# Table of Contents
Executive Summary ...............................................................................................................................................................1 Previous Small Community Air Service Development Program Grants ...........................................................................2 Youngstown Warren Air Service Market ..............................................................................................................................3 History of Commercial Air Service at YNG .................................................................................................................3 Economic Development .............................................................................................................................................4
Economic Stimulus .....................................................................................................................................................5 Utica Shale Boom Preparation - Major Investments ...................................................................................................6
Air Service Environment .............................................................................................................................................8 Leakage Study ..........................................................................................................................................................10 Business Air Travel Survey .......................................................................................................................................11 Strategic Plan ........................................................................................................................................................................16 Strategic Goals .........................................................................................................................................................16 Public Awareness - Marketing - Promotional Campaigns .........................................................................................17 Public/Private Partnership ........................................................................................................................................18 Request for Funds .................................................................................................................................................................20 Federal Support ........................................................................................................................................................20 Community Support ..................................................................................................................................................20 Sponsoring Agency Responsibility ............................................................................................................................20 Summary ..............................................................................................................................................................................20 Appendix A Summary Information Schedule ........................................................................................................................

Youngstown-Warren Regional Airport Proposal Under the Small Community Air Service Development Program - Docket DOT-OST-2012-0069

# Executive Summary
The Youngstown-Warren Regional Airport (YNG) respectfully submits on behalf of the Youngstown-Warren-Sharon community a proposal to the U.S. Department of Transportation (USDOT) for a small community air service grant as part of the USDOT’s Small Community Air Service Development Program (SCASDP). YNG requests a $780,000 SCASDP grant award to reestablish regularly scheduled commercial air service at YNG to a hub of a major U.S. airline in the East, Midwest, or Southeast U.S.. This grant, in combination with an additional $420,000 in local cash contributions, will be used to develop an airline revenue guarantee program to support the first 12 months of such air service by mitigating the initial business risk that a carrier will face in entering a new market. The Youngstown-Warren Regional Airport represents a critical component of the comprehensive regional transportation plan for the Youngstown-Warren-Sharon metropolitan area (Columbiana, Mahoning, and Trumbull Counties in Ohio and Lawrence and Mercer Counties in Pennsylvania). Also, the return of regularly scheduled commercial air service at YNG has been identified collectively by government and community, as one of the primary economic development issues that the region must overcome to achieve its vision of providing a competitive economic base that will provide good paying jobs to ensure a high personal standard of living, and punctuates the commitment on the part of government and community to assist in the development of such air service. In addition, reestablishment of regularly scheduled commercial air service at YNG will stabilize as well as add value to YNG ’s growing leisure market air service, which with the assistance of a former SCASDP grant, allowed YNG to secure its first and much needed scheduled air services for the community since 2002. Continued development of air-travel markets is essential to the stability and growth of YNG ’s position in the region and the posturing with similar U.S. air-travel markets overall. Most importantly, the demand for air service at YNG by gas and oil production energy companies and the thousands of transient workers who will enter the region due to the Utica Shale play is the most critical component of the region’s economic growth. Gas and oil production energy companies, such as BP America, Chesapeake Energy, and Carrizo Oil, are in the infantile stages of their operations in Northeastern Ohio and have already inquired as to if YNG can connect these companies to their headquarters in Houston, Oklahoma City, Dallas, etc.. Equally important to the airline revenue guarantee program will be the promotion of new air service at YNG by focusing on developing awareness within the local community that YNG is again open for business. Considering that YNG has lacked consistent regularly scheduled commercial air service since 2002, air-travelers within the community have changed their behavior during the past 10 years by relying on three other Ohio/Pennsylvania airports (Cleveland, Akron-Canton, and Pitts

burgh) that are located within a 2-hour drive. The underlying goal of promoting new air service at YNG will be to change air-traveler behavior, by increasing awareness of the air service and highlighting its effectiveness, reliability, and staying power. YNG outlined in its proposal its strategic plan as well as define the public/private partnership that has been formed to carry out and support this plan. This partnership of committed local organizations supporting YNG has pledged $480,000 in cash contributions and “soft dollar” contributions (e.g., television, radio, internet and billboard advertising; airport terminal rent abatements; etc.) to assist in sustaining such air service in its first 3 years. The strategic plan and community support demonstrate a clear, achievable approach to attract effective regularly scheduled commercial air service at YNG , should YNG receive this grant. The SCASDP is a great opportunity for a community like the Youngstown-Warren-Sharon area. The Youngstown-Warren Regional Airport looks forward to being seriously considered for an award by the USDOT so that air service development efforts in our region can move forward more rapidly.

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# Previous Small Community Air Service Development Program Grants
The Youngstown-Warren Regional Airport (YNG) has been awarded two Small Community Air Service Development Program Grants.


### 2005 SCASDP Grant Award
In 2005, YNG was awarded a $250,000 SCASDP grant to develop and sustain an 18-month marketing program supporting Allegiant Air’s initial leisure commercial air service at YNG to Orlando-Sanford International Airport that began in 2006. YNG was fortunate to receive this award as it, augmented with $170,000 in local contributions, contributed significantly to the success of Allegiant Air sustaining and expanding its air service at YNG . This past May, Allegiant Air and YNG celebrated the six-year anniversary of that first flight and Allegiant Air providing leisure commercial air service to the community. Also since that first flight, Allegiant Air launched additional service to Myrtle Beach International Airport in April 2010 and to St. Petersburg–Clearwater International Airport in November 2010. According to recent data, YNG is one of the top five airports in the entire Allegiant Air system in terms of load factors and yields, despite competitive pricing from competing leisure airlines operating at nearby CAK, CLE, and PIT Airports. In 2011, YNG was the top airport in the entire Allegiant Air system in terms of yields to Myrtle Beach resulting in Allegiant Air increasing its frequency to four flights per week to Myrtle Beach for the summer of 2012 due to the popularity of the service. With service to Punta Gorda Airport and to Stewart International Airport on the horizon, the 2005 SCASDP grant award demonstrates how a successful award can lay the foundation for developing air service programs.


