Docket OST - 2012 - 0069



### ______________________________________ Del Rio International Airport 

### 1



# Grant Application Under the 

# Small Community Air Service Development Program

Docket OST - 2012 - 0069 DUNS # 0784822620000 Congressional District: TX

- 23Docket OST - 2012 - 0069



### ______________________________________ Del Rio International Airport 

### 2 

## Proposal Outline

The City of Del Ri o, Texas, and the Del Rio International Airport herein respectfully submits an application for a grant under the 2012 Small Community Air Service Development Grant Program. 

## Background
Del Rio is a vibrant commercial center on the US

- Mexican border. In addition to being a major trade crossing with Mexico, D el Rio is also the home of Laughlin AFB, which is the main primary pilot training site for the US Air Force, and the region’s largest employer.
Basic traffic

- generation projections indicate that the Del Rio region generates over 9 0,000 annual O&D air pass enger trips. The nature of military travel, such as that generated by Laughlin AFB

– which is very high fare due to Department of Defense travel requirements

– is typically very attractive to airline planners. 1 

### Del Rio is the southern US gateway for the e merging Ports

- To

- Plains Corridor , a 2,300 mile conduit of trade and traffic connecting Mexico, Texas, the US Plains States and Alberta, Canada. This portends strong continued commercial and economic growth for Del Rio. 

## Poor Air Service & High Fares Desp ite the strong economic indicators, air passenger traffic has dropped in half at Del Rio since 2007.
The causes are unreliable on - time performance , lack of frequency, and skyrocketing fares. In that same time frame

– between 2007 and 2012

– average one - w ay fares charged to get to or from Del Rio increased by over 32%. These three dynamics

– poor reliability, low frequency, and high fares

– have simpl y shifted traffic to use San Antonio

– a three hour drive that, in the light of the air service quality at DRT, is a far superior option.

1 Typically, official military travel is required to use refundable tickets, which represent significantly higher fares. This is one reason that American Airlines has re

- built traffic at Manhattan, Kansas (Fort Riley) and has entered Watertown, New York (Fort Drum). A similar opportunity exists at Del Rio.Docket OST - 2012 - 0069



### ______________________________________ Del Rio International Airport 

### 3 

## A Window Of Opportunity Clearly, these are factors that are entirely outside the context of the economy and air traffic demand dynamics at Del Rio. However, at this time Del Rio is facing a unique window of opportuni ty to reverse this trend and recapture lost air traffic. The DOT grant requested herein will set in motion a clear, focused plan , to not only reverse this situation, but to posture Del Rio for future additional air service capacity and growth.
United Airl ines is replacing traditional turboprop service with jet flights. In re

structuring the Houston Intercontinental feed system following the Continental/United merger, the current and very unreliable United Express carrier, Colgan, is being replaced by Unite d with ExpressJet, a high quality operator. The old and unreliable 34

- seat turboprops are being replaced with far more consumer - acceptable 37

- 50

- seat jets. 

## Necessary For Service Success: A Third Flight But the higher costs of operating these jets

– as re liable as they may be

– represents a challenge to keeping service at Del Rio. The current levels of ridership are not likely to be increased sufficiently without the addition of a third connecting flight to United’s Houston hub. The poor on - time performan ce provided by Colgan as a Continental Connector literally kept passengers from being able to use Del Rio. In 2011, t he average passenger traffic was just 12 per flight. This will equate to a load factor of just 32 % on the 37

- seat jets, and 24% if 50

- seat jets are used on the route. Furthermore, because of the substandard service over the past five years, the Colgan flights at the best of times could barely capture much more than a 50% load factor rate. These data are reflective of inadequate and sloppy a ir service, and are not indicative of the strong air service demand and the opportunity DRT represents for the United Airlines system. United Airlines apparently agrees, and is making a commitment to Del Rio in replacing Colgan’s old turboprops with jets

. This is in a market that in the past has had low ridership on much smaller aircraft. United apparently understands the future contributory value that DRT has for its system. However, with high fuel costs, the financial patience of United Airlines will b e limited. Therefore, the Airport and Community are submitting this application to support a program that will accomplish two critical goals to restoring air access to this part of Texas to economic viability:Docket OST - 2012 - 0069



