APPLICATION UNDER

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT

- OST -2014-0133

SUMMARY INFORMATION 1

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:

Name of Signatory Party for Legal Sponsor:

DUNS Number:

EIN/Tax ID:

B. L IST THE N AME OF THE COMMUNITY OR CONSORTIUM OF COM MUNITIES APPLYING :

1.____________________________________________________

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 FOR THE AIRPORT ( S ) THAT ARE ACTUALLY

SEEKING SERVICE ).

1. 2

.

3

. 4

.

1 Note that the Summary Information does not count against the 20

- page limit of the SCASDP application.D OES THE AIRPORT SEEKING SERVICE HOLD AN AIRPORT OPERATING CERTIFICATE ISSUED BY

THE F EDERAL A VIATION A DMINISTRATION UNDER 14 CFR P ART 139? (I F “N O ”, P LEASE

EXPLAIN WHETHER THE AIRPORT INTENDS TO APPLY FOR A CERTIFICATE OR WHETHER AN

APPLICATION UNDER P ART 139 IS PENDING .)

Yes No (explain)

______________________________________________________________________________

______________________________________________________________________________
D. L IST THE 2- DIGIT CONGRESSIONAL DISTRICT CODE APPLIC ABLE TO THE SPONSORI NG

ORGANIZATION , AND IF A CONSORTIUM , TO EACH PARTICIPATING COMMUNITY

.

1. 2

.

3

. 4

.

E. A PPLICANT I NFORMATION : (C HECK A LL T HAT A PPLY )

Not a Consortium Interstate Consortium Intrastate Consortium

Community currently receives subsidized Essential Air Service

Community (or Consortium member) previously received a Small Community Air Service Development Program Grant

If previous recipient: Provide year of grant(s) :_______________________________; and, the text of the grant agreement section(s) setting forth the scope of the grant project :

_________________________________________________________________________

_________________________________________________________________________

_________________________________________________________________________

_________________________________________________________________________

_________________________________________________________________________

F. P UBLIC /P RIVATE P ARTNERSHIPS : (L IST O RGANIZATION NAMES )

PUBLIC PRIVATE

1. 1.

2. 2.

3. 3.

4. 4.

5. 5.G. P ROJECT P ROPOSAL :

1. G RANT G OALS : ( CHECK ALL THAT APPLY )

Launch New Carrier Secure Additional Service Upgrade Aircraft

First Service New Route Service Restoration

Regional Service Surface Transportation Professional Services 2

Other (explain below)

2. F INANCIAL T OOLS T O B E U SED : ( CHECK ALL THAT APPLY )

Marketing (including Advertising): promotion of the air service to the public

Start

- up Cost Offset : offsetting expenses to assist an air service provider in setting up a

new station and starting new service (for example, ticket counter reconfiguration)

R evenue Guarantee : an agreement with an air service provider setting forth a minimum

guaranteed profit margin, a portion of which is eligible for reimbursement by the

community

Recruitment of Air Carrier: air service development activities to recruit new air service,

including expenses for airport marketers to meet with air service providers to make the

case for new air service

Fee Waivers : waiver of airport fees, such as landing fees, to encourage new ai r service;

counted as in-kind contributions only

Ground Handling Fee : reimbursement of expenses for passenger, cabin, and ramp (below

wing) services provided by third party ground handlers

Travel Bank: travel pledges, or deposited monetary funds, from pa rticipating parties for

the purchas e of air travel on an air carrier , with defined procedures for the subsequent use

of the pledges or the deposited funds; counted as in-kind contributions only

2 “Professional Services” involve a community contracting with a firm to produce a product such as a marketing plan, study, air carrier proposal, etc.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)

I. P ROJECT C OST : D O NOT ENTER TEXT IN SHADED AREA

L INE D ESCRIPTION S UB T OTAL T OTAL A MOUNT

1 Federal amount requested

2 State cash financial contribution

Local cash financial contribution

3a Airport cash funds

3b Non

- airport cash funds

3 Total local cash funds ( 3a + 3b )

4 TOTAL CASH FUNDING ( 1+2+3 )

In

- K ind contribution

5 a Airport In

- Kind contribution **

5b Other In

- Kind contribution **

5 TOTAL IN

- KIND CONTRIBUTION

( 5a + 5b )

6 TOTAL PROJECT COST ( 4+ 5 )

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.K. I S T HIS A PPLICATION S UBJECT T O R EVIEW B Y AN A FFECTED S T ATE 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 S tate for review.

