# ~~ MONTGOMERY '.: '-_ REGIONALA I RPORT Easygoing



### Brooke Chapman Associate Director Small Community Air Service Development Program Office of Av i ation Analysis U.S. Department of Transportation 1 200 New Jersey Avenue
, SE Washington
, DC 20590
July 31 , 2014

Dear Ms. Chapman: 4445 Selma Hwy, Montgomery, 

### Al 36108



### On behalf of the Montgomery Regional A ir port , I am pleased to subm i t this proposal for funding under the Small Community Air Service Development Program. Under the criteria established by the U

. S. Department of Transportation, this proposal meets the eligibility requirements.

The airport
, along with our local partners , is seeking $200,000 in Grant fund i ng to recruit new air service to improve the awareness and positive attributes to our customers of the Montgomery Regional Airport. The requested funding of $200,000 would be supplemented with $60,000 committed by private, community contributions

. The proposed Grant request meets the Ai r port ' s objective to help promote the existing service and help curb the high amount of potential customers currently using alternate airports

. Based on a recent leakage analysis
, less than 25% of the Montgomery region customers currently use Montgomery Regional Airport for thei r travel needs

. We believe the SCASD Grant, if awarded, will serve our commun i ty for years to come

. Our a ir service today is characterized by :

• High airfares which are among some of t he highest in the region
• Limited air service competit i on
The Montgomery Regional Airport was a SCASD grant recipient in October of 2005. However, the attempted proposal for Minimum Revenue G u arantee (MRG) was not used at that time due to the bankruptcy of Northwest Airlines

. This year Montgomery Reg i onal A i rport is submitting this request to help secure a Marketing grant to help promote and advertise the benefits of supporting the local airport and the community of Montgomery

. The Montgomery Regional Airport is confident in our ability to manage the grant in a timely fashion, should we be selected.

Thank you in advance for your consideration

. We are certain that once you have reviewed the application you will concur the grant opportunity is a perfect fit for the legislative intent of the program. Shou l d you have any questions
, please do not hesitate to contact me at 315-786- 6002

.



# ~ Vice Pres i dent
, Ai r Service DevelopmentProposal of Montgomery Regional Airport • Montgomery, AL • July 2014 APPLICATION UNDER
SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT

- OST

- 2014

- 01 1 3

SUMMARY INFORMATION

A. P ROVIDE THE LEGAL SPO NSOR AND ITS DUN AND BRADSTREET (D& B) DATA UNIVERSAL NUMBE RING SYSTEM (DUNS)

NUMBER , INCLUDING +4, EMPLOYEE IDENTIFICAT ION NUMBER (EIN) OR TAX ID

. Legal Sponsor Name: Montgomery Air port Authority Name of Signatory Party for Legal Sponsor: Chip Gentry, VP

– Air Service Development
DUNS Number:
155618283 EIN/Tax ID:
63

- 0638943

B. L IST THE N AME OF THE COMMUNITY OR CONSORTIUM OF COM MUNITIES APPLYING : 1._ M ONTGOMERY , A LABAMA

_

C. P ROVIDE THE FULL AIRP ORT NAME AND 3

- L ETTER IATA A IRPORT C ODE FOR THE APPLICAN T ( S ) AIRPORT ( S ) (O NLY

PROVIDE CODES FOR TH E AIRPORT ( S ) THAT ARE ACTUALLY SE EKING SERVICE ).
1. Montgomery Regio nal Airport (Dannelly Field)

, (MGM )

D OES THE AIRPORT SEEK ING SERVICE HOLD AN AIRPORT OPERATING CE RTIFICATE ISSUED BY THE F EDERAL A VIATION A DMINISTRATION UNDER 14 CFR P AR T 139? (I F “ NO ,” PLEASE EXPLAIN WHETH ER THE AIRPORT INTEN DS TO APPLY FOR A CERTIFICATE OR WHETH ER AN APPLICATION UN DER P ART 139 IS PENDING .)