### ______________________________________ Del Rio International Airport 

### 4 A risk

- offset program to increase flight freq uencies on United Express from two round trips to three. As will be outlined in this application, two flights do not permit the connectivity necessary to materially re

- capture traffic leaking to much larger San Antonio. An aggressive marketing and air ser vice awareness program aimed at the Del Rio community, the Laughlin AFB community, as well at key business targets in Ciudad Acuna, which is a 270,000

- population commercial center in Coahuila state, and connected to Del Rio by the Del Rio

- Ciudad Acuna Inte rnational Bridge. 

## The Critical Importance of United Express The data in this application show that the grant dollars applied to Del Rio will be a strong investment in the future of this region of Texas. The community and the Airport would again emphasize that maintaining and building connectivity to the rest of the nation and the world is critical to the economy of this region. Furthermore, the hard realities of the structure of the airline industry point to the United Express service being essentially the only viable air service potential for the region. The DRT market is relatively small, and there are only two potential gateway hubs within economic distance (DFW/American and IAH/United) which can achieve this connectivity. But at DFW, American Airline s is in reorganization and is not expanding its American Eagle network. United, on the other hand, is making a commitment to putting jets into Del Rio. The community is likewise committed to making this new service successful. But to do so, it will be nec essary to add frequency beyond just two round trips, and it will be necessary to change consumer patterns which have been literally driven to use San Antonio. Without this service, the hard realities of the airline industry point to this region of Texas e ventually being without air service connectivity . This would put the region at a severe disadvantage in the global economy. The traffic demand exists to support a pattern of three daily flights to United’s hub at IAH. This grant will incubate and allow the service to grow. With these factors in mind, the Airport and community would ask that the Department review this application and give it favorable consideration.Docket OST - 2012 - 0069



### ______________________________________ Del Rio International Airport 

### 5 All correspondence regarding this application should be directed to:
Billie Jo Grafton A irport Manager Del Rio International Airport 1104 West 10th Street Del Rio, TX 78840 (830) 774

- 8538Docket OST - 2012 - 0069



### ______________________________________ Del Rio International Airport 

### 6



# Contents of Proposal

PROPOSAL OUTLINE 2 Background 2 Poor Air Service & High Fares 2 A Window Of Opportunity 3 Necessary For Service Success: A Third Flight 3 The Critical Importance of United Express 4


## I. MARKET & SERVICE HISTORY 7 San Antonio – The Draw of 125 Daily Flights 8 Traffic, Load Factor & Fare History 9 Lack of Connectivity With Only Two Flight Frequencies 10 Fare Levels – Very High 11


## THE GRANT IMPLEMENTA TION 12 The Revenue Guarantee 12 The Marketing Component 13 Fun ding Distribution 13 Eligibility 14 Continuing Support 14 Past Air Service Efforts 14Docket OST - 2012 - 0069



### ______________________________________ Del Rio International Airport 

### 7 

## I. Market & Service History Del Rio is a major trade gateway between the United States and Mexico. Del Rio International Airport is logically the air service gateway for this region. A one

hour drive time is shown. In reality, the proximity of San Antonio (2.75

– 3.0 hours to the east) likely restrict s the traffic draw area to slightly less than one hour on the eastern side of the catchment area

.

True traffic generation in the region is difficult to accurately determine. Historical data are not an indicator, simply because of lack of schedule depen dability, high fares, and low flight frequency. However, the US market represents approximately 46,000 population, while the population of the Ciudad Acuna region of Coahuila state in Mexico is over 2 7 0,000. In addition, Laughlin Air Force Base, being the largest pilot training center in the Air Force, also generates significant air traffic demand. Based on analyses of the US population and demographic base, the Del Rio air service generation is estimated at approximately 95 ,000 annual passengers. The add itional traffic generation from the Mexican side of the border is difficult to determine.Docket OST - 2012 - 0069



### ______________________________________ Del Rio International Airport 

### 8 Because the market has been abused with unreliable service over the past five years, the actual travel patterns of key businesses, not to mention the air travel pla nning on the part of Laughlin AFB, are very challenging to determine. 

