### S TATE OF 

### N ORTH 

### C AROLINA 

## D EPARTMENT OF 

## T RANSPORTATION

P AT M C C RORY 1501 M AIL S ERVICE C ENTER , R

ALEIGH , N. C. 27699

- 1501 A NTHONY J. T ATA G OVERNOR S ECRETARY

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 pl an 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 Transportation1 APPLICATION UNDER
SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM
DOCKET DOT

- OST

- 201 3

- 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/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: Pitt County

- City of Greenville Airport Authority
DUNS Number: 00

- 251

- 1376
EIN/Tax ID: 56

- 6166223

B. L IST THE N AME OF THE COMMUNITY OR CONSORTIUM OF COM MUNITIES APPLYING : 1. C ITY OF GREENVILLE & PITT COUNTY , NC 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 FO R THE AIRPORT ( S ) THAT ARE ACTUALLY

SEEKING SERVICE ).
1. Pitt

- Greenville Airport (PGV) 2

. 3

. 4

.2 D. L IST THE 2

- DIGIT CONGRESSIONAL DISTRICT CODE APPLIC ABLE TO THE SPONSORI NG

ORGANIZATION , AND IF A CONSORTIUM , TO EACH PARTICIPATIN G COMMUNITY
. 1. 01 2

. 03
3

. 4

.

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

Not a Co nsortium 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

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

. P ROJECT P ROPOSAL : ( 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

. E XISTING L ANDING A IDS AT L OCAL A IRPORT : Full ILS Outer/Middle Marker Published Instrument Approach
Localizer Other (specify) Published GPS Approaches3 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 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

- K ind contribution

5 a Airport In

- Kind contribution ** 0.00

5b Other In

- Kind contribution ** 0.00
5 TOTAL IN

- KIND CONTRIBUTION ( 5

a + 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

. I S T HIS A PPLICATION S UBJECT T O R EVIEW B Y S T ATE U NDER E XECUTIVE O RDER 12372

P ROCESS ?

a. This application was made available to the s tate 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 A PPLICANT D ELINQUENT O N A NY F EDERAL D EBT ? (I F “Y ES ”, P ROVIDE
E XPLANATION )

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 Gr ant Application Docket OST-2013—0120 Pitt-Greenville Airport, Greenville, NC

Dear Ms. Kurland:

As an elected County Commissioner (currently servin g as Board Chairman), I am pleased to submit this letter of support for Pitt-Greenville Airport’s (PG V) grant application to the U.S. Department of Transportation for funding of its program to initia te and incubate air service on Delta Airlines to it s Hartsfield-Jackson Atlanta International Airport hu b. This air service proposal is detailed in the S mall Community Air Service Development Program grant app lication. Pitt County Government understands the importance of commercial air service to the eco nomy of the region through access for visitors and, most important, to support area businesses, organiz ations 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, th is grant can make a significant difference in provi ding our community better connectivity to the air transp ortation 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 t his grant application, and we assure you that we wi ll 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

– 0120Small 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 Deficienc y

.............................. 1 1 P revious Air Service Development Efforts by PGV

................................ ............................... 1 2



### III. The PGV Grant Proposal Specifics

................................ ............................. 1 4 Objective: Increase Air Service Access at PGV

................................ ................................ ..... 1 4 Sources and Distribution of Grant Funding

................................ ................................ ............ 1 5 Revenue Guarantee Component

................................ ................................ ............................. 1 6 Marketing/Advertising Support

................................ ................................ .............................. 1 6 Ensuring Self Sufficiency

................................ ................................ ................................ ...... 1 7 Current Grant Request Differs Significantly from Previous Grant Award

.............................. 1 8Small 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 an d 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 2011Small 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 Universi ty 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 hi gher 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 t hat 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 h as 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 extensiv ely 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 i llustrates, 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 Delt a’s ATL hub via nonstop service.

A revenue guarantee combined with marketing support for new nons top 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 PGVSmall Community Air Service Development Program Grant Application: PGV

6 the belief t hat 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 HealthSmall 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.govSmall 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
minute s ’ 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 the ir 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 busine ss 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. PGVSmall 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 1 4 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 20 07

– 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 s tory 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. Co nnectivity 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 ptsSmall 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 (M CO): 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 passe nger 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¢

127,048 173.6 60.8% $237.94 $201.92 100.0% $24,918,061 19.91¢ Total MarketSmall 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 dif ferences 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 HondurasSmall 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 A irlines.

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 a viation 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

22.0% 1.1% 5.7% PGV % HigherSmall 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 developmen t 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

bei ng 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 marke t 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 sy stem at ATL.



## Delta Airlines ATL Domestic Route Map CY 201 3

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 PGVSmall Community Air Service Development Program Grant Application: PGV

15 achieve self

- sufficiency due to high Delta brand loyalty in the r egion 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 fu nds 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 c ome from a special fund known as the City/County/Airpor t “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

- deri ved revenue and are earmarked for air service development or aviation

related 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.

Th e 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 : $25,000Small 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 s pecific agreement with
the Delta Airlines outlining the following:

• The cos t 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 co nnecting/beyond rev enues will be allocated based on an agreed prorate

• It is envisio ned that t he 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
carri er. Any surplus over the agreed upon revenues and profit hurdle will be accru ed 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 $1,100,000Small 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 wit h 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 t o 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.

T he objective of the $450,000 grant award from FY 2005 was for 2 x 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 Gr ant Application Docket OST-2013—0120 Pitt-Greenville Airport, Greenville, NC

Dear Ms. Kurland:

The Greenville-Pitt County Chamber of Commerce is p leased to submit this letter of support on behalf o f the Pitt Greenville Airport (PGV) for the Small Com munity 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 busin ess climate in Eastern North Carolina. Without que stion, 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 communi ties.

The Pitt County, Greenville North Carolina area has a diverse manufacturing sector, a strong retail market, and a world-renowned university (East Carol ina 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 t o our area.
The Greenville-Pitt Chamber of Commerce supports th e 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.org111 S. Washington St. • Post Office Box 837 • Green ville, NC 27835-0837 • (252) 758-1989 • www.locatei ncarolina.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 Gr ant 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), Dynee ma (Dutch), NACCO (America’s Headquarters) Fuji Silysia (Japanese), and Metrics/Mayne Pharmace uticals (Australian).

While commercial air service at Pitt-Greenville Air port plays an important role in providing support t o business, government, education, and leisure travel to/from the area, our office is particularly conce rned with the business aspect. The proposed nonstop Del ta Airlines’ service to their hub in Atlanta will g reatly improve our passenger enplanements which is a key b asis for supporting the local economy.
Future growth of Pitt County and the surrounding co mmunities depends, in part, on the Airport’s abilit y to meet the needs of both existing local businesses and companies considering Pitt County being recrui ted to our area. The good westbound connectivity throu gh Charlotte-Douglas International Airport is severely hampered by the poor routing over Charlott e. Many local air travelers, such as New Growth Designs and the HammockSource, drive to Raleigh-Dur ham International Airport to access more convenient air service. Both travel to many tradesh ows and are international leaders in their fields.
Pitt-Greenville Airport has extremely strong ties t o our business community. We appreciate the opportunity to expand that partnership to include t he U.S. Department of Transportation through the Small Community Air Service Development Program.
Sincerely,

Wanda E. Yuhas Executive Director