~~ MONTGOMERY 

'.: '-_ REGIONALAIRPORT 

Easygoing 

Brooke Chapman 

Associate Director 

Small Community Air Service Development Program 

Office of Aviation Analysis 

U.S. Department of Transportation 

1200 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 Airport, I am pleased to submit 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 funding 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 Airport'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 their travel needs. We believe the SCASD Grant, if awarded, 

will serve our community for years to come. Our air service today is characterized by: 

• High airfares which are among some of the highest in the region 

• Limited air service competition 

The Montgomery Regional Airport was a SCASD grant recipient in October of 2005. However, 

the attempted proposal for Minimum Revenue Guarantee (MRG) was not used at that time due 

to the bankruptcy of Northwest Airlines. This year Montgomery Regional Airport 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. Should you have any questions, please do not hesitate to contact me at 315-786-

6002. 

~ Vice President, Air Service Development 
Proposal of Montgomery Regional Airport • Montgomery, AL • July 2014

APPLICATION UNDER 

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT-OST-2014-0113

SUMMARY INFORMATION

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

NUMBER, INCLUDING +4, EMPLOYEE IDENTIFICATION NUMBER (EIN) OR TAX ID.

Legal Sponsor Name: 

Montgomery Airport Authority

Name of Signatory Party for Legal Sponsor:

Chip Gentry, VP – Air Service Development 

DUNS Number:

155618283

EIN/Tax ID:

63-0638943

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

1._MONTGOMERY, ALABAMA_

C. PROVIDE THE FULL AIRPORT NAME AND 3-LETTER IATA AIRPORT CODE FOR THE APPLICANT(S) AIRPORT(S) (ONLY 

PROVIDE CODES FOR THE AIRPORT(S) THAT ARE ACTUALLY SEEKING SERVICE).

1. Montgomery Regional Airport (Dannelly Field),

(MGM)

DOES THE AIRPORT SEEKING SERVICE HOLD AN AIRPORT OPERATING CERTIFICATE ISSUED BY THE FEDERAL AVIATION 

ADMINISTRATION UNDER 14 CFR PART 139? (IF “NO,” PLEASE EXPLAIN WHETHER THE AIRPORT INTENDS TO APPLY FOR A 

CERTIFICATE OR WHETHER AN APPLICATION UNDER PART 139 IS PENDING.)

 Yes No (explain) X
Proposal of Montgomery Regional Airport • Montgomery, AL • July 2014

D. LIST THE 2-DIGIT CONGRESSIONAL DISTRICT CODE APPLICABLE TO THE SPONSORING ORGANIZATION, AND IF A 

CONSORTIUM, TO EACH PARTICIPATING COMMUNITY.

1. AL-07

E. APPLICANT INFORMATION: (CHECK ALL THAT APPLY)

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

and, the text 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. PUBLIC/PRIVATE PARTNERSHIPS: (LIST ORGANIZATION NAMES)

PUBLIC PRIVATE

1. Montgomery Regional Airport 1. Montgomery Chamber of Commerce

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

G. PROJECT PROPOSAL:

1. GRANT GOALS: (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 and Advertising funds to promote the Airport and Airport service opportunities

X

X

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

2 . FINANCIAL TOOLS TO BE USED: (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 service 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 defined procedures for the subsequent 

use of the pledges or the deposited funds; counted as in-kind contributions only

Other (explain below)

H. EXISTING LANDING AIDS AT LOCAL AIRPORT:

Full ILS Outer/Middle Marker Published Instrument Approach

Localizer Other (specify)

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

I. PROJECT COST: DO NOT ENTER TEXT IN SHADED AREA

LINE DESCRIPTION SUB TOTAL TOTAL AMOUNT

1 Federal amount requested $200,000

2 State cash financial contribution $0

Local cash financial contribution

3a Airport cash funds $0

3b Non-airport cash funds $60,000

3 Total local cash funds (3a + 3b) $0

4 TOTAL CASH FUNDING (1+2+3) $260,000

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) $261,000

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. IS THIS APPLICATION SUBJECT TO REVIEW BY AN AFFECTED STATE UNDER EXECUTIVE ORDER 12372 PROCESS?

a. This application was made available to the State 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 State for review.