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

L. I S T HE L EAD A PPLICANT OR A NY C O -A PPLICANTS D ELINQUENT O N A NY F EDERAL D EBT ?

(I F “Y ES ”, P ROVIDE E XPLANATION )

No Yes (explain)

______________________________________________________________________________

______________________________________________________________________________
APPLICATION CHECKLIST

I NCLUDED ? I TEM

For Immediate Action

Determine Eligibility

New Grants.gov users must r egister with www.grants.gov

. Existing Grants.gov users must verify ex isting www.grants.gov account has not expired

and the Authorized Organization R epresenta tive (AOR) is current

. For Submission by 5:00 PM EDT on July 31, 2014

Communities with active SCASDP grants: notify DOT/X50 of intent to terminate existing grant in order to be eligible for selection in FY2014

Complete Application for Federal Domestic Assistance (SF424) via www.grants.gov

S ummary Information schedule complete and used as cover sheet (see Appendix B )

A pplication of up to 20 one

- sided pages (excluding any letters from the community or an air carrier showing support for the application ) , to include:

• A description of the community’ s air service needs or deficiencies

.

• A strategic plan for meeting those needs under the Small Community Program

.

• A detailed description of the funding necessary for implementation of the community's project.

• An explanation of how the proposed project differs from any previous projects for which the community received SCASDP funds (if applicable).

• Designation of a legal sponsor responsible for adminis tering the program

.

• A motion for confidential treatment (if applicable)

– see Appendix D below.1 

# Small Community Air Service
**Development Program Proposal**

**Date: July, 31, 2014**  **Applicant: Ardmore Development Authority** 

**DUNS Number: 148269855** 

**EI Number: 73** 

**- 0769857**  **Congressional District: 04** 

**Contact:** Brian S. Carter

Office: 580 223 6162

Fax: 580 223 7825

Email: BCarter@Ardmore.Org

410 West Main

P.O. Box 1585 Ardmore, OK 734022 

## Page Number

Introductory Letter of Support 3

Executive Summary 4

Air Service Envi ronment 5

- Catchment Area 6

- Operations 7



### Air Service Needs and Deficiencies 8

Air Service Market Analysis 1 0

Catchment Area Airport Utilization (Leakage) 1 2

Market Demand within 600 Air Miles of Ardmore 1 4

Catchment Area Market Demand

– Domestic 1 5

Strategic Plan for New Air Service 1 6

G r a n t F u n d s R e q u e s t e d a n d U s a g e 1 9

S t r a t e g i c P l a n

– M a r k e t i n g E s t i m a t e 2 0

E

x e c u t i o n T i m e l i n e 2 1

Legal Sponsor 2 2



# Table of Contents34 South Central Oklahoma is a fast

- growing region characterized by the strong
presence of manufacturing, energy , agriculture, and distri bution industries. It

is generating more than 650,000 annual O&D passengers to a variety of

destinations both domestic and international. This region, if it possessed

commercial service, would be the 4 th largest airport in the United States in the

categor y of 500,000 to 699,999 passengers.

This gap in service has created two problems that we are seeking to correct.
The first is the cost and distance to access the National Transportation
Network which is currently available 100 miles away (Dallas and Okla homa
City). This distance poses an additional 25% cost to the price of standard

domestic airfare in addition to time lost in transit. The second is the intense

concentration of local energy companies needing access to other remotely

located resource locat ions (there are over 250 local energy companies in this
region)

.

This application is submitted for assistance in the marketing and start

- up costs for establishing a Part

- 135 On

- Demand service at the Ardmore
Municipal Airport (ADM). Under Part 135, we wil l have the flexibility to
perform a limited number of small passenger routes and provide on

- demand

service.

