Proposal of Concord Regional Airport • Concord, North Carolina • 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: 

City of Concord, North Carolina

Name of Signatory Party for Legal Sponsor:

Rick Cloutier, Aviation Director

DUNS Number:

079067484

EIN/Tax ID:

56-6001207

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

1. CITY OF CONCORD, NORTH CAROLINA

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. Concord Regional Airport (USA)

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 X
Proposal of Concord Regional Airport • Concord, North Carolina • July 2014

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

CONSORTIUM, TO EACH PARTICIPATING COMMUNITY.

1. NC-08

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: Year of grant(s): 

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

PUBLIC PRIVATE

1. Concord Regional Airport 1. Cabarrus County CVB

2. City of Concord 2. Cabarrus Regional Chamber

3. Cabarrus County 3. Cabarrus Economic Development Corp.

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)

X

X X

X

X
Proposal of Concord Regional Airport • Concord, North Carolina • 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

X

X

X
Proposal of Concord Regional Airport • Concord, North Carolina • July 2014

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

LINE DESCRIPTION SUB TOTAL TOTAL AMOUNT

1 Federal amount requested $250,000

2 State cash financial contribution $0

Local cash financial contribution

3a Airport cash funds $0

3b Non-airport cash funds $50,000

3 Total local cash funds (3a + 3b) $50,000

4 TOTAL CASH FUNDING (1+2+3) $300,000

In-Kind contribution

5a Airport In-Kind contribution** Various

5b Other In-Kind contribution** Various

5 TOTAL IN-KIND CONTRIBUTION 

(5a + 5b) Various

6 TOTAL PROJECT COST (4+5) $300,000

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.

The Airport will waive terminal rent and landing fees for two years; local media companies will 

offer discounts on advertising; partner airlines will offer free tickets for giveaways.

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 Concord Regional Airport • Concord, North Carolina • July 2014 1

TABLE OF CONTENTS

Legal Sponsor 1

Introductory Letter of Support 2

Introduction 3

The Concord/North Charlotte Air Service Market 4

Performance of New Air Service 5

Regional Passenger and Fare Trends 6

Air Service Needs and Deficiencies in Concord 9

Average Southeast Region Fares 9

Average East Coast Hub Fares 10

Capacity Allocation: Connecting vs. Local 10

Florida Market Fare Increases 11

Strategic Plan for Scheduled Air Service 12

New Target Markets 12

Project Funding Plan and Timeline 15

Public/Private Partnership 16

Conclusion 18

LEGAL SPONSOR

The Concord Regional Airport is the legal sponsor responsible for administering the proposed air 

service development program. The Airport is a government agency, owned and operated by 

the City of Concord.

City of Concord, North Carolina

26 Union Street, South

Concord, North Carolina 28025

Rick Cloutier, Aviation Director

(704) 920-5913

cloutier@concordnc.gov

Section Page Number
Proposal of Concord Regional Airport • Concord, North Carolina • July 2014 2

INTRODUCTORY LETTER OF SUPPORT
Proposal of Concord Regional Airport • Concord, North Carolina • July 2014 3

INTRODUCTION

Concord Regional Airport has become the alternate option for the Charlotte metro area. 

Allegiant launched service at Concord in December of 2013. It was met with immediate 

success. Since then, the market has filled more than 90% of the available seats. People all over 

the Charlotte area have clamored for affordable air service. While Charlotte Douglas 

International Airport is a major hub with non-stops to many cities, it is not priced for local traffic 

and high fares have, for years, suppressed passengers.

The average fare in the Charlotte market has increased by 29% in the last five years. The 

percentage of Charlotte origin and destination passengers using Charlotte Douglas has 

dropped to just 24%, with 76% of all passengers using the airport just connecting through it. Air 

service at Charlotte is dominated by American Airlines, after it took over the Charlotte hub from 

US Airways following their merger. Few carriers have wanted to challenge US Airways, and now 

American, by adding flights at Charlotte. This has 

resulted in the highest average fare of all East Coast 

hub markets, and made access to air service difficult 

for people living in the region.

Concord Regional Airport represents the best 

opportunity to bring more wide-ranging low cost air 

service to the region. Allegiant will operate four flights per week from Concord to OrlandoSanford in the coming fall. But Concord needs additional flights to truly be able to bring low 

fares to the Charlotte metro area.

The Airport and its private partners have developed $50,000 in funding to help recruit additional 

low cost flights. The Airport is seeking $250,000 in federal Small Community Air Service 

Development (SCASD) Grant funding to support this effort by being able to offer a marketing 

incentive for new routes. 

The recruitment of additional routes, despite the success of current service, will be difficult 

because Concord has no record of being able to support air service on a larger scale. This 

Grant application will help the Airport in offering a sufficient incentive package for future air 

service development success.

“Concord Regional Airport 

represents the best opportunity to 

bring more wide-ranging low cost 

air service to the region.”
Proposal of Concord Regional Airport • Concord, North Carolina • July 2014 4

THE CONCORD-CHARLOTTE AIR SERVICE MARKET

The Regional Economy and Air Service Environment

Concord lies on the north side of the Charlotte metro area. While Charlotte is well known as a 

center for biotech and banking, Concord is the center of world motorsports as the headquarters 

of NASCAR and most of its teams. As Charlotte has grown to one of the top 20 largest metro 

areas in the country, Concord, itself, has seen unparalleled growth. The Charlotte metro area is 

home to 1.8 million people, with 668,000 of them living closer to Concord Regional Airport than 

to Charlotte Douglas International Airport.

