macarthur Airport (ISP) 2.

3. 4.
D. LIST THE 2-DIGIT CONGRESSIONAL DISTRICT CODE APPLICABLE TO THE SPONSORING ORGANIZATION, AND IF A CONSORTIUM, TO EACH 

PARTICIPATING COMMUNITY.

1. NY-02 2.

3. 4.

E. APPLICANT INFORMATION: (CHECK ALL THAT APPLY)

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 grant(s): 

F. PUBLIC/PRIVATE PARTNERSHIPS: (LIST ORGANIZATION NAMES)

PUBLIC PRIVATE

1. Town of Islip 1.

2. 2.

3. 3.

4. 4.

5. 5.

G. PROJECT PROPOSAL: (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. EXISTING LANDING AIDS AT LOCAL AIRPORT:

Full ILS Outer/Middle Marker Published Instrument Approach

Localizer Other(specify)
I. PROJECT COST: DO NOT ENTER TEXT IN SHADED AREA

LINE DESCRIPTION SUB TOTAL TOTAL AMOUNT

1 Federal amount requested $ 750,000

2 State cash financial contribution $ -

Local cash financial contribution

3a Airport cash funds $ 100,000

3b Non-airport cash funds $ -

3 Total local cash funds (3a + 3b) $ 100,000

4 TOTAL CASH FUNDING (1+2+3) $ 850,000

In-Kind contribution

5a Airport In-Kind contribution** $ 200,000

5b Other In-Kind contribution** $ 100,000

5 TOTAL IN-KIND CONTRIBUTION 

(5a + 5b)

$ 300,000

6 TOTAL PROJECT COST (4+5) $ 1,150,000

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. $ 200,000 figure based on annual value of waiver of landing fees and terminal rent for two new daily narrow 

body B737/A320 type aircraft operating from ISP on routes that are also operated from LGA or JFK by the same 

airline. 

5b. $ 100,000 for regional marketing and awareness provided by the Town of Islip outside of the enterprise budget 

of the airport.
K. Is This Application Subject To Review By State Under Executive Order 12372 Process?

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. Is The Applicant Delinquent On Any Federal Debt? (If “Yes”, Provide Explanation)

No Yes (explain) 

____________________________________________________________________________________________________

________________________________________________________

END OF SUMMARY INFORMATION
Introduction

Long Island MacArthur Airport (ISP), a small hub airport which is currently ranked No. 103 out of 560 

airports in terms of passenger enplanements according to the Federal Aviation Administration’s (FAA) 

2012 calculations, is seeking financial support in the amount of $750,000 through its application for a 

grant from Small Community Air Service Development Program (SCASDP). Like many small hub airports, 

MacArthur Airport has seen enplanement totals drop over the last few years despite a location that 

includes a catchment area of 1.8 million people. The loss of passenger traffic from 2007-2012 was 

greater at Long Island MacArthur Airport (46.4%) than any other small hub facility in the nation. 

The Town of Islip, operator of the airport, has been pursuing a multi-phase air service development 

program at the airport since 2010. Prior cash investments since 2010 made directly by the Town and 

the Airport have included over $500,000 in marketing, promotion and awareness programs, and have 

produced new service to Washington, DC (DCA) from USAirways, and to Boston (BOS) from PenAir. 

The funding from this grant would be used to develop additional service at ISP in a way that begins the 

next phase of air service development at ISP. The Regional Planning Association report commissioned 

by the Port Authority (PANYNJ) identified ISP as the primary regional airport that can provide immediate 

benefits to the NY region. Further air service development at ISP will provide the following benefits to 

the region:

1. More efficient use of airspace- The RPA report directly ties the ability of the NY region to meet 

the needs of the economic growth to its airport capacity. Increasing capacity at LGA and JFK is 

critical to meeting this demand, and runway capacity and airspace capacity cannot be added 

quickly. Passengers from the Long Island catchment area that are now driving to LGA or JFK can 

be matched with air service at ISP within the same airline hub system. This matches the 

catchment area demand with the flight capacity on Long Island plus opens up capacity at LGA 

and JFK for the growth in demand there as well. ISP is a key component for near-term capacity 

increases at JFK and LGA, and this grant will enable this phase of the ISP air service development 

to commence.