### 2007 SCASDP Grant Award
In 2007, YNG was awarded a $575,000 SCASDP grant to secure daily airline service on regional jets to a connecting hub within the region. The award was intended to act as an Airline Revenue Guarantee to help mitigate the initial business risk of a network carrier in its initial two years of service at YNG . However, the significant decline in the National economy and significant increased fuel costs at the time of the award made network carriers hesitant to initiate new air service at YNG and other communities with similar economies, demographics, and need for air service. In addition, at the time of the award, 50-seat to 90-seat regional jet aircraft was the appropriate aircraft for the market availability to YNG . Therefore, due to these economic conditions, regional jet aircraft became less efficient and less attractive to network carriers for short-haul air service and network carriers quickly moved to providing the same air service with commuter prop jet aircraft. It was extremely difficult in the first 3 years of the award to seek interested network carriers. However, in the final year of the award, expressed interest by United Airlines, Delta Air Lines, and US Airways to provide the type of air service sought by the community increased significantly. At the time of the expiration of the award, the Community was in promising negotiations with United Airlines through their codeshare partner Silver Airways in providing daily connecting service from YNG to Washington DC (IAD) at 2-3 round trip flights per day, including over-nighting of an aircraft for early morning departure times. United Airlines and Silver Airways are currently discussing the addition of gates at IAD to add additional new service from IAD, to include YNG

. Additionally, due to the Utica Shale boom in the region, oil and gas companies are requesting daily service at YNG . Delta Air Lines has voiced an interest in providing daily connecting service between YNG and Detroit Metro (DTW) as early as 2013 to meet the air travel needs of the oil and gas companies. The goals of the 2007 SCASDP grant differ from the goals within this proposal in that the 2007 SCASDP grant required that air service, supported by the airline revenue guarantee program established by the 2007 SCASDP grant, was to be provided specifically in 50 - 90 seat regional jet aircraft and this proposal specifies that such air service is to be provided by aircraft of the appropriate size for the market being served.

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# History of Commercial Air Service at YNG
Exhibit 3.1 - Youngstown-Warren Regional Airport Total Passenger 1998-2011

Exhibit 3.1 provides the number of annual commercial air service passengers at the Youngstown-Warren Regional Airport (YNG) from 1998, when daily scheduled air service was prevalent, through 2011 with only Allegiant Air operating at YNG

. Despite double-digit percentage losses in commercial passenger traffic from 1998 through 2004, the success of leisure commercial air service at YNG is reflected from 2006 through 2011. Exhibit 3.2 - Air Service History at the Youngstown-Warren Regional Airport Year Airline Service 1998 UA (3x daily) - ORD, NW (4x daily) - DTW, US (5x daily) - PIT 2000 NW (2x daily) - DTW via CAK, US (5x daily) - PIT 2001 NW (2x daily) - DTW via CAK 2002-2003 No Scheduled Commercial Air Service (casino resort junket flights only) 2004 Vacation Express (4x weekly) - SFB, (2x weekly) - MYR 2005 Vacation Express leaves 2006 Allegiant Air (2x weekly) - SFB 2010 Allegiant Air (2x weekly) - SFB, (2x weekly) - MYR 2011 Allegiant Air (2x weekly) - SFB, (2x weekly) - MYR, (2x weekly) - PIE
Exhibit 3.2 provides the schedule of regularly scheduled commercial air service at the Youngstown-Warren Regional Airport. In 1998, YNG had three legacy airlines operating 12-daily flights from YNG . That number decreased to two airlines operating 7-daily flights in 2000 and one airline operating 2-daily flights in 2001. United Airlines, US Airways, and Northwest Airlines ceased service at YNG due to the EAS “70-Mile” rule which eliminated YNG from EAS funding eligibility due to its proximity to the former US Airways hub at Pittsburgh International Airport and the impact of 9/11 . Allegiant Air’s low frequency leisure air service has operated successfully for six years and the frequency of its Myrtle Beach route is increasing to 4-times weekly in the summer of 2012 and additional service to new destinations such as Punta Gorda and Stewart International Airports on the horizon. Youngstown-Warren Regional Airport Proposal Under the Small Community Air Service Development Program - Docket DOT-OST-2012-0069
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# Economic Development
The economic engine of the Youngstown-Warren-Sharon metropolitan area has been revving in recent years punctuating the need for the return of regularly scheduled commercial air service at the Youngstown-Warren Regional Airport. This spring, George Zeller, a Cleveland based economic research analyst, said the Youngstown-Warren-Sharon area is the fastest growing economy in the entire state of Ohio. According to April 2012 unemployment rates for Mahoning, Trumbull and Columbiana Counties, unemployment decreased from 9.7% in April 2011 to 7.9 % in April 2012, lower than the nationalunemployment rate. The above average decline in unemployment can be attributed to the diversification of the YoungstownWarren-Sharon economy. A combination of high tech, logistics, health care, energy, and entertainment companies are growing throughout the region. 

### High-Tech Development
Youngstown’s high-tech Business Incubator continues to promote local growth of the high-tech industry with annual revenue of $152 million from its current company portfolio. The Youngstown Business Incubator, based in Downtown Youngstown, is home to eight start-up technology companies focused on medical, communication, and imaging design software with world

wide markets. 

### Logistics
Two major Interstates, I-76 and I-80, SR-11, the only major Lake-to-River State Highway, and Norfolk Southern and CSX Railroads all intersect in the heart of the Youngstown-Warren-Sharon area. The geographic proximity of our community to these major transportation arteries has attracted investments in new warehousing and transport logistics companies in the region. 

### Health Care On May 21, 2012, Humility of Mary Health Partners (HMHP) announced that $203.3 million in expansion will be invested at their three major hospitals across the Youngstown-Warren-Sharon area including the construction of a second seven-story tower at their five-year old St. Elizabeth Health Center in Boardman. 

