Month 1 2 3 4 5 6 7 8 9 10 11 12TotalBill Board Advertising7,000 7,000 14,000Bus Advertising1,000 1,000 2,000Intermodal Connectivity Advertising0 0Internet Advertising2,500 2,500 2,500 7,500Print Media5,000 7,500 7,500 7,500 7,500 35,000Productions10,00010,000Promotional Materials10,00010,000Radio Advertising5,000 5,000 5,000 5,000 20,000Television Advertising13,000 13,000 13,000 13,000 13,000 65,000Theater Promotions2,500 2,500 2,500 7,500Total171,000Month 1 2 3 4 5 6 7 8 9 10 11 12TotalFree Airport Parking (estimated)200 200 200 200 200 200 250 250 250 250 250 250 2,700Marketing Plan25,00025,000Silver Airways3,2003,200Social Media Construction and Updates2,500 150 150 150 150 150 150 150 150 150 150 150 4,150Survey250 250 250 250 250 250 250 250 250 250 250 250 3,000Website Construction and Udates7,500 200 200 200 200 200 8,500Total In-Kind Services46,550Project Total Cost217,550Exhibit 1.AExpenses Exculding In-Kind ContributionsIn-Kind ContributionsMonth 13 14 15 16 17 18 19 20 21 22 23 24TotalBill Board Advertising8,0008,000 8,000 8,000 8,000 8,000 8,000 56,000Bus Advertising1,000 1,000 1,000 1,000 1,000 1,000 6,000Intermodal Connectivity Advertising0Internet Advertising2,000 2,000 2,000 2,000 2,000 2,000 12,000Print Media5,400 5,400 5,400 16,200Productions10,00010,000Promotional Materials5,0005,000Radio Advertising3,000 3,000 3,000 3,000 3,000 3,000 3,000 21,000Television Advertising13,000 13,000 13,000 13,000 13,000 13,000 13,000 13,000 13,000 132,000Theater Promotions2,500 2,500 2,500 2,500 2,500 2,500 15,000Total273,200Month 13 14 15 16 17 18 19 20 21 22 23 24TotalFree Airport Parking (estimated)300 300 300 300 300 300 350 350 350 350 350 350 3,900Intermodal Connectivity0 0 0 0 0 0 0 0 0 0 0 0 0Marketing Review2,5002,500Social Media Construction and Updates150 150 150 150 150 150 150 150 150 150 150 150 1,800Survey250 250 250 250 250 250 250 250 250 250 250 2,750Website Construction and Updates200 200 200 200 200 200 200 200 200 200 200 200 2,400Total In-Kind Services13,350Project Total Cost286,550Exhibit 1.BExpenses Exculding In-Kind ContributionsIn-Kind ContributionsMonth 25 26 27 28 29 30 31 32 33 34 35 36TotalBill Board Advertising2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 25,000Bus Advertising1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 8,000Intermodal Connectivity Advertising0 0 0 0 0 0 00Internet Advertising300 300 300 300 300 300 300 300 300 300 300 300 3,600Print Media5,500 5,500 5,500 16,500Productions5,0005,000Promotional Materials5,0005,000Radio Advertising2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 30,000Television Advertising3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000Theater Promotions2,500 2,500 2,500 2,500 2,500 2,500 15,000Total144,100Month 25 26 27 28 29 30 31 32 33 34 35 36TotalFree Airport Parking (estimated)400 400 400 400 400 400 450 450 450 450 450 450 5,100Intermodal Connectivity0 0 0 0 0 0 0 0 0 0 0 0 0Marketing Review2,5002,500Social Media Construction and Updates150 150 150 150 150 150 150 150 150 150 150 150 1,800Survey250 250 250 250 250 250 250 250 250 250 250 2,750Website Construction and Updates200 200 200 200 200 200 200 200 200 200 200 200 2,400Total In-Kind Services14,550Project Total Cost158,650Exhibit 1.CExpenses Exculding In-Kind ContributionsIn-Kind Contributions

