STATE OF NORTH CAROLINA

 DEPARTMENT OF TRANSPORTATION

PAT MCCRORY 1501MAIL SERVICE CENTER, RALEIGH, N.C. 27699-1501 ANTHONY J. TATA

GOVERNOR SECRETARY

PHONE 919-707-2800 FAX 919-733-9150 

July 25, 2013 

Ms. Brooke Chapman, Associate Director 

Small Community Air Service Development Program 

US Department of Transportation 

1200 New Jersey Ave, SE W86-310 

Washington, DC 20590 

Subject: Small Community Air Service Development Grant Application 

 Docket DOT-OST-2013-0120 

 Pitt Greenville Airport 

Dear Ms. Chapman: 

Please accept my strongest endorsement for the above referenced grant application for 

Pitt-Greenville Airport. Pitt-Greenville Airport is in a unique position within our state. 

With increasing enplanements, the area is on the brink of significant and sustained 

growth. The airport is a key catalyst to promote this growth and support the growing 

commerce within the region. In addition, the area is home to East Carolina University 

and its national recognized teaching hospital. 

With the support of a Small Community Air Service Development Grant Application 

(SCASDG), I am confident the airport will be able to capture additional air service to 

another large hub airport such as Hartsfield-Jackson International Airport. With all the 

needed resources to execute a well-conceived plan for improved air service, the airport 

has a strong need for the grant and is an ideal candidate for your program. 

Thank you for your consideration of the Pitt-Greenville Airport SCASDG! 

Sincerely, 

Richard J. Walls, P.E. 

Deputy Secretary for Transportation 
1

APPLICATION UNDER 

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT-OST-2013-0120

SUMMARY INFORMATION

All applicants must submit this Summary Information schedule, as the application 

coversheet, a completed standard form SF424 and the full application proposal on 

www.grants.gov.

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

http://www.dot.gov/policy/aviation-policy/small-community-rural-air-service/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: Pitt County-City of Greenville Airport Authority

DUNS Number:00-251-1376

EIN/Tax ID: 56-6166223

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

1.CITY OF GREENVILLE & PITT COUNTY, NC

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.Pitt-Greenville Airport (PGV) 2.

3. 4.
2

D. LIST THE 2-DIGIT CONGRESSIONAL DISTRICT CODE APPLICABLE TO THE SPONSORING 

ORGANIZATION, AND IF A CONSORTIUM, TO EACH PARTICIPATING COMMUNITY.

1. 01 2. 03

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): 2005

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

PUBLIC PRIVATE

1.City of Greenville 1.Greenville-Pitt Chamber of Commerce

2.Greenville Utilities Commission 2.Pitt County Committee of 100, Inc.

3.Pitt-Greenville Airport Authority 3.East Carolina University

4. 4.Pitt County Development Commission

5. 5.Vidant Medical Center

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) Published GPS Approaches
3

I. PROJECT COST: DO NOT ENTER TEXT IN SHADED AREA

LINE DESCRIPTION SUB TOTAL TOTAL AMOUNT

1 Federal amount requested 500,000

2 State cash financial contribution 0.00

Local cash financial contribution

3a Airport cash funds 450,000

3b Non-airport cash funds 150,000

3 Total local cash funds (3a + 3b) 600,000

4 TOTAL CASH FUNDING (1+2+3) 1,100,000

In-Kind contribution

5a Airport In-Kind contribution** 0.00

5b Other In-Kind contribution** 0.00

5 TOTAL IN-KIND CONTRIBUTION 

(5a + 5b)

0.00

6 TOTAL PROJECT COST (4+5) 1,100,000

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.
4

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) 

______________________________________________________________________________

______________________________________________________________________________

July 17, 2013 

Susan L. Kurland 

Assistant Secretary for Aviation and International Affairs 

U.S. Department of Transportation 

Office of Aviation Analysis 

1200 New Jersey Ave, SE 

Washington, DC 20590 

Subject: Small Community Air Service Development Grant Application 

 Docket OST-2013—0120 

 Pitt-Greenville Airport, Greenville, NC 

Dear Ms. Kurland: 

As an elected County Commissioner (currently serving as Board Chairman), I am pleased to submit this 

letter of support for Pitt-Greenville Airport’s (PGV) grant application to the U.S. Department of 

Transportation for funding of its program to initiate and incubate air service on Delta Airlines to its 

Hartsfield-Jackson Atlanta International Airport hub. This air service proposal is detailed in the Small 

Community Air Service Development Program grant application. Pitt County Government understands 

the importance of commercial air service to the economy of the region through access for visitors and,

most important, to support area businesses, organizations and institutions. 

