# Proposal Under the Small Community Air Service Development Program

Docket: DOT DOT

- OST

- 2011

- 0119

Sponsoring Entity: Outagamie County Regional Airport

Dun & Bradstreet Number: 11

- 862

- 0140

2

- digit Congressional District Code: 08 August 2 , 2011**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 



# Table of Contents

Executive Summary

________________________________ __ 1
Air Service Overview

________________________________ __ 2
Summary of Current Service

________________________________ _______ 2 Recent Air Service Losses

________________________________ _________ 4 Unit ed ATW

- DEN

________________________________ ______________________ 6 Frontier ATW

- MKE

________________________________ _____________________ 6 Potential Impact on Fares

________________________________ _______________ 7 

### Efforts to Improve Air Service

________________________________ ______ 9 Air Service Development Studies / Meetings

_______________________________ 9 History of Cost Control and Innovation

________________________________ ___ 11 FBO

________________________________ ________________________________ 14 

# Previous 2009 Grant

________________________________ _ 14 Strategic Plan

________________________________ ______ 16

Goals

________________________________ _________________________ 16 Target Carrier Support

________________________________ ___________ 16 Market Analysis Study

________________________________ ___________ 16 Historical Traffic and Fares

________________________________ _____________ 18 Assumed Schedule

________________________________ ___________________ 18 Forecast

________________________________ ____________________________ 19 

### Funding Overview

________________________________ _______________ 19 Use of Funds / Timeline

________________________________ __________ 21
Revenue Guarantee

________________________________ ___________________ 21 Airport Fee Waivers / In

- kind

________________________________ ___________ 21 Marketing

________________________________ ___________________________ 21 

### Public/Private Partnership

________________________________ ________ 22 Funding Assurances

________________________________ ____________ 22 Milestones and Monitoring

________________________________ _______ 22 Sustainability

________________________________ ___________________ 23 Alternate Plan

________________________________ __________________ 23 Measure of Success

________________________________ _____________ 24 

# Conclusion

________________________________ ________ 25**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011**  

# Appendix A: Required Summary Information

______________ 26 Appendix B: Additional Required Materials

________________ 30
Top O&D Markets Passengers, Fares, Capacity

______________________ 30 Passenger and Schedule History by Carrier and Destination

___________ 30 Top Markets and Fares

________________________________ ___________ 31 

# Appendix B: Community Overview

______________________ 32
Top Local Companies

________________________________ ____________ 33 

# Appendix C: Lett ers of Support

_________________________ 37**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 1 

## With Frontier Airlines pulling out of ATW in September 2011, the community faces a 25% year

- over - year drop in capacity and the prospect of increased fares and leakage

. 

# Executive Summary

Outagamie Country Regional Airport (“ATW”) near Appleton, WI is the princip al airport for the Fox Cities region (eight cities including Appleton, Oshkosh and Neenah) of Northeast Wisconsin. The region is home to several major companies including Kimberly Clark, Oshkosh Corporation and Bemis Company.
Until recently, ATW has enjoy ed daily service to six network hubs, connecting the community to the world. However, in the last twelve months, ATW has lost United Airlines service to Denver (last flown in December 2010), as well as the recently

- announced cancellation
of Milwaukee serv ice on Frontier (last flight to operate in September 2011). Both services were well supported by the community and have been lost due to the impact of the economic downturn. Combined, these two cancellations will reduce capacity by 25% year

- over
- year (Oc tober 2011 vs. October 2010

–

see Exhibit 5 ). Further, Frontier Airlines was the only low cost carrier offering connecting service from ATW; their pullout creates the prospect of increased fares and leakage.
To prevent increases in fares and leakage, ATW needs to increase capacity and competition at the airport. The airport
, along with community leaders are committed to this objective, pledging more than
''''''''''' '''''''''''''''' dollars in cash and in

- kind contributions including '''''''''''''''''' cash from the community.

ATW , through work with Seabury APG consulting has identified service to ''''''''''''''''''''''''' ''''''''''''''''' ''''''' (“ ''''''''''' ”, “Target Service”) on ''''''''''''''''''''''' ''''''''''''''' ' (“Target Carrier”) as the pri me candidate to address the needs of the community. ATW is applying for a Small Community Air Service Development Grant (“SCASDP”) to help fund a revenue guarantee to offset the spool

- up costs and new market risk. Key benefits:

• Backfill lost capacity
, re duce loss of enplanements and prevent increases in leakage

• Main tain pressure on fares through increased competition

Long

- term success will be achieved through:

• Leveraging airport’s experience in timely and successful implementation of 200 9 SCASDP grant

• Re venue guarantee to secure initial service

• Robust marketing plan and fee waivers to support new service

• Support of more than ''''''''''' ''''''''''''''''' including '''''''''''''''''' of cash from the community

• Comprehensive route analysis forecasts indicates long

- term profitability

• Secondary option of securing non

- stop service to another carrier hub**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 2 

# Air Service Overview

Summary of Current Service

ATW has service to eight cities including flights into six airline hubs with connections to destinations around the world (see Exhibit 1 : ATW Route Map

– August 2011 ).



### Exhibit 1 : ATW Route Map

– August 2011

Allegiant’s service to Orlando

- Sanford, as well as Delta’s service t o its Memphis hub are operated on a
seasonal basis. Delta’s Memphis service was new for summer 2011, as of yet it is unknown if it will return in 2012. Frontier Airlines has announced they are withdrawing from ATW effective September 2011 (see
Exhibit 2 : Current Air Service Details

– August 2011 Schedule )**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 3 

### Exhibit 2 : Current Air Service Details

– August 2011 Schedule

Airline Destination Equipment Type Flights / Week Seats / Week

Delta Atlanta, GA Regional Jet 7 462

Delta Detroit, MI Regional Jet 33 1,650

Delta Memphis, TN Regional Jet 7 350

Delta Minneapolis/St. Paul, MN Regional Jet 33 1,746

Frontier Milwaukee, WI Regional Jet 19 703
Allegiant Las Vegas, NV Narrow

- body Jet 2 300
Allegiant Orlando

- Sanford, FL Narrow

- body Jet 2 300

United Chicago

- O'Hare, IL Regional Jet 39 1,950

Source: Diio Mi Internet

- Based Aviation Portal

Even with the impact of Frontier Airlines on pricing, ATW remains at a significant disadvantage to Milwaukee (“MKE”) and in general higher than Green Bay (“GRB”) (see Exhibit 3 : Current Fares ATW, GRB, and MKE to ATW’s Top Ten Destina tions ).