## San Antonio

– The Draw of 125 Daily Departures The natural draw of the higher service levels at San Antonio is increased by the fact that the Colgan service at DRT was not schedule

- rel iable. With only two flights, any misconnections wo uld cause serious inconvenience, and be a deterrent from again attempting to fly out of DRT.

Even with the successful implementation of the flight patterns that this grant will facilitate, there still will be leakage to San Antonio. However for the business travel sector, the proposed service levels

– a third daily round trip to Houston

– will materially recapture lost traffic, and stimulate additional travel demand.Docket OST - 2012 - 0069



### ______________________________________ Del Rio International Airport 

### 9 

## Traffic, Load Factor & Fare His tory A simple year

- by

- year chart explains the reason that more than 80% of the estimated passenger demand generated in the DRT region is using other airports

– or simply not traveling at all.

1. The average fare has increased by 32.4%

- every round trip , on average is costing the consumer $162 more than in 2007.
2. The flight schedule in 2009 declined from three flights daily to just two

. This severely restricts connectivity, and enhances the tendency to use distant San Antonio as the gateway to the region

. 3. The passenger decline at DRT of almost 50% is, in light of these performance data, entirely understandable. And, concurrently, these data indicate that the solution proposed in this application is valid and will be successful in rebuilding traffic.
4. Ope rationally, data provided to the airport by Colgan show that it has been schedule reliability

– on - time performance

– that has been the major service failure. This means that the chances of missing a connecting flight at IAH are very high. With only two fl ights a day, and up to 20% (or more) of departures delayed, local consumers, inbound business travelers, and airmen going to or from Laughlin AFB could not risk a flight into and out of DRT.Docket OST - 2012 - 0069



### ______________________________________ Del Rio International Airport 

### 10 

## Lack of Connectivity With Only Two Flight Frequencies
The need for the grant to support a third flight is demonstrated by the lack of connectivity allowed with just two frequencies. An analysis of just two markets will demonstrate the reason that leakage will continue unless more frequency is added, with or without j et service. Below is the connectivity between Del Rio and Washington

- IAD on a weekday, with a minimum connecting time at IAH of 60 minutes and a maximum of 180 minutes . Th is is the logical connect window. A schedule with l ess than 60 minutes to connect be tween United’s A gates to United’s E gates at IAH is very questionable, particularly if there is any arrival delay. More than 180 minutes makes the drive to SAT more viable in terms of time

- efficiency. The most important role of any airport

– including De l Rio

– is allowing access to the region in which it is located. It’s not just a matter of getting people out of DRT, but more importantly facilitating the ability of consumers to get to the region. With only two daily frequencies, the true market demand a t DRT is being shifted to use San Antonio. For example, the chart below shows the access to Del Rio from Washington and from Chicago with the current two daily flights:

Consumers have only one option to get to DRT from these cities. Clearly, this makes the drive from SAT more attractive. In fact, the total elapsed time flying from ORD to SAT and driving to Del Rio is less than the current scheduled access. It is for this reason that a third flight will increase access, and increase ridership on the exis ting two flights as well. 2

2 Even as extensive as the United hub is at IAH, there are som e major markets

– for example, Philadelphia

– where there are no connecting opportunities of less than three hours. Source: Schedules filed with Innovata, LLC as of May 30, 2012, and analyzed by Aviation DataMinerTM.Docket OST - 2012 - 0069



### ______________________________________ Del Rio International Airport 

### 11 

## Fare Levels

– Very High
While traffic carried by the Colgan service is not necessarily indicative of the true destinational distribution at DRT, just reviewing average fares to these destinations compared to other Texas marke ts is clear proof of disproportionately higher ticket prices:

The additional service that this grant will make possible will have two effects on fares. The first is that additional capacity will bring additional low fare seats to the market. The second is that more discretionary/leisure passengers will tend to use the local service, thereby filling more of the discount seats made available, and lowering average as

- paid fare levels. The Airport has no illusions that DRT fares will be commensurate with SAT, but actual ticket prices will fall more in line with those at other small Texas points. 3