### Energy Development
The Youngstown-Warren-Sharon area sits on top of the Utica and Marcellus Shale Oil and Natural Gas Fields which has attracted energy companies such as Chesapeake, Consol, Chevron, British Petroleum, Shell, and EnerVest. Information on the Utica Shale play continues in the next section.


### Entertainment Penn National Gaming Inc. is beginning construction of a $250 million racetrack and casino in Mahoning County.

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# Economic Development ( Continued )
Also, the Youngstown-Warren-Sharon area has been recognized recently by the following:

= Brookings Institution’s Metropolitan Policy Forum released a 2012 survey showing that the Youngstown - WarrenSharon Metropolitan area ranked third among the 100 largest U.S. metro areas for percentage increase in manufacturing jobs from 2010 to 2011 and that the area was one of only six metro areas in the U.S. with manufacturing growth of more than 10 percent.

= Forbes Magazine, in April 2012, listed the Youngstown-Warren-Sharon area as the fourth best metro area in the U.S. to find employment and the fourth best metro area in the U.S. to raise a family

.
= National Association of Home Builders, in its 2012 index, ranked the Youngstown-Warren-Sharon area as the most affordable major metro area in the nation to buy a home. In addition, the Youngstown/Warren Regional Chamber recently hosted the first “Youngstown Ohio Utica & Natural Gas Conference and Trade Show” attracting a sold-out audience of 1,750 from across the U.S.. In February 2012, TV crews from Japan, Sweden, Denmark, and France were in the Youngstown-Warren-Sharon area documenting the economic growth being experienced here. All of this activity (and this is only the start of the rebirth of the region) again punctuates the need for the return of regularly scheduled commercial air service at the Youngstown-Warren Regional Airport. 

# Economic Stimulus
According to 2011 consumer expenditure statistics for the Youngstown-Warren-Sharon Metropolitan area, households spent $114 million on airline fares. The return of regularly scheduled commercial air service at YNG would allow the local economy to retain a portion of that multi-million dollar figure, in addition to approximately $1.8 million more in hotel, restaurant, shopping, and miscellaneous revenue from visitors and business travelers visiting the Youngstown-Warren-Sharon area. As an example, a currently proposed YNG-IAD connection will deplane approximately 17,250 passengers, of which 3,450 (20%) will be visitors to the region. These visitors will spend approximately 10,350 visitor days in our community. The estimation for average visitor expenditures during their stay in the region is calculated below. ( Note: This estimation only includes travel related expenditures) Exhibit 5.1 - Visitor Expenditures for New YNG Daily Service

Estimated Visitors 3,450 Estimated Visitor Days in Mahoning Valley 10,350 Average Hotel Expenditure $103 Average Other Daily Expenditures $70 New Visitor Expenditures $1,790,550 The reestablishment of regularly scheduled commercial air service at YNG is expected to create 6-8 jobs in the customer service and ground handling areas. Additional jobs for ancillary services such as car rental, restaurant, and security operations at YNG may also be created. In addition, according to an Ohio Airports economic impact report, for each $1 million spent by air carrier visitors in Ohio, approximately 17 full-time positions are created in the local economy. By using the factor of 17, this service will support the creation of 30 new jobs with a payroll of $975,000. Furthermore, the induced effects of the visitor expenditures will lead to an additional $1.1 million in economic growth and 19 additional full-time-positions with a payroll of $698,939. The combined economic stimulus created through the direct and induced impact of the new service is $2,911,434 in economic growth and the creation of 49 full-time-positions with a payroll of $1,672,998.

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# Utica Shale Boom Preparation - Major Investments

Exhibit 6.1 - Ohio Utica Shale Map - Ohio Department of Natural Resources In April 2012, the Ohio Department of Natural Resources released the map found in Exhibit 6.1 which shows the pros

pects of oil and gas yields throughout Northeast and Eastern Ohio. The map indicates that oil and gas yields across Mahoning and Trumbull County are anticipated be “Very Good” to “Excellent” in returns.

This finding, coupled with the shallow depth of the Uti

ca Shale in the YoungstownWarren - Sharon area, puts the region at the epicenter of the Utica Shale gas and oil energy production in Northeast Ohio.

Drilling activities across Ohio in the areas shaded in yellow-to-red are expected to take-off significantly through 2014. According to the Ohio Shale Coalition, as of May 2012, 65 wells have been drilled in Ohio. By the end of 2013, the number of wells drilled across Northeastern and Eastern Ohio is expected to reach 850. That number will increase into the several thousands by the end of 2014 according to the Coalition. Exhibit 6.2 - Economic Impact of Utica Shale Development in Ohio

2012 2013 2014 Value Added $878,982,133 $2,980,378,198 $4,857,632,095 Employment 12,150 40,606 65,680 Labor Income $571,543,463 $1,994,216,405 $3,298,757,195 Output $1,667,574,417 $5,823,268,396 $9,642,544,988 Total State/Local Taxes $73,422,148 $271,539,607 $433,528,922 As shown in Exhibit 6.2, billions of dollars of economic output is expected to enter the Eastern and Northeastern Ohio economies through 2014 once drilling is accelerated. A large percentage of this economic output will be centered on the yellow-to-red areas on the map in Exhibit 6.1, which includes Mahoning and Trumbull Counties, and the Youngstown-Warren Regional Airport. Therefore, the return of scheduled commercial air service at the Youngstown-Warren Regional Airport becomes even more essential to the community as it will be urgently needed in the near future to meet the air service demands of the energy companies and the thousands of transient workers who will enter the region.