With the help of this grant, the Ardmore Development Authority seeks to
provide for the air service needs for the South Central region of Oklahoma

, while combating the existing deficiencies in the area. This approach is ‘scale

able’ in a reasonable timeframe and the ADA has established a ready public

private partnership with a Part 135

- certified carrier for this effort. T his

service will serve as a Phase I effort while proving the feasibility of scheduled

commercial air service in the future. 

# Executive Summary5 Ardmore, OK Market Catchment Area 

# Air Service Environment6 

# Air Service En vironment

- Operations7 Ardmore Municipal Airport (ADM ) is a general aviation airport located in

South Central Oklahoma with a population of 7 million people within 90 miles.
ADM is positioned on I nterstate

- 35, one of the United State’s most vital mo st vital transportation routes.

The airport has full ILS, localizer, outer and middle markers, published
instrument approach and manned ATC Tower seven days per week. The Fire
Crash Rescue service is staffed with four personnel per crew and possesses
ARFF vehicle and capability.

Two runways provide 5,000 feet and 9,000 feet of landing/take

- off space.

------------------------- --------------------------------------------------------------------------------------------

Current Proje ct Planning for Airport Upgrade (Project Funding has been
secured)

New Runway Project (9,000 ft) $18 million

Perimeter Wildlife and Game Fence $1 million

Taxiways/Aprons Replacement $1 million

FAA Equipment Housing Project $1.5 million

The above projects represent a very robust commitment to enhance air service accessibility. In 2008, an $18 million project was finished that laid a

new 9,000 f t runway. We will be assuring maximum reduction of wildlife and

animal r i s k s by completing our fencing project. By upgrading our taxiways
and aprons, all issues of FOD risk from antiquated surfaces will be abated also.
The FAA Equipment Housing Projec t is going to modernize the ATC facilities.



# Air Service Environment

- Operations8 Additional Costs borne by the Ardmore Market to access Air Service

For the travelling public in this robust region, there are currently no convenient options for accessing the National Transportation Network

. With a vehicle commute of 100 miles to either OKC or DFW, the travelling public of the Ardmore region faces considerably higher costs than the average air traveler. It is standard practice to leave this area four

- plus hours prior to a flight’s departure . As important as time, there is $60 in fuel charges for every one of these trips. Even with a percentage of these travelers occurring in groups/families, there is a significant additional cost for the public.

For example, if the total annual passengers travelled in groups of four, there would still be almost $10 million per year in fuel expense.

Cost Analysis for Fuel :

655,282 total annual passengers / 3 (conserv ative estimate on ‘group size)

m ultiplied by $60 in estimated fuel costs equals $13,105, 650 in fuel every
year. Therefore, conservatively speaking, the residents of the Ardmore catchment area are spending nearly $15 million a year to simply access

commercial air service.

Cost Analysis for Time Costs:

655,282 total annual passengers at three additional hours of driving time per
trip equals 1,965,846 man hours every year. Particularly for business, these
costs are significant and persistent. 

# Air Service Needs and Deficiencies9 **Unique Energy Industry Travel Requirements**

Regarding the services provided by Potomac Air Chart er (Phase 1), the
Ardmore service area has a particular need for on

- demand travel to a number
of varying destinations. This is largely due to the nearly 300 energy industry
companies and corporations located in this area. These businesses are vital to

the economic health of this region and as of now, are required to send their
employ ees to Oklahoma City or Dallas to access transportation from which
point they often arrive at their destination and still are required to rent a

vehicle to reach targeted rural sites and locations. The proposed air taxi
service provides an avenue for these companies, as well as average civilians,
to charter a flight to municipal or general aviation airports

. 

# Air Service Needs and Deficiencies (con’t)10 **Methodology**

The Assessment Analysis (Leakage Study) begins w ith a detailed evaluation of
the airport service area to define its primary service area for the airport. This
method utilizes current and historical passenger, fare, and booking data
including U.S. Department of Transportation origin and destination passe nger and ARC Market Locator passenger data, and various GDS data. Passenger
Demand Analysis was conducted on the zip code level identifying airline,
airport of choice and retention and leakage rates by destination.