This air service initiative has my full support and the broad support of our community. Where small 

community air service initiatives are concerned, this grant can make a significant difference in providing 

our community better connectivity to the air transportation system. In that regard, if you decide to fund 

this application, we have every confidence that the program will have the full support of Pitt County 

Government as well as many other organizations. 

We are pleased to have the opportunity to support this grant application, and we assure you that we will 

work diligently to insure the long-term success of this improvement in air service to our community. 

Sincerely, 

Jimmy Garris 

Chairman, Pitt County Board of Commissioners 

Cc: Pitt County Board of Commissioners 

 Jerry Vickers, Executive Director, Pitt-Greenville Airport Authority 

DM#135175 
@ftivers

Since1918

Julv 24.2013

Ms. Susan L. Kurland

Assistant Secretary for Aviation and International Affairs

U.S. Department of Transportation

Office of Aviation Analysis

1200 New Jersey Ave, SE

Washington, DC 20590

SUBJECT: Small Community Air Service Development Grant Application

Docket OST-2013-0120

Pitt-Greenville Airport, Greenville, NC

Dear Ms. Kurland:

Rivers & Associates, Inc., a consulting engineering company since l9l8located in Greenville

is pleased to submit this letter of support for the Pitt-Greenville Airport's grant application to

the U.S. Department of Transportation for funding of its program to initiate and incubate air

service on Delta Airlines to its Hartsfield-Jackson Atlanta International Airport hub. Rivers &

Associates, Inc. understands the importance of commercial air service to the economy of the

region through access for visitors and, most important, to support atea businesses,

or ganizations and institutions.

This air service initiative has our fuIl support and the broad support of our community. Where

small community air service initiatives are concerned, this grant can make a significant

difference in providing our community better connectivity to the air transportation system. In

that regard, if you decide to fund this application, we have every confidence that the program

will have the full support of our business.

We are pleased to have the opporfunity to support this grant application, and we assure you

that we will work diligently to insure the long-term success of this improvement in air service

to our community.

<

DWB/ju

cc: File

W:\Private\Donnie Brewer\LtSKurland 072413.doc

107 East Second Street, Greenville, NC 27858 . Post Office Box929. Greenville, NC 27835 ' (252) 752-4135 ' FAX (252) 752-3974

Engineers

Planners

Surveyors

Landscape Architects

With best regards,

NCBELS Lic. No. F-0J34 www.riversandassociates.com NCBOLA Lic. No. C-312
Small Community Air Service

Development Program Grant Proposal

Pitt County – City of Greenville

Airport Authority

DUNS # 002511376

Congressional District #1 and #3

DOT Docket OST – 2013 – 0120 
 Small Community Air Service Development Program Grant Application: PGV

2

Table of Contents

I. Overview of Grant Application ........................................................................3

Statement of Air Service Deficiency ........................................................................................3

Brief Description of Proposal...................................................................................................5

Legal Sponsor..........................................................................................................................6

Community Partners................................................................................................................6

Contact Information.................................................................................................................7

II. PGV Market Area and Air Service History ...................................................8

PGV Service Area ...................................................................................................................8

PGV Air Service Review – Growth Story ................................................................................9

PGV Top Domestic and International O&D Markets...............................................................9

PGV Airfares Higher vs. Neighboring Airports = Air Service Deficiency..............................11

Previous Air Service Development Efforts by PGV ...............................................................12

III. The PGV Grant Proposal Specifics.............................................................14

Objective: Increase Air Service Access at PGV .....................................................................14

Sources and Distribution of Grant Funding ............................................................................15

Revenue Guarantee Component.............................................................................................16

Marketing/Advertising Support..............................................................................................16

Ensuring Self Sufficiency ......................................................................................................17

Current Grant Request Differs Significantly from Previous Grant Award ..............................18
 Small Community Air Service Development Program Grant Application: PGV

3

1. Overview of Grant Application

Statement of Air Service Deficiency

The Pitt County – City of Greenville Airport Authority respectfully submits its grant application 

under the Small Community Air Service Development Program to address air service 

deficiencies present at the Pitt – Greenville Airport (PGV). 