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# Utica Shale Boom Preparation - Major Investments ( Continued ) CNN Money, in a video piece on oil and shale development in January 2012, said “America’s next boom town is.......... Youngstown.” Exhibit 7.1 - Utica Shale “Pre-Drilling” Youngstown-Warren-Sharon Area Investments

Business Investment County Chesapeake Energy (Construction of Natural Gas Processing Facility) $900 million Columbiana Vallourec & Mannesmannn (Construction of Pipe Manufacturing Plant) $650 million Mahoning British Petroleum (Oil & Gas Leases Signing Bonuses Trumbull County) $330 million Trumbull British Petroleum (Oil & Gas Leases Signing Bonuses Mahoning/Columbiana County) $205 million Mahoning/Columbiana VAM USA (Expansion of Existing Pipe Manufacturing Plant) $57 million Mahoning Exterran (Construction of Natural Gas Processing Facility) $13 million Mahoning Wheatland Tube (Expansion of Existing Pipe Manufacturing Plant) $11.4 million Trumbull TMK-IPSCO (Oil & Gas Well Drilling Products and Services) $10 million Trumbull Weatherford International (Oil & Gas Well Drilling Products and Services) $3.4 million Mahoning Dearing Pump (Expansion of Existing Gas & Oil Drilling Pump and Compressor Plant) $3 million Mahoning Ohio Department of Development (Railroad Enhancements) $2 million Trumbull DeCal (Expansion of Existing Gas & Oil Drilling Mechanical Fabrication Plant) $1.3 million Mahoning Total Investment $2.186 billion The Northeast Ohio / Northwest Pennsylvania region is on track to become a hotbed of innovation, one that which will almost certainly focus on 21st century manufacturing. The catalyst for this is the oil and gas energy production based on the fact that Youngstown-Warren-Sharon region sits above the massive geophysical Marcellus and Utica Shale structure formations located thousands of feet below the surface. These shale layers are richly endowed with billions of barrels of liquid andgaseous hydrocarbons and hydro-fracking allows possible practical access to the resources. To date, $2.186 billion in “predrilling” investments have been “publicly announced” in the Youngstown-Warren-Sharon area for new manufacturing facilities, pipelines, lease signing bonuses, railroads, etc. directly related to oil and gas energy production. Many additional multi-million dollar projects have been publicly discussed and are anticipated in the near future. The oil and gas energy production in Northeast Ohio will attract many visitors to the Youngstown-Warren-Sharon area to support such operations. According to a 2011 study prepared for the Ohio Governor’s Office, 204,500 new jobs are anticipated to be created in Eastern and Northeastern Ohio by 2015 to support Utica Shale oil and gas energy production. It is expected that the Youngstown-Warren-Sharon area will be a regional supply chain center for oil and gas energy product. Recently, to meet the anticipated demand of visitors to the area, 4 national hotel chains announced the construction of new hotels in the region. The Lycoming County Airport in Williamsport, Pennsylvania is an Essential Airline Service funded non-hub commercial service / general aviation airport with three daily commercial passenger flights to Philadelphia using 34-seat turboprop aircraft and is very similar in size and use as the Youngstown-Warren Regional Airport. In 2008, Marcellus Shale oil and gas energy production began and now the Airport is known for its support of such operations in its region. The Airport has experienced a dramatic increase in air service with about one-third of its commercial air service being used for Marcellus Shale related operations. The Airport is now in the midst of acquiring additional scheduled commercial air service to provide energy companies better services to the cities they want to travel to and from. The activities at the Lycoming County Airport provide a strong indication of what the Youngstown-Warren Regional Airport can expect as energy companies continue leasing land and soon begin drilling into the Utica Shale formation.

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# Air Service Environment
The Youngstown-Warren Regional Airport is located in Trumbull County in Northeastern Ohio approximately 68 miles northeast of Akron-Canton Airport, 70 miles southeast of Cleveland Hopkins International Airport, and 67 miles northwest of Pittsburgh International Airport.
YNG ’s primary catchment area contains at least a portion of six counties in Ohio and four counties in Pennsylvania and has a population of 682,767. Additionally, road networks overlaid with socio-economic data further redefines and reasonably extends the primary catchment area, thus incorporating an additional population of 509,426, providing an aggregate marketing area with a population of approximately 1.2 million. Coupling these numbers with the recent trend of high-income population from Cleveland and Pittsburgh moving into closer proximity of YNG , provides additional opportunity for a network carrier’s success at YNG

. Within a 90 mile radius of the Youngstown-Warren Regional Airport, there are over 7.5 million people.
Exhibit 8.1 - Catchment Area



### Site Demographics The following contains additional demographics for the Youngstown/Warren/Sharon, PA Metropolitan Statistical Area utilizing data from the 2010 U.S. Census.

= Female Population (x 51.7%) 344,212 = Male Population (x 48.3%) 321,575 = Population Density 323 per square mile = Population Median Age 42.1 years old = Total Employees 386,505 = Total Establishments 21,358

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# Air Service Environment ( Continued )
Exhibit 9.1 displays the existing air service options from the Youngstown-Warren Regional Airport. The following summarizes the schedule and frequency of the air service options:

= Allegiant Air provides twice-a-week year-round service to the Orlando-Sanford International Airport on MD-83 aircraft. = Allegiant Air provides twice-a-week year-round service to the St. Petersburg-Clearwater International Airport on MD-83 aircraft. = Allegiant Air provides twice-a-week service to the Myrtle Beach International Airport on a seasonal basis from May through September on MD-83 aircraft. The service is expanded to four flights per week in June and July of 2012. = Total Rewards Air, through Caesars Entertainment, provides twice-a month charter service on Boeing 737 aircraft to the Atlantic City International Airport. = Additional charter airline service is offered on a monthly basis to the Tunica Airport and the Gulfport/Biloxi International Airport. Exhibit 9.1 - Existing Air Service

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# Leakage Study
According to year ending 3Q 2011 MIDT Passenger Booking Data, the Youngstown-Warren Regional Airport retained just 22% of the total Youngstown/Warren/Sharon O&D Market with leakage of 209,576 passengers. The entire passenger retention is from low frequency leisure commercial air service aboard Allegiant Air. In addition, according to year ending 1Q 2011 MIDT Passenger Booking Data, approximately 63% of the leakage is to business travel destinations. Exhibit 10.1 - O&D Passenger Leakage

As reflected in Exhibit 10.2, YNG ’s leakage is being served primarily by Pittsburgh International Airport, Cleveland Hopkins International Airport, Detroit Metro Airport, and Akron-Canton Airport. Exhibit 10.2 - O&D Passenger Leakage by Airport
Airport Passengers % of Passenger Leakage Pittsburgh International Airport 103,013 49% Cleveland Hopkins International Airport 69,369 33% Detroit Metro Airport 21,914 11% Akron-Canton Airport 14,477 7% Other Airports 804 0%
Because approximately 63% of YNG ’s leakage is to business travel destinations, such leakage is serviced primarily by regularly scheduled commercial air service on network carriers such as United Airlines, Southwest Airlines, Delta Air Lines, and US Airways. Therefore, it is reasonable to believe that YNG can retain a significant percentage of its leakage with regularly scheduled commercial air service to the hubs of network carriers such as Washington – Dulles and Chicago – O’Hare.