The analysis reviewed current market dema nd including passenger data for
the top 50 Ardmore originating markets. Finally, the credit card transaction
analysis details the local originating demand that would most effectively be
served by the Ardmore Airport and will also enable us to accurately qu antify
the demand travel generated in the primary service area.

The analysis also identif ies potential markets within 600 air miles of Ardmore

to support air taxi service originating out of the Ardmore Airport

.

**Summary of Results**

 If Ardmore had Commercial Air Service, it would rank as the 4th largest
airport with O&D Passengers between 500,000

– 699,999.

 The Ardmore Catchment Area Generated 655,282 O&D Passengers for
the YE Ending 12/31/13.

 The total passenger demand being generated within the Ardmore

Catc hment Area is larger than the total O&D Passengers being generated

at Pasco, Wash

. , South Bend, Ind

. , Gulfport, Miss

. , and Corpus Christi,

T ex

. 

# Air Service Market Analysis11  The Ardmore Catchment Area generates nearly 900 PDEW (Passengers
Daily Each Way) including 86 International PDEW.

 Of the total domestic 406,986 O&D Ardmore Passengers (travelling on
mainline carriers), 236,209 or 58% are Routing on AA combined at

DFW & OKC.

 Top 5 Domestic Markets being generated out of the Ardmore Catchment
Area are: Las Vegas (LAS), Denver (DE N), Orlando

- Sanford(SBF),
Houston Hobby (HOU) and Seattle (SEA).

Immediate Implications for Part 135 On

- Demand “Air Taxi”

 For the effective Top 15 Markets From The Ardmore Service Area

Generates 167.5 PDEWS Within 600 Air Miles of Ardmore

 An Air Taxi S ervice at Ardmore Airport can effectively serve 21% of
Ardmore originating PDEWs in the Top 15 Ardmore Domestic Markets.

 52 Markets From The Ardmore Service Area Generates 195 PDEWS

Within 600 Air Miles of Ardmore.

 An Air Taxi Service at Ardmore Airport can effectively serve 22% of
Ardmore originating PDEWs in 52 of Ardmore ‘s domestic markets

within 600 air miles of Ardmore.

 The top 5 targeted Air Taxi potential markets within 600 mile radius of
Ardmore are Denver, Houston (Hobby). New Orleans, San Ant onio and

Saint Louis. 

# Air Service Market Analysis12 The Ardmore Catchment Area Generated 655,282 O&D Passengers for the YE Ending 12/31/13. 

# Catchment Area Airport Utilization (Leakage)13 

# Ca tchment Area Airport Utilization (Leakage)14 

## The Top 15 Markets from the Ardmore Service
**Area Generates 167.5 Passengers Daily Each Way**

**within 600 Miles of Ardmore.** 

## Market Demand within 600 Air Miles of Ardmore15 

### Destination

Code Destination City Dom/Int Base

Pax. Total

Pax. Total

PDEW

LAS Las Vegas DOM 24,534 37,414 51.3

DEN Denver DOM 13,678 25,886 35.5

SBF Orlando

- Sanford DOM 15,457 25,377 34.8

HOU Hou Hobby DOM 10,589 19,966 27.4

SEA Seattle DOM 9,838 17,978 24.6

LAX Los Angeles DOM 8,560 15,546 21.3

PHX Phoenix/Mesa DOM 7,560 14,175 19.4

LGA NYC LGA DOM 6,631 12,359 16.9

ATL Atlanta DOM 6,166 11,897 16.3

BOS Boston DOM 6,269 11,648 16.0

SFO San Francisco DOM 5,869 11,329 15.5

ORD Chicago O ’H are DOM 6,099 11,220 15.4

MSY New Orleans DOM 6,792 11,143 15.3

SAN San Diego DOM 5,935 10,261 14.1

SAT San Antonio DOM 5,067 9,504 13.0

BWI Baltimore DOM 4,709 9,376 12.8

TPA Tampa DOM 4,987 8,559 11.7

SMF Sacramento DOM 4,386 7,968 10.9

STL Saint Louis DOM 3,774 7,925 10.9

AUS Austin DOM 4,088 7,774 10.6

PDX Portland DOM 4,143 7,515 10.3

DCA Washington Nat

. DOM 4,433 7,321 10.0 

# Catchment Area Market Demand

- Domestic16 Proposed Air Service

As previously described, we are proposing a two phase project to establish
commercial air service in this underserved market. The first phase will be a

Part 135 On

- Demand service to prove the dem and for air service. The second
phase will be the transition to regular scheduled service after the market

demand levels are confirmed. This application is for Phase I only.

