August 27, 2010 

An Integrated Program of New Service Development via: 

Start-Up Cost Offsets, Advertising/Marketing, and Revenue Guarantees 

 In Support of New Scheduled Air Service to/from Washington Dulles 

Sponsor: Kinston Regional Jetport 

 Kinston, North Carolina 

 Don Howard, Airport Director 

 Congressional Code: NC-001 

 Dun & Bradstreet Number: 791210602 

KINSTON REGIONAL JETPORT, NORTH CAROLINA

Proposal Under the Small Community Air Service Development Program 

 

Docket: DOT-OST-2010-0124

Before the Office of the Secretary of Transportation 

US Department of Transportation
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 2

TABLE OF CONTENTS

Section Page 

Summary Information 3 

Introduction 6 

Primary Objectives of Proposal 7 

Executive Summary 8 

Detailed Explanation of Proposal 12 

Expected Results 15 

The Kinston Air Service Market 19 

Air Service Deficiencies 23 

Extenuating Factors Affecting Air Service 26 

Availability of Alternate Airports 30 

Use of Local/Federal Funds 31 

Public/Private Partnerships 32 

Implementation Timeline 35 

Air Service Advisory Groups 36 

Local Air Service Development Efforts 37 

In-kind Services from the Community 38 

Performance Measures 39 

Legal Sponsor 40 

Financial Controls 41 

Return on Investment 42 

DOT Exit Strategy 43 

Alternate Plan 44 

Airport Information 45 

Community Profile 46 

Conclusions 57 
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 3

SUMMARY INFORMATION 

Small Community Air Service Development Program 

Docket DOT-OST-2010-0124 

A. Applicant Information 

 Not a Consortium Community now receives EAS subsidy 

 Interstate Consortium Intrastate Consortium 

 Community previously received a Small Community Grant 

 If previous recipient, date of Grant: __2005___________________________ 

 expiration date of Grant: __2007_________________ 

B. Public/Private Partnership

Public: 

1. Kinston Regional Jetport 

2. North Carolina Global Transpark 

3. Lenoir County 

4. Wayne County 

5. City of Kinston 

6. City of Goldsboro 

Private: 

 

1. Lenoir Committee of 100 

2. Lenoir County/Kinston Chamber of Commerce 

3. Lenoir County Economic Development 

4. GTP Foundation 
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 4

C. Project Proposal 

 Marketing Upgrade Aircraft New Route 

 Personnel Increased Frequency Low Fare Service 

 Travel Bank Service Restoration Subsidy 

 Surface Transportation Regional Service Other (Specify) 

 Revenue Guarantee Launch New Carrier 

 Start Up Cost Offset First Competitive Service 

 Study Secure Additional Carrier 

D. Existing Landing Aids at Airport

 Full ILS Outer/Middle Marker Published Instrument Approach 

 Localizer Other:

E. Project Cost 

1. Federal amount requested: $ 500,000 

2. State cash financial contribution: $ 0

3. Local cash financial contribution: $ 50,000

 3a. Airport cash funds: $ 0

 3b. Non-Airport cash funds: $ 50,000 

 3c. Total local cash funds: $ 50,000

4. TOTAL CASH FUNDING: $ 550,000

5. Local funds contributed from already existing

Programs of projects included in line 3c: $ 0

6. Local funds contributed from new commitments 

Or new resources included in line 3c: $ 0

7. Airport In-Kind contribution: $ Various

Description: Fee waivers: landing and terminal fees

8. Other In-Kind contribution: $ Various

Description: Advertising and marketing match money

9. TOTAL IN-KIND CONTRIBUTION: $ Undetermined

10. TOTAL PROJECT COST: $ 550,000
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 5

F. Enplanements at Airport

 2000: 1,880 

2001: 0

 2002: 0

 2003: 0

 2004: 0

 2005: 16,350

 2006: 16,300

 2007: 4,060

 2008: 4,990 

2009: 5,765 

G. Is Application Subject to Review by State Under Executive Order 12372 Process?

 This application was made available to the State on ______. 

 Program is subject to review, but has not been selected by the State. 

 Program is not covered. 

H. Is Applicant Delinquent on any Federal Debt? 

 No 

 
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 6

INTRODUCTION 

Much has changed in Kinston, North Carolina since the last time it had scheduled, daily air 

service. Major economic development projects have landed more than 8,000 new jobs, with 

investment from around the world. Demand for air service has increased considerably, with a 

True Market/Leakage Study completed in August of 2010 showing demand for almost 800,000 

annual airline trips from the immediate Kinston area. 

The biggest development has been the recruitment of commercial aviation giant Spirit 

Aerosystems to the Kinston Regional Jetport and the co-located North Carolina Global 

TransPark. Spirit is working on a project in conjunction with Airbus. A massive new state-of-theart composite aircraft component factory on site will have 1,065 employees when the A350 

reaches full-rate production in two years. It is 

essential the Airport begin work now to bring 

scheduled service to the region. This proposal is 

just part of that broader effort. 

The Jetport proposes to partner with the DOT on 

new non-stop service between Kinston and 

Washington Dulles on United Express. The Airport 

believes this service will be more successful than 

previous service to Atlanta, on Delta, due to the fact that none of the other regional airports in 

North Carolina have Dulles service. 

United Express service to Washington Dulles would offer the Kinston Regional Jetport its first shot 

at local air service in several years – since Delta left the market at the beginning of 2007. 

Moreover, the Washington-Baltimore area currently ranks as Kinston’s fifth largest origin and 

destination passenger market, averaging more than 30,200 annual “true” passengers, including 

those flying from other airports in the region – but not including those who make the drive. 

Community leaders have had discussions with United about adding service, and the Airport and 

leaders have been invited to United’s headquarters to make their case for service. But United 

has indicated, for a market with risk, such as Kinston, it will need a risk mitigation package to help 

support it in the start-up phase of service. This Grant, along with significant community 

participation, is essential to building that risk mitigation package. 

“Much has changed in Kinston... 

since the last time it had scheduled, 

daily air service... [with] more than 

8,000 new jobs and investment from 

around the world.” 
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 7

PRIMARY OBJECTIVES OF PROPOSAL 

Objectives for Program: 

 Recruit air service to the growing Kinston market 

 Increase connectivity between east coast markets 

 Create better opportunities for business connections between the Kinston region 

and the east coast 

 Increase connections to the rest of the country through a major hub 

 Serve the Kinston community through the local airport, instead of through other 

airports in the region 

Means to Achieve Objectives: 

 Recruit schedule air carrier service to the market 

 Develop risk mitigation package 

 Work towards launch of routes no later than 2012 

Course of Action to Support Means: 

 Provide start-up cost offsets 

 Make available revenue guarantee in first 12-months of new service 

 Initiate marketing and advertising campaign to publicize new air service 

 Work with local business partners to make sure new service is successful 

 
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 8

EXECUTIVE SUMMARY 

The Kinston Regional Jetport sits at the middle of an area with an immediate, local population of 

more than 300,000 people. For years, it had service on several regional carriers affiliated with 

major airlines – and the community supported that service. The last “network” carrier to serve 

Kinston was Delta, through subsidiary Atlantic Southeast Airlines, with non-stop to Atlanta. 

Despite load factors nearing 70% during the last year of service, and average fares topping $310 

roundtrip, Delta left the market in the beginning of 2007. 

Much has changed in Kinston since then. The Kinston Regional Jetport and the North Carolina 

Global TransPark, which is located on field and in charge of the operations of the Airport, have 

had tremendous success in recruiting Spirit Aerosystems to the field – the US division of Airbus. A 

massive new state-of-the-art composite aircraft component factory on site represents the future 

of the US aerospace industry. 

The factory opened on July first of 2010, 

completing a $500 million-plus 

investment by Spirit AeroSystems, Airbus 

and the State government. Over the 

next few months the factory will start 

producing composite centre fuselages 

and front wing spars for the Airbus A350 

XWB, for shipping to Europe from the first 

quarter of next year. The factory will 

have 750 employees when the A350 

reaches full-rate production. 

Once Spirit and Airbus have the facility 

at full production, in just two years, 

demand for air service at Kinston will increase substantially. It is essential the Airport begin work 

now to bring scheduled service to the region. This proposal is just part of that broader effort. 

The Kinston catchment area, seen in orange in Figure 1, is home to 312,752 people as of the 

latest US Census estimates. The Kinston catchment area comprises 7.4% of the overall population 

of the entire shaded area – the area in North Carolina that includes Raleigh/Durham, 

Kinston 312,752 7.4%

Greenville 425,628 10.1%

Wilmington 387,735 9.2%

Jacksonville 199,392 4.7%

New Bern 186,372 4.4%

Fayetteville 882,985 20.9%

Raleigh/Durham 1,820,392 43.2%

Regional Total 4,215,256 100.0%

Regional Population Distribution

FIGURE 1: The Kinston Regional Jetport Catchment Area

Relative to the Catchments of Other North Carolina Airports
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 9

Wilmington, Greenville, New Bern, Jacksonville, and Fayetteville. The total population of the 

shaded area in Figure 1 – which is entirely within a two hour’s drive of the Kinston Regional 

Jetport – is 4.2 million, making it one of the most populous two-hour catchment areas in the 

southeast region. Despite comprising 7.4% of the region’s population, all Kinston travelers must 

now access the national air transportation system at other airports. 

Previous service at the Kinston Regional Jetport included Delta Connection to Atlanta and 

Allegiant Air to Orlando Sanford. Both were reasonably successful, judging by loads and 

average fares. But in both cases, service was pulled within the last three years, leaving the 

Airport with no current airline service. 

In the summer of 2005, Atlantic Southeast Airlines (ASA) operated Delta Connection service to 

Atlanta with an average of 120 seats per day each way (SDEW) and 2.9 average daily 

departures (see Figure 2). The service performed at a load factor or 75% for that summer. But 

shortly thereafter, Delta decided to pull frequency out of the market, and the service operated 

at two daily departures or less from December of 2005 through the service end in January of 

2007. 