Yes No (explain) 

### XProposal of Montgomery Regional Airport • Montgomery, AL • July 2014

D. L IST THE 2

- DIGIT CONGRESSIONAL DISTRICT CODE APPLIC ABLE TO THE SPONSORI NG ORGANIZATION , AND IF A

CONSORTIUM , TO EACH PARTICIPATIN G COMMUNITY

. 1

. AL

- 0 7

E. A PPLICANT I NFORMATION : (C HECK A LL T HAT A PPLY )

Not a Consortium Interstate Consortium Intrastate Consortium Community now receives subsidized Essential Air Service Community (or Consortium member) previously received a Small Community Air Service Development Program Grant
If previous recipient: Provide Year of grant(s): 2005

a nd, the te x t of the Grant agreement section(s) setting forth the scope of the grant project:

Recruit Northwest Airlines service to Detroit; market the new service to Detroit

F. P UBLIC /P RIVATE P ARTNERSHIPS : (L IST O RGANIZATION NAMES )
PUBLIC PRIVATE
1. Montgomery Regional Air port 1. Montgomery Chamber of Commerce
2

. City of Montgomery, AL 2. Imagine a Greater Montgomery Coalition

G. P ROJECT P ROPOSAL : 1. G RANT G OALS : ( CHECK ALL THAT APPLY )
Launch New Carrier Secure Additional Service Upgrade Aircraft
First Service New Route Service Restoration Regional Service Surface Transportation Professional Services Other (explain below)

Marketing an d Advertising funds to promote the Airport and Airport service opportunities 

### X

X

XProposal of Montgomery Regional Airport • Montgomery, AL • July 2014 2

. F INANCIAL T OOLS T O B E U SED : ( CHECK ALL THAT APPLY )

Marketing (including Advertising): promotion of the air service to the public
Start

- Up Cost Offset: offsetting expenses to assist an air service provider in setting up a new station and starting new service (for example, ticket counter reconfiguration)
Revenue Guarantee: an agreement with an air service provider setting forth a minimum guaranteed profit margin, a portion of which is eligible for reimbursement by the community
Recruitment of Air Carrier: air service development activities to recruit new air service, including expenses for airport marketers to meet with air servic e providers to make the
case for new air service
Fee Waivers: waiver of airport fees, such as landing fees, to encourage new air service;
counted as in

- kind contributions only Ground Handling Fee: reimbursement of expenses for passenger, cabin, and ramp (below wing) services provided by third party ground handlers
Travel Bank: travel pledges, or deposited monetary funds, from participating parties for the purchase of air travel on an air carrier, with define d procedures for the subsequent

use of the pledges or the deposited funds; counted as in

- kind contributions only
Other (explain below)

H. E XISTING L ANDING A IDS AT L OCAL A IRPORT : Full ILS Outer/Middle Marker Published I nstrument Approach
Localizer Other (specify) 

### XProposal of Montgomery Regional Airport • Montgomery, AL • July 2014

I. P ROJECT C OST : D O NOT ENTER TEXT IN SHADED AREA
L INE D ESCRIPTION S UB T OTAL T OTAL A MOUNT
1 Federal amount requested $2 00,000
2 State cash financial contribution $0
Local cash financial contribution
3a Airport cash funds $0
3b Non

- airport cash funds $6 0,000
3 Total local cash funds ( 3a + 3b ) $ 0
4 TOTAL CASH FUNDING ( 1+2+3 ) $ 26 0 ,000
In

- Kind contribution
5a Airport In

- Kind contribution** $0
5b Other In

- Kind contribution** $1,000
5 TOTAL IN

- KIND CONTRIBUTION ( 5a + 5b ) $1,000
6 TOTAL PROJECT COST ( 4+5 ) $26 1 ,000

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. Media company will offer a 10% added value to any placement

K. I S T HIS A PPLICATION S UBJECT T O R EVIEW B Y AN AFFECTED S TATE U NDER E XECUTIVE O RDER 12372 P ROCESS ?

a. This application was made available to the S tate under the Executive Order 12372 Process for review on (date) _____________.
b. Program is subject to E.O. 12372, but has not been selected by the S tate for review.

c. Program is not covered by E.O. 12372.

L. I S T HE L EAD A PPLICANT OR ANY C O - A PPLICANTS D ELINQUENT O N A NY F EDERAL D EBT ? (I F “Y ES ”, P ROVIDE
E XPLANATION )
No Yes (explain)

_____________________________________________________________________________________________Proposal of Montgomery Regional Airport • Montgomery, AL • July 2014 

## 1

TABLE OF CONTENTS

Legal Sponsor 1
Introduction 2 Overview of Montgomery Air Service 3

Catchment Area 3
Current Air Service 4 Capacity Trends 5 Air Service Development Efforts and Air Service Marketing 6

Top 25 Origin and Destination (O&D)