Public/Private Partnership

The Ardmore Development Authority has authorized a p artnership with
Potomac Air Charter of Sterling, Virginia. This partnership will establish a

two

- year initial commitment whereby Part 135 service will be available.
Under Part 135, we can schedule a limited number of flights in planes less
than 9 passeng ers and respond to requests for service to locations not served
by air service. Through this approach, we can prove the demand level with far
less investment than in trying to begin scheduled air service through a
regional/national carrier. 

# Strategic Plan for New Air Service17 Impli cations of the Market Analysis

From the market analysis, the daily demand for service to the following cities

is robust:

- Las Vegas

- Denver

- Orlando

- Houston

**Preliminary Cost Estimates**

Our initial research and partnership with Potomac Air Charter indicates tha t the Part 135 service can be provided for roughly $1,500 per flight hour. The
below are examples of this service and its estimated costs for select cities:

-------------------------------------------------------------------------------------------------- --

Part 135 from Ardmore, OK

Ardmore, OK to Houston, TX

Total Cost Round Trip: $3,200 / 9 personnel = $355 per person

----------------------------------------------------------------------------------------------------

-----------------

Price on 7/31 vi a for scheduled carrier service from DFW

– Houston

United: $319 plus mileage at IRS Rate:

US Airways: $319

American: $319 

# Strategic Plan for New Air Service18 Frontier: $342

Mileage Cost at IRS Rate of $0.55 per mile = $110 additional charge for the
above commercial service plus 6 additio nal hours of travel time to DFW
Airport from Ardmore, OK.

Total Cost on carrier from DFW

– Houston = $419

- $442 plus a half

- day of

travel

---------------------------------------------------------------------------------------------------- 

# Strategic Plan for New Air Service19 The total grant funding requested is $400,000. This will be matched with $100,000 from the Ardmore Development Authority in Non

- Airport Revenues. Additionally, the ADA has dedicated $3,525,600 in airport improvements and

in

- kind contributions (fencing, taxiways/aprons, FAA facility

— see Airport
information on Page 8).

The chart on the next page displays the estimated marketing budget

, totaling
$274,250. The balance of $225,750 will be used to off

- set the following start

up costs:

- Transfer of identified Aircraft to Ardmore

- Cost Rebate at 10% of per hour cost of $1,600

o For example, 30 flight hours at $1,600 / hour = $48,000

o Potomac Air Charter would receive $4,800 rebate

This method of reimbursement provides payment after services granted by
the private carrier

.

Timing and Use of Funds

- All funds for both Marketing would be used by September 1 st , 2015

- All funds for the Cost rebate would be used by July 1st, 2016. 

# Grant Funds Requested and Usage20 

# Strategic Plan

- Marketing Estimate21 Step Completion

Date Office Space/Signage Q4 2014

Contracts with FBO Q4 201 4

Pilot Assignments Q4 2014

Aircraft Assignments Q4 2014

Newspaper, Internet, Radio, TV,
Direct Mail as defined in Marketing Analysis Q1 2015

Additional Airport Improvements Completion Date

Improved Fencing Q4 2014

New Markings, Lightings, & Taxiway Aprons

- Engineering Q1 2015

New Markings, Lightings, & Taxiway Aprons

- Engineering Q4 2015 

# Execution Timeline22 

# Ardmore Development Authority

**Brian Carter**

410 West Main

P.O. Box 1585

Ardmore, OK 73402

Phone: 580

- 223

- 6162

Fax: 580

- 223

- 7825
bcarter@ardmore.org 

# Legal Sponsor23 

# Appendix: Congressional Letter of Support24252627