116

119 120

115

112 111 114 116

91 88

73

82 81 80 80 80 80

73 70

78

72

10

57

81

86

81

84

73

76

80

66

57

52

58

52

40

46 47

42 42

49 52

44

5

0

20

40

60

80

100

120

140

2005-04 2005-05 2005-06 2005-07 2005-08 2005-09 2005-10 2005-11 2005-12 2006-01 2006-02 2006-03 2006-04 2006-05 2006-06 2006-07 2006-08 2006-09 2006-10 2006-11 2006-12 2007-01

Available SDEW Onboard PDEW Flights Per DEW

2.9 3.0 3.0 2.9 2.8 2.8 2.8 2.8

2.0 2.0

1.8

1.9 2.0 2.0 1.9 2.0 1.9

1.8 1.7

1.9

1.8

0.2

FIGURE 2: Flights, Available Seats, and Passengers Per Day Each Way

Kinston – Atlanta on Delta, April 2005 – January 2007; Source: US DOT T100 Data
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 10

When frequencies were cut from Kinston, it became more difficult for the local Airport’s service 

to compete with the exact same Atlanta service offered by Delta from other airports in the 

region, such as Jacksonville, Greenville, and Raleigh/Durham. Delta cut total Kinston-Atlanta 

available seats by an average of 48 per day each way (SDEW) between June of 2005 and 

December of 2007 – a loss of 40% of the total seats in the Kinston market (see Figure 2). This 

suppressed passengers from an average of 86 per day each way (PDEW) to just 44 per day 

each way – a loss of 49% of Kinston’s local passengers. 

As frequencies were cut, average fares on Kinston service increased. Delta did have 

competitive fares in the market in the mid-2000s. But those competitive fares started 

disappearing as local seats became scarce. In the second quarter of 2005, the average fare on 

Delta service from Kinston was $136 

each way, on an average stage 

length of 983 miles (see Figure 3). 

By the third quarter of 2006, as Delta 

cut Kinston flights by an average of 

one frequency in each direction 

per day, fares had increased by 

25%. The average one way fare in 

Kinston, on Delta service, in the third 

quarter of 2006 – as the service 

cancellation was announced – was 

$170 each way, which was $34 

more each way than the fare just five quarters earlier (see Figure 3). The effect of these 

increasing fares was to cause more Kinston catchment area travelers to drive to other airports in 

the region to access air transportation. 

In anticipation of this Grant proposal, the Kinston Regional Jetport, and the North Carloina 

Global TransPark commissioned a True Market/Leakage Study to better understand how 

catchment area residents are accessing air service. The data was collected and released in 

August of 2010. It shows that the majority of Kinston area passengers currently fly out of 

Raleigh/Durham International Airport. As of the year ended first quarter 2010, the Kinston 

Regional Jetport’s catchment area generated 758,969 total passengers who flew out of all other 

airports (see Figure 4). 

$136

$131

$144

$158

$177

$170

$125

$135

$145

$155

$165

$175

2005-Q2 2005-Q3 2005-Q4 2006-Q1 2006-Q2 2006-Q3

Kinston/Delta

FIGURE 3: Average One Way Fare, Delta Service at Kinston,  

Second Quarter 2005 – Third Quarter 2006; Source: US DOT Table DB1A
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 11

As of the year ended first quarter 2010, the Airport’s catchment area generated 624,646 origin 

and destination passengers who flew out of Raleigh/Durham – or 82.3% of all Kinston area 

passengers (see Figure 4). The Study shows an additional 55,566 passengers flew out of 

Wilmington; an additional 34,174 passengers flew out of Fayetteville; and an additional 18,756 

passengers flew out of Jacksonville. Smaller proportions of passengers from Kinston used service 

provided at New Bern and 

Greenville. 

Altogether, the immediate 

Kinston catchment area 

generated an average of 

1,040 passengers per day 

each way (PDEW) in and 

out of the region as of the 

year ended first quarter 2010 (see Figure 4). At Raleigh/Durham, Kinston area passengers 

generated an average of almost 856 passengers per day each way (PDEW). It will be difficult 

for a new airline in the market to re-capture these “leaked” passengers. That is why it is essential 

the Airport offer risk mitigation to the new carrier – to make sure the new carrier has a sufficient 

“ramp up” phase to win back passengers to the Kinston Regional Jetport. 

The Jetport proposes to partner with the DOT on new non-stop service between Kinston and 

Washington Dulles on United Express, or one of the airlines operating under United’s “UA” code. 

The Airport believes this service will be more successful than previous service to Atlanta, on Delta, 

due to the fact that none of the other regional airports in North Carolina have Dulles service. 

Kinston would be able to offer something unique that could draw passengers from a wider area 

than just the immediate catchment. 

Community leaders have had discussions with United about adding service, and the Airport and 

leaders have been invited to United’s headquarters to make their case for service. But United 

has indicated, for a market with risk, such as Kinston, it will need a risk mitigation package to help 

support it in the start-up phase of service. This Grant, along with significant community 

participation, is essential to building that risk mitigation package. 

Airport Passengers PDEW Share

1 RDU Raleigh/Durham, NC 624,646 855.7 82.3% 

2 ILM Wilmington, NC 55,566 76.1 7.3% 

3 FAY Fayetteville, NC 34,174 46.8 4.5% 

4 OAJ Jacksonville, NC 18,756 25.7 2.5% 

5 EWN New Bern, NC 17,291 23.7 2.3% 

6 PGV Greenville, NC 8,535 11.7 1.1% 

Total Kinston Area Passengers 758,969 1,040 100.0% 

Rank

FIGURE 4: Kinston Area O&D Passengers by Airport Used

YE1Q10; Source: Sixel Consulting Group True Market Study, 2010
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 12

DETAILED EXPLANATION OF PROPOSAL 

The Kinston Regional Jetport proposes to use a combination of locally raised funding in 

conjunction with federal Small Community Air Service Development Grant funding in support of 

the addition of air service to the community. The Airport has been without any link to the 

national air transportation system since the beginning of 2007. This proposal would restore air 

service, by adding a route that is not served from other regional airports in the region – the route 

between Kinston and Washington Dulles (see Figure 5). 

This routing fills a major need for Kinston service, by linking the Kinston region non-stop, for the first 

time, to the Washington, DC area. Washington-Baltimore ranks as Kinston’s fifth largest 

combined destination, when taking into account all passengers traveling to all of the DC-area 

airports – Washington Dulles, Washington National, 

and Baltimore-Washington. The route also provides 

one-stop connections to many of Kinston’s major 

origin and destination passenger markets on United 

Airlines and its partners, which include Continental 

and US Airways. It effectively adds three airline 

brands to the Kinston market, as well, through airline 

codeshares on the route. 

The Kinston Regional Jetport seeks a Small Community 

Air Service Development Grant, in the amount of 

$500,000, to help mitigate United’s initial monetary risk 

in launching service in an unproven market. 

The Airport proposes two daily flights on the route in 

each direction. The route between the Kinston Regional Jetport and Washington Dulles 

International Airport would cover 249 miles in a flight time of 37 minutes, on average, assuming 

an average groundspeed of 350 knots on a Canadair CRJ200 regional jet aircraft seating 50 in 

an all-economy layout (see Figure 6). The block time on the flight, from gate to gate, will be one 

hour and 10 minutes, with 33 minutes added for total taxi time, reflecting the potential for some 

congestion at Dulles. 

FIGURE 5: Proposed Route:  

Kinston – Washington Dulles
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 13

The proposed schedule works within the framework of current hub operations by United and its 

partners at Dulles. The flight times do not take into account upper level winds or weather. For 

the purposes of these schedules it is assumed an aircraft would overnight at Kinston, where 

United Express might be able to take advantage of free overnight parking offered as part of this 

proposal (see Figure 6). 

Origin Destination Departs Arrives Block Time Equipment 

ISO IAD 6:10am 7:20am 1:10 CRJ 

IAD ISO 12:20pm 1:30pm 1:10 CRJ 

ISO IAD 2:30pm 3:40pm 1:10 CRJ 

IAD ISO 6:30pm 7:40pm 1:10 CRJ 

The schedule is timed to connect into the first set of flights offered by United in the morning, 

including early morning transcontinental flights (see Figure 6). Additionally, the flights are timed 

to offer connectivity to major destinations to the north along the east coast. The flights are also 

timed for the Kinston business traveler, with an early morning Kinston departure and a late 

evening return flight. 

It is also important, due to the nature of new business in Kinston, to ensure the flights are timed to 

connect to the major international bank of flights departing Dulles in the late afternoon. This 

bank of flights will be important to many of the 

vendors and management employees working at 

the new Spirit Aerosystems plant at the Kinston 

Regional Jetport. This proposed schedule does 

ensure international connectivity (see Figure 6). 

The Kinston Regional Jetport proposes that a small 

portion of the cost of starting the new service be supported up-front with federal funds from the 

Small Community Air Service Development Program. Of the total Grant request of $500,000, the 

entire amount will be used for a revenue guarantee and start-up cost offsets. The Airport’s local 

share, which is $50,000, will be used for marketing and advertising projects, with only a small 

FIGURE 6: Proposed Schedule,  

Kinston (ISO) – Washington Dulles (IAD)

“It is also important, due to the 

nature of new business in Kinston, to 

ensure flights are timed to connect 

to the major international bank...” 
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 14

portion of the Grant award going to immediate start-up costs. The federal share of the project 

will be $500,000. 

The Kinston Regional Jetport projects that the bulk of the grant money be available to provide 

insurance in case a United Express carrier incurs a loss during the first year of operations. With 

demand for service in the Kinston market, as demonstrated by the Airport’s recently completed 

True Market/Leakage Study the Airport 

projects the new flights will be profitable 

within one year. 

If, for some unforeseen reason, service is 

not commenced in a timely manner by 

United, or one of its United Express carriers, 

the Kinston Regional Jetport proposes to 

use federal grant money awarded under 

the Small Community Air Service 

Development Program for other carriers that can provide connections to a large origin and 

destination market along the east coast, or other connectivity through a large hub. The Airport 

will continue its discussions with all other than can provide additional seats to strong markets. 

Since the community has never before received a Small Community Air Service Development 

Grant on its own, with its previous award only given as part of a consortium of North Carolina 

cities, it will have no limitations on which new hub the DOT could fund. Among the options are 

US Airways service to New York LaGuardia, Washington National, Philadelphia, or Charlotte; 

Continental Airlines service to Newark or Cleveland, United Airlines service to Chicago O’Hare; 

Delta Air Lines service to New York Kennedy or New York LaGuardia; AirTran Airways service to 

Atlanta, Orlando, or Baltimore/Washington; jetBlue Airways service to New York Kennedy; 

American Eagle service to Chicago O’Hare, Dallas/Ft. Worth, Miami, New York Kennedy, or New 

York LaGuardia; or service on an independent airline operating a codeshare hub route. 

“With demand for service in the Kinston 

market, as demonstrated by the 

Airport’s recently completed True 

Market/Leakage Study, the Airport 

projects the new flights will be 

profitable within one year.” 
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 15

EXPECTED RESULTS 

Route Specific Data: Kinston – Washington Dulles 

United Express service to Washington Dulles would offer the Kinston Regional Jetport its first shot 

at local air service in several years – since Delta left the market at the beginning of 2007. 