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# Leakage Study ( Continued )
Exhibit 11.1 - Catchment Leakage Served by United Airlines at Washington Dulles and Chicago O’Hare



# Business Air Travel Survey Analysis 2 - Business Air-Travel Demand
The Western Reserve Port Authority conducted an air-travel business survey (YNG 2012 Business Air-Travel Survey) to update the air-travel tendencies of businesses in the Youngstown-Warren-Sharon metropolitan area. The Youngstown/ Warren Regional Chamber made available a listing of its members, representing 2,379 businesses and approximately 84,987 employees, within the Youngstown-Warren-Sharon area. This listing provided the population for the survey. Surveys were distributed to 750 businesses of random size and industry, representing a sample of 32% of the population. 308 surveys were responded to of the 750 surveys distributed, representing a 41% response rate of the sample. Certain issues and their corresponding responses were excerpted from the survey results for the purposes of this analysis. Included in the survey were requests for opinions on the below-mentioned points of focus based on the following assumptions: Assuming YNG offered daily commercial air service that offered the following: = 2 – 3 daily flights connecting to one or more airport hubs
= Flown by regional aircraft (34 -70 seat aircraft) = Offered connecting flights to all major domestic and international destinations
= Priced competitively at prices similar to surrounding airports


### Air-Travel Ticket Purchases
The survey asked participants to respond to “what is the approximate number of roundtrip airline tickets purchased by your company in 2011.” The total of all responses was 8,532. The survey asked participants to respond to “what is the estimated number of roundtrip airline tickets your company will purchase annually if able to fly from YNG .” The total of all responses was 5,829. Therefore, area businesses responding estimate that approximately 68% of their company’s roundtrip airline tickets would be purchased to fly from YNG . Furthermore, by extrapolating the estimated number of roundtrip airline tickets that area businesses responding will purchase annually if able to fly from YNG to the total population sampled for the survey, it is estimated that the total population sampled will purchase 45,011 roundtrip airline tickets annually to fly from YNG

.

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# Business Air Travel Survey ( Continued )

308 Businesses Responding to Survey Question ÷ 2,379 Total Population Sampled .1295 Response Factor
5,829 Respondents Estimate of YNG Annual Roundtrip Ticket Purchases ÷ .1295 Response Factor 45,011 Estimate of Total Population Sampled YNG Annual Roundtrip Ticket PurchasesPlease note that for the purposes of this survey that the total population sampled only represents Youngstown-WarrenSharon area businesses that are members of the Youngstown/Warren Regional Chamber and does not consider all businesses and organizations in the Youngstown-Warren-Sharon area. Therefore, these estimates are very conservative sincethe total population sampled represents only 2,379 businesses and approximately 84,987 employees within the YoungstownWarren-Sharon area, which is approximately 22% of the businesses (labor force) within the Youngstown-Warren-Sharon area (2010 U.S. Census Bureau Demographic Profile Reports). If it is estimated that the total population sampled will purchase 47,901 roundtrip tickets annually to fly from YNG then it may be factored that the aggregate of businesses (labor force) within the Youngstown-Warren-Sharon area will purchase 195,700 roundtrip tickets annually to fly from YNG

. 45,011 Estimate of Total Population Sampled YNG Annual Roundtrip Ticket Purchases ÷ .23 23% Sample vs. Aggregate Factor 195,700 Estimate of Aggregate Businesses YNG Annual Roundtrip Ticket Purchases 

### Air-Travel Expenditures
The survey asked participants to respond to “what is the approximate annual budget for air-travel expenditures your company will spend annually to fly from YNG .” 253 (82%) of the respondents provided amounts to this issue. The total estimated minimum air-travel dollars of all responses was $1,572,620 and the total maximum air-travel dollars of all responses was $1,878,540. Furthermore, by extrapolating the estimated minimum and maximum amounts of air-travel dollars that area businesses responding will spend annually if able to fly from YNG to the total population sampled for the survey, it is reasonable to estimate that the total population sampled will expend a minimum air-travel dollars of $14,794,167 and a maximum air-travel dollars of $17,672,060 annually to fly from YNG

. 253 Businesses Responding to Survey Question ÷ 2,379 Total Population Sampled .1063 Response Factor $1,572,620 Respondents Estimate of YNG Annual Air-Travel Ticket Expenditures ÷ .1063 Response Factor $14,794,167 Estimate of Total Population Sampled Minimum YNG Annual Air-Travel Expenditures $1,878,540 Respondents Estimate of Maximum YNG Annual Air-Travel Expenditures ÷ .1063 Response Factor $17,672,060 Estimate of Total Population Sampled Maximum YNG Annual Air-Travel Expenditures

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# Business Air Travel Survey ( Continued )

Air-Travel Increase The survey asked participants to respond to “would your company’s air-travel increase if YNG offered services to meet your air-travel needs.” 166 (54%) of the respondents stated that their company’s air-travel would increase and 142 (46%) of the respondents stated that their company’s air-travel would not increase. Of those respondents who stated that their company’s air-travel would increase, the survey asked them to respond to “by approximately what amount would your company’s air-travel increase.” The average of the respondents’ stated increase was 29%. Therefore, based upon 54% of the respondents stating that their company’s air-travel would increase by an average of 29%, it is reasonable to estimate that business air-travel in the Youngstown-Warren-Sharon area as a whole will increase by 16% (54% x 29%) if YNG offered services to meet area business air-travelers’ needs. 

