APPLICATION UNDER 

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM 

DOCKET DOT -OST -2013-0120 

SUMMARY INFORMATION 

(Note : Only blue shaded areas in Sections A-L can be edited) 

All applicants must submit this Summary Information schedule, as the application 

coversheet, a completed form SF424 and the full application proposal on 

http://www .grants.gov 

For your preparation convenience, this Summary Information Form is located at 

http://www.dot.gov/policy/aviation-policy/small-community-rural-air-service/SCASDP 

A. PROVIDE THE LEGAL SPONSOR AND ITS DUN AND BRADSTREET (D&B) DATA UNIVERSAL 

NUMBERING SYSTEM (DUNS) NUMBER, INCLUDING +4, EMPLOYEE IDENTIFICATION NUMBER 

(EIN) OR TAX ID. 

Legal Sponsor Name: Montrose Regional Airport 

DUNS Number 0764710770000 

EIN/TIN 846000787 

B. LIST THE NAME OF THE COMMUNITY OR CONSORTIUM OF COMMUNITIES APPLYING : 

1. Montrose County Colorado 

2. Colorado Flights Alliance 

3. 

4. 

C. PROVIDE THE FULL AIRPORT NAME AND 3-LETTER lATA AIRPORT CODE FOR THE 

APPLICANT(S) AIRPORT(S) (ONLY PROVIDE CODES FOR THE AIRPORT(S) THAT ARE ACTUALLY 

SEEKING SERVICE). 

1. 

2. 

3. 

4. 
D. LIST THE 2-DIGIT CONGRESSIONAL DISTRICT CODE APPLICABLE TO THE SPONSORING 

ORGANIZATION, AND IF A CONSORTIUM, TO EACH PARTICIPATING COMMUNITY. 

1. c, - qy 

2. 

3. 

4. 

E. APPLICANT INFORMATION: (CHECKALL THAT APPLY) 

[{]Not a Consortium II I Interstate Consortium II I Intrastate Consortium 

D Community now receives subsidized Essential Air Service 

iliJ Community (or Consortium member) previously received a Small Community Air Service 

Development Program (SCASDP) Grant 

Ifprevious recipient: Year(s) ofgrant(s): 18-24-06 thru 8-31-091 

F. PUBLIC/PRIVATE PARTNERSHIPS: (LIST ORGANIZATION NAMES) 

PUBLIC PRIVATE 

1. Montrose County 1. Telluride Ski and Golf 

2. Town of Telluride 2. Telluride Mountain Village Visitor Center 

3. City of Montrose 3. Other Montrose and Telluride Businesses 

4. Town of Mountain Village 4. 

5. 5. 

G. PROJECT PROPOSAL: (CHECK ALL THAT APPLY) 

.{ Marketing Upgrade Aircraft .{ New Route 

Travel Bank Service Restoration Subsidy 

Surface Transportation Regional Service .{ Revenue Guarantee 

Launch New Carrier Start-up Cost Offset First Service 

Study .{ Secure Additional Service 

Other (describe) 

H. EXISTING LANDING AIDS AT LOCAL AIRPORT: (CHECK ALL THAT APPLY) 

.{ FulliLS .{ Outer/Middle Marker l./ J Published Instrument Approach 

.{ Localizer Other (specify) 
I. PROJECT COST: (ONLY ENTER DATA IN BLUE SHADED AREAS) 

LINE DESCRIPTION SUBTOTAL TOTAL AMOUNT 

1. Federal amount requested 750,000 

2. State cash financial contribution 

Local cashfinancial contribution 

3a Airport cash funds 

3b Non-airport cash funds 150,000 

3. Total local cash funds (3a + 3b) 150 

4. TOTAL CASH FUNDING (1+2+3) 900 

In-Kind contribution 

Sa Airport In-Kind contribution** 

5b Other In-Kind contribution** 

5. TOTAL IN-KIND CONTRIBUTION (5a+5b) 0 

6. TOTAL PROJECT COST (4+5) 900 

J. IN-KIND CONTRIBUTIONS** 

For funds in lines 5a (Airport In-Kind contribution) and 5b (Other In-Kind contribution), please 

describe the source( s) of fund( s) and the value ($) of each. 