– Average Fares 6 Regional Comparisons 8 Seats per Capita 10 Passengers per Capita 11 Strategic Plan to Improve Air Service through Marketing 12 Public Private Partnership 18 Previous Small Community Air Service Development Grant 18
Conclusion 20



## LEGAL SPONSOR

The Montgomery Regional Air port is the legal sponsor responsible for administering the proposed air service development program. The Airport is a government agency, operated by the Montgomery Airport Authority

.
Montgomery Regional Air port 4445 Selma Hwy

. Montgomery, AL 36108 Chip Gentry

, VP

– Air Service Development (334) 318

- 1918 cgentry @ montgomerychamber

. comProposal of Montgomery Regional Airport • Montgomery, AL • July 2014 

## 2

INTRODUCTION

The Montgomery Regional Air port is seeking a modest Small Community Air Service Development (SCASD) Grant for promoting

, marketing and advertising the benefits of supporting the regional airport

. The Airport is requesting $200,000 in federal funds matched with local, non

- airport funds of $ 6 0,000 to aid in this endeavor. Th e Montgomery Regional Airport has
had continued air service reductions over the last decade. The primary goal s for the Airport are to expand the current customer base , increase local awareness on the ease of traveling from
MGM and to attract additional air service . Montgomery Regional Airport, up until this point, has
not received federal aid through the SCASD Grant

. The air service climate has changed dramatically, with carriers now expecting Airport partners to assist in mar keting of the service without aid from the Airline directly

, leading to an environment where additional air service development will be e xtremely difficult without the help of a SCASD Grant.

The Airport serves a large catchment area throughout the Montgomery , Alabama region. The
area is home to more than 1.2 million people within
a 90 minute drive. Montgomery Regional Airport currently has just three scheduled non

- stop route s ; Delta Air Lines to Atlanta and American/US Airways to Charlotte and Dallas/Fort Worth. Over the past year the capacity at Montgomery Regional Airpor t has been relatively stagnant, down 0. 2 %

. Due to limited air service the Airport’s pas senger airfare has increased to an average of $2 9 8 each way

– which ranks Montgomery as one of the highest average fare s in the Southeas t.

Montgomery Regional Airport has limited non

- stop service to three destinations. Due to the lack of travel options and awareness over the existing abilities of the carriers serving MGM , the majority of the Montgomery catchment area passengers use alternate airports in the re gion. Just 24% of the area passengers currently use Montgomery Regional Airport

– based on a recent leakage study on data ending in calendar year 2013.

The Airport has assembled a coalition of local businesses to assist with the SCASD project by providing matching dollars and outreach assistance within the community to ensure that current
and additional air service is supported. 

## “.. The Airport’s passenger airfare
has increased to an average of $298 each way

– which ranks Montgomery as one of the highest average fares in the Southeast.”Proposal of Montgomery Regional Airport • Montgomery, AL • July 2014 

## 3

OVERVIEW OF MONTGOMERY AIR SERVICE

The Montgomery Regional Airport (Map 1) has a catchment area encompassing over 1.2 million people

. The Airport is positioned at the intersection of IH

- 65 between Birmingham and Mobile,
and IH

- 85 to Atlanta. The A irport current ly has nonstop service with Delta Air Lines to Atlanta and American/US Air

ways to Charlotte and Dallas/Fort Worth

. T he Airport has a vital rol e in connecting dozens of communities to the national air transportation system. The nearest competing airports are Birmingham/BHM, just under two hours’ drive by car, and Atlanta/ATL,
which i s nearly three hours away.



### MAP 1: Montgomery Regional Airport Catchment Area Source: Sixel Consulting GroupProposal of Montgomery Regional Airport • Montgomery, AL • July 2014 

## 4

The current route map for Montgomery Regional Airport (Map 2) geographically details the nonstop service on Delta Air Lines to Atlanta and American/US Airways to Charlotte and Dallas/Fort Worth.

The se two air c arriers serving Montgomery Regional Airport will offer 0.2 % fewer seats in 2014 than
offered for the same period last year (Figure 1).



### MAP 2 : Current Service at Montgomery Regional Airport Source: Sixel Consulting Group; OAG Schedule Data, July 2014

FIGURE 1 : Scheduled Service at Montgomery Regional Airport, 8/13 vs. 8/14 Source: Sixel Consulting Group; OAG Schedule Data, July 2014Proposal of Montgomery Regional Airport • Montgomery, AL • July 2014 

## 5

Delta offers almost two

- thirds of Montgomery Regional Airport’s available seats as of August 2014
while American/US Airways provide just over 33 % of the available seats (Figure 2)

.