3 Source: US Dot data for year 2011, ana lyzed by Aviation DataMinerTM. Average fares are one

- way, including federal fees and taxes.Docket OST - 2012 - 0069



### ______________________________________ Del Rio International Airport 

### 12 

## The Grant Implementation The Community and the Airport are requesting a grant in the amount of $500,000 to facilitate the addition of a third daily round trip flight to the United hub at Houston Intercontinental. This will enhance the consumer acceptance of the two daily round trips that United is implementing with regional jets. The community is matching the grant dollars with $100,000, for a total in hard do llars of $600,000. The grant period is requested for three years. The Revenue Guarantee portion would be for a 12

- month period. The Airport and Community strongly feel that the service will be a success by that time. Contingent on this, and the flight rem aining in operation, the Marketing Component will be for the full three years, focused on continually building the market and establishing a wider usage of service on both sides of the border. 4


## The Revenue Guarantee The Airport proposes to provide Unit ed a pre

- negotiated per

- flight revenue guarantee, similar to one that the SCASD program has successfully implemented in the past:
Pre

- determined per

- flight costs will be negotiated, with adjustments for fuel costs. Revenues generated as a result of the n ew flight will be determined in negotiations with the carrier. Because this will be an additional flight, the net new traffic on the entire schedule pattern will be part of the revenue determination. Revenues will include passenger fares and estimated anci llary revenues. The program is planned for one

- year period, starting on date of the new flight operation. Revenue and costs will be analyzed on a monthly basis and settlement computed after the end of each six

- month period. The Revenue Guarantee compone nt is envisioned to be in place for one year, starting with the date the third flight begins.

4 Building three United Express flights to success with service to IAH will eventually be a strong example for another carrier

– most likely American Eagle

– to ente r the D RT market.Docket OST - 2012 - 0069



### ______________________________________ Del Rio International Airport 

### 13 The community requests that if there are residual funds left in the Revenue Guarantee portion at the end of the first year, they be shifted to the marketing comp onent for years two and three. 

## The Marketing Component Currently, 48% of all traffic in the market is originated at Del Rio. Therefore, the marketing efforts will be concentrated on local industries

– including those across the border. Special efforts wi ll be made to maximize increased use of DRT by Laughlin AFB. The community will focus efforts mainly on direct contact and direct focus on travel generators via a range of mediums, including print media, electronic media, and social media.
It is envision ed that several on

- airport events will be initiated within the 90 days prior to the new flight to build awareness of the service, and will be continued on a focused basis for all three years of the grant period. 

## Market Study The Airport and Community wil l monitor the performance of the new service closely. Should the traffic appear to not be building sufficiently, immediate additional action will be taken, including a Market Study to determine reasons, including consumer awareness and business usage, will be accomplished. 

## Funding Distribution
The hard cash distribution will be as follows:Docket OST - 2012 - 0069



### ______________________________________ Del Rio International Airport 

### 14 Note that there is also de facto “in kind” contribution in that DRT does not currently charge United Express landing fees. This will extend to the new flight as wel l. 

## Eligibility Del Rio is in complete compliance with the eligibility requirements as outlined in DOT Docket 2012

- 0069. 

## Continuing Support The community is confident that the addition of a third jet flight will increase traffic to the point of economic viability within the proposed 12 month grant period, and the marketing program over the following two years of the grant will assure success. However, the community stands ready to provide United with additional support as necessary and possible after th e end of the grant period. 

## Past Air Service Efforts The community represents a relatively small population base. Therefore, as a practical matter, only two gateways are within logical reach of Del Rio. These are the American hub at DFW and the United (fo rmerly Continental) hub at Houston. Therefore the community has been cognizant of the need to stay in communication with these two carriers.CCR CCR Federal Agency New Release Request Data He! Home Search Registration**~** Notes Access Q CCRHelp Getting Started Frequently Asked Questions Interactive Help Contact Us Quick Links Dynamic Small Business Search ORCA SBA Request DUNS Number Federal Business Opportunities System for Award Management (SAM) Disclaimer Search Results Detail

CCR Search Results Not to be used as certifications and representations. See ORCA for official certification.