# PROPOSAL FOR THE SMA LL COMMUNITY

AIR SERVICE DEVELOPM ENT PROGRAM

DOCKET: DOT-OST-2013- 0120

July 26, 2013

**Sponsor: City Of Macon, Georgia**

**DUNS: 069174449**

**Tax ID: 58-6000612 Congressional District Code: GA-02** 

Doug Faour – Airport Manager 1000 Terminal Drive, Suite 100 Macon, GA 31216 (478) 788-3760 doug.faour@tbiam.aero2 

### July 26, 2013



# Table of Contents

Air Service

– Historical and Existing

................................ ............................ 3 Days of Delta _____________________________________ _________________________________________ 3 Consequences ______________________________________ ______________________________________ 3 Silver Airways – The New Operator _________________ ___________________________________ 4 Communities Air Service Needs _____________________ ___________________________________ 5 Establishing a Goal _________________________________ ______________________________________ 5 Strategic Plan ____________________________________ _________________________________________ 5 Addressing the Issue ______________________________ _______________________________________ 5 Monitoring Progress _______________________________ ______________________________________ 6 Marketing Plan ____________________________________ _______________________________________ 6 Realistic Timeline ________________________________ ________________________________________ 8 

## Community Partners ................................

................................................... ...... 8 Joining the Team __________________________________ _______________________________________ 8 Central Georgia Technical College _________________ _____________________________________ 8 Georgia College and State University ______________ _____________________________________ 8 Macon-Bibb Convention and Visitors Bureau (CVB) _____ _____________________________ 8 Silver Airways ____________________________________ ________________________________________ 8 TBI Airport Management ____________________________ ____________________________________ 9 

## Connecting the Community ..........................

................................................... 9
Innovations _______________________________________ ________________________________________ 9 

## Servicing the Heart of Georgia ....................

................................................... 9 Community Characteristics _________________________ ____________________________________ 9 Military Support __________________________________

___________________________________________________ ___ 9 Health Care Facilities ___________________________

___________________________________________________ __ 10 

### Thirty Minutes or Less ____________________________ _____________________________________ 10 The Future of our Community _______________________ _________________________________ 10 The Difference ____________________________________ ______________________________________ 11



## Appendix A – Schedule of Expenses ................. ........................................... 12 Appendix B – Letters of Support ................... ............................................... 133 

### July 26, 2013



## Air Service – Historical and Existing

Days of Delta and ASA
Historically, the airport was served by Delta Airlines then Atlantic Southeast Airlines (ASA). Both airlines provided service between the Middle Georgia Regional Airport and Atlanta Hartsfield-Jackson International Airport. During the later years of ASA’s tenure, they used the Middle Georgia Regional Airport as a
maintenance hub for its aircraft.
Aircraft in need of maintenance were sometimes selected to fly passengers from Atlanta to Macon, so issues with that
aircraft could be addressed upon arrival. Additionally, aircraft returning to service would board passengers in
Macon bound for Atlanta. As one may expect, aircraft entering or returning from

maintenance are more likely to have mechanical issues. Consequently,
service between Macon and Atlanta was hampered with equipment issues and customers frequently complained. When flights were cancelled due to maintenance issues, passengers were shuttled to Atlanta on buses. This contributed significantly to the diminishment of the public’s confidence in MCN’s ability to provide adequate access to the National Air Transportation System.

In 2007, the airport received a “notice to terminate service” from ASA. At that point, the airport became eligible for an operating subsidy as part of the Essential Air Service (EAS) program. In 2008, the USDOT selected Pacific Wings, doing business as Georgia Skies, to provide service between Macon and Atlanta.

Georgia Skies provided service using an EAS operating subsidy; this carrier provided service using a C208 Grand Caravan. In 2011, Georgia Skies opted to provide subsidy-free essential air service for MCN. Shortly thereafter, ticket fares increased and enplanements continued to plummet. Georgia Skies ceased operations at Middle Georgia Regional Airport on March 31, 2013 and were replaced by Silver Airways as the EAS provider.