K. IS THIS APPLICATION SUBJECT To REVIEW BY STATE UNDER EXECUTIVE ORDER 12372 

PROCESS? 

D a. This application was made available to the state under the Executive Order 12372 

Process for review on (date) I I 

D b. Program is subject to E.O. 12372, but has not been selected by the state for review. 

[{] c. Program is not covered by E.O. 12372. 

L. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT? (IF "YES", PROVIDE 

EXPLANATION) 

[Z]No 0 Yes (explain) 
Grant Proposal Under The

Small Community Air Service 

Development Program

For

Montrose Regional Airport

DUNS #076471077

Colorado Congressional District #3
 Proposal under the Small Community Air Service Development Program

 DOT Docket OST– 2013 – 0120 2

Table of Contents

1. Technical Details of Proposal........................................................ 3

Contact Information ...............................................................................................3

Legal Sponsor of Proposal ......................................................................................3

Community Partner ................................................................................................3

Air Service Deficiency: Lack of Eastbound Capacity and Very High Fares ...................3

Overview of Grant Request.....................................................................................5

2. MTJ Market Area and Air Service Deficiency................................ 6

Geographic Location & Market Population................................................................6

Seat Capacity vs. Other Regional Airports ................................................................7

Total Market Fare Comparison ................................................................................8

MTJ O&D Passenger Distribution: Eastern U.S. Dependent .......................................8

3. Grant Implementation Plan ........................................................ 10

Funding and Distribution Sources..........................................................................10

Risk Abatement Terms .........................................................................................10

Marketing the New Service ...................................................................................11

Plan for Self Sufficiency ........................................................................................12
 Proposal under the Small Community Air Service Development Program

 DOT Docket OST– 2013 – 0120 3

1. Technical Details of Proposal

Contact Information

All correspondence regarding this proposal should be referred to:

Lloyd D. Arnold, C.M.

Director of Aviation

Montrose Regional Airport

Montrose, Colorado

970-249-3433

Legal Sponsor of Proposal

The Montrose Regional Airport (MTJ) is the legal sponsor of this grant proposal.

Community Partner

Colorado Flights Alliance joins the Montrose Regional Airport in its support for this grant 

proposal and is the community partner responsible for the matching portion of the 

grant funding. 

Air Service Deficiency: Lack of Eastbound Capacity and Very High Fares

Montrose Regional Airport suffers from having little available capacity to/from key 

eastbound markets during its peak season, which is typically Q1 due to the region being 

a premier winter recreation area. As the load factor table on the following page

illustrates, the primary eastern hubs operate with essentially full flights, making getting 

to/from the greater Montrose region time consuming and inefficient for those travelers 

not fortunate enough to be on one of the existing flights from Atlanta, Dallas – Ft. 

Worth, or Chicago. 
 Proposal under the Small Community Air Service Development Program

 DOT Docket OST– 2013 – 0120 4

In addition to the lack of available capacity, MTJ experiences significantly higher 

airfares than other regional airports, specifically Durango La-Plata County Airport (DRO) 

and Grand Junction Regional Airport (GJT). The average one way gross fare at MTJ is 

approximately 29% higher than DRO and 17% higher than GJT to major eastern 

markets. This causes potential travelers to either utilize other airports in the region, or 

simply to not travel at all. The lost economic impact is significant on the Montrose 

region, which relies heavily on inbound visitors that enjoy the recreational activities in 

the area.