2. More efficient use of existing airport infrastructure- Similarly to the airspace, the addition of 

infrastructure capacity is going to be a long and expensive process. Based on ISP leakage 

studies, redirecting the Long Island catchment area traffic to ISP through increased and 

improved air service could open up as much as 15% more capacity at LGA alone for growth in air 

service there, which is needed to meet the demands of the economic growth of the NY region.

3. More efficient airline operations and marketing- The airlines have completed major mergers and 

operational changes over the past five years, reducing capacity and costs as part of their return 

to profitability. The Airport has presented to the airlines that the next step in this operational 

efficiency will be to consider ISP as part of a co-terminal operation with the NY airports. Long 

Island is in the same media market as LGA and JFK, so marketing efforts for air service are 

shared. Airport costs per passenger for the overall NY airport market will be averaged down 
when airlines add the lower airport costs at ISP ($3.50/enplaned passenger) to the higher costs 

at JFK ($25/enplaned passenger) and LGA ($15/enplaned passengers).

4. Positive environmental impacts from passengers making shorter trips to the airport- By better 

matching air service at ISP with its catchment area and providing benefits to the airlines and 

airport operators to facilitate this new service, passengers from the ISP catchment area that are 

now driving to JFK and LGA will have an opportunity to make shorter trips to ISP. This will 

reduce the environmental footprints of these passengers with the positive results accruing to 

the region.

Background

After generating an enplanement total of 1,167,515 in 2007, the number dropped steadily to just 

667,573 in 2012 as reported last year to the FAA from MacArthur Airport’s only two carriers—Southwest 

Airlines and USAirways Express. A community with an airport that has the potential to serve nearly two 

million residents of Nassau and Suffolk County—the catchment area of MacArthur Airport— has seenits 

choices dwindle and airline costs rise. In fact, a boom in passenger traffic at Long Island MacArthur 

Airport earlier last decade was due in large part because of cheaper fares and excellent service choices. 

A consistent rise in ticket prices coupled with the challenge to the national economy has only 

complicated the issues for the airport’s management.

Long Island MacArthur Airport believes an approach involving complementary service between ISP and 

the NY region’s airports at LGA and JFK is the key to regaining the type of traffic that had the Airport just 

shy of ranking among the top 85 US airports only a few years ago. Long Island MacArthur Airport isn’t 

seeking to expand and compete with the much bigger New York City airports, but an increase in air 

service from the current level of 25 flights back to the 40 or 50 daily flights that existed less than 10 

years ago would provide the benefits listed above for the region’s travelers.

To begin the process of developing complimentary new commercial air service, the Town of Islip 

implemented an Air Service Development Incentive Program at the airport effective March 1, 2012 

through February 29, 2016 (See Appendix A), and the first 18 months of the program have helped 

advance commercial service by two destinations and three flights per day. USAirways Express expanded 

its service in March 2012 to include two daily, nonstop flights to Washington D.C., and PenAir began 

taking advantage of the Incentive Program effective July 25, 2013 with two daily round-trip flights to 

Boston, a long-underserved market for the region, and one that previously performed well for 

Continental Airlines.

An example of the target market for air service that this grant would be used for is ISP-Chicago. 

Connecting service to Chicago represented 70,960 passengers in 2012, and an additional 60,760 used 

MacArthur Airport on the way to Chicago as a destination. Updated research on the ISP-Chicago route 

conducted on behalf of the airport demonstrates that adding three daily, nonstop flights to Chicago 

would net an increase in passenger enplanements at ISP of 122,841, with more than half (72,786) 

forecasted as Chicago O&D passengers and the balance (50,055) continuing on to a western destination. 
According to surveys conducted by the New York State Labor Department in 2011, the Long Island 

economy has a diverse base of industries particularly in defense, aerospace, biotech, healthcare and 

energy, and the airport’s catchment area has a median income ranging from $79,000-$123,000, 

according to the Census Bureau’s 2011 American Community Survey. The passenger traffic is out there, 

the airport just needs to continue its efforts with air service development and awareness. 
Small Community Air Service Development Grant