Moreover, the Washington-Baltimore area currently ranks as Kinston’s fifth largest origin and 

destination passenger market, averaging more than 30,200 annual “true” passengers, including 

those flying from other airports in the region – but not including those who make the drive. The 

service would offer one-stop connections in 86 markets over Dulles (see Figure 7). 

FIGURE 7: Connections Over Washington Dulles on United and the Star Alliance,  

YE1Q10; Source: Sixel Consulting Group Hub Builder
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 16

The Airport’s August 2010 True Market/Leakage Study shows that the Kinston market currently 

produces 698 unstimulated origin and destination passengers per day each way to destinations 

that naturally connect over the United Airlines Washington Dulles hub, including 41.7 passengers 

per day each way to and from the Washington, DC area, itself (see Figure 8). 

In all, the Kinston – Washington Dulles route has the potential to capture 67% of the current 

passengers flying in and out of the Kinston region (see Figure 8). At the same time, the United 

hub at Washington Dulles could capture 56% of the current revenue generated in the Kinston 

market – all of which is generated at other airports in the region, such as Raleigh/Durham and 

Wilmington. 

Currently, United and Star Alliance markets from Kinston that flow over Washington Dulles 

generate more than $73.8 million in annual airline revenue, or $101,000 in revenue per day each 

way (RDEW) to and from Kinston (see Figure 8). This includes all revenue that is “leaking” from 

the Kinston market to other airports in North Carolina. 

The United hub at Dulles has potential to capture large portions of traffic in 83 of Kinston’s largest 

origin and destination markets. Washington Dulles is especially well positioned to capture traffic 

traveling to the DC Area, the northeast, the Midwest, and the west coast – including large 

FIGURE 8: O&D Passengers and Revenue Over Dulles on United and the Star Alliance,  

YE1Q10; Source: Sixel Consulting Group Hub Builder

Washington Dulles 

67%

Other 

Hubs 33%

Washington Dulles 

56%

Other 

Hubs 44%

Estimated Kinston O&D Revenue $131,375,515 100%

Revenue Flowing Over IAD $73,861,784 56%

Estimated Kinston O&D Passengers 758,969 100%

Passengers Flowing Over IAD 509,820 67%
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 17

markets such New York/Newark, which produces 99 passengers per day each way (PDEW) to 

and from Kinston as of the year ended first quarter 2010,; Philadelphia, which produces 46 PDEW; 

Chicago, which produces 44 PDEW; Washington-Baltimore, which produces 42 PDEW; Boston, 

which produces 37 PDEW; and Ft. Lauderdale/Miami, which produces 36 PDEW as of the year 

ended first quarter 2010 (see Figure 9). All of those figures are generated by the Airport’s August 

2010 Leakage Study, and focus city connection analysis completed using the Sixel Consulting 

Group Hub Builder software. 

Kinston’s top 11 true revenue markets that would flow over Washington Dulles on United and the 

Star Alliance, including all “leaked” revenue from the Kinston catchment area that currently 

flows through other North Carolina airports, each produce more than $3,000 in revenue per day 

each way (RDEW) (see Figure 10 on next page). The top potential Kinston revenue market over 

Dulles on United is New York/Newark producing almost $10,000 in revenue per day each way 

(RDEW). The Washington-Baltimore market, itself, generates almost $5,000 in revenue per day 

each way (RDEW) as of the year ended first quarter 2010 (see Figure 10 on next page). 

FIGURE 9: Top O&D Passenger Markets Over Dulles on United,  

YE1Q10; Source: Sixel Consulting Group Hub Builder

72,300

33,608

32,286

30,467

27,303

26,019

20,740

17,343

16,530

15,447

13,692

12,620

11,759

10,490

10,087

8,937

7,919

7,916

7,603

6,868

99.0

46.0

44.2

41.7

37.4

35.6

28.4

23.8

22.6

21.2

18.8

17.3

16.1

14.4

13.8

12.2

10.8

10.8

10.4

9.4

0 10,000 20,000 30,000 40,000 50,000 60,000 70,000

New York/Newark - 1

Philadelphia - 2

Chicago Area - 3

Washington/Baltimore - 4

Boston - 5

South Florida Area - 6

Los Angeles Basin - 7

San Francisco Bay Area - 8

Dallas/Ft Worth Area - 9

Las Vegas - 10

Denver - 11

Nashville - 12

Houston Area - 13

Detroit - 14

Phoenix/Mesa Area - 15

Seattle/Tacoma - 16

Hartford - 17

Saint Louis - 18

San Diego - 19

Cleveland - 20

Annual Passengers PDEW
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 18

The United hub at Washington Dulles is in a unique position to generate additional traffic and 

revenue to any number of Kinston’s top true origin and destination markets. United-coded 

service has the potential to capture as much as $84 million in current airline revenue, not taking 

into account any revenue stimulation through non-stop service. 

The Airport believes there is sufficient passenger traffic and revenue that would flow over the 

United hub at Dulles to make the service profitable. United and its codeshare carriers would not 

be forced to offer rock-bottom fares in Kinston to be competitive – even fares slightly higher than 

those found in other North Carolina markets would be considered convenient for service-starved 

Kinston area passengers. The Kinston Regional Jetport believes in the Washington-Baltimore 

market, and must develop a risk mitigation package to ensure a United Express carrier can enter 

the market without major up-front risk.

FIGURE 10: Top O&D Revenue Markets Over Dulles on United,  

YE1Q10; Source: Sixel Consulting Group Hub Builder

7,265,908

4,097,043

3,794,439

3,533,465

3,295,164

3,028,404

2,984,881

2,809,352

2,800,254

2,698,025

2,205,264

2,036,929

1,857,843

1,534,714

1,512,064

1,486,051

1,441,557

1,253,123

1,147,251

993,988

9,953.3

5,612.4

5,197.9

4,840.4

4,513.9

4,148.5

4,088.9

3,848.4

3,836.0

3,695.9

3,020.9

2,790.3

2,545.0

2,102.3

2,071.3

2,035.7

1,974.7

1,716.6

1,571.6

1,361.6

0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000

New York/Newark - 1

London Heathrow - 2

Chicago Area - 3

Washington/Baltimore - 4

Los Angeles Basin - 5

San Francisco Bay Area - 6

Boston - 7

South Florida Area - 8

Dallas/Ft Worth Area - 9

Philadelphia - 10

Las Vegas - 11

Houston Area - 12

Denver - 13

Detroit - 14

Phoenix/Mesa Area - 15

Nashville - 16

Seattle/Tacoma - 17

San Diego - 18

Saint Louis - 19

Hartford - 20
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 19

THE KINSTON AIR SERVICE MARKET 

The Kinston Regional Jetport saw continual flight reductions from 2005 through 2008, with the 

eventual loss of all local air service. Delta served the community through January of 2007, with 

non-stop flights to its hub in Atlanta. Allegiant Air service the community from November of 2006 

through March of 2008. In both cases, the carriers enjoyed load factors above 70% with 

average fares higher than those at the other airports in the immediate region. The reason 

service was not, ultimately, retained was likely due to continued flight reductions and the loss of 

sufficient available seats. 

Previous Air Service at the Kinston Regional Jetport 

From April of 2005 to March of 2008, the Kinston Regional Jetport went from an average of 3.1 

daily air carrier departures to an average of 0.2 daily air carrier departures– a loss of 94% of daily 

flights (see Figure 11). During the same time period Kinston saw a loss of an average of 132 daily 

departing seats – or 82%.

FIGURE 11: Average Daily Departures, Daily Available Seats, Daily Onboard Passengers

Source: US DOT T100 Data, April 2005 – March 2008

132

128127

137

142

102

110

86

103

94

101

87

97

115

87

104

112

86

96

122

137

72

59

74

61

35

67 68

34

28

49

78

64 61

29

24

89 92

81

94 98

73

66

60

68

60

50 50

56

64

50

60 62

47

68

83 83

46 43

58

51

24

52

57

23 21

35

51

43 42

14 14

0

20

40

60

80

100

120

140

160

Available SDEW Onboard PDEW Flights Per DEW

3.1

2.9 2.9 3.0 3.0

2.1 2.2

1.8

2.1 2.1

2.3

2.0

2.2 2.2

2.0

2.3 2.2

1.8 1.9

2.2 2.2

0.7

0.4 0.5 0.4

0.3

0.5 0.5

0.3 0.2

0.4

0.5 0.4 0.4

0.2 0.2
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 20

While flights at Kinston were down 94%, and daily seats were down 82%, onboard passengers 

were down 84% (see Figure 11). This reflects the difficulty in finding available seats locally at the 

Kinston Regional Jetport – especially after Delta left the market in January of 2007. Allegiant’s 

service to Orlando-Sanford, while widely supported, did no link Kinston to the national air 

transportation network. 

In preparation for this application for Grant funding, the Kinston Regional Jetport commissioned 

a True Market/Leakage study, so that it could better understand its local air travel market before 

requesting federal funding for additional flights. The study results, released in August of 2010, 

show that the Airport generates 758,969 total annual passengers, or 1,040 passengers per day 

each way (PDEW), in its local, immediate catchment area. 

It is important to understand which of the region’s airports Kinston catchment area passengers 

are using to access air service to each of their largest destinations. The Study shows New York’s 

LaGuardia Airport ranks as Kinston’s top true passenger market, generating more than 37,700 

total passengers per year as of the year ended first quarter 2010 (see Figure 12). 

Most Kinston passengers destined for LaGuardia access service to and from Raleigh/Durham. 

RDU captures 44.1 passengers per day each way to and from LaGuardia, or 85% of all Kinston 

area passengers headed to LGA as of the year ended first quarter 2010 (see Figure 12). 