MTJ Avg. One Way Gross Fares to Key Eastern

Markets vs. Other Regional Airports – CY 2012

Market Q1 2013 

Load Factor

DL - ATL 91.7%

AA- DFW 86.5%

UA - ORD 85.5%

Market MTJ DRO GJT

DFW $274.85 $227.09 $272.25

ORD $321.80 $252.88 $267.29

EWR $403.67 $260.62 $336.59

LGA $384.16 $309.31 $277.87

ATL $269.65 $230.36 $288.85

BOS $342.88 $319.98 $298.25

PHL $322.93 $272.05 $331.37

IAD $369.55 $307.68 $312.62

MSP $296.86 $209.99 $248.86

DTW $333.47 $255.54 $295.75

CLT $342.41 $326.04 $274.60

MCO $343.95 $283.46 $261.15

STL $293.66 $215.21 $278.21

DCA $366.51 $311.10 $309.25

Total $331.37 $256.76 $283.72

MTJ % Premium 29.1% 16.8%
 Proposal under the Small Community Air Service Development Program

 DOT Docket OST– 2013 – 0120 5

Overview of Grant Request

Due to the lack of available seat capacity and the extremely high airfares, Montrose 

Regional Airport respectfully submits its Small Community Air Service Development 

Program (SCASDP) grant proposal for revenue guarantee to increase and expand upon 

the already successful east coast air service access. A portion of the grant funding and 

the community match will go towards targeted marketing and advertising of the new 

service. Carriers’ hubs east of MTJ with strong connectivity will be considered by the 

airport, including increasing access at already successful hubs such as ORD, DFW, and 

ATL. 
 Proposal under the Small Community Air Service Development Program

 DOT Docket OST– 2013 – 0120 6

2. MTJ Market Area and Air Service Deficiency

Geographic Location & Market Population

Montrose Regional Airport is the main gateway to the Colorado Western Slope, and 

serves a resident population of over 70,000. In addition to agriculture, the region is a 

major recreational destination, and a large resort industry is dependent on Montrose 

Regional Airport for access to and from the rest of the nation and the globe.

The local population base is located along the north/south US 50/550 corridor, bordered 

by Delta, Colorado in the north, and Ouray/Red Mountain Pass to the south. In addition 

to agriculture and recreational tourism, the region has been attracting interest of light 
 Proposal under the Small Community Air Service Development Program

 DOT Docket OST– 2013 – 0120 7

manufacturing industries. The additional air service, which this grant request can 

deliver, will be an enormous boost to the competitiveness of Colorado’s Western Slope 

within the global economy.

Seat Capacity vs. Other Regional Airports

The air service deficiencies at MTJ are illuminated when analyzing scheduled capacity at 

MTJ compared to other regional airports on the Western Slope of Colorado. Since 2007, 

MTJ has lost 4% of its seats, but approximately 34% of its scheduled departures. When 

compared to DRO and GJT, the contrast is stark. 

MTJ Scheduled Departures and Seat Capacity vs.

Other Regional Airports: CY 2013 vs. CY 2007

While DRO has lost 5% of its scheduled departures during this time period, its 

scheduled seat capacity has increased by an astounding 51%. In addition to DRO’s 

dramatic increase in seat capacity, GJT has also shown a 22% increase between 2007 

and 2013. While departures have decreased at all three of the airports, MJT’s decrease 

2007 2013 % 

Change 

MTJ

Scheduled Departures 2,609 1,717 -34.2%

Scheduled Seats 121,515 116,793 -3.9%

DRO

Scheduled Departures 3,942 3,724 -5.5%

Scheduled Seats 166,735 251,868 51.1%

GJT

Scheduled Departures 6,011 5,124 -14.8%

Scheduled Seats 239,027 290,930 21.7%
 Proposal under the Small Community Air Service Development Program

 DOT Docket OST– 2013 – 0120 8

is much greater, causing difficulty for travelers to access the region, and for outbound 

passengers to use MTJ for their travels. All three of the airports have seen increases in 

aircraft gauge, but again, MTJ has been hit hardest of the three Western Slope airports. 