Pitt County and the City of Greenville, North Carolina is a community which can be classified as 

one with a diverse and vibrant economy, including a strong higher education presence as the 

home to East Carolina University. With a rapidly growing economy, increased scheduled air 

service will serve to further generate economic activity and spur increased travel to and from the 

coastal Carolina region. 

Based on a comparison with similar sized communities across the United States, it is estimated 

that PGV captures only 53.9% of the passengers generated within its service area. This is 

because the levels of air service at PGV pale in comparison to other airports in North Carolina, 

and the traveling public is willing to drive between two – four hours in some instances to utilize 

airports with greater service levels. 

PGV Enplanement Generation and Traffic Capture: 

Comparison to Similar Sized Airports

Market Data Lake Charles, 

LA

Columbus, 

GA

Springfield, 

IL Yuma, AZ Erie, PA Market Averages

Pitt - 

Greenville, 

NC

Population 295,511 491,852 340,663 277,059 418,726 364,762 525,905

Personal Income ($ Millions) $7,096 $11,178 $9,936 $5,203 $9,765 $8,636 $11,915

Per Capita Personal Income $24,013 $22,726 $29,167 $18,778 $23,321 $23,601 $22,656

2011 Enplanements 61,325 78,718 71,862 82,420 112,749 81,415 61,899

Enplanements-per-Capita 0.21 0.16 0.21 0.30 0.27 0.22 0.12

Enplanements-per-$ Million Personal Income 8.64 7.04 7.23 15.84 11.55 9.43 5.20

PGV Enplanement Generation Using Enplanements/Population Ratio: 117,382

PGV Enplanement Generation Using Enplanements/EPI Ratio: 112,332

Average of Two Methodologies: 114,857

Traffic Capture 53.9%

SOURCE: US Census data and FAA enplanement data from CY 2011
 Small Community Air Service Development Program Grant Application: PGV

4

Limited capacity negatively impacts both inbound and outbound travelers alike, and increased 

capacity will allow for greater options for business travelers, leisure travelers, and those 

affiliated with the East Carolina University and other educational institutions in the region. 

Furthermore, the average airfares for the public are higher at Pitt – Greenville Airport than the 

national average and other airports in the region. When comparing gross one way airfares 

between PGV and its closest neighboring airport with significantly higher service levels, Raleigh 

– Durham International Airport (RDU), it is clear why passenger traffic leakage levels are near 

50% at PGV. RDU offers approximately 15% lower airfares than PGV, which translates into 

savings for the passenger. It is believed that increased capacity at PGV may help bring fare 

discipline to the region, creating healthy competition for the airlines. 

PGV Gross Fare Comparison with RDU and National Average

CY 2012

Based on the higher airfares experienced in the PGV community, a definitive air service 

deficiency exists which is driving passengers to other airports in lieu of utilizing their local 

airport. This grant proposal aims to help rectify this deficiency, and as will be illustrated a 

dedicated public/private partnership has been created to address air service deficiencies at Pitt –

Greenville Airport.

Gross Fare Comparison Q1 2012 Q2 2012 Q3 2012 Q4 2012

PGV Avg. OW Gross Fare $236.16 $249.94 $234.64 $230.34

RDU Avg. OW Gross Fare $208.06 $215.48 $200.52 $200.61

Nat'l Avg. OW Gross Fare $219.71 $227.24 $219.13 $219.65

PGV % Higher vs. RDU 13.5% 16.0% 17.0% 14.8%

PGV % Higher vs. Nat'l Avg. 7.5% 10.0% 7.1% 4.9%
 Small Community Air Service Development Program Grant Application: PGV

5

Brief Description of Proposal

The objective of the Small Community Air Service Development proposal is to incubate new air 

service on Delta Airlines to its Hartsfield – Jackson Atlanta International Airport (ATL) hub, 

which is the busiest airport in the world. Currently, the only scheduled air service at PGV is on 

US Airways to its Charlotte (CLT) hub. While the community has embraced this service and 

utilized it extensively over the last several years, increased capacity on a new entrant will 

enhance the choices for travelers to and from the PGV region, and fits the spirit of the intent of 

the Small Community Air Service Development program guidelines.