FIGURE 12: Kinston’s Top 20 O&D Passenger Markets by Airport Used

YE1Q10; Source: Sixel Consulting Group True Market/Leakage Study, August 2010

Total

Rank Airport Paxs PDEW Paxs PDEW Paxs PDEW Paxs PDEW Passengers

1 New York La Guardia, NY 32,216 44.1 4,240 5.8 447 0.6 822 1.1 37,725 

2 Philadelphia, PA 29,945 41.0 2,184 3.0 390 0.5 837 1.1 33,355 

3 Atlanta, GA 25,762 35.3 1,750 2.4 2,453 3.4 2,224 3.0 32,190 

4 Boston, MA 24,328 33.3 1,495 2.0 438 0.6 1,088 1.5 27,350 

5 Chicago O'Hare, IL 18,461 25.3 1,522 2.1 556 0.8 1,153 1.6 21,692 

6 Orlando, FL 16,824 23.0 963 1.3 631 0.9 1,008 1.4 19,426 

7 New York J F Kennedy, NY 18,435 25.3 61 0.1 148 0.2 188 0.3 18,831 

8 Dallas/Fort Worth, TX 13,758 18.8 1,223 1.7 876 1.2 1,174 1.6 17,031 

9 Tampa, FL 14,023 19.2 898 1.2 1,023 1.4 973 1.3 16,917 

10 Las Vegas, NV 13,764 18.9 873 1.2 667 0.9 726 1.0 16,031 

11 New York New ark, NJ 13,770 18.9 930 1.3 397 0.5 717 1.0 15,814 

12 Baltimore, MD 13,379 18.3 799 1.1 309 0.4 423 0.6 14,910 

13 Los Angeles, CA 11,816 16.2 1,143 1.6 689 0.9 1,065 1.5 14,711 

14 Denver, CO 12,200 16.7 1,093 1.5 473 0.6 706 1.0 14,471 

15 Fort Lauderdale, FL 12,189 16.7 828 1.1 427 0.6 698 1.0 14,142 

16 Nashville, TN 11,244 15.4 741 1.0 796 1.1 608 0.8 13,390 

17 Washington National, DC 10,999 15.1 564 0.8 226 0.3 253 0.3 12,041 

18 San Francisco, CA 9,729 13.3 996 1.4 375 0.5 584 0.8 11,684 

19 Detroit, MI 9,346 12.8 676 0.9 483 0.7 798 1.1 11,304 

20 Chicago Midw ay, IL 10,307 14.1 208 0.3 208 0.3 153 0.2 10,877 

Raleigh/Durham, NC Wilmington, NC Other Airports Fayetteville, NC
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 21

Overall, Raleigh/Durham is the airport used by 82% of all Kinston catchment area travelers as of 

the year ended first quarter 2010. Another 7.3% of passengers use air service at Wilmington, 

while the rest of the region’s passengers use service at other airports, such as Fayetteville and 

New Bern. 

This passenger leakage is inefficient and a waste of resources for most major companies in the 

area. Moreover, the market has changed considerably since Delta last served the Kinston 

Regional Jetport. The Airport has been developed as a major spoke in the Airbus manufacturing 

chain – significantly increasing the demand for additional air service. 

Air Carrier Market Share in Kinston’s “True Market” 

By offering United/United Express service at Kinston, the airline would be increasing its potential 

to gain market share in a market it does not well serve today. United ranks as the sixth most used 

airline by Kinston catchment area passengers as of the year ended first quarter 2010, according 

to the Airport’s recently released True Market/Leakage Study (see Figure 13). Study results show 

United captured just 35,918 total 

Kinston passengers as of the year 

ended first quarter 2010, or 49.2 

passengers per day each way 

(PDEW). This was good for 4.7% 

of the total Kinston passenger 

market. 

The Airport’s recently completed 

True Market/Leakage Study 

shows that most Kinston 

catchment area passengers use 

Delta Air Lines (see Figure 13). 

Delta carried an average of 247.5 passengers per day each way (PDEW) to and from Kinston as 

of the year ended first quarter 2010, good for almost 24% of the Kinston market. US Airways 

ranked second in the Kinston market, with 23% of passengers, followed by Southwest at number 

three with 19% of the market, and American at number four with 17% of the market. 

FIGURE 13: Kinston’s True Airline Passenger Share

YE1Q10; Source: Sixel Consulting Group True Market Study

Airline Passengers PDEW Share

1 Delta (+Northw est) 180,682 247.5 23.8% 

2 US Airw ays 175,503 240.4 23.1% 

3 Southw est 141,574 193.9 18.7% 

4 American 129,509 177.4 17.1% 

5 Continental 43,257 59.3 5.7% 

6 United 35,918 49.2 4.7% 

7 jetBlue 20,813 28.5 2.7% 

8 Airtran 18,797 25.7 2.5% 

9 Allegiant 2,060 2.8 0.3% 

10 Lufthansa 1,178 1.6 0.2% 

Total of Above 749,290 1,026 98.7% 

Total Kinston Area Passengers 758,969 1,040 100.0% 

Rank
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 22

The Study results show the Kinston market is highly fractured in terms of airline market share, 

which means travelers are not choosing flights solely based on airline affinity – but rather, based 

on which service makes the most sense. This gives the Airport additional confidence that United 

will be able to gain a foothold at the Kinston Regional Jetport.
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 23

AIR SERVICE DEFICIENCIES IN THE KINSTON MARKET 

The Kinston Regional Jetport’s recently completed True Market/Leakage Study shows that the 

Kinston catchment area produces enough passengers – 758,969 as of the year ended first 

quarter 2010 – to fill an average of ten departing CRJ200 aircraft everyday of the year. This 

large, and growing, market has been underserved for years. But the lack of service is more 

apparent as the community grows and as new businesses are established at the North Carolina 

Global TransPark. 

When Kinston’s 

combined origin 

and destination 

passenger market 

areas and 

analyzed the level 

by which the 

region is 

underserved 

becomes even 

more apparent. 

The Washington – 

Baltimore 

combined market 

area generates 

more than 41 

passengers per 

day each way 

(PDEW) to and 

from Kinston as of 

the year ended 

first quarter 2010 

(see Figure 14). 

Enough 

passengers travel 

FIGURE 14: Kinston’s True Airport Passenger Share, Top 15 Markets

YE1Q10; Source: Sixel Consulting Group True Market Study

Airport Area Paxs Airport Paxs Share of Total PDEW

1 New York/Newark 72,370 9.5% 99.1 

New York La Guardia, NY 37,725 52.1%

New York J F Kennedy, NY 18,831 26.0%

New York Newark, NJ 15,814 21.9%

2 Philadelphia 33,355 4.4% 45.7 

3 Chicago 32,569 4.3% 44.6 

Chicago O'Hare, IL 21,692 66.6%

Chicago Midway, IL 10,877 33.4%

4 Atlanta 32,190 4.2% 44.1 

5 Washington/Baltimore 30,216 4.0% 41.4 

Baltimore, MD 14,910 49.3%

Washington National, DC 12,041 39.9%

Washington Dulles, DC 3,265 10.8%

6 Boston 27,350 3.6% 37.5 

7 South Florida 27,238 3.6% 37.3 

Fort Lauderdale, FL 14,142 51.9%

Miami, FL 9,651 35.4%

West Palm Beach, FL 3,445 12.6%

8 Los Angeles Basin 22,414 3.0% 30.7 

Los Angeles, CA 14,711 65.6%

Orange County, CA 3,472 15.5%

Ontario, CA 2,996 13.4%

Burbank, CA 1,235 5.5%

9 Orlando/Sanford 21,250 2.8% 29.1 

Orlando, FL 19,426 91.4%

Sanford, FL 1,824 8.6%

10 Dallas/Fort Worth 18,013 2.4% 24.7 

Dallas/Fort Worth, TX 17,031 94.5%

Dallas Love Field, TX 982 5.5%

11 San Francisco Bay Area 17,919 2.4% 24.5 

San Francisco, CA 11,684 65.2%

San Jose, CA 4,097 22.9%

Oakland, CA 2,138 11.9%

12 Tampa/St Petersburg 17,144 2.3% 23.5 

Tampa, FL 16,917 98.7%

St. Petersburg/Clearwater, FL 226 1.3%

13 Las Vegas 16,031 2.1% 22.0 

14 Denver 14,471 1.9% 19.8 

15 Nashville 13,390 1.8% 18.3 

Total Kinston Area Passengers 758,969 1,040 

Rank
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 24

between Kinston and the Washington - Baltimore each day to fill 41% of seats on a frequency 

between Kinston and Dulles each day. 

While Washington Dulles is the least used DC area airport for Kinston catchment area 

passengers, it still generates 4.5 local passengers per day each way (PDEW) as of the year 

ended first quarter 2010 (see Figure 14). It has been proven, in other markets, that a non-stop to 

any airport in a metro area will draw passengers away from the other airports in the metro that 

do not have non-stop service. The Airport believes that will be the case to Dulles – as it pulls 

traffic away from Washington National and Baltimore-Washington. 

The Kinston catchment 

area also has the 

potential to generate 

significant revenue to 

and through 

Washington Dulles on 

the United network. 

Kinston’s 2010 True 

Market/Leakage Study 

shows that the market 

generated a total of 

$131.4 million in airline 

revenue as of the year 

ended first quarter 

2010, or $179,966 in 

revenue per day each 

way (RDEW) (see Figure 

15). WashingtonBaltimore ranks as the 

market’s fifth largest 

revenue generator, 

with $5,175 in revenue 

per day each way 

(RDEW) as of the year 

ended first quarter 

FIGURE 15: Kinston’s True Airport Revenue Share, Top 15 Markets

YE1Q10; Source: Sixel Consulting Group True Market Study

Airport Area Revenue Airport Revenue Share of Total RDEW

1 New York/Newark $7,565,745 5.8% $10,364 

New York La Guardia, NY $3,706,285 49.0%

New York Newark, NJ $2,190,279 28.9%

New York J F Kennedy, NY $1,669,180 22.1%

2 Chicago $3,935,607 3.0% $5,391 

Chicago O'Hare, IL $2,720,094 69.1%

Chicago Midway, IL $1,215,513 30.9%

3 Atlanta $3,870,290 2.9% $5,302 

4 Los Angeles Basin $3,811,800 2.9% $5,222 

Los Angeles, CA $2,455,702 64.4%

Orange County, CA $617,556 16.2%

Ontario, CA $530,804 13.9%

Burbank, CA $207,738 5.4%

5 Washington/Baltimore $3,777,930 2.9% $5,175 

Washington National, DC $1,694,488 44.9%

Baltimore, MD $1,541,531 40.8%

Washington Dulles, DC $541,912 14.3%

6 London, England $3,733,843 2.8% $5,115 

7 San Francisco Bay Area $3,216,212 2.4% $4,406 

San Francisco, CA $2,138,082 66.5%

San Jose, CA $734,453 22.8%

Oakland, CA $343,677 10.7%

8 Dallas/Fort Worth $3,080,420 2.3% $4,220 

Dallas/Fort Worth, TX $2,950,890 95.8%

Dallas Love Field, TX $129,531 4.2%

9 Boston $3,079,093 2.3% $4,218 

10 South Florida $3,050,913 2.3% $4,179 

Fort Lauderdale, FL $1,492,630 48.9%

Miami, FL $1,128,883 37.0%

West Palm Beach, FL $429,400 14.1%

11 Philadelphia $2,946,212 2.2% $4,036 

12 Las Vegas $2,438,409 1.9% $3,340 

13 Orlando/Sanford $2,294,059 1.7% $3,143 

Orlando, FL $2,228,360 97.1%

Sanford, FL $65,699 2.9%

14 Houston $2,243,847 1.7% $3,074 

Houston Intercontinental, TX $1,781,745 79.4%

Houston Hobby, TX $462,102 20.6%

15 Denver $2,063,913 1.6% $2,827 

Total Kinston Area Revenue $131,375,515 $179,966 

Rank
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 25

2010. About 85% of this revenue flows from Raleigh/Durham, with another 7% flowing from 

Wilmington. 