Total Market Fare Comparison 

In addition to fares to key eastern markets being higher at MTJ than both DRO and 

GJT, on a total market scale average one way gross fares are even higher at MTJ than 

the other airports. MTJ has a 30% fare premium when compared to DRO, with an 

average one way gross fare of $323 for CY 2012. This is over $75 each way, and adds 

up quickly for a family of four wanting to take a vacation on the Western Slope. 

MTJ Avg. One Way Gross Fares vs.

Other Regional Airports – CY 2012

In addition to being higher than both DRO and GJT, the Montrose Regional Airport’s 

average fare is 46% higher than the national average ($323 vs. $221) for CY 2012. 

While the airport and community understand the realities of today’s airline industry, it is 

their hope that new service will help bring fare parity to the community to be more in 

line with the other Western Slope airports.

MTJ O&D Passenger Distribution: Eastern U.S. Dependent

Montrose Regional Airport and the region are dependent on passenger traffic to/from 

the eastern U.S. Over 60% of all passenger traffic come from the Great Lakes, Central, 

New England, Eastern, and Southern portions of the country. For this reason, it is 

MTJ DRO GJT

OW Avg. Gross Fare $323.27 $247.78 $269.12

MTJ % Premium - 30.5% 20.1%
 Proposal under the Small Community Air Service Development Program

 DOT Docket OST– 2013 – 0120 9

critical for the airport to gain increased air service access to/from these geographical 

locations, and that is the intent of this grant proposal.

MTJ O&D Passenger and Revenue Distribution

CY 2012
 Proposal under the Small Community Air Service Development Program

 DOT Docket OST– 2013 – 0120 10

3. Grant Implementation Plan

Funding and Distribution Sources

As previously mentioned, Montrose Regional Airport is joined by Colorado Flights 

Alliance as its community partner in this grant application. It is proposed that the 

funding for new service is split between revenue guarantee and marketing/advertising, 

with the majority of the funding going towards the revenue guarantee portion.

Risk Abatement Terms

Montrose Regional Airport, subject to Department of Transportation Approval, proposes 

to implement a risk abatement program with the following terms:

 Funding would be available to an airline providing nonstop service to a hub that 

is east of MTJ and provides increased eastern U.S. access, including increased 

capacity for existing hubs.

 Upon award of grant funds, Montrose Regional Airport and its community partner

will negotiate with prospective airlines. The best service proposal will be 

identified and a risk mitigation agreement between Montrose Regional Airport 

and the carrier will be negotiated.

 Category SCASD 

Grant

Community 

Funds

TOTAL

Revenue Guarantee $675,000 $75,000 $750,000

Marketing Plan Support $75,000 $75,000 $150,000

TOTAL $750,000 $150,000 $900,000
 Proposal under the Small Community Air Service Development Program

 DOT Docket OST– 2013 – 0120 11

 Risk mitigation funds would support the initial phase of new air service. Montrose 

Regional Airport will negotiate a detailed service agreement with the carrier that 

is consistent with DOT guidelines for grant fund use.

 The costs of operating the new service will be defined in discussions with the 

selected carrier and outlined in a contractual manner. Industry cost data for 

appropriate aircraft type and stage length will help guide the airport in these 

discussions.

 A target for overall revenue associated with the new service and the component 

of that revenue that will be credited to the new route will be agreed upon, and a 

targeted revenue figure per flight will be established.

 Montrose Regional Airport will monitor traffic and revenue reports for the new 

service, which will be provided by the selected carrier.

 Any revenue shortfall will be offset with risk mitigation funds upon detailed 

invoice from the selected carrier. Montrose Regional Airport, in turn, will invoice 

the Department of Transportation for its share of funding in the agreed upon 

manner.

 Montrose Regional Airport will seek a one year risk mitigation agreement with 

the selected airline.

Marketing the New Service

Marketing and advertising will be critical to the success of the new service, and MTJ and 

its community partner are prepared to work tirelessly to increase awareness in 

specifically targeted markets. Components of the program will include the following:
 Proposal under the Small Community Air Service Development Program

 DOT Docket OST– 2013 – 0120 12

 Local print media advertising illuminating the new service. 