As the map below illustrates, of the nine commercial service primary airports in the State of 

North Carolina, PGV is the only one that does not currently have access to Delta’s ATL hub via 

nonstop service.

A revenue guarantee combined with marketing support for new nonstop air service between 

PGV and ATL on Delta Airlines is the intent of the grant proposal. The community understands 

that because of the deteriorating economic performance of regional jets due to high fuel costs 

and aging aircraft, that it is increasingly difficult to gain the interest of new carriers to enter 

smaller markets such as PGV. Because of this, the community believes that a Small Community 

Air Service Development grant award can greatly assist in helping attract new air service, with 

PGV
 Small Community Air Service Development Program Grant Application: PGV

6

the belief that self-sufficiency would be the ultimate outcome of Delta ATL nonstop service. The 

Pitt County – City of Greenville humbly requests the DOT’s highest consideration for its grant 

application.

Legal Sponsor

The Pitt County – City of Greenville Airport Authority is the legal sponsor of the Small 

Community Air Service Development grant proposal. 

Community Partners

There is tremendous support from the community for this grant proposal. The following 

community partners join the Pitt County – City of Greenville Airport Authority in their support 

and will be responsible for the matching contribution portion of the grant funding. The levels of 

commitment from each partner are detailed later in the proposal.

• City of Greenville, NC

• Greenville – Pitt County Chamber of Commerce

• The Pitt County Committee of 100, Inc.

• Greenville Utilities Commission

• East Carolina University

• Pitt County Economic Development Committee

• Vidant Health
 Small Community Air Service Development Program Grant Application: PGV

7

Contact Information

Mr. Jerry Vickers

Executive Director

Pitt County – City of Greenville Airport Authority

(252) 902-2025 (x5)

jmvickers@pittcountync.gov
 Small Community Air Service Development Program Grant Application: PGV

8

2. PGV Market Area and Air Service History

PGV Service Area

The PGV service area extends to the North Carolina coast to the west, and approximately 45 

minutes’ drive time to the east. In total, the population in this area exceeds 525,000 people, 

which for many PGV is the most convenient and efficient airport for their travels. With the 

presence of East Carolina University, and businesses such as DSM, The Roberts Company, 

NACCO Materials Handling Group, Vidant Medical Center, and Alliance One International, 

there is a large, natural passenger base consisting of business and leisure travel. 

It is from this population and passenger base that new Delta Airlines service to ATL would draw 

from, and it is expected that any new service could coexist with the existing US Airways CLT 

nonstop flights at PGV.

PGV
 Small Community Air Service Development Program Grant Application: PGV

9

PGV Air Service Review – Growth Story

Current air service at PGV consists of US Airways flights to CLT between 4-5 times daily. This 

service is flown primarily with 50 seat regional jets, 50 seat turboprop aircraft, and 37 seat 

turboprop aircraft. US Airways has been successful at PGV, as the passenger base has grown by 

31% between CY 2007 and CY 2012, on relatively flat capacity. This equates to almost 30,000 

more passengers in CY 2012 vs. CY 2007. Overall, load factor performance has increased by 

approximately 14 percentage points during this timeframe, further illustrating the success that 

US Airways has achieved in the market. 

PGV Passengers, Capacity, and Load Factor Trend

CY 2007 – CY 2012

 SOURCE: Aviation DataMinerTM analysis of DOT/BTS Form 41 Traffic

The vibrant economy is a major reason why passenger growth has taken place at PGV, and this 

growth story can continue with increased capacity. Because PGV experiences approximately 

50% passenger leakage, it is expected that increased capacity would recapture a good portion of 

the leaking passengers. 