Historical Records Available :

Registration Status: DUNS: DUNS PLUS4: CAGE/NCAGE: Legal Business Name: Doing Business As (DBA): Division Name: Send To Printer

Oment Record 

# iJ

Active in CCR; Registration valid until 04/12 /2 0 13. 078482262
4ARQO DEL RIO, CITY OFDivision Number: Company URL:

Physical Street Address 1: Physical Street Address 2: Physical City: Physical State: Physical Foreign Province: Physical Zip/Postal Code: Physical Country:
Mailing Name: Mailing Street Address 1: Mailing Street Address 2: Mailing City: Mailing State: Mailing Foreign Province: Mailing Zip/Postal Code: Mailing Country:

Business Start Date: Delinquent Federal Debt:

CORPORATE INFORMATION Type of Organization

Business Types/Grants http://www.cityofdelrio.com

109 W BROADWAY

DELRIO 

### TX

78840-5502 USA

DEL RIO, CITY OF 109 W BROADWAY

DELRIO 

### TX

78840-5502 USA

05/29/1905 No

U.S. Government Entity

12 -U.S. Local Government C6

- Municipality VW

- Contracts and Grants C8- City

DISASTER RESPONSE INFORMATIONBonding Levels Construction Bonding Level, Per Contract (dollars): Construction Bonding Level, Aggregate (dollars): Service Bonding Level, Per Contract (dollars): Service Bonding Level, Aggregate (dollars):
Geographic Areas Served No geographic areas specified GOODS I SERVICES North American Industry Classification System (NAICS) 541320- Landscape Architectural Services 921110

- Executive Offices 921120- Legislative Bodies

Product Service Codes (PSC)

Federal Supply Classification (FSC)

SMALL BUSINESS TYPES SDB, 8A and HubZone certifications come from the Small Business Administration and are not editable by CCR vendors.

Business Types Expiration Date

North American Industry Classification System (NAICS) The small business size status is derived from the receipts, number of employees, assets, barrels of oil, and/or megawatt hours entered by the vendor during the registration process. NAICS Small Emerging Small Code Description Business Business

541320 Landscape Architectural Services No No 921110 Executive Offices 921120 Legislative Bodies No No No NoCCR POINTS OF CONTACT Government Business Primary POC Government Business Alternate POC Name: ROBERTEADS Name: MANUEL CHAVEZ Address Line 1 : 109 W BROADWAY Address Line 1 : 109 W BROADWAY Address Line 2: Address Line 2: City: DELRIO City: DELRIO State: TX State: TX Foreign Foreign Province: Province: Zip/Postal Code: 78840 Zip/Postal Code: 78840 Country: USA Country: USA U.S. Phone: 830-774-8558 U.S. Phone: 830-774-8555 Non-U.S. Phone: Non-U.S. Phone: Fax: 830-774-8542 Fax: 830-703-5367

Past Performance Primary POC Past Performance Alternate POC Name: MANUEL CHAVEZ Name: CARLOS CRUZ Address Line 1: 109 W BROADWAY Address Line 1 : 109 W BROADWAY Address Line 2: Address Line 2: City: DELRIO City: DELRIO State: TX State: TX Foreign Foreign Province: Province: Zip/Postal Code: 78840 Zip/Postal Code: 78840 Country: USA Country: USA U.S. Phone: 830-774-8500 U.S. Phone: 830-77 4-8500 Non-U.S. Phone: Non-U.S. Phone: Fax: 830-778-2062 Fax: 830-778-2062

Electronic Business Primary POC Electronic Business Alternate POC Name: ROBERTEADS Name: MANUEL CHAVEZ Address Line 1 : 109 W BROADWAY Address Line 1 : 109 W BROADWAY Address Line 2: Address Line 2: City: DELRIO City: DELRIO State: TX State: TX Foreign Foreign Province:Province: Zip/Postal Code: 78840 Zip/Postal Code: 78840 Country: USA Country: USA U