Airline capacity at the Montgomery Regional Airport has steadily decreased over the last decade, as have the origin and destination passengers. In 2013 Montgom ery passengers decreased by 21.9 %, an average of 120 less passengers per day ea ch way (PDEW) , as compared to 2005 (Figure 3).

The Montgomery Regional Airport’s ave rage fares continue to increase , with 2013 reaching the highest level over the last nine years. With limited service through Delta and American/US Airways , the overall average one

- way fare for 2013

, was $2 9 8

. This equates to an increase of 15.5% or an average of $ 40 each way, as compared to $258 in 2010 (Figure 3). 

### FIGURE 3 : O&D Passengers and Average One Way Fares, Montgomery Regional Airport Source: US DOT OD1A, Calendar Year 2005

– Calendar Year 2013

FIGURE 2 : Montgomery Seat Capacity Share by Carrier Schedule Data, July 2013Proposal of Montgomery Regional Airport • Montgomery, AL • July 2014 

## 6

AIR SERVICE DEVELOPMENT EFFORTS AND AIR SERVICE MARKETING

The majority of the top 25 origin and destination (O&D) markets are business

- centric routes for Montgomery Regional Airport. This is a major factor for the high average one

- way fare s for the airport. Of the three non

- stop destinations (Atlanta, Charlotte and Dallas / Ft. Worth ), Atlanta is
lowest on the top 25 O&D list (Figure 4) . This is due to the drive

- time proximity from Montgomery
of less than 3 hours

. The Montgomery Regional Airport generated an average of 29.2 PDEW to and from Washington, DC in 201 3
, 28.6 PDEW to and from Dallas / Ft. Worth , and 23.1 PDEW to and from New York City

.

There is currently no low

- cost airline
alternative for leisure travel at Montgomery Regional Airport. Based on the recent leakage study for the Montgomery catchment

area, t he vast majority of leisure customers use alternate airports for their travel needs. As an example
Central and South Flor ida traffic from the Montgomery region exceeds 100 PDEWs, yet, over 80% of the Florida passengers fly via alternate airports in the region

. 

### FIGURE 4: Top 25 O&D Passenger Markets at Montgomery Regional Airport Source: US DOT OD1A, Calendar Year 2013Proposal of Montgomery Regional Airport • Montgomery, AL • July 2014 

## 7

With just two network carriers operating at Montgomery Regional Airport, the average one

- way fare for the top 25 markets was $254 during
2013 (Figure 5) . Due to limited connecting opportunities through only
3 non

- stop markets
, low fares to leisure
markets are l imited. The Montgomery Regional Airport travelers pay a high
average price for access to the national air transportation system due
to a lack of competition

.

As of the 12 months ended in April 2014, the Montgomery market filled an average of 64.8% of its available seats (Figure 6). Load factors in the market are continually in the low to mid 60%
range. 

### FIGURE 5: Average One Way Fares at Top 25 Markets at MGM Source: US DOT OD1A, Calendar Year 2013

FIGURE 6 : Passengers and Seats per Day Each Way, and Load Factor at Montgomery Regional Airport Source: US DOT T100; January 2012

– April 2014Proposal of Montgomery Regional Airport • Montgomery, AL • July 2014 

## 8

During the 12 months ended in April 2014

, Delta posted a 68 % load factor

. For the same period American/US Airways reported 63% loa d factors. December holidays and Spring Break travel periods help boost the Montgomery Regional Airport’s load factors during those strong
travel times. Montgomery Regional Airport’s lower than system average load
fact ors in dicate the immediate need to
market and promote local community support of the Airport.

T he Montgomery Regional Airport has seen continued capacity cuts over the last
decade. The reduction in service ha s made Montgomery one of the more underserved markets in the country.
Based on the recent leakage study, only 435 of the daily 1,800 passe ngers that
travel each way from the r egion actually use Montgomery Regional Airport. T he major indicators show that the market is prim ed for additional passenger support

.

An analysis of average one

- way domestic fares in South ea st markets indicates that Montgomery Regional Airport has the sixth highest average fare in the region as of 201 3 ( Figure 7 ) . The one

way domestic average for Montgomery Regional Airport is $2 48

. 