### Air-Travel Arrangement Factors The survey provided a list of 8 popular factors that are considered in air-travel arrangements and asked participants to “rank in order of importance (with #1 being the most important), the top considerations of your Company’s air-travel arrangement decisions.” The respondents‘ 1st and 2nd most important factors, the number of responses to each, and the percentages of total responses to each follow: Most Important Factor Percentage Ticket pricing 42% Drive time to airport 27% Number of daily flights 19% Other (Less than 20 responses@) 12% 2nd Most Important Factor Percentage Drive time to airport 31% Number of daily flights 21% Ticket pricing 19% Ease of check-in 16% Other (Less than 20 responses@) 13% 

### Airport Hub Destinations The survey asked participants to respond to “which airport hubs would your company employees prefer to fly to most often, if the flight operated at YNG , and rank in order of estimated frequency (with #1 being the most frequent).” The respondents’ most preferred airport, the number of responses, and the percentages of total responses follow: Airport Hub Percentage Chicago (ORD) 34% Dulles (IAD) 21% Detroit (DTW) 12% Newark (EWR) 9% Charlotte (CLT) 8% Atlanta (ATL) 6% Philadelphia (PHL) 6% Other (Less than 20 responses@) 4%

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# Business Air Travel Survey ( Continued ) Projected Aggregate Businesses Annual Roundtrip Ticket Purchases
By applying the above percentages of the preferred airport hub destinations that businesses would fly to most often if able to fly from YNG , against the estimate of 195,700 annual roundtrip tickets that the aggregate of businesses (labor force) within the Youngstown-Warren-Sharon area will purchase, it is reasonable to project the annual roundtrip tickets that businesses will purchase to each of these preferred airport hub destinations, as reflected in exhibit 14.1. Exhibit 14.1 - Projected Aggregate Businesses Annual Roundtrip Ticket Purchases by Hub Airport

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# Business Air Travel Survey ( Continued )
Exhibit 15.1 - Strategic Route Planning Map

In summary, the results of the Business Air-Travel Survey provide support, that because of anticipated time and money savings, that businesses in the Youngstown-Warren-Sharon area have indicated strong support for the return of frequent regularly scheduled commercial air service at YNG to a hub of a major U.S. airline in the East, Midwest, or Southwest U.S., more specifically to Chicago (ORD) and Dulles (IAD). Additionally, the results reflect that a generally higher proportionate share of YNG ’s core air market segment bookings may be business air-travelers which can be considered as a beneficial attribute for prospective network carriers as the YNG core business air-travel segment is significant enough to more than support such air service. The business traveler is generally the preferred customer to network carriers as this segment also purchases a significant percent of its tickets at a full Y fare level (fully refundable) - the highest economy class fare level and because of their discretionary fare behavior and last-minute buying characteristics. Not considered in the consequential projections of the Leakage Studies and the Business Air-Travel Survey, is the demand for air service at YNG by gas and oil production energy companies and the thousands of transient workers who will enter the region due to the Utica Shale play. As stated previously, the Lycoming County Airport has experienced a dramatic increase in air service with about one-third of its commercial air service being used for Marcellus Shale related operations and is now in the midst of acquiring additional scheduled commercial air service to provide energy companies better services to the cit

ies they want to travel to and from. Gas and oil production energy companies, such as BP America, Chesapeake Energy, and Carrizo Oil, are in the infantile stages of their operations in Northeastern Ohio and have already inquired as to if YNG can connect these companies to their headquarters in Houston, Oklahoma City, Dallas, etc., thus punctuating the urgency to reestablish frequent regularly scheduled commercial air service at YNG

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# Strategic Plan Strategic Goals
The specific goals of the Community include the following:

= To reestablish regularly scheduled commercial air service at YNG to a hub of a major U.S. airline in the East, Midwest, or Southeast U.S. on aircraft of appropriate size for the market being served. = To formulate and conduct comprehensive public awareness, marketing, and promotional campaigns in support of new air service. = To direct the existing public / private partnership to concentrate on 1) supporting the airline revenue guarantee program, 2) contributing and executing the public awareness, marketing, and promotional campaigns in support of new air service, and 3) continue to attract Community partners to support the collaborative efforts..
Assuming the USDOT awards the SCASDP Grant in September 2012, the Community will undertake an aggressive schedule to negotiate an agreement for air service and structure an airline revenue guarantee program with a network carrier. The milestones of this timeline can be reasonably achieved since the Community is currently in promising negotiations with United Airlines through their codeshare partner Silver Airways in providing daily connecting service from YNG to Washington DC (IAD) at 2-3 round trip flights per day, including over-nighting of an aircraft for early morning departure times. United Airlines and Silver Airways are currently discussing the addition of gates at IAD to add additional new service from IAD, to include YNG . In addition, since summer is a peak air-travel season in most markets, the optimal time to initiate air service would be May 2013. Should the Community be successful with a SCASDP Grant Award, the schedule of planned major tasks and the time frame for performance follows.

Exhibit 16.1 Gannt Chart

The anticipated budget for this proposal is $1,680,000, $1,200,000 to establish an airline revenue guarantee program and $480,000 to conduct comprehensive public awareness, marketing, and promotional campaigns. Exhibit 17.1, which reflects a profit and loss forecast for the YNG-IAD connection based on moderate expectations, provides the foundation for determining the anticipated amount needed to establish an airline revenue guarantee program. Moderate expectations also forecast that the YNG-IAD connection will be self-sustaining in the 11th month of operations.