PGV Top Domestic and International O&D Markets

When reviewing the top origin and destination markets at PGV, it is clear that Delta’s ATL hub 

would be an excellent option for increased air service. Atlanta is the #2 O&D market at PGV, 

with over 5,200 passengers during CY 2012, or 7.1 passengers per day each way. Not only is 

ATL at top O&D market, but the other top markets such as Chicago (ORD), Orlando (MCO), 

Dallas – Ft. Worth (DFW), New York City (EWR/LGA), Boston (BOS), Tampa (TPA), and 

Houston (IAH) all have several departing flights at ATL each day. Connectivity is convenient 

and efficient at ATL for the top PGV O&D markets.

2007 2008 2009 2010 2011 2012 CY 2012 Increase 

vs. CY 2007

Total Seats 158,674 154,242 156,164 167,736 158,628 168,066 5.9%

Total Pax 92,784 102,526 115,466 121,376 121,698 121,502 31.0%

Implied Load Factor 58.5% 66.5% 73.9% 72.4% 76.7% 72.3% 13.8 pts
 Small Community Air Service Development Program Grant Application: PGV

10

The average number of daily connecting flights from ATL on Delta, based on currently filed 

schedules to the PGV top O&D markets, is as follows:

Chicago (ORD): 10x daily

Orlando (MCO): 15x daily

Dallas – Ft. Worth (DFW): 11x daily

Newark (EWR): 10x daily

New York City (LGA): 15x daily

Boston (BOS): 10x daily

Tampa (TPA): 12x daily

Houston (IAH): 7x daily

PGV Top 10 Domestic O&D Markets

CY 2012

In addition to ATL being an excellent connecting hub for domestic travelers, it is also one of the 

premiere connecting hubs for international travelers. This is important for the PGV traveler, as 

international passenger traffic has increased by over 80% (approximately 4,600 vs. 8,600)

between CY 2007 and CY 2012. This is a remarkable increase, and demonstrates the type of 

passenger traffic demand that exists in the greater PGV region. 

Rank Market Psgr PDEW % Originating 

@ PGV

Gross OW 

Fare

Net OW 

Fare % of Pax Net Revenue Ticket Yield

1 ORD 5,248 7.2 66.5% $200.26 $166.90 4.1% $857,515 20.72¢

2 ATL 5,211 7.1 64.1% $173.90 $142.42 4.1% $727,962 33.20¢

3 MCO 4,430 6.1 77.2% $184.10 $151.89 3.5% $662,236 22.60¢

4 DFW 4,400 6.0 62.5% $258.95 $221.45 3.5% $963,311 19.38¢

5 CLT 4,180 5.7 47.1% $182.74 $160.25 3.3% $629,771 78.59¢

6 EWR 3,531 4.8 49.3% $214.30 $179.97 2.8% $631,895 24.58¢

7 BOS 3,320 4.5 65.4% $189.97 $157.25 2.6% $503,216 16.89¢

8 LGA 3,249 4.4 58.4% $184.06 $151.77 2.6% $477,979 20.23¢

9 TPA 3,120 4.3 55.1% $183.26 $151.11 2.5% $453,319 21.28¢

10 IAH 3,004 4.1 48.9% $244.95 $208.44 2.4% $619,822 18.53¢

Total 39,693 54.2 60.4% $200.99 $168.55 31.2% $6,527,025 22.96¢

Total Market 127,048 173.6 60.8% $237.94 $201.92 100.0% $24,918,061 19.91¢
 Small Community Air Service Development Program Grant Application: PGV

11

PGV Top 10 Int’l O&D Markets

CY 2012

Of the top international markets, Delta has nonstop flights to nine of the top ten markets (Delta 

flies to LHR vs. LGW). Again, PGV – ATL nonstop service would be a great benefit not only to 

domestic travelers, but international travelers as well in today’s global economy.

PGV Airfares Higher vs. Neighboring Airports = Air Service Deficiency

When comparing one way gross fares for the PGV top 10 domestic O&D markets and the larger 

airports within the region where the majority of passenger traffic leakage occurs, it is clear that 

there is an air service deficiency in terms of higher fares. Compared to RDU, PGV airfares for 

these top 10 markets are 22% higher. This certainly is a reason why there are such high levels of 

leakage to RDU, but the introduction of a second carrier at PGV may lead to fare discipline in 

the market due to increased competition. 