Town of Islip, New York

July 26, 2013
1

Contents

 Description of Air Service Needs/Deficiencies

 Strategic Plan

 Description of Funding Needed to Implement the Project

 Designation of Legal Sponsor
2

Description of Air Service Needs/Deficiencies
3

Passengers in MacArthur’s catchment area are using 

alternative airports to travel to both leisure and business 

destinations

Top 10 MacArthur Market Area Passengers via Kennedy and LaGuardia

YE 1Q 2011

Via JFK Via LGA

Leaked Percent Leaked Percent

Rank City Psgrs of Total Rank City Psgrs of Total

1 Orlando 333,789 13.5% 1 Atlanta 179,519 8.9%

2 Los Angeles 242,057 9.8% 2 Orlando 122,280 6.1%

3 Las Vegas 198,871 8.0% 3 Fort Lauderdale 110,222 5.5%

4 Phoenix 145,255 5.9% 4 Chicago 108,310 5.4%

5 San Francisco 118,539 4.8% 5 Denver 99,426 4.9%

6 Fort Lauderdale 118,138 4.8% 6 Washington 91,344 4.5%

7 Tampa 107,618 4.3% 7 Charlotte 89,519 4.4%

8 West Palm Beach 94,054 3.8% 8 West Palm Beach 79,527 3.9%

9 Seattle/Tacoma 92,864 3.8% 9 Tampa 64,565 3.2%

10 Buffalo 82,490 3.3% 10 Dallas/Fort Worth 64,536 3.2%

Total Via JFK 2,475,136 100.0% Total Via LGA 2,016,290 100.0%

Source: Travelport, MIDT Data, YE 1Q 2011.
4

Passengers in MacArthur’s catchment area are using 

alternative airports to travel to both leisure and business 

destinations

Top 10 MacArthur Market Area Passengers via Kennedy and LaGuardia

YE 1Q 2011

Via JFK Via LGA

Leaked Percent Leaked Percent

Rank City Psgrs of Total Rank City Psgrs of Total

1 Orlando 333,789 13.5% 1 Atlanta 179,519 8.9%

2 Los Angeles 242,057 9.8% 2 Orlando 122,280 6.1%

3 Las Vegas 198,871 8.0% 3 Fort Lauderdale 110,222 5.5%

4 Phoenix 145,255 5.9% 4 Chicago 108,310 5.4%

5 San Francisco 118,539 4.8% 5 Denver 99,426 4.9%

6 Fort Lauderdale 118,138 4.8% 6 Washington 91,344 4.5%

7 Tampa 107,618 4.3% 7 Charlotte 89,519 4.4%

8 West Palm Beach 94,054 3.8% 8 West Palm Beach 79,527 3.9%

9 Seattle/Tacoma 92,864 3.8% 9 Tampa 64,565 3.2%

10 Buffalo 82,490 3.3% 10 Dallas/Fort Worth 64,536 3.2%

Total Via JFK 2,475,136 100.0% Total Via LGA 2,016,290 100.0%

Source: Travelport, MIDT Data, YE 1Q 2011.
5

After years of steady fares since 2000, average fares have 

increased 6.7% annually since 2007

MacArthur’s Domestic O&D Passenger and Average Fare

CY 2000 – YE 3Q 2012

Source: USDOT, O&D Survey

O&D Passengers

Avg. Fare (thousands)

0

500

1,000

1,500

2,000

2,500

$80

$90

$100

$110

$120

$130

$140

$150

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 YE 3Q

12

Average 

Fare

Avg. Annual Growth (Fares)

2000–YE 3Q 2012 2.7%

2005–YE 3Q 2012 5.2%
6

Summary of Air Service Issues

 ISP has lost 46.6% of its passenger traffic from 2007 through 2012, the 

largest loss among small hub airports in the US

 ISP has seen air fares increasing at a 7% annual rate as the air service at 

the airport has decreased.

 ISP is leaking almost 75% of its catchment area to LGA and JFK at a time 

where LGA and JFK are capacity constrained with no immediate 

infrastructure or airspace improvements in sight.