### Exhibit 3 : Current Fares ATW, GRB, and MKE to ATW’s T op T en Destinations ATW Higher / (Lower) Than Destination ATW MKE GRB MKE GRB Atlanta, GA $349 $212 $286 65% 22%
Denver, CO $340 $281 $321 21% 6%
Detroit, MI $449 $400 $457 12% (2%) Los Angeles, CA $313 $267 $330 17% (5%)

New York

- La Guardia, NY $279 $204 $257 36% 9%
Orlando, FL $274 $337 $302 (19%) (9%)
Minneapolis/St. Paul, MN $469 $204 $445 129% 5%
Phoenix, AZ $304 $246 $281 24% 8%
San Francisco, CA $358 $229 $278 56% 29%
Average of Top 10 $348 $265 $329 32% 6%

Source: Expedia fare quotes pulled July 21, 2011 for travel outbound on August 25, 2009 and return August 31, 2009; max 1 stop Seasonal Seasonal

Service ends in September 2011**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 4 Historical fares to ATW’s top O&Ds from ATW and peer markets (see Exhibit 4 : 2010 Historical Fares ATW, GRB, and MKE to ATW’s Top Ten Destination s ) reveals a similar disparity between ATW and MKE, driving significant passenger leakage.



### Exhibit 4 : 2010 Historical Fares ATW, GRB, and MKE to ATW’s Top Ten Des tinations

Source: DOT DB1B data via Diio Mi Internet

- Based Aviation Data Portal



## Recent Air Service Losses

Until recently, ATW has enjoyed daily service to six network hubs, connecting the community to the world.
H owever, i n the last twelve months, ATW has lost United Airlines service to Denver (“DEN”), last flown in December 2010; as well as the recently

- announced cancellation of MKE service on Frontier
, last flight to operate in September 2011

. Combined, t hese two cancellations will reduce capacity by 25% y ear
- over
year ( October 2011 vs. October 2010

– see Exhibit 5 : ATW Weekly Seats Year

- over
- Year, by Carrier )

.

As of this fall, ATW will be left with daily service to its four remaining hubs

– Atlanta, Chicago, Detroit, and Minneapolis

– supplemented by less

- than

- daily leisure flights to Las Vegas on Allegiant. This leaves a notable hole in the ATW route map, with flights to only one hub to the west of ATW (MSP, served by Delta). $134 $205

$103 $133

$102 $130 $109 $87 $115 $225

$141 $183 $161 $142 $148 $133 $191 $176 $261

$163 $187 $173

$139 $154 $157 $201

$175 +131%

+53% +44% +19% +36% +40%
+58% +27%

+28%

MSP 19.1 DEN 18.3 PHX 15.7 LGA 13.9 DTW 13.2 LAX 14.6 MCO 15.0 SFO 14.7 ATL 29.1

MKE GRB ATW Destination ATW PDEW**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 5 

### Exhibit 5 : ATW Weekly Seats Year

- over
- Year, by Carrie r

Source: DOT DB1B O&D Data via Diio M i Internet

- Based Aviation Data Portal

T he capacity loss at ATW is the second

- largest in the region, with only Wausau

– Central Wisconsin airport (CWA) losing a greater percentage of its capacity ( see Exhibit 6 : Weekly Seats Year

- over
- Year

– ATW and Peer Airports ).



### Exhibit 6 : Weekly Seats Year

- over
- Year

– ATW and Peer Airports

Source: Diio Mi Internet

- Based Aviation Data Portal - 12%

- 100%

Total - 25%

7,216 United 1,866

- 25% 5,428 300 300 Allegiant

2,488

Frontier 0 716 Delta 3,262 3,712

Oct

- 10 Oct

- 11



### 705 498

775 1,223 - 5%

1,398

ATW 17,396

CWA GRB 2,522 +3%

- 25% 2,606

- 13%

1,031 16,494

- 29% MSN MKE

Oct

- 10 Oct

- 11**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 6 

### United ATW

- DEN

United launched ATW

- DEN during the onset of the recession in March 2009 and just as fuel prices were starting to climb again. The community showed stong support for the market from the onset with load factors of 85% in the inial month and averag in g 80% over the life of the flight ( see Exhibit 7 : United ATW

DEN L oad F actor ) . Unfortuantely the combination of climbing fuel expense and recession dampened pricing kept the market from reaching profit forecasts and was discontinued in December 2010.



### Exhibit 7 : United ATW

- DEN L oad F actor

Source: T 100 data via Diio Mi Internet

- Based Aviation Data Portal



### Frontier ATW

- MKE ATW was the original headquarters for Midwest Express which was later merged into Frontier Airlines. The community had long supported the ‘hometown carrier’ and is very disappointed to see them go. ATW had three flights per day on the ERJ

- 135. Unfortuna tely with recent changes in Frontier Airlines’ strategy, the ERJ

- 135 is largely being pulled out of service from MKE, with daily flights on the aircraft dropping 81% year

- over
- year in October 2011 down to just 11 flights per day (see Exhibit 8 : Frontier (and Midwest) E135 MKE Departures per Day ). 80% 76% 86% 85% 88% 87% 85%

72% 79% 80% 72% 72% 75% 78% 84% 82% 89% 85% 84%
76% 83% 85%

May Jun Jul Aug Sep Oct Apr Nov Dec Jan 2010 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mar 2009**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 7 

### Exhibit 8 : Frontier (and Midwest) E135 MKE Departures per Day

Source: Diio Mi Internet

- Based Aviation Data Portal



### Potential Impact on Fares ATW air fares are already higher than the national average air fares for all communities. Year

- ending 4Q10, ATW’s average domestic fare was $176, well above the national average of $157, and m uch higher than the average domestic fare for MKE, at $122.

With the loss of Frontier, capacity to most O&Ds will be served only by Delta and United who will have 60% and 34% of the market respectively (see Exhibit 9 : Year

- over
- year ATW Seat Share by Carrier ). Allegiant will account for 6% of capacity with point

- to

- point less than daily service to Las Vegas and seasonally to Orlando. 

### 11 15 41

Oct Jan 2011 

### 40

Sep 

### 56 - 81%

51

41 51

Apr 

### 41 38 55

46

May 

### 44 51

Jun Mar Dec 

### 55

Jul Feb Feb Jan 2010 

### 55 55

Mar 

### 55

41

Nov 

### 55

Aug Oct 

### 55
50

Apr May Jun Jul Aug Sep**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 8 

### Exhibit 9 : Year

- over
- year ATW Seat Share by Carrier

Source: Diio Mi Internet

- Based Aviation Data Portal

The loss of Frontier as the only low cost carrier with connecting service could have a significant impact on average fares out of ATW. Currently
, O&Ds with connecting service on Frontier have a significantly lower average fare (as represented by the yeild curve in Exhibit 10 : Yield Curve from ATW

– markets served exclusively by Legacy Carriers vs. markets with Frontier competition over M KE ) than do markets where
Froniter does not offer service.