The table on the following page illustrates the fare differences between PGV and its larger 

regional airports in the area:

Rank Market City Country

1 FRA Frankfurt Germany

2 YUL Montreal Canada

3 MBJ Montego Bay Jamaica

4 CDG Paris France

5 YYZ Toronto Canada

6 LGW London United Kingdom

7 HKG Hong Kong China

8 NAS Nassau Bahamas

9 CUN Cancun Mexico

10 SAP San Pedro Sula Honduras
 Small Community Air Service Development Program Grant Application: PGV

12

PGV One Way Gross Fare Comparison

with Neighboring Airports

CY 2012

Previous Air Service Development Efforts by PGV

The Pitt County – City of Greenville Airport Authority has shown determined efforts in the area 

of air service development over the last two years. In addition to having regular conversations 

with the incumbent airline, US Airways, regarding financial and operational performance of 

flights, PGV attended the Network USA Air Service Development Conference in Tampa, FL in 

Spring 2012. At the conference, PGV met with prospective airlines that have a realistic potential 

to enter the PGV market, including Delta Airlines. 

In 2011, PGV commissioned an air service consultancy to draft an Air Service Needs 

Assessment, which has been used as a guide for possible new air service opportunities. 

As an ongoing practice, PGV management has an annual subscription to an aviation business 

intelligence data product which incorporates traffic and revenue data from the DOT/BTS and 

future schedule information. This helps the airport remain current on the performance of its 

flights, and allow for well-informed conversations with current and potential airlines.

Market PGV RDU CLT ORF

ORD $200.26 $201.88 $256.70 $237.83

ATL $173.90 $141.92 $143.46 $161.28

MCO $184.10 $159.63 $162.25 $155.46

DFW $258.95 $271.71 $291.05 $270.93

EWR $214.30 $227.01 $217.75 $263.93

BOS $189.97 $154.56 $154.94 $199.72

LGA $184.06 $146.77 $156.22 $201.95

TPA $183.26 $160.25 $224.83 $170.77

IAH $244.95 $282.83 $351.98 $286.00

PHL $195.02 $133.11 $261.33 $207.45

TOTAL $198.34 $162.57 $196.22 $187.69

PGV % Higher 22.0% 1.1% 5.7%
 Small Community Air Service Development Program Grant Application: PGV

13

Furthermore, recognizing the need for the community to be involved in air service partnerships, a 

special fund was developed (and is a large portion of the community match in this grant 

proposal) for air service development or aviation-related economic development. These funds are 

not airport revenue, but are city/county funds sourced from partial rebates of city/county property 

taxes on aircraft based at PGV. The fund is approximately $500,000 and a majority of that is 

being used to support this grant application. 
 Small Community Air Service Development Program Grant Application: PGV

14

3. The PGV Grant Proposal Specifics

Objective: Increase Air Service Access at PGV 

As has been detailed, PGV has scheduled air service from only one carrier, US Airways to its 

Charlotte hub. While this service has a long track record of success, the passenger trends at PGV 

indicate that it can support increased air service. Delta Airlines’ Atlanta hub is the logical choice, 

as it is only 424 miles from PGV, minimizing operating costs and a suitable market for smaller 

regional jets. Delta operates one of the most extensive route networks in the world at ATL, with 

outstanding connectivity to virtually every major US destination. As can be seen from the route 

map below, PGV would fit nicely into the route system at ATL.

Delta Airlines ATL Domestic Route Map

CY 2013

The option of two network carriers will greatly enhance the opportunity for air service access at 

PGV, and this grant would go a long way to helping with this objective. Being the only 

commercial airport in North Carolina without Delta ATL nonstop service, a revenue guarantee 

could help illustrate to Delta that the reward will outweigh the risk, with the market expected to 

PGV
 Small Community Air Service Development Program Grant Application: PGV

15

achieve self-sufficiency due to high Delta brand loyalty in the region and a passenger base that is 

consistently growing in the region.