. S. Phone: 830-774-8558 U.S. Phone: 830-774-8528 Non-U.S. Phone: Non-U.S

. Phone: Fax : 830-774-8542 Fax: 830-703-5367

CCR Version 4.11.1
Note to all Users: This is a Federal Government computer system. Use of this system constitutes consent to monitoring at all times.RESOLUTION NO. R: 2012 • 072
A UESOLUTION BY THE CITY COUNCIL OF THE CITY OF DEL RIO, TEXAS AUTHORIZING AND DIRECTING MAYOR ROBERTO**FER.~ANDEZ** TO SUBMIT A $600,000 GRANT PROPOSAL TO THE DEPARTMENT OF TRANSPORTATION FOR THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM (SCASDP) GRANT: DOT ORDER 2012-5-8 (DOCKET OST -2012-069) WHEREAS, the City Council of the City of Del Rio recognizes the value of regularly scheduled commercial air passenger service for the Citizens of Del Rio and surrounding communities: and**WHEREA...~,** the City Council of the City of Del Rio agrees that commercial air passenger service is a valuable economic asset that is vital to the future growth and development of the community; and WHEREAS, the City Council of the City of Del Rio docs desire to promote and enhance the commercial passenger air service currently provided at the Del Rio International Airport; and WHEREAS, the City Council of the City of Del Rio wishes to utilize all available resources to include the Small Community Air Service Development Program Grant (SCASDP) to enhance its ability to promote and enhance the air service provided to the citizens; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DEL RIO, TEXAS THAT:
The City Council of the City of Del Rio does hereby authorize and direct Mayor Roberto Fernandez to submit a $600,000 Grant Proposal to the Department of Transportation for the Small Community Air Service Development Program (SCASDP) Grant: DOT Order 2012-5-8 (Docket OST-20 12-0069).

PASSED AND APPROVED on this the 22"d day of May 2012.

ATTEST:

City Secretary

REV lEW ED :FOR ADMINISTRATION:

ROBERT A. EADS City Manager i?OZAN ' ·EsT City AttorneyAPPENDIX B Page 1


### SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM DOCKET OST-2012-0069
COVER SHEET

(1) NAME: CITY OF DEL RIO (2) LEGAL SPONSOR: CITY OF DEL RIO
DUNS: 0784822620000 EIN: 74-6000665 (3) CONGRESSIONAL DISTRICT: TX-23

### SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM DOCKET OST -2012-0069
SUMMARY INFORMATION APPENDIXC Page 1

All applicants must submit this information with their proposal, along with a completed form SF424 on http://
www.grants.gov.

A. APPLICANT INFORMATION: (CHECK ALL THAT APPLY)

• Not a Consortium 

### D Interstate Consortium 

### D Intrastate Consortium 

## 0 Community now receives EAS subsidy

• Community (or Consortium member) previously received a Small Community Grant

If previous recipient: Date of Grant: 09/24/2004 Expiration date of grant: 2 

### Yz years after execution of agreement Federal Funds Requested: $318,750 Carrier(s) Service Obtained: United Airlines Destination(s) Served: Houston Intercontinental (IAH) 

### B. PUBLIC/PRIVATE PARTNERSHIPS: (LIST ORGANIZATION NAMES)

Public Private
1. Del Rio Chamber of Commerce 1.

_______________ _ 2. Del Rio Hispanic Chamber of Commerce 2.

_______________ _ 

### 3. 3.

____________________________ __ 

### 4. 4.

____________________________ _ 5. 5.

_____________________________ __

C. PROJECT PROPOSAL: (CHECK ALL THAT APPLY) 

# i.

Marketing IJ 

### D Upgrade Aircraft fJ 

### D NewRoute 

### lO Travel Bank [:] 

### D Service Restoration 

### D Subsidy 

### lO Surface Transportation [J 

### D Regional Service • Revenue Guarantee L] 

### D Launch New. Carrier 

### D Start Up Cost Offset 

### D First Service •study iJ 

### D Secure Additional Carrier 

### D Other (explain below)D. EXISTING LANDING AIDS AT LOCAL AIRPORT:

• FulllLS • Outer/Middle Marker APPENDIX C Page 2

• Published Instrument Approach

• Localizer • Other (specify) Lighting- HIRL's, PAPI's, MALS



### E. LINE Federal amount requested 2 State cash financial contribution Lo ca l cash financial contribution 3a Airport cash funds 3b Non-airport cash funds 3 Total · cash funds (3a 