### Consequences
Passenger enplanements were decimated over the past 9 years as a result of an ailing economy, poor service and high fares. The above chart demonstrates that at one point passenger enplanements were at a respectable level for a regional airport. However, it also
demonstrates a massive decline that started in 2005 and continued through 2012.

As passenger enplanement numbers fell, so did a large portion of the airport’s revenue.4 

### July 26, 2013

Hundreds of thousands of dollars were lost in parking revenues. Concession revenues became nonexistent and other revenue opportunities vanished. Additionally, the airport staff was considerably reduced in an effort to make up for lost revenues. Clearly, the airport was not the only entity to suffer from the loss of passengers. Airport rental car agencies, vendors, and other outside service providers lost revenues as passenger counts decreased.

The most devastating impact to the airport is
the loss of Federal AIP Funding.
When enplanements dropped below 10,000 the Middle Georgia Regional Airport was no longer eligible for the $1,000,000 funding they were accustomed to receiving. The FAA cut $850,000 of annual AIP funding, leaving the airport with $150,000 per year for infrastructure and facility up keep. This
will create an almost
insurmountable burden of maintaining the airport in a manner acceptable by the current airport tenants. Therefore, to prevent
further erosion of the airport it is essential to
rebuild commercial air service at the airport. The airport serves as one of the largest economic engines in the region, but it falls short of self-sufficiency. Unlike recent years past, the airport does not generate enough revenue to cover its expenses and requires funding from the city’s general fund. The airport’s current economic condition is not healthy for long term operational stability and a number of transportation needs must be addressed in
order resolve its issues.



### Silver Airways – The New Operator
The announcement that Silver Airways would offer non-stop service from Middle Georgia Regional Airport to Atlanta and Orlando was welcomed news to the community. Local leaders were also extremely pleased with the
addition of a new destination and felt the new airline may bring new opportunities to the area. On April 1, 2013 Silver Airways departed Middle Georgia Regional Airport headed to Orlando International Airport. This flight was
momentous because it was the first scheduled passenger flight to depart MCN destined to a city outside of the State of Georgia in nearly 30

years.

Positive signs that passengers are willing to return to Middle Georgia Regional Airport were observed immediately upon Silver Airways’ arrival. Just two months after launching service, passenger enplanements reached a level not seen since 2009. May 2013 enplanements nearly doubled May 20125 

### July 26, 2013

numbers. Silver Airways has been operating from MCN for only three months, but initial signs are promising.



### Communities Air Service Needs
The community can join the national air transportation system from Middle Georgia Regional Airport by connecting in Atlanta Hartsfield-Jackson International Airport (ATL) or Orlando International Airport (MCO). As you know these are major markets that are being served, but only once a day. The amount of connection options would increase significantly if the flights to the above-mentioned destinations departed MCN earlier. Currently, the first flight out of MCN is to ATL and that flight does not leave until 11 a.m. Therefore, connection options for passengers originating at MCN are only for flights leaving ATL near 1 p.m. The Flight to MCO does not depart MCN until 6:10 p.m. leaving very few options for

connections.

Historically, MCN’s average airfares have been above average. Silver Airways offered introductory rates when they first launched service from Macon, but those rates have since gone up. We expect the airfares to continue to rise if the enplanements do not increase.

It has been nearly three years since serious attempts to market the airport. Attempts to promote air service development were made a little over two years ago with some positive results. However, the condition of the economy coupled with the community’s perception of the airport was difficult to overcome at that

time.