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# Strategic Plan ( Continued )

Exhibit 17.1 - YNG-IAD Profit and Loss Estimation

Period Pax PDEW Segment Fare Segment Revenue Operating Expenses 5% Profit Payments Profit

1st Month 1,295 21 $127.99 $165,704 $357,501 $17,875 ($209,672) 2nd Month 1,395 23 $127.99 $178,607 $357,501 $17,875 ($196,769) 3rd Month 1,518 25 $127.99 $194,272 $357,501 $17,875 ($181,105) 4th Month 1,662 27 $127.99 $212,770 $357,501 $17,875 ($162,606) 5th Month 1,828 30 $127.99 $234,018 $357,501 $17,875 ($141,358) 6th Month 2,014 33 $127.99 $257,757 $357,501 $17,875 ($117,619) 7th Month 2,215 36 $127.99 $283,554 $357,501 $17,875 ($91,822) 8th Month 2,428 40 $127.99 $310,821 $357,501 $17,875 ($64,555) 9th Month 2,647 44 $127.99 $338,854 $357,501 $17,875 ($36,522) 10th Month 2,866 47 $127.99 $366,888 $357,501 $17,875 ($8,489) 11th Month 3,080 51 $127.99 $394,155 $357,501 $17,875 $18,778 12th Month 3,281 54 $127.99 $419,952 $357,501 $17,875 $44,575 Year 1 Total 26,231 36 $127.99 $3,357,350 $4,290,014 $214,501 ($1,210,518) $63,354


### Public Awareness - Marketing - Promotional Campaigns
In the last 18 months, the Youngstown-Warren Regional Airport, YNGAir Partners, the Youngstown/Warren Regional Chamber, and other Community organizations, partnered to conduct an extensive public awareness/promotional campaign supporting YNG . The success of Allegiant Air, the significant increase in private charter, corporate, and general aviation activity, the increase in non-aeronautical activity surrounding YNG , and the heightened general community support of YNG are resultant of this collaborative effort. Once the Youngstown-Warren Regional Airport and a network carrier have final

ized an agreement for regularly scheduled commercial air service, these same partners will launch comprehensive public awareness, marketing, and promotional campaigns in support of the new air service. These campaigns will comprise of four components:
1. Earned Media a. Upon signing of the agreement: 1. Conduct a press conference at YNG to announce the start-up of the new air service. Attendees will include: a. YNG and Western Reserve Port Authority officials b. Network carrier officials c. State and local public officials and community leaders 2. Issue press releases to local, state, and national media announcing the start-up of the new air service. 3. Arrange one-on-one interviews with local media for YNG , network carrier, and state and local public officials.
b. On first day of air service: 1. Arrange for local morning news shows to broadcast from YNG

. 2. Arrange a remote radio broadcast. 3. Conduct press conference at YNG at the time of the first flight. 4. Arrange one-on-one interviews with YNG officials, network airline representatives, and passengers. 5. Issue press release to local, state, and national media.

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# Strategic Plan ( Continued )

c. Ongoing earned media: 1. Monthly press releases featuring news about the air service including success of the flights
2. Paid media directed at the general public a. TV, radio, and print ads in markets within a 45-mile radius of YNG . Ads will begin to run approximately three months before initiation of service and will continue for twelve months after the first flight. 1. TV spots will appear on the four Youngstown-based network TV outlets and the Time-Warner and Comcast cable systems that serve the market area. Most spots will run on shows popular with business travelers. 2. Radio spots on stations within the market area that reach business travelers 3. Print ads in the Vindicator, Warren Tribune Chronicle, Sharon Herald, and Youngstown Business Journal.
3. Paid media specifically targeted to business travelers a. Direct mail piece to members of the Regional Chamber and YNGAir Partner (membership rolls collectively exceed 2,500). Mail pieces will be sent three months before service begins, at start-up, and one month after air service is underway. b. E-mail blasts to members of the Regional Chamber and YNGAir Partner two months and one month before air service begins, at start-up, and monthly thereafter.
4. Digital Marketing/Social Media a. Notice of agreement will be posted on YNG , Regional Chamber, and YNGAir Partners web sites and Facebook pages b. Press conferences and other events surrounding the first flight will be live streamed on YNG website c. Schedule and real time flight information will be posted on YNG website and Facebook page. In addition, the Convention and Visitors Bureaus of Mahoning, Mercer, and Trumbull Counties will augment the above campaigns by communicating to potential visitors to the Community that air service has returned to YNG and to consider air service as a travel option. 

### Public/Private Partnership Recognizing that the development and success of the Youngstown-Warren Regional Airport, most importantly the return of regularly scheduled commercial air service, is one of the primary economic development issues that the region must overcome to return to economic prominence, community leaders created YNGAir Partners, an organization whose membership has vested a civic desire to assist in the development of YNG including the resumption of regularly scheduled commercial air service. YNGAir Partners is a 501(C)(3) non-profit organization providing community-based support for the Youngstown-Warren Regional Airport. As the face of the community, YNGAir Partners acts on behalf of the community to support 1) the return of regularly scheduled commercial air service at YNG , 2) YNG ’s plan for capital development, 3) the sustaining and expansion of leisure, corporate, and general aviation air service at YNG , and 4) the solicitation of donations and grants on behalf of YNG . YNGAir Partners is comprised of local public officials, area business and community leaders, and other energetic members of the community who participate throughout the region by 1) arranging community and business speaking engagements, 2) conducting rallies and special events, 3) managing fundraising events, 4) providing local matching funding for grants and loans, 5) promoting YNG on social media sites, and 6) acting as a marketing arm for YNG

. Also, the Western Reserve Port Authority, Mahoning County, Trumbull County, and the Youngstown/Warren Regional Chamber have become strong partners with YNG in its continued efforts to develop the Airport, most importantly to return regularly scheduled commercial air service to the community.