### FIGURE 7 : Average One Way Domestic Fare in Southeast Markets Source: US DOT OD1A, Calendar Year 2013Proposal of Montgomery Regional Airport • Montgomery, AL • July 2014 

## 9

Montgomery Regional Airport reported a load factor of 65.7% for calendar year 2013 (Figure 8 ). The
results are w ell

- below Atlanta and Birmingham average load factor s for
2013 . Atlanta and Birmingham capture s the majority of the traffic
that is leaked fr om Montgomery Regional Airport.

Based on the most recent leakage study Atlanta captures 56.2% of the traffic leaked from Montgomery Regional Airport

. Birmingham captures 13.6% of the leaked traffic

. 

### FIGURE 8 : Southeast Markets Ranked by Load Factor Source: US DOT T100, Calendar Year 2013Proposal of Montgomery Regional Airport • Montgomery, AL • July 2014 

## 10

For similarly sized markets in the Southea st, Montgomery Regional Airport is one of the most
underserved in terms of available airline seats. An analysis of Southeast markets shows the Montgomery Regional Airport has an average of just 0.6 airline seats per capita (Figure 9 ).



### FIGURE 9 : Seats per Capita in Southeast Markets Sources: US DOT T100, Calendar Year 2013; 2011 US CensusProposal of Montgomery Regional Airport • Montgomery, AL • July 2014 

## 11

S ubsequently, the Montgomery Regional Airport market generate d a very low number of passengers per capita within the Southea st, at an average of just 0.4 passengers in 2013 (Figure 10)

. 

### FIGURE 10 : Passengers per Capita in Southeast Markets

Sources: US DOT T100, Calendar Year 2013; 2011 US CensusProposal of Montgomery Regional Airport • Montgomery, AL • July 2014 

## 12

Marketing Efforts

The Airport has had a minimalistic approach to marketing over the past several years. A number
of factors lead to this approach including l imited funds coupled with the lack of a strategic marketing plan and adequate staff support. The lack of a strategic marketing plan meant the Airport was placing ads without knowing the true return on this approach

. On average, the airport marketing budget ranged from $ 50,000

- $ 80,000 a year over the last three years
, though more recently included a supplement provided by the local Chamber of Commerce

. A recent Airport Board initiative to increase enplanements noted a direct correlation between MGM’s lack of advertising and a high leakage rate to alternative airports with advertising programs

. In 2013, with no official airport marketing or advertising plan

, the airport spent less than $4,000 on airport advertising. Of the limited advertising undertaken by the airport, digital outdoor advertising (billboards) were the medium of choice. While the ad was tastefully done, it did not
build upon the Airport brand in conjunction with marketin g the actual service . A sample ad is
included below.



## STRATEGIC PLAN TO IMPROVE AIR SERVICE THROUGH MARKETING

Montgomery Regional Airport (MGM) has limited non

- stop service to three destinations on two
network carriers. Due to limited departure options as well as minimal flight frequencies

, the majority of the Montgomery catchment passengers use alternate airports in the region. Just 24% of the area passengers currently use Montgomery Regional Airport

– based on a recent leakage study. The urgent task of the airport is to continue to develop traffic demand and route utilization from the airport , and stop leakage to other nearby airports

.

Funding Plan

– This grant application proposes to use a modest amount of SCASD funding ($200,000), coupled with $60,000 in non

- airport cash matching funds from the Imagine a GreaterProposal of Montgomery Regional Airport • Montgomery, AL • July 2014 

## 13

Montgomery fund

, to support a broad and multi

- phased marketing and advertising program in and around the region

. The proposed program would be directly tied into the detailed marketing plan the Airport is currently develop ing with their consultant and the community
team. This program would include quantitative measurements which would measure the effectiveness of any campaign initiated for the Airport.

In

- kind contributions from media firms include a 10% match on media placed on the Pandora
network. With the Montgomery area being home to 12 different universities, the demographics
of this particular medium will boost ridership as families and other relat ives visit their loved one in the area during their college years.

The Airport has done a respectable job within their current, limited budget of marketing and promoting local air service

. The phenomenally high leakage rate to nearby airports paired wit h a national shift in travel planning demands a new and more complex approach to local air service marketing

. An aggressive and multi

- layered marketing, promotional and community
outreach effort

, is proposed for the airport and can be accomplished with the help of this funding

.

The Airport would like to utilize grant funds to implement a full air service marketing strategy and advertising plan to use as a guide for all future initiatives

, and to ensure all airport marketing
activities are in line with achievable goals and industry demands. The plan will identify specific objectives and tactics to achieve each of those defined goals

.