### Establishing a Goal
In order to create a strategic plan to address the deficiencies with the community’s air service, goals must be established first. Consequently, our goal is to inform the community of new service options available to enter the national air transportation system in an effort to rebuild the airport’s passenger base to an acceptable level. By accomplishing the aforementioned goal the community air service deficiencies will improve by the following ways:

• Increasing enplanements and use of the airport

• Improving schedules and increasing flights

• Increasing connecting flight options at
hub cities

• Obtaining and maintaining reasonable
ticket fares



### Strategic Plan
The Strategic Plan to launch a Commercial Air Service Awareness Marketing Campaign (Marketing Campaign) funded through the SCASDP Grant is how we will accomplish the above-mentioned goals. The Marketing Campaign will communicate the following

messages:

• New Airline Operating at Middle Georgia Regional Airport (Silver Airways)

• New Non-stop Service to Orlando International Airport

• The benefits from traveling from Middle Georgia Regional Airport



### Addressing the Issue
Will informing the community about Silver Airways and the destinations they serve increase enplanements? For many reasons, the6 

### July 26, 2013

answer to the question is, yes. One big reason is the commute to Atlanta. The traveling public
located in MCN’s catchment area is hassled with not only the long drive, but the heavy traffic encounter as well. It is important to note that driving from MCN to ATL is at minimum a one hour and thirty minute drive. Though, drive times are almost always much longer due to the heavy traffic encounter near Atlanta. In addition, many of the citizens in our catchment
area reside south of Macon or in rural areas. Therefore, driving to Atlanta can exceed two hours easily.

Another reason enplanements will increase is due to the non-stop service to MCO. For many years the community expressed a desire for options to enter the national air transportation system at a point other than Atlanta. The community’s wish has been granted, but unfortunately, a large segment is not aware of the non-stop service to the new destination. MCO is a major destination and offers many connections. As you know, Orlando is a popular final destination and is attractive for many
travelers. In order for this route to be successful, the community has to be aware it exists. Therefore, marketing it is essential.

As previously mentioned, one of the reasons passenger enplanements decreased was due to airline passenger service issues. Primarily, air service to Atlanta was not always reliable. Passengers that planned to fly to Atlanta would sometimes arrive on a bus instead. Again, this diminished the traveling public’s confidence in the airport’s ability to provide access to the national air transportation system. Nevertheless, the airport’s reputation is slowly improving as recent testimonies of pleased passengers are communicated. Silver Airways was publicly recognized for its exceptional service and thus far they have served the airport in the same manner. Therefore, the community is willing to give Silver an opportunity,
based on
indications
from recent enplanement
data.

Historical enplanement data demonstrates that the Middle Georgia Region is capable of supporting commercial air service. Our plan is to utilize that data as a basis to develop a marketing plan that will put the community back into a position of growth by focusing on expanding air service.



### Monitoring Progress
Benchmarking will be used to measure progress in accomplishing the project goals. Data obtained in surveys will be compared with enplanement records to determine overall progress. The community partners will use benchmarking results to decide what adjustments are necessary in order to accomplish the project goals.



### Marketing Plan
A variety of marketing messages will be communicated over a 36 months period in an effort to accomplish the goals identified in this proposal. Initiating an aggressive marketing campaign to increase community awareness is essential to the promotion of air service and enhanced utilization of airport facilities. The aforementioned marketing messages will be disseminated by a variety of communication
mediums to include but not limited to the following:

• Billboard Advertising

• Bus Advertising7 

### July 26, 2013

US DOT City of Macon Community Partners Macon-Bibb CVB TBI

Cash Cash In-Kind Cash In-Kind Cash Cash TOTAL Amount of Contribution $556,800 $20,000 $11,700 $6,000 $ 62,750 $5,000 $500 $662,750 Percent of Total Project 0.840135798 0.030177292 0.017 653716 0.009053187 0.094681252 0.007544323 0.000754432 1 00% Funding Source
Airport • Direct Marketing

• Internet Advertising

• Print Media

• Radio Advertising

• Television Advertising

• Theater Promotions

Fully executing the Commercial Air Service Awareness Campaign will require $662,750 of funding distributed over a 36 month period. However, the requested amount may not be compatible with the SCASDP Grant budget. Therefore, the proposed plan is designed to be flexible, so in the event full funding is not available, an effective alternative can be implemented. The cost of the Commercial Air Service Awareness Campaign (Marketing Campaign) will be shared by the airport, community partners, and the DOT. The table below shows the total cost of the campaign and the amount requested by each party.