Sources and Distribution of Grant Funding

The Pitt County – City of Greenville Airport Authority respectfully requests a grant in the 

amount of $500,000, of which 90% of the grant funds will be used towards a revenue 

guarantee/risk mitigation program for Delta Airlines ATL nonstop service. The community 

match will be in the amount of $600,000, for a total of $1.1 million dollars. 

Of the $600,000 of community funding, $450,000 will come from a special fund known as the 

City/County/Airport “Economic Stimulus Plan”. The source of these funds is city/county funds 

from partial rebates of city/county property taxes on aircraft based at PGV. These funds are kept 

separate from airport-derived revenue and are earmarked for air service development or aviationrelated economic development. It is important to note again that this is not airport revenue, and is 

in full compliance with the grant eligibility requirements set forth by the DOT. 

The additional $150,000 from the community partners will be as follows:

• City of Greenville, NC: $25,000

• Greenville – Pitt County Chamber of Commerce: $12,500

• The Pitt County Committee of 100, Inc.: $12,500

• Greenville Utilities Commission: $25,000

• East Carolina University: $25,000

• Pitt County Economic Development Committee: $25,000

• Vidant Health: $25,000
 Small Community Air Service Development Program Grant Application: PGV

16

Summary of Distribution of Funding

The Pitt County – City of Greenville Airport Authority believes that the level of commitment 

from the community is an amazing show of support for this grant application. 

Revenue Guarantee Component

The Pitt County – City of Greenville Airport Authority will negotiate a specific agreement with 

the Delta Airlines outlining the following:

• The cost for each segment operated will be agreed upon, including a profit hurdle

• The agreed upon allocation of revenues. Local revenues on the flight will be allocated 

fully, while connecting/beyond revenues will be allocated based on an agreed prorate

• It is envisioned that the revenues and costs will be accounted for on a semiannual basis. If 

a short fall exists between agreed upon revenues and costs, it will be paid in arrears to the 

carrier. Any surplus over the agreed upon revenues and profit hurdle will be accrued to 

the next accounting period.

Marketing/Advertising Support

Marketing and advertising support for the new Delta service will be extensive and wide reaching 

in order to create awareness among the flying public and recapture passenger traffic that is 

currently leaking to other airports. The Airport Authority plans to work with a local marketing 

Category SCASD 

Grant Funds

Community 

 Funds TOTAL

Revenue Guarantee/Risk Mitigation $450,000 $550,000 $1,000,000

Marketing/Advertising Support $50,000 $50,000 $100,000

TOTAL $500,000 $600,000 $1,100,000
 Small Community Air Service Development Program Grant Application: PGV

17

firm with who it has successfully partnered with in the past to launch extensive campaigns. 

Activities will include:

• Billboards, with particular focus on the main highway arteries to reach a broad audience

• Radio advertisements on three/four local stations, which blanket the majority of the PGV 

service area

• Selected print media, including key area professional magazines and newsletters

• Internet banner ads on websites

• PGV website

• County/City government channels

• TV advertising with the three local stations, again covering the majority of the PGV 

service area

• Aggressive and proactive public relations campaign leading to “free” local media 

coverage

• Presentations to local community groups and organizations to include local government 

entities

Ensuring Self Sufficiency 

PGV feels confident that any new air service from Delta Airlines to its ATL hub will become 

self-sufficient shortly after commencing. Due to the large passenger leakage that can be 

recaptured, the strong brand loyalty and recognition of Delta in the region, and the performance 

of similar sized airports in North Carolina with both US Airways CLT and Delta ATL service, it 

is believed that Delta ATL non-stops will be a success. 

PGV will communicate regularly with Delta to ensure success, and make adjustments in the 

marketing/advertising plan as needed to satisfy Delta’s requests. 
 Small Community Air Service Development Program Grant Application: PGV

18

Current Grant Request Differs Significantly from Previous Grant Award

The Pitt County – City of Greenville Airport Authority was awarded a Small Community Air 

Service Development Program grant award for $450,000 during FY 2005. However, there are 

major differences between the previous grant award and this current request. 