### Exhibit 10 : Yield Curve from ATW

– markets served exclusively by Legacy Carriers vs. markets with Frontier competition over MKE

Source: DOT DB1B data via Diio Mi Internet

- Based Aviation Data Portal

ATW Seat Share Oct 2010 ATW Seat Share Oct 2011

4% 10%

Delta Frontier
Allegiant

34% United 51% 34% 6%

United Allegiant

Delta 60%

100¢

90¢

250 200 80¢

70¢

60¢

50¢

40¢

30¢

20¢

10¢

0¢ 1,000 950 900 850 800 750 700 650 600 550 500 450 400 350 300 Yield to Markets with F9 service via MKE Yield to markets served only by Legacy Carriers**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 9 Passengers in the Appleton catchment have responded very positively to Frontier’s low

- fare service to MKE. To demonstrate this, compare two similar mark ets: Dallas and Houston. Both cities are approximately 1,000 miles from ATW, both are in the same part of the country, both are in the same order of magnitude of population, both with a healhty mix of business and leisure traffic. The air travel markets should be very similar, but statistics tell a markedly different story (see Exhibit 11 : ATW to DFW vs. IAH
Market Statistics )

. The ATW

- DFW market has 18% lower yeild s as a result of Frontier one

- stop service and DFW has lower leakage than does IAH, where people have higher incentive to drive to MKE for low
fares.



### Exhibit 11 : ATW to DFW vs. IAH Market Statistics ATW DFW ATW IAH DFW vs. IAH Stage 910 1,056 (14%) 2010 PDEW 12.4 5.3 134% 2010 OD Fare $186 $265 (30%) 2010 Yield 20.4¢ 25.1¢ (18%)

Source: DOT DB1B data via Diio Mi Internet

- Based Aviation Data Portal



## Efforts to Improve Air Service

Air Service Development Studies / Meetings ATW began active air service development in 2008. Key activities over the past five years include:

• Fall 2008: Engaged Seabury APG for air service development consulting including leakage study

• Fall 2008: Formed Community Travel Task Fo rce

• September 2008: Met with United Airlines in Chicago

o Secured ATW

- Denver service, launched March 2009

• February 2009: Met with ''''''''''''''''''''''' '''''''''''''''' '' '''''''''''''''''''''''' '''''''''''''' in ''''''''''''''''

• March 2009: Attended Network conference

• April 2009: Met with '''''''''''''''''''' ''''''''''''''''' in ATW

• May 2009: Met with Delta Air Lines in Atlanta**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 10 o Secured upgauge of all but one flight from turboprop to regional jet

o Secured flight timing changes requested by the community

• August 28, 2009: filed successful application for $150,000 SCASDP grant to s upport marketing efforts in the face of AirTran growth and Southwest launching at MKE

• Fall 2009: hosted multiple airlines for visits to ATW

• October 2009: met with '''''''''''''''''''''''' '''''''''''''' '' in '''''''''''''''''''

• February 2010: met with ''''''''''''''''' ''''''''''''''''' in '''''''''''''''''

• February 2010: attended Allegiant conference

• March 2010: attended Network conference

• May 2010: Met with ''''''''''''' ''''''' '''''''''''''' in '''''''''''''''''''

• June 2010: hosted a community Air Service Summit with top community leaders

• Fall 2010: hosted multiple airlines for visits to ATW

• Dec ember 2010: met with '''''''''''''''' '''''''''''''''' in ''''''''''''''''''

• February 20 11 : Met with '''''''''''''''''''''' ''''''''''''''''''' '' '''''''''''' '''''''''' ''''''''''''' in ''''''''''''''''

• March 2011: attended Network conference

• May 2011: attended Allegiant conference

• June 2011: attended JumpStart conference

Since 2008, ATW has met and maintained contact with virtually every legacy and low

- cost carrier in the United States (including the Target Carrier). Measured by share of July 2011 domestic ASMs, the carriers ATW has met with represent 92% of domestic ASM s (See Exhibit 12 : July 2011 Domestic
Schedule

– ASM Share by Carrier (Top 10) ). Of course, ATW is open to meeting with the carriers who are not on this list, however, ATW would likely not be a fit in those carriers’ business models.**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 11 

# ATW remains the lowest landing fee airport in the
State of Wisconsin

- Wisconsin State Journal Exhibit 12 : July 2011 Domestic Schedule

– ASM Share by Carrier (Top 10)

Rank Carrier Weekly Flights Weekly Seats (000) Weekly ASM (mil) ATW Contact? Domestic ASM Share
1 DL 38,480 3,690 2,922 X 20%
2 WN 23,508 3,202 2,166 X 15%
3 AA 21,398 2,190 2,074 X 15%
4 UA 22,210 1,810 1,695 X 12%
5 US 21,659 1,939 1,381 X 10%
6 CO 13,895 1,209 1,235 X 9%
7 B6 4,434 584 675 X 5%
8 AS 5,193 595 554 4%
9 FL 5,302 638 510 X 4%
10 F9 3,585 381 310 X 2%

14 G4 1,018 153 138 X 1%

Source: Diio Mi Internet

- Based Aviation Portal



### History of Cost Control and Innovation ATW has long believed that a core aspect of airport management and air service development is to remain fiscally conservative

– provide a quality passenger and operational experience while keeping expenses as low as possible for ca rriers. ATW remains the lowest landing fee airport in the State of Wisconsin as reported by the Wisconsin State Journal. Since 2001, ATW has provided nearly $ 7.6 million dollars to airlines as a “competitive discount” to airlines, dollars that would have otherwise gone into airport

reserves.

The 2011 budget forecasts the terminal will be debt free, thereby allowing ATW to continue its aggressive partnering with airlines.

Always cognizant of keeping carrier operating costs low, the airport has engaged in many creative ways to market and improve the customer experience that have involved minimal cash outlay. Examples
include:**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 12 • Aggressively pursuing non

- traditional airport revenues such as land leases and business development

o Expanded hang a r lease with Gulfstream

o Flight school

o Tech. fire program

o General Aviation is up 9% in 2011

o Cargo is up 34%

 FedEx flight added

o Industrial Park

• Partners h ip with local and regional chambers exchanging advertising in the airport with membership and advertising in publicati ons

• Partnership with local hotel to provide upgraded furniture for the airport lobby in exchange for being able to brand the area

• Community interaction program

- representatives from the airport have gone into the community on a grass roots campaign and hav e become members of many area organizations such as the Fox Valley Economic Development Partnership, Fox Valley Chamber, Leadership Fox Cities, New North and Learning for Life to name a few

• “Turkeys and Ham” is a holiday promotion that is advertised on Cumulus radio asking the community to bring in food donations, especially turkeys, chickens and hams for the holidays.
Donors are entered to win awards of $500 on one of the airlines serving A TW. The entire airport
staff then delivers the donations to a local food kitchen

• ATW is proud to be the home airport of “Old Glory Honor Flight” a national organization focused on sending WWII Veterans to their memorial in Washington DC. The entire airport staff volunteers
to make their mission a success

• Uniform program for staff and customer service training for all airport employees and touch points of passengers. These programs are important to ensure ATW is in

- tune with passengers and provides a great experience, which in

- turn promotes repeat usage of the airport. ATW has also implemented a new Mission and Vision statement for the airport