One of the key components of the proposed marketing strategy process will be to determine if brand development and cre ative exercises are necessary in order to identify the correct channels to advertise with, and to encourage more local travelers to choose to fly from MGM verses driving to a competing airport

.

The marketing s trategy will include a full advertising campaign which will be focused on increasing awareness among travelers to choose to travel from MGM
, while touting the benefits
that flying lo cal offers. The campaign would include a combination of traditional advert ising methods and new media methods to advertise the current service while using the brand identity of the airport to resonate with local travelers

.Proposal of Montgomery Regional Airport • Montgomery, AL • July 2014 

## 14

The advertising plan will work to refine the Airport’s media strategy to reflect the national

consumer s hift to online travel planning

, while simultaneously working to advance familiarity with
MGM in the local community

. The proposed program will aim to support the network carriers with retail advertising through traditional methods while also focusing on defining and communicating to the real customer , the value of flying from MGM to connect onwards as compared to driving to alternative airports

. The airport will also look into in corporating a modest online travel planning calculator and using social media to create awareness and attract travelers in the region

.

The marketing s trate gy will also include a focused community outreach and corporate travel
p rogram

. By further develo ping partnerships with local economic development, government

an d tourism partners, the airport can maximize related partnership marketing efforts

. Partnerships will help the airport maintain a solid image and solidify their reputation as strategic
air tr ansportation leaders in the region

. Corporate outreach is also an important component and will be included in an effort to connect with local businesses and identify opportunities to retain
more local business traffic

.

Funding for the MGM marketing stra tegy and advertising program would be disbursed over a 24 month period

, aimed at commencing during the first quarter of 2015. Using the recently updated True Market and Leakage Analysis, the Airport can begin developing specific goals
and tactics to reach potential passengers. Under this proposed timeline, the detailed marketing plan should be established by the end of first quarter 2015 and media placement targeted to begin following the completion of that plan

. The media placement will include launching updated Airport branded ads in the market

.



### Components of the Proposed Montgomery Regional Airport Marketing Strate gy Plan and Advertising Program

Traditional Advertising and Marketing Methods: The strategic marketing and advertising plan will utilize a combination of traditional advertising and public relations methods paired with targeting online and new media methods

. The goal of the program will be to connect and re

connect with potential travelers while also increasing brand awarenes s within the region

. Components of the traditional advertising portion of the plan will include: Radio Advertising, TV Advertising, Out

- of

- Home (billboard advertising), and Local Online Advertising (local online news banner advertising)

. O n

- air/TV spend may be focused on premium placement such as weatherProposal of Montgomery Regional Airport • Montgomery, AL • July 2014 

## 15

and traffic sponsorships to ensure maximum value and the largest audience reach available.
The A irport will also work to develop brand specific television commercials which will be incorporated into the on

- air placements and also used in on

- line pre

- roll elements of the media plan

. The inclusion of traditional media placement will allow the A irport to support local media outlets while enhancing relationships with local media partners

. The described trad itional advertising elements will be timed around specific program objectives including the incorporation of airline fare sales and specific efforts around Airport brand building and local

awareness

. Recommended media outlets will be determined once the advertising program is
finalized

.

New Media and Targeting Online Advertising Methods: The p lan will also include targeting online and new media advertising methods

. These efforts will incorporate a combination of: Advanced Keyword Targeting, Flight Path Advertising (targeted advertising on Online Travel Agencies), Search Engine Marketing and Social Media

. These advertising methods will be aimed at targeting the potential passenger when they are in the mindset to travel

. Targeting online advertising will help the A irport to reach travelers by incorporating airport / travel related keywords paired with geographical and behavioral targeting

. When a geo

- targeted traveler searches for specific airport defined words they will be redirected to an airport relat ed ad while surfing on common news sites

. Recommended media outlets will be determined once the advertising program is finalized

.

Social Media Integration and Website Enhancements: By building an online brand presence through social media and website en hancements the A irport can forge a stronger connection with the traveling public

. Ongoing, open communication on these channels can help to foster a trust within the online travel community

. By creating channels for one

- on

- one communication with airport travelers we can work to humanize the airport travel experience and create customers for life, rather than advertising acquaintances

. This social media program will allow
the A irport to have a conversation with past, present and future travelers, rather t han simply allowing travelers to have a conversation about the airport, with no airport involvement

. The proposed marketing s trategy program will work to develop a stronger presence on social media sites (Twitter, Facebook, etc.)