### + 3b) 4 TOTAL CASH FUNDING (1+2+3) In-Kind contribution Sa Airport In-Kind contribution** Sb Other In-Kind contribution** S TOTAL IN-KIND CONTRIBUTION (5a + 5b)

6 TOTAL PROJECT COST ( 4+8)

F. IN-KIND CONTRIBUTIONS** TOTAL AMOUNT $500,000 0

$600,000

For funds in lines Sa (Airport In-Kind contribution) and 7b (Other In-Kind contribution) , please describe the source(s) of fund(s) for each

.APPENDIXC Page 3


### G. IS THIS APPLICATION SUBJECT TO REVIEW BY STATE UNDER EXECUTIVE ORDER 12372
PROCESS?
l · 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.

H. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT? (IF "YES", PROVIDE EXPLANATION)

• No 

### D Yes (explain)

### June 1, 2012
Ms. 

### Aloha Ley, Dr! Rio. f0,8fl./4

0erfkomme/"Ce 2400 Veterans Blvd Suite I6C PMD 402 Del Rio, Texas 78840



### Associate Director, Office of Aviation Analysis Small Community Air Service Development Program**DepartmentofT~rtation**



### Dear Ms. Ley,
The Small Community Air Service Development Program (SCASD) has been 

### very successful in assisting many small communities around the nation in their efforts to attain, maintain and enhance air passenger service.
The Del Rio International Airport, serving the Border Region in Southwest Texas between Laredo and 

### El Paso has applied for a SCASD grant with the funds primarily intended to assist the community with the promotion of their recently upgraded service from turboprop to jet service which is scheduled to begin June 7, 2012. This service upgrade is the result ofthe current regional carrier's bankruptcy filing and a genuine commitment by United Airlines to continue to provide air 

### passenger service to this region.
We would like to convey our sincerest support of the City of Del 

### Rio's International Airport SCASD application. The availability of SCASD funds to promote the recently upgraded service 

### will be beneficial to assisting with the airport's recovery of passenger enplanement levels making jet service a financially viable option for United Airlines to continue service.
The Del 

### Rio Hispanic 

### Chamber of Commerce requests that 

### you give the Del Rio International Airport 

### application every possible consideration for funding. This service upgrade is urgently needed. Sincerely, t'**~-**

### ~,_~~'"""'~ Alfonso" At5ervantes DRHCCChair 830-488-7422KAY BAILEY HUTCHISON :TexAS 

# tlnitrd**~mtrs** 

# J5rnatr

Ms. Billie Jo Grafton Airport Manager Del Rio International Airport 11 04 West 1 Oth Street Del Rio, TX 78840
Dear 

### Ms. Grafton: WASHINGTON, DC**2051~4304**

June 6, 2012 COMMHTHS**~~PPR:OPRfAnONS** t:OMMERCf, SCIENCE, !>NO ff1M;SPORfATiON MULtS AND AOM!NiSTPAPON

Thank you for your correspondence regarding the grant proposal being submitted to the U.S. Department of Transportation for the Small Community Air Service Development Grant Program. I appreciate the information provided about the proposal, and I am pleased to support the application.
I have contacted the Department on your behalf and have encouraged the grant office to carefully consider the merits of this grant proposal. Your project will have 

### a positive impact on the community by improving air service, frequency, and fares for travelers, leading to overall improved transportation options, including for those members of our armed forces traveling to and from Laughlin Air Force Base.


### I am committed to ensuring that each grant application receives a fair and thorough review, and you may be certain that 

### I will continue to monitor the progress of this proposal. As the application process moves forward, please do not hesitate to contact me 

### if you have any questions.

Sincerely,

KBH/ls

We!ft,http:ilhutchison &enat<u;;ovMs. Aloha Ley, Associate Director, Office of Aviation Analysis Small Community Air Service Development Program Department of Transportation
Dear Ms. Ley, June 4, 2012