• Partnered with the local baseball stadium in a creative advertising campaign in which each parking lot has been si gned with an airline logo to designate where you have parked such as the Delta lot or the Allegiant lot; providing exposure for ATW and value add to incumbent carriers**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 13 • Fun promotions with Allegiant Air, including the Orlando Adventure

• Media events at th e airport which are well

- attended by the community and media, generating strong word

- of

- mouth. Examples include:

o Milk and cookie day at the airport for increased seats on
Midwest

o Big parties for the announcement of service to Las Vegas and Orlando by Alle giant Air

o Celebrated the addition of the Denver launch with an event including Denver omelets

o Elvis was at the airport for the Memphis Service announcement and the community enjoyed Peanut Butter and Banana Sandwiches and a life

- size Elvis tribute guitar c ake

• Travel agency outreach

– delivered plants with pots branded with an airport message

• Recently added customer amenities include:

o Added food behind the security checkpoint and upgrading existing food in general

o Free WI

- FI

o Free baggage carts

• Installed pas senger feedback stations to generate new ideas and quickly identify passenger issues

• Implemented innovative new airline lease structure to further support commitment to lowering airlines
fees

• New rental car leases and an additional rental car company to im prove non
- airline revenues

• Won grants for a solar heating system to reduce the airport’s carbon footprint and the terminal heating cost. Part of overall effort by the airport to become more efficient and environmentally friendly

o Green efforts are tracked real

- time on the website and in the airport (see screen shot)**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 14 

### FBO In response to concerns expressed by scheduled carriers and other airport users, in October 2010 ATW took over the airport’s fixed base operator (“FBO”), renaming it the Platinum Flight Center. Running the FBO allows ATW the flexibility to charge competitive rates on services
such as into

- plane, and t o use the FBO as part of the incentive mix to
attract new service.



# Previous 2009 Grant

The current grant application represents a new project and is unrelated to the grant that ATW won in 2009. The 2009 grant was for $150,000 in marketing money to assist ATW in targeting leakage in the face of a strong competitive threat in MKE
, as Southwest Airlines was launching service and AirTran was growing dramatically ( see Exhibit 13 : Year

- over
- year Capacity at MKE ).

Source: Diio Mi Internet

- Based Aviation Portal

ATW utilized the 2009 SCASD grant with an initial market research study
which revealed there was a low awareness of the services offered at ATW. Other findings included thoughts of inconvenience, high prices, and a mixed message in advertising. From that study ATW analyzed its advertising message and created a crisp and clear design concept that reflects the airports perceived shortcomings revealed in the research
process.

The Airport then rolled out the “Quick, Close
, Convenient” Campaign

. 5,857 0 2,113 5,349

5,499 1,624 4,787 5,231

- 6%

17,141 Midwest

+29% +127%

- 2%

Total 13,319 Other Southwest AirTran

Dec

- 09 Dec

- 08 

### Exhibit 1 : Year

- over
- year Capacity at MKE

Exhibit 2 : Sample Advertising**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 15 2009 66% 2008 61%

66% 64% 2010

62% 0 60% 58% 63% Upon completi on of the design, the airport purchased local media to create awareness by web site ads, billboards, television, print, and radio.

The same market research study was performed at the end of the SCASD and some of the findings are:

• Virtually 100% of Applet on
- area travelers had seen or heard the ads

• Interviewees were highly aware of the “Quick, Close, Convenient” message

• Message very effective in getting trial

• Respondents also answered very favorably to using ATW in the future

The goal of the 2009 grant was to reduce the impact on leakage of the fare war and growth in low cost service at MKE. The grant was clearly a success, with ATW regaining four percent of the passengers from its
natural catchment area.

However, t he recent loss of one quarter of ATW capacity threatens the gains made in the last two years

– as passengers are faced with fewer competitive options from their home airport; they are more likely to
undertake the drive to MKE.

Source: Seabury APG analysis of MIDT booking and ARC ticketing data

Recapturing leakage is a battle of passenger perception, which can take a long time to alter. Lower fares and greater competition have taught many of ATW’s passengers to drive two ho urs down Route 41 to
MKE. For passenger s to unlearn that lesson, it takes repeated observations that there are good service options available from ATW at reasonable fares.

Winning the current grant application would, then, not only help ATW win new service, but would build on the investment the Department of Transportation has already made in the community. 

### Exhibit 3 : Leakage from ATW Natural Catchment Area**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 16 

# Strategic Plan

The strategic plan calls for the Target Carrier to add service from ATW to the Target Market , stemming the loss of capac ity in 2010, and help ing maintain the momentum ATW has built in retaining passengers
from its own natural catchment area. The grant would be added to the private funds raised by ATW, to mitigate start

- up risk and spool

- up costs to the Target Carrier

.



## Goals

Appleton has two primary goals in seeking this SCASDP grant, both of which would be fulfilled by the strategic plan:

• Backfill lost capacity, reduce loss of enplanements and prevent increases in leakage

• Maintain pressure on fares through increased com petition



## Target Carrier Support

ATW has been to the headquarters of the T arget C arrier in September 20 09 and February 2011. A s recently as the meetings at the JumpStart 2011 conference in June, the Target Carrier confirmed it
remains interested in the T arget Service. Winning the grant would make the Target Market a significantly less risky proposition for the Target Carrier , increasing the likelihood that the community would be able to
convince the airline to initiate service. Even with conservative as sumptions around passenger and fare
stimulation , the market is forecast to generate over ''''''''''''' ''''''''''''''''' ''''''''''''''' annually by the third year of
service.

The risk, however, lies in the initial service launch. In its first year, the Target Market is forecast to generate just a ''''''''''' s ystem m argin, which is lackluster, even in the best of times. By the second year, however, the s ystem m argin is forecast at nearly '''''''''''

.



## Market Analysis Study

The market analysis was performed by Seabury APG (“SAPG”), a leading aviation consulting firm. SAPG used its proprietary forecasting tool, APGNet

– an industry

- leading QSI

- based model. This model is used internally to make route decisions by a number of carriers in America and around the world.**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 17 Study methodology

– carrier / hub selection:

• SAPG used APGNet to analyze the top 50 unserved market opportunities for each of six US carriers, then ranked the results based on forecast System Revenue

– the Target Carrier service

to the Target Market ranked as the highest realistic option

.

• From this study it was found that the Target Carrier service on the Target Market would have the second highest potential system revenue of new service possibilities. Multiple ot her hub carrier services showed potentially viable in the study.