Washington Dulles ranks as the third largest revenue generating airport in the WashingtonBaltimore area, with $742 in revenue per day each way (RDEW) as of the year ended first 

quarter 2010 (see Figure 15). The largest proportion of Kinston catchment area airline revenue 

destined for the DC area flows to Washington National – not Baltimore/Washington. This 

indicates that most of the traffic is business-related, as Southwest’s service to Baltimore tends to 

draw a higher proportion of leisure traffic. This 

business-related traffic would value the time savings of 

a non-stop from Kinston to Dulles. 

The Airport’s Study shows that there is sufficient 

available revenue to make a Kinston – Washington 

Dulles non-stop profitable, even if just a small 

proportion of Kinston passengers use the service at their local airport. The service would clearly 

be focused toward the Kinston area business traveler, who would value the time savings of not 

having to drive to another airport in the region to access flights. 

 

“The service would clearly be 

focused toward the Kinston area 

business traveler, who would 

value the time savings...” 
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 26

EXTENUATING FACTORS AFFECTING AIR SERVICE 

It has been established in this proposal that the Kinston Regional Jetport saw its seats and flights 

cut to such an extent as to make local air service impractical for most users. While this, in and of 

itself, represents a hardship for the Airport and the community, the trend in eastern North 

Carolina has been for airlines to cut seats and flights at all airports. This has reduced the 

availability of air travel for, not only, those airports that still have service, but for Kinston travelers 

accessing air service through those airports. 

At the same time Kinston saw all service cancelled, Raleigh/Durham International Airport has 

seen its most significant seat cuts in a decade. Since the summer of 2007, Raleigh/Durham has 

lost an average of 73 daily departures – a loss of 32% of that Airport’s daily flights (see Figure 16). 

During that same time period, Raleigh/Durham has lost an average of 5,583 daily outbound 

available seats, or 29% of all the market’s available airline capacity. 

FIGURE 16: Available Seats, Flights, and Passengers Per Day at RDU

June 2007 – February 2010; Source: US DOT T100 Data

19,20019,13019,475

19,03119,39519,281

18,453

17,391

17,828

17,40817,67317,87118,18118,065

17,562

16,71916,930

16,44616,188

15,32915,51915,60015,781

16,182

17,04516,855

16,354

15,81615,864

15,483

14,769

13,96013,617

15,393

15,00914,908

12,870

14,02613,968

12,956

11,196

12,398

13,64513,73513,973

14,861

14,321

13,552

11,489

12,916

11,80912,102

9,728

10,431

11,661

12,61212,375

13,28913,599

12,809

11,437

12,787

12,17311,816

9,90910,144

5,000

7,000

9,000

11,000

13,000

15,000

17,000

19,000

21,000

Available SDEW Onboard PDEW Flights Per DEW

228.0

223.1

227.9

222.0223.3222.7

216.2

205.1208.1

203.6203.7202.5204.5204.5

196.6

183.3184.0180.0178.2

171.1

176.0177.5178.7182.0

186.6185.7

180.1

175.0175.0171.9

166.3

158.5155.0
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 27

These overall air carrier flight and seat losses not only hurt the immediate Raleigh/Durham 

catchment area, but Kinston. As Kinston has seen its flights and seats cut completely, Kinston 

area travelers have had to rely on service provided at Raleigh/Durham and other regional 

airports for access to the national air transportation system. This access is becoming more 

difficult as the region, as a whole, sees huge cuts in airline service. 

The same is true, specifically, of service between Raleigh/Durham International and the 

Washington – Baltimore area. As recently as June of 2009, Raleigh/Durham averaged 26.8 daily 

departures to airports in the DC area, including Washington National, Washington Dulles, and 

Baltimore-Washington (see Figure 17). By February of 2010, the number of daily departures had 

fallen to 18.1 – a loss of 8.7 daily departures, or 33% of all Raleigh/Durham – DC area flights. 

At the same time, available seats between Raleigh/Durham and the DC area have fallen from 

an average of 2,100 daily departing seats in June of 2009 to an average of 1,383 daily departing 

seats in February of 2010 – a loss of 34% of the market’s total seats (see Figure 17). 

FIGURE 17: Available Seats, Flights, and Passengers Per Day Between RDU and Washington‐Baltimore

April 2008 – February 2010; Source: US DOT T100 Data

1,915 1,894 1,852 1,855 1,812

1,872 1,899

1,810 1,790 1,774

1,835 1,796 1,838

1,971

2,100 2,060

1,881 1,880 1,877

1,823

1,695 1,704

1,383

1,439 1,425 1,463

1,388

1,317

1,255

1,366

1,216 1,224

985

1,127

1,269

1,368 1,335

1,440 1,429

1,321

1,274

1,432

1,342

1,247

1,063

917

400

900

1,400

1,900

2,400

2008/04 2008/05 2008/06 2008/07 2008/08 2008/09 2008/10 2008/11 2008/12 2009/01 2009/02 2009/03 2009/04 2009/05 2009/06 2009/07 2009/08 2009/09 2009/10 2009/11 2009/12 2010/01 2010/02

Available SDEW Onboard PDEW Flights Per DEW

24.9

24.4

23.6 23.7

23.2

24.0 24.2

22.5 22.2 22.0

22.9 22.5

23.1

25.6

26.8 26.4

23.0 23.1 23.1

22.6

21.0

21.7

18.1
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 28

The Raleigh/Durham – Washington Dulles route has seen similar cuts to the overall DC area 

market. As recently as September of 2009, airlines offered an average of 538 daily departing 

seats from Raleigh/Durham to Washington Dulles (see Figure 18). By February of 2010 that 

number had fallen to 347 daily departing seats between the two markets – a loss of 36% of 

available seats between Raleigh/Durham and Dulles. 

Flight cuts between Raleigh/Durham and Washington Dulles have been just as dramatic. As 

recently as September of 2009 airlines offered an average of five daily non-stop departures in 

each direction between the two markets (see Figure 18). By February of 2010 that number had 

fallen to just 3.9 daily departures – a loss of a quarter of all flights between Raleigh/Durham and 

Washington Dulles. 

FIGURE 18: Available Seats, Flights, and Passengers Per Day Between RDU and IAD

September 2008 – February 2010; Source: US DOT T100 Data

508 500

482

492

475

492 501

513

498

545

527 531 538

525

502

465

436

347 343

383

345

355

267

298

336

376

364

417

400

353

337

377

357

343

289

234

150

200

250

300

350

400

450

500

550

600

650

2008/09 2008/10 2008/11 2008/12 2009/01 2009/02 2009/03 2009/04 2009/05 2009/06 2009/07 2009/08 2009/09 2009/10 2009/11 2009/12 2010/01 2010/02

Available SDEW Onboard PDEW Flights Per DEW

5.1

5.0 5.0 4.9

4.7

4.9

5.0 5.0 4.9 5.0

4.9

5.0 5.0 4.9 4.9

4.5

4.7

3.9
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 29

The result of these flight and seat cuts between Raleigh/Durham and the DC area has been to 

make access to service between these two areas more difficult to obtain. Should non-stop 

service be launched between Kinston and Washington Dulles the new flights wouldn’t even 

begin to make up for the capacity lost in the last two years. This gives the Airport extra 

confidence new service will be successful – as it merely replaces a small portion of capacity lost 

in recent years. 

 
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 30

AVAILABILITY OF ALTERNATE AIRPORTS 

Kinston, NC is serviced by the Kinston Regional Jetport. The Kinston catchment area (see Figure 

19) and is home to 359,677 residents. The three closest airports with competitive service are 

Greenville, New Bern, and Jacksonville/Richlands, all with an approximate drive time range of 40 

minutes to 1 hour. In further outlying areas are the larger airports of Raleigh/Durham, Fayetteville 

and Wilmington. These airports have an approximate drive time range of 1 hour 30 minutes to 1 

hour 45 minutes. 

 FIGURE 19: Location of Kinston Regional Jetport  

in relation to other North Carolina airports
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 31

USE OF LOCAL FEDERAL FUNDS 

Marketing and Advertising 

The Kinston Regional Jetport proposes to spend at least $50,000 in funds on marketing and 

advertising promotions in support of new service introductions. The goal is to increase ridership 

and usage of new service through targeted regional campaigns. 

Revenue Guarantee 

The Kinston Regional Jetport proposes to make available at least $500,000 in funds for a revenue 

guarantee, to cover start-up losses that may occur during the first twelve months of service on 

the new route. Subject to negotiation, payments will be made to the new carrier quarterly when 

income derived from passengers and cargo is less than agreed expenses on the route. Revenue 

generated that exceeds expenses will be carried forward and tapped before any grant funds 

are used. 

Startup Cost Offsets 

The Kinston Regional Jetport proposes to spend only existing airport funds and matching funds to 

pay for start-up costs in support of new service introductions. The Airport, and its partners, will 

provide essential terminal space and equipment to handle the new service.

Additional Costs 

As part of this program, the Kinston Regional Jetport understands that additional expenses will 

be incurred, such as monitoring the results of the program and reporting those results back to 

the US DOT. In addition, the Airport expects to incur some expenses in the recruitment of a new 

carrier into the market. The Airport will use its own funding – not DOT funding – in all of these 

efforts. 

 
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 32

PUBLIC/PRIVATE PARTNERSHIPS 

The Kinston Regional Jetport and the North Carolina Global TransPark consistently work together, 

with several community organizations, on projects to enhance service in the region. Many local 

partners have committed to work with the Airport to promote and market the new service 

proposed in this application. The Airport and the TransPark will manage and coordinate the 

marketing program. 

Major partners are listed below, with profiles of their organizations. Other, smaller partners, 

including many area businesses, will also work with the Airport and the TransPark to promote and 

support local air service, beyond the major organizations listed below. 