In order for the Awareness Campaign to be successful, it must be supported by well thought-out plan. Consequently, the Middle Georgia Regional Airport Commercial Air Service Comprehensive Marketing Plan (CMP)
will be drafted soon after the start of the Awareness Campaign begins. The CMP will be written by students enrolled in the J. Whitney Bunting College of Business at Georgia College

and State University Marketing Program. The
estimated cost of this plan is approximately $25,000 and will be offered to the airport as
an in-kind service.

In addition to writing the CMP, students will conduct periodic marketing reviews and surveys. The students will collect survey data and compare the results to enplanement data submitted by Silver Airways. The primary purpose of the review is to determine the effectiveness of the CMP. Additionally, the review will also help determine if budgeted amounts dispersed to the variety of mediums should be adjusted. In other words, the students will be tasked with determining if advertising dollars are spent in the most advantageous manner and what can be done to improve the success of the campaign. The marketing reviews and the collection of survey data will be completed without cost to the airport and are noted as in-kind services.



### Realistic Timeline The airport will complete its efforts within the specified thirty six month time frame. In8 

### July 26, 2013

addition, please see the attached Exhibit A for a detailed schedule and breakdown of expenses related to this project. The information is subject to change based on the recommendations of the comprehensive marketing plan.



## Community Partners

Joining the Team
This application has broad community support as you can note by not only the letters of support, but by the number of entities contributing to the cause by way of financial support or in-kind services. The community partners actively participating in the Marketing Campaign will provide a portion of the cost of the activity from local sources other than airport revenue sources. To date, the following entities have joined the City of Macon in partnership to market the airport by committing financial support or in-kind services.

• Central Georgia Technical College

• Georgia College and State University

• Macon Chamber of Commerce

• Macon-Bibb Convention and Visitors

Bureau

• Macon Economic Development

Commission

• Silver Airways

• TBI Airport Management



### Central Georgia Technical College
As described earlier, Central Georgia Technical College students will contribute by designing and implementing a new web-site. The students will also be responsible all web-site maintenance and updates. Also, students will launch the social media portion of the campaign and update the forums on a routine basis. Students will gain real world experience and be more prepared for entry into their professional field. In addition, students will have the opportunity bolster their college’s curriculum and participate in an important community
initiative. The services described above will be offered to the airport as an in-kind service and is valued over $24,000.



### Georgia College and State University
As previously mentioned, the Georgia College and State University is committed to working with community stakeholders in a collaborative effort to draft the Middle Georgia Regional Airport Comprehensive Marketing Plan (CMP). The CMP will provide marketing strategies that will be employed beyond the three years the airport is eligible for funding. Additionally, students will conduct marketing reviews and evaluate survey data, so adjustments to the CMP can be made if necessary. The CMP and other services will be completed at no charge tothe airport and are valued at $38,500 of inkinds services.



### Macon-Bibb Convention and Visitors Bureau (CVB)

Macon-Bibb Convention and Visitors Bureau (CVB) is well aware of how important commercial air service is to the community. They immediately set the advertising wheels in motion when new service to Orlando, Florida began. The CVB will continue to assist the airport in marketing the Orlando route by committing $5,000 in adverting during the first twelve months of the campaign.



### Silver Airways
Silver Airways will donate eight roundtrip tickets that will be traded for free advertisement. The tickets are valued at $3,200 and an equal amount of radio advertising will
be obtained in return.9 

### July 26, 2013



### TBI Airport Management

TBI Airport Management (TBI)
will contribute a cash donation of $500 to
be used for advertising expenses.



## Connecting the Community

Innovations
Providing cost-effective passenger bus service
between Downtown Macon and the Middle Georgia Regional Airport is a goal of the Macon Transportation Authority’s and has been for several years. The community’s need for increased bus service was triggered by the resurgence and rapid development of
the communities within the city. Specifically, the Walkable Urban Communities (WUC) that were recently constructed. With additional WUCs nearing completion, the demand is expected to increase steadily.