Study methodology

– revenue forecast:

• Market sizes were created using the most recent DOT DB1b O&D data for 1Q10 through 4Q10, as processed in Seabury APG’s QSI based forecasting model APGNe t

o The following adjustments were made to the market sizes:

o Local Target Market passengers stimulated +15%

o Flow passengers unstimulated

o 2013 and 2014 revenue growth based on IMF forecasted U.S. Gross Domestic Product growth, constant prices. Updated Octobe r 2010. 2013 = 2.902%, 2014 = 2.754%

o 2013 and 2014 passenger growth assumed at +2.0% annually

o Target Carrier’ s local fare reduced 15%

o Accounted for price elasticity and carrier O&D share gap estimates

o All flights forecast on '''''''''''''''' aircraft with '''''' seats

o T arget Market forecast with twice

- daily service

Study methodology

– revenue forecast:

• Costs developed from analysis of Target Carrier’s DOT Form 41 data (total and aircraft

- specific), and have been adjusted for stage length

• 2013 and 2014 CASM growth based on IMF forecasted U.S. Gross Domestic Product growth, constant prices. Updated October 2010. 2013 = 2.902%, 2014 = 2.754%

• Beyond c osts (ie the cost associated with the passengers that connect beyond the hub ) assumed
at 20% of b eyond r evenue**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 18 

### Historical Traffic and Fares

Traffic between ATW and the Target Market has increased from '''''' PDEW in 4Q 2008 to ''''' in 4Q 2010
as fares have declined ''''''''' in the same time. Adding non

- stop service will extend this effect into the
future.



### Exhibit 16 : Target Market PDEW and O&D Fare Trends

Source: DOT DB1B O&D Data via Diio Mi Internet

- Based Aviation Data Portal



### Assumed Schedule Two daily round

- trips: Departure Arrival Segment Time Time ''''''''''' '''''' ''''''''''''' '''''''''' ''''''''''' ''''''' '''''''''' ''''''''''' '''''''' ''''''''''' ''''''''''' '''''''' ''''''''''''' ''''''''''' '''''''

'' '' '' ''''''''''' ''''' '''''''''''' ''''''''' '' ''''''''' '''''''' ''''''''''''' ''''''''''' '''''''' '''''''''' ''''''''' '''''' ''''''''''' ''''''''''' '''''''**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 19 

### Forecast

I ncluding the effect of spool

- up, the route is expected to lose '''''''''' million on a segment basis in its first
year , however, contribution from passengers connecting beyond the hub will generate system earnings of

''''''''''' (a margin of '''''''''''' ) . As the market comes into its own and spool

- up ends, the forecast improves considerably, with a system profit of nearly ''''''' ''''''''''''''' (a '''''''''''''' margin) in year 2 , and over '''''' ''''''''''''''' (a

'''''''''''''' margin) by year 3

.



### Exhibit 17 : Forecast ''''''''''''' ''''''''''''' '''''' '''''''''' ''' ''''''''' ''' '''''''''' '''

''''''''''''''''' '''''''''''''''''''''' ''''''''''''

'''''''''''''' '''''''''''''''' ''''''''''''''''' '''''''''''''''' '''''''''''''''''''''' ''''''''''' '''''''''''' ''''' ''''''''''''''''' '''''''''''''''''' ''''''''''' ''''''''''''''''''''''' ''''''''''''''''''''''' '''''''''''''''''' '''''''''''''''' '''''''''''''''''

''''' '''''''''''''''' ''''''''''''''''''''''''' ''''''''''''''''''''' ''''''''''''''' '''''''''''''''''' '''''''''''''''' '''''''''''''''''

''''''''''''''''''''''' ''''''' ''''''''''''''''' ''''''''''''''''''' '''''''''''''' '''''''''''''''' ''''''''''''''''''' '''''''''''''''' '''''''''''''' ''''''''''''' ''''''''''''''

''''''''''''''''' '''''''''''' ''''''''''''''''' '''''''''''' ''''''''''''''''''' '''''''''''''' ''''''''''''''' ''''''''''''''' ''''''''''''''''' ''''''''''''''''' '''''''''''' ''''''''''''''''''''' '''''''''''''''' ''''''''''''' ''''''''''' '''''''''''''

''''''''''''''''' ''''''''''''''''''''''''''''' ''''''''''''''' ''''''''''''''''' ''''''''''''''''' '''''''''''''''''

''''''''''''' ''''''''''''''''' '''''''''''''''''''' ''''''''''''''' '''''''''''''''' ''''''''''''''''''' ''''''''''''''''''' ''''''''''''''''''' '''''''' ''''''''''''''' ''''''''' '''''''''''''''''' ''''''''''''''''

''''''''''''''''' ''''''''''''''' '''''''''' ''''''''''' ''''''''''''

'''''''''''' '''''''''''''''' ''''''' '''''''''' ''''''''' '''''''' ''''''' '''''''''''' ''''''''''''''' ''''''''''''''''' ''''''''''''''' ''''''''''''''''' ''''' ''''''''''''' ''''''''''''''' ''''''''''' '''''''''''' '''''''''' ''''''''''''''''''''' '''''''''''''''''''' '''''''''' '' '''''''''''' '''''''''''''''' ''''''''''''''' '''''''''''''''''''' ''''''''''''''''' ''''''''''' ''''''''''''''''' ''''''''''''''''' '''''''''''''''''



## Funding Overview

As detailed in Exhibit 18 : Sources and Uses of Funds , to secure service from the Target Carrier the community is committing '''''''''''''''''' in cash towards the revenue guarantee, and the airport will spend

''''''''''''''''''''''' in marketing. Additionally ATW will provide an additional ''''''''''''''''''''' of funding with airport fee**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 20 waivers and FBO in

- kind contributions including waived / discounted fuel flowage and handling rate

. ATW is requesting a ''''''''''''''''' ''''' grant to supplement local revenue guarantee funds.



### Exhibit 18 : Sources and Uses of Funds Community Airport DOT Total Fund Uses Cash In

- Kind Cash In

- Kind Grant
Marketing '''''''''''''''''''''''' '''''''''''''''''''''' Fee Waiver s / FBO In

kind Contributions ''''''''''''''''''''''' ''''''''''''''''''''''

Revenue Guarantee ''''''''''''''''' $ 825 ,000 '''''''''''''''''''''

Total '''''''''''''''''' ''''''''''''''''''''''''''' $ 825 ,000 '''''''''''''''''''''''''''''

A broad range of local government and businesses have pulled together to fund the local cash contributions for the revenue guarantee:



### Exhibit 19 : Sources of Community Cash Contributions

''''''''''''''' '''''''''' '''''''''''''''''''''''

''''''''''''''' '''''''''''''''''''''''''' ''''''''''''''''''

'''''''''''' '''''''''''''''''''''''' '''''''''''''

''''''''''''''''''''' '''''''''''''''''' ''''''''''''''

''''''''' ''''' ''''''''''''''''''' ''''''''''' '

'''''''''' '''''''''''''' ''''''''''''''''''''''' '''''''''''''''

''''''''' ''''''''''''' ''''''''''''''''''''' '''''''''''''''''''''''''''''''' '''''''''''''''''''''''' ''''''''''''''

'''''''''''''''''''''''''''''''''''' '''''''''''''''

'''''''''''''''' ''''''''' '''''''''''''''''''''''''' '''''''''''''

'''''''''''''''''''''' ''''''''''''''''''''''''''' '''''''''''''

'''''''''''''''''''''''''' ''''''''''''''''' '''''''''''''''

''''''''''''''' '''''''''''''''''

'''''''''' ''''''' ''''''''''' ''''''''''''''

'''''''''''' '''''''''''''''**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 21 

## Use of Funds / Timeline

Revenue Guarantee Specific terms of the revenue guarantee will depend on negotiations with the target carrier. It is anticipated that the guarantee will be for one year, with payouts determined by monthly/quarterly carrier financial performance with reve nue in excess of targets being carried forward to future periods.