Lenoir Committee of 100 

The purpose of the Lenoir Committee of 100, Inc. is to provide funding for such economic 

development projects as may be deemed beneficial to the citizens of Lenoir County, North 

Carolina. The Lenoir Committee of 100, Inc. also provide such discretionary funds as may be 

deemed appropriate to recognized Lenoir County economic development agencies. The 

Committee of 100 will provide matching funding for this Grant proposal. 

North Carolina Global TransPark 

The North Carolina Global TransPark (GTP) is a 2,400-acre industrial/airport site situated 

strategically in Eastern North Carolina. The GTP offers a business-friendly environment, including a 

highly-trained workforce, favorable tax structure, attractive utility rates, and an enviable cost of 

living. The GTP is also close to major colleges and universities, as well as several metropolitan 

centers, including the state capital, Raleigh. The on-site TransPark Center is one of the most 

advanced meeting and training facilities in the state. The GTP offers an ideal location for a 

variety of business types, especially companies involved in the aerospace sector and logistics. 
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 33

GTP Summary: 

 5,775 acres environmentally permitted for development 

 Buildings and sites readily available 

 Airport (ISO) with an 11,500 x 150 foot runway 

 ILS upgrade to CAT II/III underway 

 Foreign-Trade Zone #214 

 33,000 SF TransPark Center on-site 

 Location near several major military installations 

 Rail spur operational by 2012 

 Short distance to I-95 and I-40 

 Proximity to two deep water ports 

 Telecommunications infrastructure, fiber optic network and full utilities on-site 

Lenoir/Kinston Chamber of Commerce 

The purpose of the Kinston-Lenoir County Chamber of Commerce is to continue developing an 

economically prosperous business district while maintaining the character and integrity of 

Kinston-Lenoir County, making it the "heartbeat" of the community. The Kinston-Lenoir County 

Chamber of Commerce is a united effort promoting commerce, culture, trade, good fellowship 

and cooperative relationships amidst diverse individuals and businesses. The majority of the 

membership of the Chamber is made up of individuals and businesses within the city of KinstonLenoir County. The Kinston-Lenoir County Chamber of Commerce in partnership with the 

Kinston-Lenoir County CVB, is also dedicated to raising the awareness of the Kinston-Lenoir 

County area through tourism, and markets the area as a tourist destination. 
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 34

Lenoir County Economic Development 

From July, 2007 through June, 2010 the Economic Development Department made sixteen 

announcements representing 3,718 new jobs with $926,266,800 new capital investment for Lenoir 

County. Eight are local companies expanding; eight are new companies. The County’s 

Economic Development Department’s activities and programs are aimed at improving the 

economy of Lenoir County by attracting or creating investment to expand the tax base; and by 

creating jobs, wages and personal incomes. 

GTP Foundation 

The GTP Foundation is a tax exempt organization specifically chartered to support the business 

development efforts of the Global TransPark through private funding. The Foundation is a major 

partner in the effort to bring scheduled air service to Kinston and eastern North Carolina. The 

foundation will provide funding for the matching part of this Grant proposal. 
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 35

IMPLEMENTATION TIMELINE 

The proposed implementation timeline for the project assumes the Department of Transportation 

will award Small Community Grant Funding in December 2010. Once the award is announced, 

the Kinston Regional Jetport Airport will conduct additional airline meetings to secure a new 

service that is mutually beneficial. Based on airline planning lead times and the need for 

advance bookings, we assume the new carrier would not be able to begin service until at least 

March of 2012. 

The first three milestones on the Airport's timeline are to execute the grant agreement with the 

Department of Transportation, meet with prospective airlines to negotiate for service, and sign 

the minimum revenue guarantee agreement with the appropriate airline partner. Once service 

is announced and schedules are published, the Airport would begin marketing the new route 

and working with the new carrier to monitor advance bookings. The Airport will continue its 

marketing program and continue to work with the new carrier to monitor the route once service 

begins. The Airport would submit grant status reports on a quarterly basis to the Department 

throughout the proposed two year term of the minimum revenue guarantee. 

While the estimated dates are targets, it is possible service could be secured and launched on a 

more aggressive timeline once Grant funding is awarded. It is also possible that new service 

could slip to 2013 should an airline require additional risk mitigation, beyond that included in this 

proposal, from the community. 

Activity/Project Milestone Estimated Date

SCASD Grant Award Announcement December 2010

Executive Grant Agreement with DOT January 2011

Meet With Prospective Airlines February - June 2011

Negotiate Minimum Revenue Guarantee (MRG) With Airline July/August 2011

Announce Service December 2011

Publish Schedule December 2011

Begin Marketing of New Route January 2012

Monitor Advance Bookings January - March 2012

Service Launch March 2012

MRG Available for Service March 2012 - March 2014

Monitor Route Performance March 2012 - March 2014

Submit Grant Status Reports to DOT Quarterly Q1 2011 - Q1 2014

Close Grant April 2014
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 36

AIR SERVICE ADVISORY GROUPS 

The Kinston Regional Jetport is operated by the North Carolina Global TransPark. The TransPark, 

and the Airport, are governed by a publicly appointed Board of Directors. This Board includes 

members from across the region, responsible for hearing and representing the concerns, 

questions, and comments of constituents throughout the region. The co-chairpersons of the 

Board are the Governor of North Carolina and the State’s Secretary of Transportation.

 
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 37

LOCAL AIR SERVICE DEVELOPMENT EFFORTS 

For the last several years, the Kinston Regional Jetport has been working to attract new airline 

service to the Airport. It realizes it must work to recruit scheduled service, so it can better serve its 

catchment area of more than 300,000 people. 

In the summer of 2010, the Kinston Regional Jetport commissioned a True Market/Leakage Study, 

using its own funding, so it could better understand the travel patterns of local catchment area 

residents. The results of this study were completed for inclusion in this Grant application. The 

Study shows a local market for almost 800,000 annual passengers. 

The Airport also hired an air service development consulting firm to aid in the preparation of 

specific airline case studies, and to facilitate direct airline one-on-one meetings. The Airport will 

begin meeting with airlines in October of 2010. 

The airlines considering serving the McClellan-Palomar Airport have been clear in their message: 

the Airport must fully develop its risk mitigation program to land additional service. A Small 

Community Air Service Development Grant is an essential part of this effort. 

 
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 38

IN-KIND SERVICES FROM COMMUNITY 

The following organizations will help promote the new service through their various membership 

groups. There is no estimated value to these services. 

 North Carolina Global TransPark 

 Lenoir Committee of 100 

 Lenoir County/Kinston Chamber of Commerce 

 Lenoir County Economic Development 

 GTP Foundation 

 Lenoir County 

 Wayne County 

 City of Kinston 

 City of Goldsboro 

 Kinston Regional Jetport 

 
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 39

PERFORMANCE MEASURES 

The success of new service will be based on three measurable variables: the increase in 

available seats in the market, the number of enplanements on the route, and the average 

airfares charged in the affected city pairs. The first two measurements will include a monthly 

comparison once the program begins to past numbers. The second measurement will be 

derived from US DOT OD1A reports. 

 
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 40

LEGAL SPONSOR 

The Kinston Regional Jetport is operated by the North Carolina Global TransPark, which is the 

legal sponsor responsible for administering the program. The North Carolina Global TransPark is a 

government entity. 

Kinston Regional Jetport at the North Carolina Global TransPark 

2780 Jetport Road, Suite A 

Kinston, North Carolina 28504-8032 

Don Howard, Airport Director 

252.522.2922 

dhoward@ncgtp.com 
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 41

FINANCIAL CONTROLS 

As the sponsor, the Kinston Regional Jetport and the North Carolina Global TransPark will be the 

responsible parties for all fiscal matters and DOT reporting requirements. As public entities the 

DOT can be assured that proper financial controls are in place to guarantee that the DOT’s 

grant will be used in accordance with any subsequent agreement. The Airport understands that 

the grant is a reimbursable grant, meaning the Airport is responsible for program expenditures 

and will submit invoices to the DOT for reimbursement, based on a percentage of the total grant 

request. 

 
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 42

RETURN ON INVESTMENT 

The Kinston Regional Jetport has developed a cost effective and achievable strategy to 

develop new service at the Airport. The proposal uses proven methods of achieving air service 

improvements, allowing the DOT to be comfortable with choosing this proposal. The increased 

competition and access to increased competition with airfares by adding service on a new 

route is a major goal of the Small Community Air Service Development Program. 

Approximately $50,000 of the $550,000 in cash is committed to being spent. The remaining 

$500,000 in cash will be available for the revenue guarantee portion of the project. Should the 

revenue guarantee be unused, or unneeded for the new airline, funding may be used to widen 

the marketing and advertising program. 

 
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 43

DOT EXIT STRATEGY 

The Airport has developed this proposal as a one-time grant. The advertising and marketing 

program will commence a few months before service starts and last for at least twelve months. 

The revenue guarantee program will also be in place for twelve months, with two additional 

twelve-month periods available for negotiation. It is projected that the service will be financially 

self-sustaining within the second twelve months of service. 

 
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 44

ALTERNATE PLAN 

If, for some unforeseen reason, service is not commenced in a timely manner by United, or one 

of its United Express carriers, the Kinston Regional Jetport proposes to use federal grant money 

awarded under the Small Community Air Service Development Program for other carriers that 

can provide connections to a large origin and destination market along the east coast, or other 

connectivity through a large hub. The Airport will continue its discussions with all other than can 

provide additional seats to strong markets. 

Since the community has never before received a Small Community Air Service Development 

Grant on its own, with its previous award only given as part of a consortium of North Carolina 

cities, it will have no limitations on which new hub the DOT could fund. Among the options are 

US Airways service to New York LaGuardia, Washington National, Philadelphia, or Charlotte; 

Continental Airlines service to Newark or Cleveland, United Airlines service to Chicago O’Hare; 

Delta Air Lines service to New York Kennedy or New York LaGuardia; AirTran Airways service to 

Atlanta, Orlando, or Baltimore/Washington; jetBlue Airways service to New York Kennedy; 

American Eagle service to Chicago O’Hare, Dallas/Ft. Worth, Miami, New York Kennedy, or New 

York LaGuardia; or service on an independent airline operating a codeshare hub route. 

 
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 45

AIRPORT INFORMATION 

The Kinston Regional Jetport, located in the heart of Eastern North Carolina, is a state-of-the-art 

airport that boasts one of the longest runways along the Eastern Seaboard – measuring an 

impressive 11,500 feet. 