ISP is seeking to continue its efforts to develop air 

service that is complimentary to air service at LGA and 

JFK and that provides benefits to the airlines, the 

passengers, the region’s airport operators and the 

region’s economy.
7

Strategic Plan
8

Strategic Plan

 The funding from this grant would be used to develop additional service at 

ISP in a way that begins the next phase of air service development at ISP. 

The Regional Planning Association report commissioned by the Port 

Authority (PANYNJ) identified ISP as the primary regional airport that can 

provide immediate benefits to the NY region. Further air service 

development at ISP will provide the following benefits to the region:

 More efficient use of airspace- The RPA report directly ties the ability of 

the NY region to meet the needs of the economic growth to its airport 

capacity. Increasing capacity at LGA and JFK is critical to meeting this 

demand, and runway capacity and airspace capacity cannot be added 

quickly. Passengers from the Long Island catchment area that are now 

driving to LGA or JFK can be matched with air service at ISP within the 

same airline hub system. This matches the catchment area demand with 

the flight capacity on Long Island plus opens up capacity at LGA and JFK 

for the growth in demand there as well. ISP is a key component for nearterm capacity increases at JFK and LGA, and this grant will enable this 

phase of the ISP air service development to commence.
9

Strategic Plan

 More efficient use of existing airport infrastructure- Similarly to the 

airspace, the addition of infrastructure capacity is going to be a long and 

expensive process. Based on ISP leakage studies, redirecting the Long 

Island catchment area traffic to ISP through increased and improved air 

service could open up as much as 15% more capacity at LGA alone for 

growth in air service there, which is needed to meet the demands of the 

economic growth of the NY region.

 More efficient airline operations and marketing- The airlines have 

completed major mergers and operational changes over the past five 

years, reducing capacity and costs as part of their return to profitability. 

The Airport has presented to the airlines that the next step in this 

operational efficiency will be to consider ISP as part of a co-terminal 

operation with the NY airports. Long Island is in the same media market 

as LGA and JFK, so marketing efforts for air service are shared. Airport 

costs per passenger for the overall NY airport market will be averaged 

down when airlines add the lower airport costs at ISP ($3.50/enplaned 

passenger) to the higher costs at JFK ($25/enplaned passenger) and LGA 

($15/enplaned passengers).
10

Strategic Plan

 Positive environmental impacts from passengers making shorter trips to 

the airport- By better matching air service at ISP with its catchment area 

and providing benefits to the airlines and airport operators to facilitate this 

new service, passengers from the ISP catchment area that are now driving 

to JFK and LGA will have an opportunity to make shorter trips to ISP. This 

will reduce the environmental footprints of these passengers with the 

positive results accruing to the region.
11

Description of Funding
12

DESCRIPTION OF PROJECT FUNDING

LINE DESCRIPTION SUB TOTAL TOTAL AMOUNT

1 Federal amount requested $ 750,000

2 State cash financial contribution $ -

Local cash financial contribution

3a Airport cash funds $ 100,000

3b Non-airport cash funds $ -

3 Total local cash funds (3a + 3b) $ 100,000

4 TOTAL CASH FUNDING (1+2+3) $ 850,000

In-Kind contribution

5a Airport In-Kind contribution** $ 200,000

5b Other In-Kind contribution** $ 100,000

5 TOTAL IN-KIND CONTRIBUTION 

(5a + 5b)

$ 300,000

6 TOTAL PROJECT COST (4+5) $ 1,150,000

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. $ 200,000 figure based on annual value of waiver of landing fees and terminal rent for two new daily narrow 

body B737/A320 type aircraft operating from ISP on routes that are also operated from LGA or JFK by the same 

airline. 

5b. $ 100,000 for regional marketing and awareness provided by the Town of Islip outside of the enterprise budget 

of the airport.
13

Designation of Legal Sponsor
14

Designation of Legal Sponsor

 Town of Islip, New York

 Department of Aviation

 Mr. Robert Schaefer, Airport Commissioner

 rschaefer@townofislip-ny.gov