 Electronic and social media initiatives.

 A series of presentations at key civic organizations.

Plan for Self Sufficiency

MTJ understands that there can be factors that will adversely affect ridership on a new 

route. Therefore, it will be in close liaison with the airline to quickly identify any 

reduction in traffic and/or revenue growth on the new service.

1) MTJ and Colorado Flights Alliance have an extensive background in recruiting 

seasonal service and taking quick action when indicated to assure success.

2) This program is, at its foundation, a partnership with the airline. The Airport and 

Community will work to identify any areas or dynamics which can enhance ridership, 

and will be in on-going contact with the carrier.

3) In this regard, MTJ and Colorado Flights Alliance have access to local, regional and 

airline industry data and business intelligence. This includes sophisticated programs 

that track passengers by market, zip code and travel segment.

These will be used to support the carrier and provide input regarding matters such 

as scheduling shifts. Importantly, this new service will be operated with airliners 

capable of moving travel groups and their sports equipment. Colorado Flights 

Alliance will assure that this portion of the travelling public is attracted to the new 

service.
July 22, 2013 

Ms. Brooke Chapman, 

Associate Director 

MONTROSE COUNTY 

U 0 L 0 IL\ U 0 

ADMINISTRATION 

Small Community Air Service Development Program 

U.S. Department of Transportation 

8th Floor, Room W86-307 

1200 New Jersey Avenue SE, 

Washington D.C. 20590 

Dear Ms. Chapman: 

On behalf of the Montrose County Commissioners I want to express our County's unwavering 

support for the 2013 Small Community Air Service Development Grant proposal. Our 

organization realizes the benefit and importance of decreasing the higher than average airfares 

into our region and increasing access to the east coast. 

Increasing and expanding service will have a significant impact on stimulating our regional 

economy. This grant opportunity will provide additional resources to support our continuing 

efforts to provide a national and international conduit to the Western Region of Colorado. 

We are committed to the economic diversification of our region and expanding air service 

provides the economic impact that allows us to execute our diversification efforts. Our airport 

receives overwhelming community and regional support to mature our air service program and 

your support will strengthen our ability to that end. 

Thank you very much for your consideration of our grant submission, we truly appreciate it. 

Sincerely, 

~,d;C0S ~o;/. Eckert 

County Manager 

RC: lda 

Cc: Ronald Henderson, Chairman 

David White, Commissioner, 

Gary Ellis, Commissioner 

161 South Townsend Avenue, Montrose, CO 81401. Telephone: 970-249-7755 Fax: 970-249-7761 
July 26, 2013

Ms. Brooke Chapman,

Associate Director

Small Community Air Service Development Program

U.S. Department of Transportation

8th Floor, Room W86-307

1200 New Jersey Avenue SE,

Washington D.C. 20590

Re: Small Community Air Service Development Grant (SCASDG)

Dear Ms. Chapman:

I am writing on behalf of the Montrose Economic Development Corporation, (MEDC), its Board of Directors and

our business investor partners in support of the Montrose Regional Airport’s application for the 2013 Small

Community Air Service Development Grant.

The mission of the MEDC is to strengthen and diversify the economy for all of Montrose County. Montrose is

home to many primary employers who do business globally. In order for these companies to do business in our

community and remain competitive, they need diverse, dependable and affordable air service. As these

businesses have grown, so has their need for additional air travel. Currently flights are at capacity and rates are

high.

The 2013 SCASDG would allow Montrose Regional Airport to increase the availability of flights to the east coast

and that in turn should assist in keeping flights more affordable. Efforts such as this will help increase business

opportunities in our community which will benefit all citizens of Montrose County.

We strongly encourage you to make a favorable decision when considering the Montrose Regional Airport’s

application for the 2013 Small community Air Service Development Grant.

Respectfully,

Executive Director

Montrose Economic Development Corporation

100 Tessitore Ct. Suite A

Montrose, CO 81401

sandyh@MontroseEDC.org