The intent of this correspondence is to request your support in the City of Del Rio's application for the Small Community Air Service Development Program (SCASD) Grant for the Del Rio International Airport. The Small Community Air Service Development Program (SCASD) has been very successful in assisting many small communities around the nation in their efforts to attain, maintain and enhance air passenger service.
The Del Rio International Airport has been serving the Border Region in Southwest Texas between Laredo and El Paso since 2005. Recently, we were notified by United Airlines that our service will be upgraded from turboprop service to jet service scheduled to begin June 7, 2012. We believe this SCASD grant will be very beneficial in assisting us with the marketing efforts and the promotion of our new jet service and ultimately the end result of increasing our passenger enplanement numbers in and out of Del Rio.
As a community we are committed to maintaining and growing sustainable air passenger service for this region. We have developed many local partnerships with governmental entities and businesses in a cooperative effort to promote air passenger service and have already began a new marketing initiative with a social media to reach out to the modem traveler.
The availability of SCASD funds to promote the recently upgraded service will be extremely helpful with assisting the City of Del Rio's International Airport on the recovery of passenger enplanement levels in addition to making jet service a financially viable option for United Airlines to continue service in our region.
Thank you for your consideration. If your office has questions or requires further information please do not hesitate to contact myself or City Manager Robert Eads at 830.774.8616 or via email at reads@cityofdelrio.com. Sincerely,

cc: Robert A. Eads, City Manager City of Del Rio • 109 W. Broadway • Del Rio, TX • 78840Ms

. Aloha Ley, Associate Director, Office of Aviation Analysis Small Community Air Service Development Program Department of Transportation



### Dear Ms. Ley, Del Rio International Airport 1104 West 1Oth Street DelRio, Texas 78840

May 30,2012

The Small Community Air Service Development Program (SCASD) has been very successful in assisting many small communities around the nation in their efforts to attain, maintain and enhance air passenger service.
The Del Rio International Airport, serving the Border Region in Southwest Texas between Laredo and El Paso has applied for a SCASD grant with the funds primarily intended to assist the community with the promotion of their recently upgraded service from turboprop to jet service scheduled to begin June 7, 2012. This service upgrade is the result of the current regional carrier's bankruptcy filing and a genuine commitment by United Airlines to continue to provide 

### air passenger service to 

### this region. Serving as advisors to the airport we have watched the airport and surrounding community grow in their commitment to maintain sustainable air passenger service with each challenge faced to include several mergers , a bankruptcy and the severe decline in air service reliability.
We would like to convey our sincerest support of the Del Rio International Airport SCASD application. The availability of SCASD funds to promote the recently upgraded service, we feel most assuredly, will make the difference in the airports recovery of passenger enplanement levels whereby making jet service a financially viable option for United Airlines to continue service. Therefore , the Del Rio International Airport Commission asks that you give the Del Rio International Airport application every possible consideration for funding.

# . ' ) Chairman Susan Taylor ,

### Del Rio International Airport 

### Commissions

Commissioner Sanders

CollliDiSSiOD.'&f Casson, D.D.S.

### Ms. Aloha Ley, Associate Director, Office of Aviation Analysis Small Community Air Service Development Program Department of Transportation

Dear Ms. Ley, June 4, 2012

The Small Community Air Service Development Program (SCASD) has been very successful in assisting many rural 

### communities 

### in their efforts to enhance their air passenger service.
The Del Rio International Airport, serves the entire Middle Rio Grande Region (Southwest Texas) servicing other neighboring communities like Eagle Pass, Carrizo Springs, Bracketville, Uvalde, Alpine, to name a few. We also have industrial manufacturing partners in our Mexico sister city Cd. Acuna that depend on this service, and we can expect a demand from all 

### those involved in the neighboring Eagle Ford Shale oil play. The City of Del Rio has 

### applied for a SCASD grant with the funds primarily intended to assist the community with the promotion of their recently upgraded service from turboprop to jet service which is scheduled to begin June 7, 

### 2012.
We would like to convey our sincerest support of the City of Del Rio's International Airport SCASD application. The availability of SCASD funds to promote the recently upgraded service will be beneficial to assisting with the airports recovery of passenger enplanement levels whereby making jet service a financially viable option for United Airlines to continue service. Therefore, the Del Rio Chamber of Commerce requests that you give the Del Rio International Airport application every possible consideration for funding. We would greatly appreciate your support.