The objective of the $450,000 grant award from FY 2005 was for 2x daily nonstop flights to 

Philadelphia (PHL) on US Airways. Unfortunately, an agreement was never consummated 

between the Airport Authority and US Airways, and the grant funds were never spent. This grant 

request differs in that Delta’s ATL hub offers much greater connectivity, both domestic and 

international, than US Airways hub at PHL. With the potential merger between US Airways and 

American Airlines, the future of the PHL hub remains in question, while Delta has solidified the 

ATL hub as its largest and most successful hub in its system.

July 22, 2013 

Susan L. Kurland 

Assistant Secretary for Aviation and International Affairs 

U.S. Department of Transportation 

Office of Aviation Analysis 

1200 New Jersey Ave, SE 

Washington, DC 20590 

Subject: Small Community Air Service Development Grant Application 

 Docket OST-2013—0120 

 Pitt-Greenville Airport, Greenville, NC 

Dear Ms. Kurland: 

The Greenville-Pitt County Chamber of Commerce is pleased to submit this letter of support on behalf of 

the Pitt Greenville Airport (PGV) for the Small Community Air Service Development Grant Application. 

The Greenville-Pitt Chamber, which represents more than 1,000 Pitt County businesses, works daily to 

fulfill its mission of building the strongest business climate in Eastern North Carolina. Without question, 

an additional commercial airline service at PGV is critical to the economic health and vitality of the City of 

Greenville, Pitt County and the surrounding communities. 

The Pitt County, Greenville North Carolina area has a diverse manufacturing sector, a strong retail 

market, and a world-renowned university (East Carolina University) and hospital system (Vidant Health 

and Vidant Medical Center). Additional commercial service to PGV would provide tremendous support to 

our current businesses and attract new businesses to our area. 

The Greenville-Pitt Chamber of Commerce supports the proposal and application for the Grant to be 

submitted to the U. S. Department of Transportation. 

 

Sincerely, 

Scott Senatore, MBA, IOM 

Senior Vice President 

Greenville-Pitt County Chamber of Commerce • 302 S. Greene St. • Greenville, NC 27834 

 (252) 752-4101 • Fax (252) 752-5934 • www.greenvillenc.org • chamber@greenvillenc.org 





111 S. Washington St. • Post Office Box 837 • Greenville, NC 27835-0837 • (252) 758-1989 • www.locateincarolina.com 

July 18, 2013 

Susan L. Kurland 

Assistant Secretary for Aviation and International Affairs 

U.S. Department of Transportation 

Office of Aviation Analysis 

1200 New Jersey Ave, SE 

Washington, DC 20590 

Subject: Small Community Air Service Development Grant Application 

 Docket OST-2013—0120 

 Pitt-Greenville Airport, Greenville, NC 

Dear Ms. Kurland: 

The Pitt County Development Commission, Pitt County’s primary economic development agency, 

strongly supports the air service proposal detailed in the Small Community Air Service Development 

Program grant application. Our current air service from Greenville to Charlotte-Douglas International

Airport does not meet the needs for the area’s air travelers, especially multi-national companies such as 

DSM Pharmaceuticals (Dutch), ASMO (Japanese), Dyneema (Dutch), NACCO (America’s Headquarters) 

Fuji Silysia (Japanese), and Metrics/Mayne Pharmaceuticals (Australian). 

While commercial air service at Pitt-Greenville Airport plays an important role in providing support to 

business, government, education, and leisure travel to/from the area, our office is particularly concerned 

with the business aspect. The proposed nonstop Delta Airlines’ service to their hub in Atlanta will greatly 

improve our passenger enplanements which is a key basis for supporting the local economy. 

Future growth of Pitt County and the surrounding communities depends, in part, on the Airport’s ability 

to meet the needs of both existing local businesses and companies considering Pitt County being recruited 

to our area. The good westbound connectivity through Charlotte-Douglas International Airport is 

severely hampered by the poor routing over Charlotte. Many local air travelers, such as New Growth 

Designs and the HammockSource, drive to Raleigh-Durham International Airport to access more 

convenient air service. Both travel to many tradeshows and are international leaders in their fields. 

Pitt-Greenville Airport has extremely strong ties to our business community. We appreciate the 

opportunity to expand that partnership to include the U.S. Department of Transportation through the 

Small Community Air Service Development Program. 

Sincerely, 

Wanda E. Yuhas 

Executive Director