### Airport Fee Waivers / In

- kind Airport funded fee waivers
, and FBO in

- kind contributions including waived / discounted fuel flowage and handling rate , will be offered for a period of two yea rs.



### Marketing The marketing will be split with '''''''''''''''''''''''' in year one and ''''''''''''''''''' in year two. These funds are incremental new money on top of current airport marketing budget. Historically the airport has been able to leverage its local buying power to more than double the marketing value. The marketing mix will be determined in conjunction with the Target Carrier. In the past ATW has used an extensive
mix of traditional and social media campaigns to support new service including:

• Newspaper print ads

• Magazine print ads (consumer and business)

• Billboards

• Radio ads and promotions

• Television ads

• F acebook promotions

• Internet ads

In addition to the marketing funds, ATW will supply at no cost to the Target C arrier:

• Press conference for route announcement

- guaranteed coverage by large regional media outlets

• Corporate & leisure sales blitz

• Hosted ev ent for route launch

• Support with the airport’s ongoing marketing, social media and website**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 22 

## Public/Private Partnership

In 2008 ATW formed a c ommunity Travel Advisory Group represented by major companies and entities in the region. The group has been a c ritical piece of recent air service development efforts. In addition to providing strong feedback and direction on the needs of the community, the group has been active in recruiting airlines and has shared critical travel sales data. Many of the members maintain strong ties to airline sales staff, lobbying for the common needs of the community. The continued support from the community is demonstrated by the attached letters of support for this grant application.



## Funding Assurances

ATW will be the coordinator between the public/private partners for the DOT grant. As well, ATW will take responsibility for the grant funds.



## Milestones and Monitoring

ATW has established realistic timelines for implementing the plans presented here. Exhibit 20 establishes the key milestones. Should Target Carrier not start service by June 2012, then the airport will seek an alternate carrier to provide service t o meet the grant application goals. ATW will have ultimate responsibility for monitoring the successful implementation of the grant program. It will partner with the Travel Advisory Group to coordinate the public / private contributions. Key areas which w ill be monitored
include:

• Detailed project timelines and budgets

• Marketing plan implementation

• Monitoring flight performance relative to targets in the revenue guarantee using: airport collected enplanement data, internal carrier data, DOT DB1B data and DO T T

- 100 data**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 23 

### Exhibit 20 : Sample Schedule (Actual dependent on grant announcement / contract dates)



## Sustainability

ATW and the community are keenly aware that the Target Service must be sustainable without financial support. A marketing study from Seabury APG has validated that the market has demonstrated the long

term viability of the market. Additionally, ATW is offering two years of fee waivers and in

- kind support to help maintain the service beyond the one year revenue gu arantee ; and ''''''''''''''''''' of the marketing funds will be used in year two to continue to promote awareness in the community

.



## Alternate Plan

While ATW has confirmed the Target Carrier ’s interested in serving the market , it recognizes that the dynamics of the a irline industry and the economic conditions are such that a deal may not ultimately be reached for the service proposed in this document. Should the Target Carrier not announce service to
ATW by June 2012 , the airport will seek an alternate carrier to prov ide hub service to meet the grant application goals ; understanding that such service would not be competing in a market where ATW currently has service

. 2011 2012 2013
8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 Activity

Status Report to DOT Implementation Phase

Project Tracking Design Phase

Revenue Guarantee Marketing campaign Start of Service

Advertising Campaign Announcement of Service Grant Award File Grant Application**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 24 

## Measure of Success

The ultimate success for the program will be securing profitable new service. The measures of success
will then be:

• Maintain current leakage

– as measured by ticket lift and other studies

• Increasing enplanements at ATW, adjusted for lost capacity

– as measured by airport data

• Success of Target Carrier

– measured through internal carrier data and ultimately their continued and hopefully growing service at ATW**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 25 

# Conclusion

Outagamie Regional Airport respectfully request s a grant in the amount of ''''''''''''''''''''' to fund a one
- year revenue guarantee and part of a two

- year program including cost abatements and marketing support to
address the spool

- up in revenue and costs associated with the Target Carrier opening a new market

. ATW believes it should be given priority consideration f or the Small Community Air Service Program having met the criteria as set forth in the statue as follows:

• Air fares are higher than the national average air fares for all communities ;

 Year

- ending 4Q10, at $1 76 ATW’s average domestic fare was well ab ove th e national average of $1 57, and much higher than the average domestic fare for MKE, at $122

• the community or consortium will provide a portion of the cost of the activity from local sources other than airport revenue sources;

 The community has pledged ''''''''''''''''''''' of cash for the revenue guarantee

• the community or consortium has established or will establish a public

- private partnership to facilitate air carrier service to the public;

 Travel Advisory Group

• the assistance will provide material benefits to a br oad segment of the traveling public, including business, educational institutions, and other enterprises, whose access to the national air transportation system is limited ; and

 With a 25% decrease in year

- over
- year capacity and losing one of three hub carr iers,
back

- filling capacity and adding competition is critical to maintain current levels of leakage. Securing new hub service provides benefits to the entire ATW community including economic development and increased productivity. All members of the ATW community benefit, as indicated by the strong number of letters of support

• the assistance will be used in a timely manner.

 ATW has provided a detailed plan which is ready to launch**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 26 

# Appendix A: Required Summary Information

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

Docket: DOT DOT

- OST

- 2011

- 0119

Designated Legal Sponsor Point of Contact:
Outagamie County Regional Airport
W6390 Challenger Drive, Suite 201
Appleton, WI 54914

Contact: Mr. Marty Lenss, Airport Director
Phone: (920) 832

- 5267
Email : lenssmp@co.outagamie.wi.us

Sponsoring Entity: Outagamie County Regional Airport

Dun & Bradstreet Number: 11

- 862

- 0140

2

- digit Congressional District Code: 08
Employee Identification Number or Tax ID: 39

- 6005724**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 27 

# A. Applicant Information

Not a Consortium Community now receives EAS subsidy

Interstate Consortium Intrastate Consortium
Community previously received a Small Community Grant
If previous recipient, date of grant:

_____ 2009

____ expiration date of grant:

_____ None

____


# B. Public/Private Partnership

Public:

1. Outagamie County Regional Airport

Private:

1. Travel Advisory Group



# C. Project Proposal

Marketing Upgrade Aircraft New Route

Travel Bank Service Restoration Subsidy
Surface Transportation Regional Servic e Revenue Guarantee

Launch New Carrier Start

- up Cost Offset First Service
Study Secure Additional Service Other (specify)



# D. Existing Landing Aids at Airport

Full ILS Outer/Middle Marker Published Instrument Approach

Localizer Othe r**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 28 

# E. Project Cost

L INE D ESCRIPTION S UB T OTAL T OTAL A MOUNT

1 Federal amount requested 825 ,000

2 State cash financial contribution 0

Local cash financial contribution

3a Airport cash funds '''''''''''''''''''

3b Non

- airport cash funds '''''''''''''''''

3 Total local cash funds (3a + 3b) '''''''''''''''''''''

4 TOTAL CASH FUNDING (1 + 2 + 3) '''''''''''''''''''''''''

In

- Kind contribution

5a Airport In

- Kind contribution** '''''''''''''''''''

5b Other In

- Kind contribution** 0

5 TOTAL IN

- KIND CONTRIBUTION
(7a + 7b) '''''''''''''''''''

6 TOTAL PROJECT COST (4 + 8) '''''''''''''''''''''''



# F. In

- Kind Contributions**

For funds in lines 7a (Airport In

- Kind contribution) and 7b (Other In

- Kind contribution), please describe the source(s) of fund(s) for each.

'''''''''''''''''''''''' : A irport fee waivers and FBO in

- kind contributions including waived / discounted fuel flowage and handling rate**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 29 

# G. IS THIS APPLICATION SUBJECT TO REVIEW BY STATE UNDER EXECUTIVE ORDER 12372 PROCESS?

a. This application was made available to the State under the Executive Order 12372 Proc ess for
review on (date) _____________.
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.



# H. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT? (IF “YES”, PROVIDE EXPLANATION)

No Yes (explain) _____________________________________________**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 30 

# Appendix B : Additional Required Materials

Top O&D Markets Passengers, Fares, Capacity

Exhibit 21 : Year

- end 4Q10 O& D Statistics (Pax are per day each way)

Rank Destination Pax Fare N/S Deps/Day Seats/ Day Notes

1 Las Vegas, NV 66.44 $122 0.39 59.1 G4 operates less

- than

- daily 2 Orlando

- Sanford, FL 32.63 $83 0.24 35.3 G4 operates seasonally 3 Atlanta, GA 29.15 $175 0.95 57.9 4 Minneapolis/St. Paul, MN 19.07 $201 4.56 223.6 5 Denver, CO 18.39 $157 0.81 40.9 UA operated from Mar 09 to Dec 10 6 Phoenix, AZ 15.63 $154

- - 7 Orlando, FL 15.00 $139

- - 8 San Francisco, CA 14.67 $173

- - 9 Los Angeles, CA 14.64 $187

- - 10 New York

- La Guardia, NY 13.95 $163

- - 11 Detroit, MI 13.21 $260 4.16 220.9 12 Philadelphia, PA 12.73 $168

- - 13 Seattle/Tacoma, WA 12.63 $187

- - 14 Dallas/Fort Worth, TX 12.43 $186

- - 15 Milwaukee, WI 12.35 $56 2.65 105.1 F9 will pull service in Sep 11 16 Tampa, FL 11.09 $136

- - 17 Washington

- National, DC 10.58 $148

- - 18 Fort Myers, FL 9.78 $129

- - 19 Newark, NJ 9.42 $196

- - 20 Boston, MA 8.98 $150

- - Total All O&Ds 715.01 $190 18.82 1,016.1

Source: DOT DB1B O&D Data via Diio Mi Internet

- Based Aviation Data Portal



## P assenger and Schedule History by Carrier and Destination

Exhibit 22 : Airline and Destination Onboards History Airline Destination 2004 2005 2006 2007 2008 2009 2010 Allegiant Las Vegas, NV

- - - - 5,302 19,721 19,794 Allegiant Orlando

- Sanford, FL

- - - - 1,530 10,138 11,492 Frontier Milwaukee, WI 26,387 30,665 31,960 36,146 33,420 25,807 21,989 Delta Detroit, MI 43,635 43,018 43,367 44,781 43,213 50,541 61,069 Delta Minneapolis/St. Paul, MN 54,773 52,270 53,316 49,126 47,743 52,099 55,748 Delta Atlanta, GA 27,320 37,768 37,198 38,048 29,343 23,538 18,364 United Denver, CO

- - - - - 11,139 11,960 United Chicago

- O'Hare, IL 96,859 98,969 87,008 85,208 67,770 72,510 67,425**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 31 Source: DOT T

- 100 via Diio Mi Internet

- Based Aviation Data Portal



### Exhibit 23 : Airline and Destination Departures History Airline Destination 2004 2005 2006 2007 2008 2009 2010 Allegiant Las Vegas, NV

- - - - 38 142 144 Allegiant Orlando

- Sanford, FL

- - - - 13 82 86 Frontier Milwaukee, WI 1,704 1,883 1,863 1,783 1,311 971 965 Delta Detroit, MI 1,419 1,394 1,385 1,388 1,257 1,278 1,514 Delta Minneapolis/St. Paul, MN 1,686 1,787 1,697 1,604 1,724 1,634 1,663 Delta Atlanta, GA 812 1,068 1,032 983 722 538 346 United Denver, CO

- - - - - 269 297 United Chicago

- O'Hare, IL 2,030 2,126 2,318 2,409 2,092 1,860 1,837

Source: DOT T

- 100 via Diio Mi Internet

- Based Aviation Data Portal



## Top Markets and Fares

Exhibit 24 : Top 20 Markets Ranked on Passengers, YE 4Q10

Rank Destination Local Passengers / Day Each Way Local One

Way Fare Currently Has Non

Stop Service? 1 Las Vegas, NV 66.44 $122 Yes 2 Orlando

- Sanford, FL 32.63 $83 Yes 3 Atlanta, GA 29.15 $175 Yes 4 Minneapolis/St. Paul, MN 19.07 $201 Yes 5 Denver, CO 18.39 $157 No 6 Phoenix, AZ 15.63 $154 No 7 Orlando, FL 15.00 $139 No 8 San Francisco, CA 14.67 $173 No 9 Los Angeles, CA 14.64 $187 No 10 New York

- La Guardia, NY 13.95 $163 No 11 Detroit, MI 13.21 $260 Yes 12 Philadelphia, PA 12.73 $168 No 13 Seattle/Tacoma, WA 12.63 $187 No 14 Dallas/Fort Worth, TX 12.43 $186 No 15 Milwaukee, WI 12.35 $56 Yes* 16 Tampa, FL 11.09 $136 No 17 Washington

- National, DC 10.58 $148 No 18 Fort Myers, FL 9.78 $129 No 19 Newark, NJ 9.42 $196 No 20 Boston, MA 8.98 $150 No

Source: DOT DB1B data via Diio Mi Internet

- Based Aviation Data Tool
*Note: Frontier will discontinue Milwaukee service in September 2011**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 32 

# Appendix B: Community Overview

The Appleton metro region is #3 in Wisconsin when ranked by both population and wealth

. 