The Macon Transportation Authority, city leaders, and airport management all agree connecting downtown residents with the community’s passenger service will solve regional transportation

issues. Future
discussions regarding bus
service to the airport are
scheduled for
the near
future. Even though it is probable that a new bus route will be established, additional planning must take place before an official partnership can be announced. As stated throughout the proposal, the marketing plan is designed to be flexible, so
after an intermodal connection is established marketing dollars can be shifted to promoting the service. In addition, it is also likely that th e

Macon Transportation Authority will offer inkind services to the airport in an effort to assist the community obtain reasonable access to the national air transportation system.



## Servicing the Heart of Georgia

Community Characteristics
Despite the challenges, the fact is that the service area for the Middle Georgia Regional Airport does include the counties of Bibb, Houston, Laurens, Baldwin, Peach, Jones, Dodge, Monroe, Macon, Telfair, Bleckley, Wilkinson, Dooly, Twiggs, Crawford, Pulaski, Taylor, Montgomery, Wilcox, Treutlen, and Wheeler. The population of those counties combined provides the Middle Georgia Regional Airport with a market base of approximately 573,000 individuals. That population is supported by a number of various businesses with the most noticeable being a substantial military installation and numerous medical
facilities.

Military Support

Robins Air Force Base
is the home of Warner Robins Air Logistics Center, the 78th Air Base Wing, and more
than 60 other units that make up a vital part of the Air Force war fighting team. It is the largest industrial complex in Georgia, employing a workforce of10 

### July 26, 2013

over 25,584 civilians, contractors, and military members. With a diverse array of employees and missions, Robins Air Force Base provides an opportune market for the Middle Georgia Regional Airport to service.

Healthcare Facilities Furthermore, Middle Georgia is also home to many medical facilities such as Houston Healthcare, The Medical Center of Central Georgia, and Coliseum Health Systems.

Houston Healthcare began as one community hospital and has evolved over the past 50 years into a healthcare system consisting of seven separate entities serving approximately 300,000 people every year. With two fully accredited
acute care medical facilities with a combined capacity of 282 beds,
Houston Healthcare is able to offer an array
of healthcare services using the latest medical technology.

The Medical Center of Central Georgia, a part ofCentral Georgia Health System, is the secondlargest hospital in Georgia and the only designated Level I Trauma Center in the region.
MCCG delivers world class treatments to a service area of 28 counties surrounding Macon and Bibb County.

Coliseum Health System is a three-hospital system that has called Macon home for the last 40 years. With two full-service medical-surgical hospitals and one psychiatric facility, the staff and physicians are trained in the most advanced
health care available.



### Thirty Minutes or Less
Narrowing down the service area, the Middle Georgia Regional Airport resides near the border of the two largest counties in the Middle Georgia Region; Bibb and Houston County. Bibb County has a population of more than 155,000 while Houston County has a population of more than 126,000. These two counties combined allow the airport to service more than 280,000 residents with a drive time of less than thirty minutes. Moreover, the airport can also serve
as additional fifteen counties that lie within a sixty minute driving radius.



### The Future of Our Community
While the Middle Georgia Regional Airport faces a decent share of challenges in rebuilding passenger service, it can be done. It is our belief that with a proper marketing campaign, the airport can successfully re-establish itself with the enplanement numbers it has historically shown to support. With increasing enplanement numbers, we plan to work with the current air carrier to further develop Middle Georgia Regional Airport into a true regional airport with routes that support the
communities’ air service needs. Thisdevelopment is the first step towards a selfsustaining airport environment that will promote the sound future of not only the11 

### July 26, 2013

airport but the Middle Georgia community as a
whole.



### The Difference
The proposed project differs from previous projects for which the community received SACSDP funds. Previous funds were obtained to
attract a second carrier to serve Macon and install propane fueling stations. The goal of the current proposal is to inform the community of newly available service options, primarily the new service to Orlando, Florida.