Opened in 1947 as a public airport, the airport is 

comprised of a 1,100 acre field with a 26,000 square foot 

terminal that was opened on July 10, 1978. The Kinston 

Regional Jetport features free parking as well as free 

wireless Internet access in its terminal. The Jetport's 

terminal also houses several businesses, as well as rental 

car agencies, which are located in the terminal. 

In January 1999, ownership of the Kinston Regional Jetport 

was transferred to the N.C. Global TransPark Authority, a 

combined airport-industrial complex designed to attract 

industry and bring increased economic opportunities to 

the citizens of Eastern North Carolina and beyond. 

Piedmont Airlines and then US Airways served the Kinston 

Regional Jetport with various aircraft throughout the 

decades until January 2000, when US Airways discontinued 

its service. 

At present, Kinston Regional Jetport is a general aviation Airport offering, among others, 

Ramp/Hangar rentals, deicing services, equipment rental and air charter services. The airport is 

used by charters for college teams traveling to and from East Carolina University in nearby 

Greenville for athletic events due to Greenville's short runways. The local community is working 

hard to re-establish jet service to the region. 

Aerial Photo: Kinston  

Regional Jetport
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 46

COMMUNITY PROFILE 

Kinston has a long history, dating back to one of three original sites of North Carolina’s tobacco 

warehouses. Since then, however, Kinston has become an area known for high quality of life. 

As of 2010, Kinston's population is 21,955 people with a median age of 44 years. The median 

household income is $31,372. Residents of Kinston enjoy a relatively low cost of living compared 

with the nation at large. The median home cost in Kinston is only $75,240; less than half of the 

national average. 

The area offers its residents miles of white sand beaches with some of the best fishing, boating, 

bird watching, and swimming anywhere on the Atlantic seaboard within a ninety-minute drive of 

Kinston/Lenoir County. Within the 13-county NC Eastern region, there are enough championship 

golf courses to challenge every level of proficiency. Scenic biking and hiking trails and water 

sports abound. 

Economic development is on the move for Kinston, NC. With the support of local city and 

county leadership, growth is expanding in many ways, including the addition of facilities for two 

major corporations. 

What’s New in Kinston

Spirit AeroSystems 

A massive new state-of-the-art composite aircraft 

component factory in a former cornfield in Lenoir 

County, North Carolina could represent the future of 

the US aerospace industry. 

The 500,000 square-foot factory, opened on 1 July at 

the Global TransPark on the property of Kinston 

Regional Jetport, in the eastern North Carolina town of 

Kinston. It completes a $500 million-plus investment by Spirit AeroSystems, Airbus and the state 

government. Over the next few months the factory will start producing composite centre 

fuselages and front wing spars for the Airbus A350 XWB, for shipping to Europe from the first 

quarter of next year. 

Spirit AeroSystems A350 Manufacturing

On Field at Kinston’s Jetport
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 47

For now the factory only has 80 employees quietly working on demonstration articles in a small 

section of the building. But the vice-president and general manager of Spirit's new North 

Carolina business unit, Daniel Wheeler, expects to have 200 employees by year-end and 1,065 

when the A350 reaches full-rate production. 

Wheeler says as part of its incentive package with North Carolina, Spirit is committed to hiring at 

least 1,037 employees by 2015 or 2016. He says the additional 300 or so employees would likely 

be added to cover new work packages Spirit hopes to secure. 

The Kinston project represents the first time Spirit, spun off from Boeing in 2005 and a major 

supplier to the airframer with large facilities in Kansas and Oklahoma, is working with Airbus in the 

USA. 

Wheeler says the Kinston facility could also be a supplier in a new US military aircraft program: 

"We'll grow in North Carolina 

regardless." 

There is plenty of space in the existing 

factory to accommodate new 

programs as well as higher A350 

output should Airbus elect to increase 

production beyond its current 10-13 

aircraft a month plan. 

There is plenty of space at Spirit's 304-acre site at the Global TransPark to build additional 

factories if required. Spirit is the first tenant in a massive business park that the local government 

hopes will eventually include several major aerospace firms. 

"I believe Spirit will become a magnet for others," says North Carolina governor Bev Perdue. 

She adds that a new short- and long-term strategic plan for the Global TransPark, which North 

Carolina conceptualized 20 years ago, will be finished at the start of August and focus on 

developing a major aerospace cluster. 

The Kinston area has a large labor force with aerospace, automotive or other manufacturing 

experience, who are eager to upgrade their skills and be trained for composites. The area also 

Spirit Aerosystems New Facility

At the Kinston Regional Jetport
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 48

has some of the lowest cost of living and average wages in the USA, giving it a competitive 

advantage as US aerospace components manufacturers face increasing competition from 

lower-cost Asian suppliers. 

With the new program, Spirit will become Airbus's largest US structural supplier. Airbus chief 

executive Tom Enders predicts, "The A350 will truly be Spirit's and Kinston's aircraft... We invest a 

lot in the USA and we are spending more money here than any other foreign aerospace 

company." 

Sanderson Farms 

Poultry giant, Sanderson Farms, will open a large, 

$121.4 million complex in Kinston. The state-of-the-art 

facilities will include a feed mill, hatchery and 

processing plant in Kinston off U.S. 70 West, with the 

capacity to process 1.25 million birds per week for the 

retail chill pack market. The feed mill and hatchery 

are scheduled to open in November 2010 and the processing plant by January 2011. 

At full capacity, the complex will employ approximately 1,500 people, will require 130 contract 

growers, and will be equipped to process and sell 6.7 million pounds per week of dressed 

poultry meat at full production. Pope said Sanderson 

Farms will likely begin hiring employees for the new 

processing plant during the summer and fall of 2010. 

There will be about 160 salaried positions that will also 

pay between $40,000 and $100,000 annually, with a 

total annual payroll of $36 million. 

According to Sanderson Farms, Lenoir County had 

many attributes that made it an ideal site for its newest 

poultry processing facilities, including the terrain, 

schools, medical facilities, churches, recreation and 

community leadership. 

Sanderson has facilities throughout Texas, Louisiana, 

Mississippi and Georgia employing 10,000, plus 770 

contract growers. In recent years, company officials searched throughout the East Coast for an 

New Facility at

Sanderson Farms
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 49

ideal community to expand to. Sanderson Farms said Kinston stuck out because of its similarity 

to other communities Sanderson is established in, such as Laurel, Miss., and Moultrie, Ga. 

The construction of the three facilities is on schedule, and about 85 percent of the growers 

needed have been hired — Sanderson is looking for 15 more growers in Lenoir and its 

surrounding counties. 

Economic Profile 

At a time when many communities are feeling the effects of a downturn in the economy, the 

big news in the Kinston area is a projected job growth of 22.8%, a statistic that is almost unheard 

of. While the unemployment rate is slightly above the US average at 13% (national average: 

10.2%), this massive new job growth expects to turn that around. 

Kinston/Lenoir County is a community conducive to new business development, expansion and 

relocation. There are proactive governments, both state and local, seeking ways to encourage 

new companies to select North Carolina and Lenoir County as “the location” for their new 

facility. 

In a report submitted to North Carolina's Main Street program, the Pride of Kinston—one of 59 

Main Street programs in the State—detailed nearly $5.7 million spent or committed in Kinston's 

downtown during the 2009-2010 fiscal year by private and public investors. According to Pride 

director Adrian King, "Our survey is just one more positive sign that Kinston is truly 'on the way' to a 

greater day." It also includes funds being made available by the State of North Carolina to 

begin construction of a new Civil War Museum on Queen Street, a $200,000 grant from the 

Golden Leaf Foundation to build new sidewalks along Heritage Street, and some $125,000 spent 

by Pride to renovate and expand a parking lot to serve the Community Health Center and 

nearby businesses. 

In 2009, Kinston was one of only ten cities to receive the prestigious All-America City Award. The 

All-America City Award is given by the National Civic League annually to ten cities in the United 

States. The oldest community recognition program in the nation, the award recognizes 

communities whose citizens work together to identify and tackle community-wide challenges 

and achieve uncommon results. 
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 50

Employment in the Kinston Area 

The Area’s Top Employers (60 mile radius) 

Employer Name Number of Employees Within Kinston

Seymour Johnson AFB 6,171

Butterball, LLC 2,700   

Caswell Center 1,634 In Kinston

Wayne Memorial Hostpial 1,448   

House of Raeford Farms 1,400

Lenoir Memorial Hospital 1,200 In Kinston

Sanderson Farms 1,600 (Projected.  Currently 75) In Kinston

Murphy Family Ventures 1,100   

O’Berry Hospital 1,053

Spirit AeroSystems 1,037 (Projected.  Currently 70‐100) In Kinston

Case Farms, Inc. 1,012

Dept. of Defense 1,000+   

Onslow Memorial Hospital   1,000+

Goldboro Milling 1,000   

Cherry Hospital 973

Electrolux Home Products 739 In Kinston

Nash Johnson & Sons 710

Bay Valley Foods 600   

Mount Olive Pickle Co. 587

Associated Materials, Inc. 572 In Kinston

James Sprunt CCC 550

Lenoir Community College 520 In Kinston

Georgia Pacific Companies 520

Hillco, LTD 512 In Kinston

Duplin General Hospital 440

AT&T Technical Support Center 422   

Smithfield Foods 360 In Kinston

Lenox China 355 In Kinston

Military Presence 
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 51

This region of North Carolina is home to two major military instillations. Many military personnel 

use commercial flights for their personal travel during leaves and other uses. With nearly 200,000 

people to accommodate, many of whom are on tight schedules, air service that provides a 

more convenient locations and/or greater options in schedule would be a major benefit to 

these bases.

Camp Lejeune 

Located 51 miles southeast of Kinston and with a drive time of slightly over an 

hour, Camp Lejeune provides a large potential demographic for air service 

through Kinston. There are five major Marine Corps commands and one 

Navy command aboard Camp Lejeune. The base occupies about 153,439 

acres, with buildings and facilities to support a population of approximately 

133,569 Marines, Sailors, retirees, and their families. 

Fort Bragg 

Fort Bragg is a US Army Base located near Fayetteville, NC, which is approximately 

2 hours west of Kinston, NC. As one of the largest military complexes in the world, 

Fort Bragg is home of the Army's only Airborne Corps, the 82d Airborne Division, the 

elite Special Forces and the Army's largest Support Command, which includes 

more than 20 smaller units. Much like a large city, Fort Bragg has its own schools, 

shopping malls, medical facilities, housing and churches. This gives the base a total population 

of 29,183 people, 4,315 households, and 4,215 families residing on the base (2000 US Census). 

