# 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 TransportationKinston 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 57Kinston 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 FoundationKinston 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: $ 550,000Kinston 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?

NoKinston Regional Jetport – Small Community Air Service Development Grant – August 2010 

## 6 INTRODUCTION

Much has changed in Kinston, North Carolina si nce 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 conj unction 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 re gion. 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 ot her 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 Delt a 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 Unit ed about adding service, and the Airport and
leaders have been invited to Unit ed’s headquarters to make their case for service. But United has indicated, for a market with risk, such as Kinsto n, 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 ca mpaign to publicize new air service

 Work with local business partners to make sure new service is successfulKinston 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 serv ice 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 mark et in the beginning of 2007.

Much has changed in Kinston since then. The Ki nston 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 Aerosyst ems 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 AirportsKinston 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 Jetp ort 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

2005-0 4 200 5 -0

5 200 5 -0

6 2005-0 7 200 5 -0

8 200 5 -09 2005-1 0 200 5 -11 200 5 -1 2 200 6 -01 200 6 -0

2 200 6 -0

3 200 6 -0

4 200 6 -0

5 200 6 -0

6 200 6 -0

7 200 6 -0

8 200 6 -09 200 6 -1 0 200 6 -11 200 6 -1 2 200 7 -01 Available SDEW Onboard PDEW Fli g hts 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 DataKinston 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 Ra leigh/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 th e 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 ar ea generated 758,969 total passe ngers 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 DB1AKinston 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 pr oportions of passengers fr om 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 w ill be more successful than previous service to Atlanta, on Delta, due to the fact that none of the other regional ai rports 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 Unit ed about adding service, and the Airport and
leaders have been invited to Unit ed’s headquarters to make their case for service. But United has indicated, for a market with risk, such as Kinsto n, 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 Greenv ille, 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, 2010Kinston 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 Se rvice 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 begi nning 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. Washingt on-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 Jetpor t 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 to tal taxi time, reflecting the potential for some congestion at Dulles. 

### FIGURE 5: Proposed Route: Kinston

– Washington DullesKinston Regional Jetport – Small Community Air Service Development Grant – August 2010 

## 13 The proposed schedule works within the framewor k 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 se t of flights offered by United in the morning, including early morning transcontinental flights (s ee 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 flight s 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 star t-up costs. The federal share of the project will be $500,000.

The Kinston Regional Jetport projects that the bu lk 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 de monstrated 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 ca n provide connections to a large origin and destination market along the east coast, or othe r connectivity through a large hub. The Airport
will continue its discussions with all other than ca n 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 gi ven 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, Wash ington 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 independ ent 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 Delt a 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 BuilderKinston 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 airp orts in the region, such as Raleigh/Durham and Wilmington.

Currently, United and Star Alliance markets fr om 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). Th is 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 la rge 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 quar ter 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 Figu re 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 fr om 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 Passen g ers PDEWKinston Regional Jetport – Small Community Air Service Development Grant – August 2010 

## 18 The United hub at Washington Dulles is in a uniq ue position to generate additional traffic and revenue to any number of Kinston’s top true or igin and destination ma rkets. 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 passenge r 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 packag e 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 - 20Kinston 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 se rved 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 Kinsto n Regional Jetport went from an average of 3.1 daily air carrier departures to an average of 0.2 da ily 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

132 128 127 137 142

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 0.2Kinston 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 d ifficulty in finding available seats locally at the Kinston Regional Jetport – especially after Delta le ft the market in January of 2007. Allegiant’s service to Orlando-Sanford, while widely support ed, did no link Kinston to the national air transportation network.

In preparation for this application for Grant fu nding, the Kinston Regional Jetport commissioned a True Market/Leakage study, so that it could bett er understand its local ai r 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 regi on’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 20 10 (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, NCKinston 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 wast e 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 develope d 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 Kinsto n, 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% RankKinston Regional Jetport – Small Community Air Service Development Grant – August 2010 

## 22 The Study results show the Kinston market is high ly fractured in terms of airline market share, which means travelers are not choosing flights sole ly 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 comple ted True Market/Leakage Study shows that the Kinston catchment area produces enough passe ngers – 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 RankKinston 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 Na tional 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 Figure15). 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 RankKinston Regional Jetport – Small Community Air Service Development Grant – August 2010 

## 25 2010. About 85% of this reve nue 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-rel ated, 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 trav eler, 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 th e 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 cance lled, 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

19,200 19,130 19,475 19,031 19,395 19,281 18,453
17,391 17,828 17,408 17,673 17,871 18,181 18,065 17,562 16,719 16,930 16,446 16,188 15,329 15,519 15,600 15,781 16,182 17,045 16,855 16,354 15,816 15,864 15,483 14,769 13,960 13,617 15,393 15,009 14,908

12,870 14,026 13,968
12,956

11,196 12,398 13,645 13,735 13,973 14,861 14,321 13,552

11,489 12,916

11,809 12,102

9,728 10,431 11,661 12,612 12,375 13,289 13,599 12,809

11,437 12,787 12,173 11,816

9,909 10,144

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 228.0 223.1 227.9 222.0 223.3 222.7 216.2
205.1 208.1 203.6 203.7 202.5 204.5 204.5 196.6

183.3 184.0 180.0 178.2 171.1 176.0 177.5 178.7 182.0 186.6 185.7 180.1 175.0 175.0 171.9 166.3 158.5 155.0Kinston 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 se en 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 be tween Raleigh/Durham International and the Washington – Baltimore area. As recently as Ju ne of 2009, Raleigh/Durham averaged 26.8 daily departures to airports in the DC area, includ ing 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 2008/0 5 2008/06 2008/0 7 2008/08 2008/09 2008/1 0 2008/11 2008/12 2009/01 2009/02 2009/03 2009/0 4 2009/0 5 2009/06 2009/0 7 2009/08 2009/09 2009/1 0 2009/11 2009/12 2010/01 2010/02 Available SDEW Onboard PDEW Fli g hts 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

18.1Kinston 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 Septem ber 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 seat s between the two markets – a loss of 36% of available seats between Raleigh/Durham and Dulles.