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

L. IS THE LEAD APPLICANT OR ANY CO-APPLICANTS DELINQUENT ON ANY FEDERAL DEBT? (IF “YES”, PROVIDE 

EXPLANATION)

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 Airport 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 Airport

4445 Selma Hwy.

Montgomery, AL 36108

Chip Gentry, VP – Air Service Development

(334) 318-1918

cgentry@montgomerychamber.com
Proposal of Montgomery Regional Airport • Montgomery, AL • July 2014 2

INTRODUCTION

The Montgomery Regional Airport 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 $60,000 to aid in this endeavor. The Montgomery Regional Airport has 

had continued air service reductions over the last decade. The primary goals 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 marketing of the service 

without aid from the Airline directly, leading to an environment where additional air service 

development will be extremely 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 routes; 

Delta Air Lines to Atlanta and American/US Airways 

to Charlotte and Dallas/Fort Worth. Over the past 

year the capacity at Montgomery Regional Airport

has been relatively stagnant, down 0.2%. Due to 

limited air service 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. 

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 region. 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 Airport currently has nonstop service with Delta Air Lines to Atlanta and 

American/US Airways to Charlotte and Dallas/Fort Worth. The Airport has a vital role 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 is nearly three hours away.

MAP 1: Montgomery Regional Airport Catchment Area

Source: Sixel Consulting Group
Proposal 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. 

These two air carriers 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

Carrier

Non-Stop 

Destination

Departures 

Per Day

Seats 

Per Day

Departures 

Per Day

Seats 

Per Day

Capacity

Change

American / US Airways CLT 2.7 134 2.6 132 -1.2%

DFW 3.0 147 2.9 147 0.1%

American / US Airways Total 5.6 281 5.6 279 -0.5%

Delta ATL 5.6 566 5.6 566 0.0%

Delta Total 5.6 566 5.6 566 0.0%

Total for Montgomery Regional Airport 11.2 847 11.2 845 -0.2%

Aug-13 Aug-14

FIGURE 1: Scheduled Service at Montgomery Regional Airport, 8/13 vs. 8/14

Source: Sixel Consulting Group; OAG Schedule Data, July 2014
Proposal 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 Montgomery passengers 

decreased by 21.9%, an average of 120 less passengers per day each way (PDEW), as 

compared to 2005 (Figure 3).

The Montgomery Regional Airport’s average 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 $298. 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 2013
Proposal 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 fares 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 2013, 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, the vast majority of leisure 

customers use alternate airports for 

their travel needs. As an example 

Central and South Florida 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 2013
Proposal 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 limited. 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 2014
Proposal 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% load 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 

factors indicate the immediate need to 

market and promote local community 

support of the Airport. 

The Montgomery Regional Airport has seen

continued capacity cuts over the last 

decade. The reduction in service has 

made Montgomery one of the more 

underserved markets in the country. 

Based on the recent leakage study, only 

435 of the daily 1,800 passengers that 

travel each way from the region actually

use Montgomery Regional Airport. The 

major indicators show that the market is 

primed for additional passenger support.

An analysis of average one-way domestic fares in Southeast markets indicates that Montgomery 

Regional Airport has the sixth highest average fare in the region as of 2013 (Figure 7). The oneway domestic average for Montgomery Regional Airport is $248.

FIGURE 7: Average One Way Domestic Fare in Southeast Markets 

Source: US DOT OD1A, Calendar Year 2013
Proposal 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 well-below Atlanta and 