Higher Education Presence 

East Carolina University, located in Greenville, North 

Carolina, offers both undergraduate and graduate fields 

of study, including a School of Medicine. The campus comprises a total of nearly 1,400 acres 

housing 227 buildings. It also has Pitt County Memorial Hospital, a 761-bed facility serves as a 

teaching hospital for the Brody School of Medicine. It boasts and enrollment of 27, 654 total 

students (including graduate and medical students) and currently has 5,343 faculty and staff. 

East Carolina University’s annual contribution to the local economy is estimated to be close to $2 

billion. 
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 52

With its impressive size and with faculty, staff, student body and athletic teams engaged in a 

wide range of national and global projects, nearby air service would be of great benefit to this 

campus. Although the university is located closer to the Greenville airport, all university charters 

depart from Kinston Regional Jetport, as the runways in Greenville are too short to 

accommodate larger aircraft. The University is located 33 miles from Kinston Regional Jetport 

and provides a convenient airport with a drive time under one hour. 

Lenoir Community College is part of the North Carolina Department of 

Community Colleges and is accredited by the Commission on 

Colleges of the Southern Association of Colleges and Schools and has 

an enrollment of 3,091 students. The College offers more than 40 

programs of study, including Associate Degree programs, diplomas, certificates, adult basic 

education classes, and more. The college is located only 7 miles from Kinston Regional Jetport. 

Lenoir Community College recently announced the development of its new aerospace 

manufacturing and repair programs. The new programs are designed to serve the growing 

aerospace industry in Eastern North Carolina, and will include curriculum degree & diploma 

programs in aerospace manufacturing and repair as well as customized industry programs for 

workforce readiness training opportunities. Lenoir Community College is taking a leading role in 

developing aerospace manufacturing training to support pathways for employment related to 

careers such as aerospace assembly technicians, composite mechanics, logistics and material 

handling, manufacturing process support, quality assurance, automated machine operators 

and programmers, and other support positions. 
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 53

Select Company Profiles

Electrolux 

A.B. Electrolux, an international appliance manufacturing firm based in 

Sweden, employs 739 full-time, in addition to temporary workers at its 

Kinston dishwasher plant. With U.S. headquarters in Augusta, Georgia, 

Electrolux recently invested $18 million into the Kinston facility to expand its stainless steel 

dishwasher line. Electrolux said it chose the Kinston factory for the investment because it is a 

world-class facility. This international company is a prime candidate for expanded air service. 

Associated Materials, Inc.

Associated Materials is a leading manufacturer of 

professionally installed exterior building products. 

It is able to meet the wide variety of homeowner, architect, builder and contractor needs. 

Associated Materials has manufacturing plants in five other state and three additional plants in 

Canada, as well as supply center locations situated in nearly every state, as well as Canada. 

Given the wide-spread geography of their business, there is no question that a company such as 

this could gain tremendously from additional travel options closer to home. 

Smithfield 

Smithfield Packing has a new state-of the art deli ham and sliced 

lunchmeat plant, which opened in 2006. The facility is 180, 000 square 

feet and is the most automated ham processing plant in the world. With annual sales of $10 

billion, Smithfield Foods is the leading processor and marketer of fresh pork and processed meats 

in the United States, as well as the largest producer of hogs. With corporate headquarters in 

Smithfield, VA and nine other processing plants throughout the southeast, as well as markets in 

more than 30 countries, Smithfield would benefit greatly from expanded regional jet service. 

Lenox China

Built in 1989, the Lenox Kinston (N.C.) Plant is the only fine bone 

china factory in the United States. The 218,000-square-foot plant is 

situated on 40 acres. The Kinston plant produces some of the most 

sophisticated fine china patterns in the world. It was also this plant 

that manufactured the Bush White House China. The Kinston plant 

uses an average of 4 million pounds of clay each year. 
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 54

Tourism in Kinston and Lenoir County 

Where three centuries of history, the arts, recreation, unique shops, southern hospitality come 

together to offer family-friendly excursions for visitors and residents. 

Kinston has a passionate economic development organization – The Pride of Kinston, Inc. The 

vision of Pride of Kinston, Inc. is a downtown on the banks of the Neuse River that serves as the 

gateway to Eastern North Carolina. The Kinston community’s appreciation of history guides their 

future and promotes the magic to grow business, recreation, and the arts. 

The aim of Kinston’s Waterfront – Now! Task Force, composed of 36 business, civic and 

governmental leaders, is to convert a portion of the Neuse River into an active, smart incubator 

for the area’s economy. Another Goal of Pride of Kinston is to: "Promote downtown as an 

attractive place for residents, visitors and investors through activities including retail 

merchandising, community education, special events, tourism, public relations and marketing." 

Battle of Wyse Fork 1865 Battlefields 

The bloody First Battle of Kinston began on Dec. 10, 1862 and 

left 685 people dead after 3,000 Confederates faced 20,000 

Union troops. A plaza on the battlefield displays the U.S. flag 

flanked on either side by the Confederate and Union flags 

flown at the time of the battle. A walking path tops a berm, 

and along the side are markers for each state whose soldiers 

fought in the battle, along with the state’s regiments. 

The Second Battle of Kinston, often called the Battle of Wyse Fork, was fought March 7-10, 1865, 

near Southwest Creek. Confederate forces numbered 8,500 against 12,000 Union troops as the 

federal army advanced from New Bern toward Goldsboro. Their goal was to secure the New 

Bern-Goldsboro Railroad so it could supply Gen. William T. Sherman’s army. The battle left 1,500 

Confederates and 1,001 Union casualties. At present, 56 acres of earthworks are preserved. 
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 55

Kinston Indians Baseball 

The Kinston Indians are a farm team of the Cleveland Indians, and many 

players go on to play for major league teams. Historic Grainger Stadium, 

the K-Tribe’s home, is a premium site and has won awards for its beautiful 

and immaculately-maintained field. The stadium was renovated recently 

to provide new scoreboard technology, comfortable seating and plenty 

of restroom space. Even the 7th inning break is special, with the team often staging contests and 

entertainment for kids and older fans. 

Neuseway Planetarium and Health & Science Museum 

Kids will love the fun and never realize they’re learning as they crawl through a 

giant model of intestines, a mouth, a stomach, an underground tunnel of 

blood vessels or watch a puppet show in the museum. They’ll love the bubble 

machine and other hands-on health and science exhibits designed to teach 

and amuse children of all ages. The 52-seat planetarium has a giant dome to 

display the sun, moon, stars and planets. 

African-American Heritage Music Trail 

This trail authentically identifies and documents the musicians who 

have played an important part in Kinston’s history. Most 

importantly, the project is helping to share Kinston’s rich musical 

tradition with visitors. A grant enabled the trail to expand into 

seven neighboring counties, going beyond interviews and 

documentation to develop a full-fledged musical experience. Heritage Music Trail features still 

under development include interactive information kiosks, a guidebook, and public art. 

Downtown Summer Concert Series 

Throughout the summer and fall visitors and residents gather in downtown Kinston for an oldfashioned community gathering to see some of the region and nation’s finest musicians. 2010 

will bring crowd favorites such as Maurice Williams & the Zodiacs (“Little Darlin’” and “Stay”), The 

Four Knights Band and Jupiter Jones. 
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 56

Harmony Hall 

Jesse Cobb built this colonial showplace in 1772, four years 

before the American colonies’ war for independence. 

Richard Caswell, Revolutionary War hero and North 

Carolina’s first elected governor, once owned the house 

and for a brief time it became the state’s capital, housing 

important records and accounts. Listed on the National 

Register of Historic Places, Harmony Hall is lovingly restored 

and furnished with meticulous attention to detail. Many original features, such as brickwork and 

moldings, are examples of work by early Kinston craftsmen. 

Tull’s Mill Pond 

Whether you prefer to spend a couple of hours or the entire 

day, there is plenty to enjoy at Tull’s Mill Pond, a 200-acre 

millpond that is open to the public for fishing, kayaking and 

canoeing. Spend the afternoon bird watching, picnicking on 

the grass, or collecting beautiful photographs. The pond is 

stocked with bluegills, channel catfish, largemouth bass, 

shellcrackers, fliers, robin and perch. A concrete boat ramp provides access for those fishing 

with their own boat. Bank fishing is also available along with an on-site bait shop open 7 days a 

week. 
Kinston Regional Jetport – Small Community Air Service Development Grant – August 2010 57

CONCLUSIONS 

Much has changed in Kinston since the last time the community had scheduled air service – in 

2007. The Kinston Regional Jetport and the North Carolina Global TransPark have had 

tremendous success in recruiting Spirit Aerosystems to the field – building parts for Airbus’ new 

A350. A massive new state-of-the-art composite aircraft component factory on site represents 

the future of the US aerospace industry. That’s just a part of recent economic development 

efforts which have landed eight new companies and more than 8,000 new jobs. 

Despite this new development, the overall trend in eastern North Carolina has been for airlines to 

cut seats and flights at all airports. This has reduced the availability of air travel for, not only, 

those airports that still have service, but for Kinston travelers accessing air service through those 

airports. At the same time Kinston saw all service cancelled, Raleigh/Durham International 

Airport has seen its most significant seat cuts in a decade. Since the summer of 2007, 

Raleigh/Durham has lost an average of 73 daily departures – a loss of 32% of that Airport’s daily 

flights along with an average of 5,583 daily outbound available seats, or 29% of all the market’s 

available airline capacity. These seat cuts have 

made travel from Kinston more difficult. 

In order to improve access to air service in the 

region, the Kinston Regional Jetport proposes to 

use a combination of locally raised funding in 

conjunction with federal Small Community Air 

Service Development Grant funding in support of the addition of air service to the community. 

The Airport has been without any link to the national air transportation system since the 

beginning of 2007. This proposal would restore air service, by adding a route that is not served 

from other regional airports in the region – the route between Kinston and Washington Dulles. 

In anticipation of this Grant proposal, the Kinston Regional Jetport, and the North Carolina 

Global TransPark commissioned a True Market/Leakage Study to better understand how 

catchment area residents are accessing air service. The data shows the Kinston Regional 

Jetport’s catchment area generated 758,969 total passengers who flew out of all other airports. 

This number is more than sufficient to support local air service. But an airline will require risk 

mitigation due to the lack of recent local air service data to better prove the case. This Grant 

proposal is an essential part of that risk mitigation package. 

“The overall trend in eastern North 

Carolina has been for airlines to 

cut seats and flights... [reducing] 

the availability of air travel.”