Flight cuts between Raleigh/Durham and Washingt on 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 2009/0 8 2009/09 2009/10 2009/11 2009/12 2010/01 2010/02 Available SDEW Onboard PDEW Fli g hts 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

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

## 29 The result of these flight and seat cuts betwee n 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, a ll 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 air p ortsKinston 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 in troductions. The goal is to increase ridership and usage of new service through targeted regional campaigns.



### Revenue Guarantee

The Kinston Regional Jetport proposes to make av ailable 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 on ly existing airport funds and matching funds to pay for start-up costs in support of new service in troductions. 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 Je tport 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 Ai rport to promote and market the new service proposed in this application. The Airport an d the TransPark will mana ge 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, In c. 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. al so 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 o ffers a business-friendly environment, including a highly-trained workforce, favorable tax structure, at tractive utility rates, and an enviable cost of living. The GTP is also close to major colleges an d 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 whil e 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 in dividuals and businesses. The majority of themembership of the Chamber is made up of individuals and businesses within the city of KinstonLenoir County. The Kinston-Lenoir County Ch amber 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 market s 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 crea ting 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 throug h 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 ma tching 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 De cember 2010. Once the award is announced, the Kinston Regional Jetport Airp ort will conduct additional airl ine 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 prospect ive 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, th e Airport would begin marketing the new route and working with the new carrier to monitor adva nce bookings. The Airport will continue its marketing program and continue to work with th e 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 aw arded. It is also possible that new service could slip to 2013 should an airline require addition al 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 2014Kinston 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 throug hout the region. The co-chairpersons of the
Board are the Governor of North Carolina an d 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 Jetp ort commissioned a True Market/Leakage Study, using its own funding, so it could better unders tand the travel patterns of local catchment area residents. The results of this study were comple ted 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 dire ct airline one-on-one meet ings. The Airport will begin meeting with airlin es 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 JetportKinston 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 prog ram. 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.comKinston 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 re porting requirements. As public entities the DOT can be assured that proper financial contro ls are in place to gu arantee 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 reimburs ement, 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 competitio n with airfares by adding service on a new route is a major goal of the Small Commun ity Air Service Develo pment 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 on e-time grant. The ad vertising 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 ne gotiation. 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 dest ination 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 gi ven 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, Wash ington 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 independ ent 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 ge neral aviation Airport offering, among others, Ramp/Hangar rentals, deicing services, equipment rental and air charter services. The airport is used by charters for college te ams 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 je t service to the region. 

### Aerial Photo: Kinston Regional JetportKinston 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 be come 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 Atla ntic 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 proficie ncy. 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 invest ment by Spirit AeroSystems, Airbus and the state government. Over the next few months the fa ctory will start produc ing 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 JetportKinston 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 pack ages 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 othe rs," says North Carolina governor Bev Perdue. She adds that a new short- and long-term strate gic 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 JetportKinston 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 co mponents 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 trul y be Spirit's and Kinston's aircraft... We invest a lot in the USA and we are spending more mo ney 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 mi llion 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 approx imately 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 thro ughout Texas, Louisiana, Mississippi and Georgia employing 10,000, plus 770 contract growers. In recent years, company offic ials searched throughout the East Coast for an 

### New Facility at Sanderson FarmsKinston Regional Jetport – Small Community Air Service Development Grant – August 2010 

## 49 ideal community to expand to. Sanderson Farms sa id 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 look ing 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 conduciv e 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 Le noir 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 St ate—detailed nearly $5.7 million spent or committed in Kinston's downtown during the 2009-2010 fiscal year by priv ate and public investors. According to Pride director Adrian King, "Our survey is just one more po sitive 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 Employ ers (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 PresenceKinston Regional Jetport – Small Community Air Service Development Grant – August 2010 

## 51 This region of North Carolina is home to two majo r military instillations. Many military personnel use commercial flights for their personal travel du ring 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, wh ich is approximately 2 hours west of Kinston, NC. As one of th e largest military complexes in the world, Fort Bragg is home of the Army's only Airb orne 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 ch urches. 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 Medici ne. 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, staf f, 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 Degr ee programs, diplomas, certificates, adult basic education classes, and more. The college is loca ted 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, qual ity 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 ap pliance 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 th e 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 homeow ner, 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 addition al 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 th roughout the southeast, as well as markets in more than 30 countries, Smithfield would benefi t 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 th e 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 excurs ions for visitors and residents.

Kinston has a passionate economic development or ganization – 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 Prid e 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 batt lefield 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. Th e 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 helpin g 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 inform ation kiosks, a guidebook, and public art.

Downtown Summer Concert Series Throughout the summer and fall visitors and resi dents gather in downtown Kinston for an oldfashioned community gathering to see some of th e 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 gove rnor, 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 bi rd 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 Aerosyst ems 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 de partures – 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 th e 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 ai r 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.”