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# Strategic Plan ( Continued )
During the past 2 years, these entities have collaborated with YNG , working aggressively to attract network carriers to YNG and have all invested significant financial and human resources to analyze the local air service market, educate network car

riers regarding the region, and promote and market YNG as a viable facility for commercial airline service. These entities maintain a committed partnership and believe the SCASDP is a great opportunity to help further YNG ’s air service develop

ment efforts. Upon the award of a SCASDP grant, all of the above and other organizations will contribute to the overall efforts of returning regularly scheduled commercial air service to YNG at varying levels. Roles and responsibilities will include: Youngstown-Warren Regional Airport Act as legal sponsor; administrate the SCASDP grant; make direct cost operating concessions to the network carrier; and coordinate the efforts of the community. Mahoning and Trumbull Counties Provide the local cash financial contribution toward the airline revenue guarantee program. Western Reserve Port Authority Provide the local cash financial contribution toward the airline revenue guarantee program and contribute hard dollars toward the promotional and marketing campaigns. Youngstown/Warren Regional Chamber Provide in-kind marketing by promoting new air service at its core events (annual meeting, economic forecast breakfasts, other large events, etc.); promoting the utilization of the new air service to its membership including encouraging enrolling in the network carrier’s frequent flyer program and corresponding credit card program; utilizing the Chamber’s media outreach to continually promote the new air service through its magazine, monthly e-newsletters, and social media; and ensure that its business members who travel frequently have significant interaction with the network carrier and their sales representatives encourage increased business travel out of YNG

. YNGAir Partners YNGAir Partners will provide the local cash financial contribution toward the airline revenue guarantee program and contribute hard dollars toward the promotional and marketing campaigns.
Rubenstein and Associates Media Relations Formulate separate comprehensive public awareness and promotional campaigns through earned, print, radio, and television media; develop digital marketing / social media mechanisms; formulate the marketing campaign though earned and print media; arrange for in-kind contributions from media partners; and contribute staff time and in-kind media contributions. Clear Channel Communications Youngstown Formulate the marketing campaign through local radio and television media and contribute staff time and in-kind media contributions Mahoning, Mercer, and Trumbull Counties’ Convention and Visitors Bureaus Contribute to the public awareness and promotional campaigns by focusing primarily on communicating to potential visitors to the community that air service has returned to YNG and contribute staff time and in-kind media contributions.

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# Request for Funds Federal Request The Youngstown-Warren Regional Airport, on behalf of the Community, is requesting $780,000 to support the $1,200,000 airline revenue guarantee program structured and adequate to attract regularly scheduled commercial air service at YNG by a network carrier. Should this proposal result in a successful SCASDP grant award for an airline revenue guarantee program, and a network carrier initiates regularly scheduled commercial air service at YNG that does not become self-sustaining, the Community will undertake efforts to generate the additional financial support necessary to augment the airline revenue guarantee program and to amplify its public awareness, marketing, and promotional campaign efforts. 

### Community Support The Western Reserve Port Authority, Mahoning County, Trumbull County, and YNGAir Partners will provide collectively the $420,000 local cash contribution toward the airline revenue guarantee program. The Western Reserve Port Authority and YNGAir Partners will contribute hard dollars necessary for the public awareness, marketing, and promotional campaigns. YNGAir Partners will monitor the network carrier’s performance and undertake passenger surveys and other research techniques to increase its understanding of passenger behavior from which it will derive ideas regarding possible airport services and amenities that could improve the overall air-travel experience at YNG . The results will be shared with the network carrier to take advantage of all opportunities. As one of its most important initiatives, YNGAir Partners will continue aggressively to attract community partners and to solicit donations and in-kind services to support YNG ’s efforts. 

### Sponsoring Agency Responsibility The Youngstown-Warren Regional Airport, as the legal sponsor of this grant, will be responsible for the overall administration of the SCASDP grant award. YNG will provide progress reports required by the USDOT, and will summarize the relevant accounting information regarding expended funds and in-kind services. These periodic reports will also include a progress report regarding the network carrier’s operational performance and the effectiveness of the local marketing and advertising campaign. In addition, YNG will provide a 2-year abatement of landing, passenger boarding bridge, and gate fees and terminal office and ticket counter rents. Finally, YNG will communicate with all of the oil and gas energy companies operating in the region to facilitate their air travel needs for the thousands of their transient employees. In all, it is conceivable that in excess of $1 million dollars in hard dollars and in-kind services will be provided by the Community in a collaborative and focused effort to promote regularly scheduled commercial air service at YNG

. 

# Summary
The Community of the Youngstown-Warren-Sharon Metropolitan area is focused and committed toward reestablishing and sustaining a much needed and critical aspect of its transportation system. The return of regularly scheduled commercial air service at the Youngstown-Warren Regional Airport has been identified collectively by government and community, as one of the primary economic development issues that the region must overcome to achieve its vision of providing a competitive economic base that will provide good paying jobs to ensure a high personal standard of living, and punctuates the commitment on the part of government and community to assist in the development of such air service. In addition, the demand for air service at YNG by gas and oil production energy companies and the thousands of transient workers who will enter the region due to the Utica Shale play is a critical component of the region’s economic growth. Gas and oil production energy companies, such as BP America, Chesapeake Energy, and Carrizo Oil, are in the infantile stages of their operations in Northeastern Ohio and have already inquired as to if YNG can connect these companies to their headquarters in Houston, Oklahoma City, Dallas, etc..

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# Summary ( **Continued** )
Without regularly scheduled commercial air service, the Community could lose a considerable amount of development and infrastructure investment that will go to other areas with adequate air service. At the time of the expiration of the Community’s 2007 SCASDP grant, expressed interest by United Airlines, Delta Air Lines, and US Airways to provide the type of air service sought by the community to support Utica Shale operations increased significantly

. In summary, should the Community be awarded this grant, the Community will regularly monitor air service performance at YNG as well as ongoing measurements of the effectiveness of the public awareness, marketing, and promotional campaign efforts. Today, with the current and favorable results being experienced by Allegiant Air, along with the knowledge of the potential YNG has in reestablishing regularly scheduled commercial air service, the Community and its leaders are extremely excited about the future of the Youngstown-Warren Regional Airport. In the end, all federal grant funds received by the Community under the SCASDP Grant program will be spent carefully and efficiently, with an eye toward generating maximum benefit for the traveling public of Youngstown-Warren-Sharon area.

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