Birmingham average load factors for 

2013. Atlanta and Birmingham 

captures the majority of the traffic 

that is leaked from 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 2013

Code City Passengers Available Seats Load Factor

ATL Atlanta 40,586,453 50,074,222 81.1%

PNS Pensacola 747,240 947,664 78.9%

AGS Augusta 264,868 339,468 78.0%

GTR Columbus, MA 41,043 53,520 76.7%

SAV Savannah 801,663 1,054,944 76.0%

BHM Birmingham 1,436,553 1,899,560 75.6%

TLH Tallahassee 337,554 446,580 75.6%

VPS Valparaiso 352,616 467,755 75.4%

JAN Jackson 614,778 817,910 75.2%

GPT Gulfport/Biloxi 362,481 483,537 75.0%

MOB Mobile 288,831 387,784 74.5%

ECP Panama City 396,498 550,292 72.1%

VLD Valdosta 36,876 51,481 71.6%

DHN Dothan 48,104 68,474 70.3%

HSV Huntsville 513,445 747,775 68.7%

MGM Montgomery 160,014 243,413 65.7%

BQK Brunswick 32,365 50,838 63.7%

CSG Columbus, GA 61,546 100,658 61.1%

ABY Albany 31,047 51,408 60.4%

AHN Athens 2,074 5,475 37.9%

PIB Laurel/Hattiesburg 8,690 26,184 33.2%

MEI Meridian 6,449 22,259 29.0%

MCN Macon 5,112 22,003 23.2%

TUP Tupelo 11,396 60,993 18.7%

MSL Florence/Sheffld/Tusc. 2,232 20,654 10.8%

GLH Greenville 3,012 30,790 9.8%

Rank Airport Passengers PDEW Avg Fare Share

1 Montgomery Regional Airport 317,820 435 $279 24.1% 

2 Hartsfield-Jackson Atlanta Airport 742,119 1,017 $234 56.2% 

3 Birmingham International Airport 179,509 246 $193 13.6% 

4 Pensacola Regional Airport 38,950 53 $225 3.0% 

5 Fort Walton Beach Airport 19,177 26 $287 1.5% 

6 Mobile Regional Airport 14,530 20 $291 1.1% 

7 Columbus Regional Airport 7,149 10 $352 0.5% 

 Total Montgomery Area Passengers 1,319,418 1,807 $241 100.0% 
Proposal of Montgomery Regional Airport • Montgomery, AL • July 2014 10

For similarly sized markets in the Southeast, 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 Census
Proposal of Montgomery Regional Airport • Montgomery, AL • July 2014 11

Subsequently, the Montgomery Regional Airport market generated a very low number of 

passengers per capita within the Southeast, 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 Census
Proposal 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 limited 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 marketing 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 Greater 
Proposal 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 developing 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 relatives 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 with 

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 creative 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 strategy 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 local offers. The campaign would include a combination of traditional advertising 

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 shift 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 incorporating a modest 

online travel planning calculator and using social media to create awareness and attract 

travelers in the region. 

The marketing strategy will also include a focused community outreach and corporate travel 

program. By further developing partnerships with local economic development, government 

and 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 transportation 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 strategy 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 Strategy 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 reconnect with potential travelers while also increasing brand awareness 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). On-air/TV spend may be focused on premium placement such as weather 
Proposal of Montgomery Regional Airport • Montgomery, AL • July 2014 15

and traffic sponsorships to ensure maximum value and the largest audience reach available.

The Airport 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 Airport to support local media 

outlets while enhancing relationships with local media partners. The described traditional 

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 plan 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 Airport 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 related 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 enhancements the Airport 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 Airport to have a conversation with past, present and future travelers, rather than simply 

allowing travelers to have a conversation about the airport, with no airport involvement. The 

proposed marketing strategy program will work to develop a stronger presence on social media 

sites (Twitter, Facebook, etc.). The program will also look 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 Program: An important component of the 

marketing plan 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 Airport 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 the program. 

The proposed marketing program will also identify community partnerships and advertising 

opportunities including local colleges, sports leagues and events. According to the City’s 

website, Montgomery is home to twelve colleges and universities 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 “thee” airport to use for easy access into the region. The 
Proposal 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 1st Qtr. /Early 2nd Qtr. 2015- 1st Qtr. 2017

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

Grant Close out Submitted to DOT 3rd 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 region 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 Marketing 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 audience

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: $261,000
Proposal 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 realizes 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 that 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 economic 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 the 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 partnerships 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 previous 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 

nonstop 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 19

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 found 

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 difference 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 program. 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 20

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, nonstop 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 potential 

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 highest 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 additional 

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 and assistance. These partners include local economic 

development organizations, Chamber of Commerce, and the City of Montgomery. The 

Montgomery Regional Airport has never had the opportunity to use a Small Community Air 

Service Development Grant, but believes 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.