. The program will also l ook into website enhancements that will help to highlight the Airport brand platform in conjunction with the new website the Airport currently has under design. Best practices as it pertains to airports will be suggested in order to
ensure the new website meets the needs of the traveler. This will aid travelers to book flights from
MGM

.Proposal of Montgomery Regional Airport • Montgomery, AL • July 2014 

## 16

A Travel Cost Calculator may also be incorporated into the enhancement program and will be aimed at educating local travelers of the true cost involved with traveling from MGM verses the cost of driving and parking at a competing airport. The sample below is an example of what it may look like when finalized; final design will be determined pending the outcome of the grant.

Community Outreach and Corporate Support Progra m: An important component of the marketing p lan will be a community outreach and corporate support program

. The Airport is moving forward on developing a full plan to identify major corporate travel patterns

. The program will work on developing a corporate travel program and reaching out to travel planners of corporations to encourage more employees to fly from MGM. The proposed program will attempt to identify the needs of corporate travelers and allow
the A irport in conjunction with airline partners, to increase offerings to better accommodate high paying business
customers

. The program will start with the identification of Travel Managers/Travel Contacts within top 50 corporations in the region

. The next step in the program will be to use relationship building tactics and identify ways to encourage travel managers to modify travel policies so that all travelers check MGM first before booking from another airport

. Outreach is
essential to the success of t he program.

The proposed marketing program will also identify community partnerships and advertising opportunities including local coll eg es, sports leagues and events. According to the City’s website, Montgomery is home to twelve colleges and universitie s allowing for ample opportunity to partner via sponsorships of sporting events and/or concerts. Simply including MGM as the “home airport” for each of these universities would provide college students and their families with the knowledge that MGM is “the e” airport to use for easy access into the region. TheProposal of Montgomery Regional Airport • Montgomery, AL • July 2014 

## 17

sample marketing plan is briefly listed in the following chart. It is not meant to be all inclusive, but provides a framework from which MGM will work from.

If awarded the modest grant amount requested, it would be the intent of the Airport to fully utilize the grant prior to the end of 2017

, with grant close out documents submitted for approval late third quarter 2017

, well before the government deadline

.

Activity/Project Milestone Estimated Date Grant Award Late September 2014 Documents Fully Executed Early November 2014 Detailed Marketing Plan Development Late 1st Qtr. /Early 2nd Qtr. 2015 Execution of Marketing Plan Late 1 st Qtr. /Early 2 nd Qtr. 2015

- 1 st Qtr. 2017 Community Sponsorships/Corporate Outreach 1 st Qtr. 2016

- 1 st Qtr. 2017 Grant Close out Submitted to DOT 3 rd Quarter 2017

The detailed marketing plan would include future media campaign considerations to provide a continued pathway for passenger growth once the modest grant amount was expended

. Overall, the strategic plan for utilizing the modest grant funding as outlined above is set up to

ensure that the economic value of the Airport is known in the reg ion through increased
awareness and outreach. As it stands, that value is essentially not known regionally given the large amount of passenger leakage. Increasing enplanement levels is a primary goal and the metric that will be behind each step of the marketing program. Montgomery Regional Airport Sample Market ing Plan Develop online travel planning site presence Promote Air Service to existing routes based on the current passenger leakage analysis Focus on Overall Cost of Travel in Comparison to Driving to Alternative Airports Look at Developing Incentive Program for Corporations to Utilize Montgomery Regional Airport

Incorporate Retail Advertising and Airline Specific Promotions Tactics to Implement the Montgomery Regional Airport Plan Traditional Advertising to create a standardized brand position that fits in the market: radio, online, outdoor, TV Begin specific advanced online retargeting campaign Implement social media campaigns to target educational institutions and their audien ce

Corporate outreach through grant partners database information Direct corporate incentive program for Airport utilization Sports/Community Sponsorships including 12 Universities in the region Total Marketing Budget Including Video Creative: $26 1 ,000Proposal of Montgomery Regional Airport • Montgomery, AL • July 2014 

## 18

PUBLIC / PRIVATE PARTNERSHIPS
Montgomery Regional Airport has a number of entities that support the goal of improving air service through increased marketing activities. The Montgomery Area Chamber of Commerce fully supports the Airport and the Airport’s initiatives. The Chamber realiz es the economic value of the airport to the region and as such, has made their commitment to the success of the Airport known. They have gone so far as to hire an Air Service Development liaison within their own organization to ensure all is being done tha t can be done, to grow the Airport.