### Exhibit 25 : Map of Eastern Wisconsin Exhibit 26 : Wisconsin Demographics

Data notes: Black dots indicate population concentration

— larger dots = more people

Source: U.S. Census Bureau; Appleton metro market includes Oshkosh and Neenah

ATW sits in the middle of the economic engine of Northeast Wisconsin and is one of the top 50 manufacturing regions in the nation. The population base has steadily increased and is forecasted to
i ncrease 15.6% through 2020. Employment and the labor force have increased 5.5% from 2000

- 2007 50 mile radius 1.0M people 100 mile radius 3.7M people Metro Market Population (in 000s) Average Household

Income

Milwaukee 1,549 $70,010

Madison 562 $74,844
Appleton 382 $6 5,968 Green Bay 303 $64,806

Wausau 131 $64,585**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 33 

## Top Local Companies

Exhibit 27 : Map of Key ATW Corporations

Corporate Profiles

Ariens Company is a manufacturer of quality lawn products including zero

- turn mowers, tractors, walk

- behinds, edgers, tillers, and string trimmers. In addition to lawn products, Ariens produces the number one sno

- thro brand worldwide with Compact S n ow Throwers,
Deluxe S now Throwers, Deluxe Track Snow Throers, Professional Snow Throwers and Pro

- Track Snow Throwers. Ariens Company also owns the following outdoor power equipment/lawn products brands: Gravely, EverRide, Great Dane, Gravely Turf, National Mower, Locke, Stens and Bynorm.**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 34 Bemis Company, Inc. is a worldwide supplier of flexible packaging and pressure sensitive materials used by leading food, consumer products, and manufacturing companies. Our innovative and technologically advanced use of material science

resu lts in packaging and adhesive solutions that solve the varied and complex product needs of our customers. With 61 facilities in 11 countries, we’re poised to serve customers around the globe.

Kimberly

- Clark is a leading global health and hygiene company employing nearly 53,000 people worldwide and posting sales of $19.4 billion in 2008. Headquartered in Dallas, Texas, with operations in 35 countries, Kimberly Clark’s global brands are sold in more than 150 countries. Every day, 1.3 billion people trust Ki mberly

- Clark products and the solutions they provide to make their lives better. With well

- known family care and personal care brands such as Kleenex, Scott, Andrex, Huggies, Pull

- Ups, Kotex, Poise and Depend, we hold the No. 1 or No. 2 share position glob ally in more than 80 countries.

Thrivent Financial for Lutherans is a not

- for

- profit, Fortune 500 financial services membership organization helping approximately 2.6 million members achieve financial security and give back to their communities. Thriven t Financial and its affiliates offer a broad range of financial products and services including life insurance, annuities, mutual funds, disability income insurance, bank products and more. As a not

- for

- profit organization, Thrivent
Financial creates and s upports national outreach programs and activities that help congregations, schools, charitable organizations and individuals in need.

Appleton Paper creates product solutions through its development and use of coating formulations, coating applications and encapsulation technology. The Company produces carbonless, thermal, security and performance packaging products . Appleton, headquartered in Appleton, Wisconsin, has manufacturing operations in Wisconsin, Ohio, Pennsylvania, and Massachusetts, employs a pproximately 2.200 people and is 100 percent employee

- owned.

Voith Paper is a division of the Voith Group and the leading partner to and a pioneer in the paper industry. Thanks to continuous innovation, Voith Paper optimizes the paper production process , focusing on the development of resource

- saving products to reduce the consumption of energy, water and fibers. Voith was founded on January 1, 1867 and has set**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 35 new standards in the fields of paper, energy, mobility and service. With annual sales of EUR 4 .9 billion, 43,000 employees and more than 290 locations worl dwide, Voith is one of the largest family

- owned companies in Europe.

Neenah Paper

- For over 100 years, Neenah Paper has been an innovative leader in the creation and manufacturing of premium an d specialty papers. Neenah brings state

- of

- the

- art technology to its signature brands, CLASSIC, ENVIRONMENT, STARWHITE, NEENAH and SUNDANCE, as well as a host of other fine paper products preferred by graphic designers and printers.
Neenah’s award

- winning and versatile digital papers round out its comprehensive portfolio. Neenah’s sustainability commitment is reflected through the Neenah Green initiative, which includes mill

- based solutions for minimizing environmental impact. A proud consumer of Green Ener gy, Neenah Paper is also a U.S. EPS Green Power Partner, and manufactures many brands carrying the Green

- e, Green Eal and Forest Stewardship Council (FSC) certifications.

Schreiber Foods is the world’s largest employee

- owned dairy company with
annual sa les of more than $4 billion. It produces and distributes process, natural, cream and specialty cheeses; yogurt; butter and butter blends; sour cream; and a range of other dairy products to restaurants, food service organizations and retailers around
the wo rld. It has sales, processing and distribution operations in the United States, Brazil, China, Germany, India and Mexico.

School Specialty is a leading education company that provides innovative and proprietary products, programs and services to help ed ucators engage and inspire students of all ages and abilities to learn. The company designs, develops, and provides preK

- 12 educators with the latest and very best curriculum, supplemental learning resources, and school supplies. Working in collaboration w ith educators, School specialty reaches beyond the scope of textbooks to help teachers, guidance counselors and school administrators ensure that every student reaches his or her full potential.

Metso is a global supplier of sustainable technology and s ervices for mining, construction, power generation, automation, recycling and the pulp and paper industries. We have about 28,000 employees in more than 50 countries.**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 36 Oshkosh Corporation is a leading designer, manufacturer and marketer of a broad
range of specialty access equipment, commercial, fire & emergency and military vehicles and vehicle bodies. Oshkosh corp. manufactures, distributes and services products under the brands of Oshkosh, JLG, Pierce, McNeilus, Medtec, Jerr

- Dan, BAI, Oshkosh Specialty vehicles, Frontline, SMIT, CON

- E

- CO, London and IMT. Oshkosh products are valued worldwide in businesses where high quality, superior performance, rugged reliability and long

- term value are paramount.**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 37 

# Appendix C : Letters of Support**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 38 

### Letter of support redacted as confidential**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 39 

### Letter of support redacted as confidential**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 40 

### Letter of support redacted as confidential**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 41 

### Letter of support redacted as confidential**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 42 

### Letter of support redacted as confidential**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 43 

### Letter of support redacted as confidential**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 44 

### Letter of support redacted as confidential**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 45 

### Letter of support redacted as confidential**Outagamie County Regional Airport Small Community Air Service Development Grant Application** 

**– August 2011** 

Page | 46 

### Letter of support redacted as confidential