The local, non

- airport match of $60,000 is a combination of multiple entities contributing to the grant effort through the Imagine a Greater Montgomery fund administered by the Montgomery Chamber of Commerce. Imagine a Greater Montgomery fund is an econom ic development strategy aimed at creating jobs while providing better quality of life for Montgomery and the River Region . It is a collaborative effort between the City of Montgomery, Montgomery County Commission and numerous private investors. Each of th e more than 50 investors in the fund contributes varying levels of support, but all believe in the local leadership, commitment and influence required to affect sustainable economic progress. Air service is a key component of
such progress as recognized by this group. It is through this fund that the local, non

- airport matching funds for the grant are coming from.

With over $1 million in private investments coupled with $1 million in public funds, the Imagine a Greater Montgomery fund is a stellar example of public

- private partnership s at its finest working for the benefit of the region. Montgomery Regional Airport is proud to call them a partner, supporter and advocate for this grant application.



## PREVIOUS SMALL COMMUNITY AIR SERVICE GRANT

The Montgomery Regional Airport was a previo us grant award recipient in 2005 , but there are distinct differences between the previous , winning grant application compared to the one you have before you today . The previous grant was for Minimum Revenue Guarantee (MRG) funding for the specific purpose of supporting new service to Detroit Metropolitan Airport (DTW) on
Northwest Airlines. The objective of the grant application was to support implementation of

non stop service to better link the Alabama auto industry with Detroit. At the time of the application and award, there existed a deficiency between the Detroit auto hub and its supplier base which the application was attempting to address.Proposal of Montgomery Regional Airport • Montgomery, AL • July 2014 

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The award was for $720,000 total funds; $600,000 of those coming from the DOT with the remaining $120,000 coming half from the private sector and half from the Airport. The grant was entirely unsuccessful and ultimately grant money returned to the DOT. Northwest Airlines f ound itself in Chapter 11 bankruptcy proceedings and unable to expand their operations leading the Airport to return the unspent grant funds. The grant was closed in 2007.

In 2009 and 2012 the Airport applied for SCASD program funding for access into the Chicago O’Hare hub on either United Airlines or American Airlines. Both of these were not selected for grant funding.

The application presented today is entirely different than the previous award and previously
submitted applications

. The major differe nce is the intent: MGM has no intention of offering a minimum revenue guarantee to any carrier or entity. The sole focus of this grant application is to promote the airport and its services to retain additional passengers through an aggressive marketing pr ogram. This would be accomplished with the development of a strategic marketing plan and subsequent implementation of that plan utilizing the grant funds requested.Proposal of Montgomery Regional Airport • Montgomery, AL • July 2014 

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CONCLUSION
The Montgomery Regional Airport boasts a catchment area of over 1.2 million passengers within a 90 minute drive of the Airport

, yet only retains 24% of these passengers . The remaining 76% of the potential passengers utilize alternate airports in the region for a variety of reasons. While MGM offers daily, nons top flights into three network carrier hubs, the service is still limited in the amount of frequencies it offers. High local fares and less

- than average load factors have reduced the total passenger enplanements at Montgomery Regional Airport. As potentia l customers look to alternate airports for their travel needs

, there is an excellent opportunity to help market and advertise Montgomery Regional Airport to the catchment region

At an average of $298 one

- way, Montgomery Regional Airport has one of the high est one

- way fares within the Southeast markets

, and seat availability that has been on the decline over the
last decade. With this combination

, the Airport has been unable to increase passenger enplanements. To help improve the viability of Montgomery Regional Airport to the customer base, Airport marketing and advertising are the main targets for increased passenger improvements.

Based on the recent leakage analysis, it is apparent the market could easily support low

- fare service. Primarily less

- than

- daily non

- stop service with Allegiant to several Florida leisure destinations is most prevalent. However, in order to ensure low fare service or any ad ditional carrier service, an intense marketing campaign is necessary to strengthen the Airport brand and promote awareness in the region.

MGM’s application for the grant is supported by a vocal group of community partners which have pledged their support a nd assistance. These partners include local economic development organizations, C hamber of C ommerce, and the City of Montgomery. T he Montgomery Regional Airport has never had the opportunity to use a Small Community Air Service Development Grant, but beli eves the award of a grant can change the environment in the region; it would allow the Airport to begin an aggressive, multi

- layered campaign to retain passengers. The Airport and the community partners urge the DOT to look upon the application favorably.