With Allegiant now serving Concord Regional 

Airport, and seeing success in the market, 

Concord has become a true second airport for 

the Charlotte metro area. Concord is able to 

provide fare relief to the entire region. Moreover, 

Concord is perfectly positioned to serve those 

who tend to travel the most.

The households with the highest income level in 

south central North Carolina are clustered around 

Concord. While the Charlotte Metropolitan 

Statistical Area (MSA) had a median household income of $50,671 in 2012, the Concord median 

household income was $69,126, or 36% higher than Charlotte (see Map 1). The average 

Concord household made $18,455 more in 2012 than the average Charlotte household. But 

Concord Regional Airport can draw from a much wider area, including regions to the south and 

north of the airport where the income level is lower and low cost service is even more attractive.

The Charlotte economy is also driven by tourism. More than 1.5 million people come to Concord 

each year for events at the Charlotte Motor Speedway. The facility seats 140,000 people at 15 

main events, and a number of smaller events. The Speedway is just a mile and a half from the 

Concord Regional Airport terminal. Concord is working hard with its partners to grow inbound 

tourism. Air service at Concord Regional Airport has become a key to that growth.

MAP 1: Concord Regional Airport Catchment Area

Source: US Department of Commerce, 2012
Proposal of Concord Regional Airport • Concord, North Carolina • July 2014 5

Concord Regional Airport was able to 

successfully recruit Allegiant Air to the market 

in 2013, marking the first time the Airport has 

ever had scheduled service. Allegiant saw 

opportunity in the Charlotte market, using 

Concord as its gateway, largely due to the 

large population and high average fares at 

Charlotte’s airport. Allegiant saw immediate 

success. It has carried nearly 11,500 

passengers in just its first five months of service, 

operating just two departures per week to 

Orlando/Sanford (see figure 1). In March of this year Allegiant average 366 passengers per 

week in each direction, it best month to date.

Allegiant’s load factors have been strong, and they 

continue to improve. Outbound load factors are now 

averaging 90% with inbound load factors climbing 

from 77% in the first month of service, last December, 

to 90% in April of 2014 (see figure 2). It is clear 

Charlotte metro area travelers were seeking

alternative low cost service, escaping high fares at 

Charlotte’s main airport. The service has done so well, 

so quickly, Allegiant will expand to four flights per 

week in each direction to and from Orlando/Sanford 

this fall. It also intends to add service to other Florida destinations in 2015.

The Charlotte market generates more than 10 million annual passengers – it is sufficiently large to 

support service at more than one airport. But Concord’s niche is unique in the market. While 

Charlotte is a major hub for American, following its merger with US Airways which used to 

operate the Charlotte hub, Concord is the easy and low fare alternative. Charlotte has 

unmatched non-stop offerings, with almost 150 cities served non-stop. Concord does not aim to 

duplicate this service. Concord’s goal is, and has always been, to provide convenient low cost 

service to those who cannot afford the rising fares in Charlotte.

FIGURE 1: Passengers on Allegiant at Concord

Source: Concord Regional Airport, December 2013 – April 2014

FIGURE 2: Allegiant Load Factors at Concord

Source: Concord Regional Airport, 12/13 – 4/14
Proposal of Concord Regional Airport • Concord, North Carolina • July 2014 6

The Charlotte market has seen only modest origin and destination (O&D) passenger growth over 

the last five years. Since 2009, Charlotte’s O&D passengers have grown by 17% (see figure 3). 

The fact that passengers have grown at all during that period illustrates the strength of the 

Charlotte market, as fares have risen substantially.

In the last five years the average Charlotte fare has risen by 29%, or an average of $51 each 

way, to $229 each way (see figure 3). 

Rising fares have had the impact of 

suppressing passengers. Some 

Charlotte passengers also sought out 

low fare service at airports more than 

two hours away –

Greenville/Spartanburg and 

Greensboro.

Service in the greater Charlotte 

market is geared toward origin and 

destination business travel. This is 

evidenced by Charlotte’s top 25 

passenger markets (see Figure 4). 

Eight of the top ten markets are 

business travel destinations, including 

New York/Newark, which generates 

an average of 1,183 passengers per 

day each way as of 2013; Boston, 

FIGURE 3: O&D Passengers and Average One Way Fares at Charlotte Douglas International Airport

Source: US DOT OD1A, Calendar Year 2004 – Calendar Year 2013

FIGURE 4: Statistical Analysis of Top 25 O&D Markets at Charlotte

Source: US DOT OD1A, Calendar Year 2013

Market Passengers PDEW One Way Fare

New York/Newark, NY 863,830 1,183.3 $140

Boston, MA 332,200 455.1 $121

Chicago, IL 300,350 411.4 $188

Baltimore, MD 237,080 324.8 $114

Dallas/Fort Worth, TX 201,200 275.6 $249

Los Angeles, CA 187,710 257.1 $267

Orlando/Sanford, FL 186,600 255.6 $148

Las Vegas, NV 175,850 240.9 $208

San Francisco, CA 161,260 220.9 $292

Philadelphia 157,150 215.3 $225

Washington, DC 143,830 197.0 $200

Denver, CO 130,560 178.8 $233

Fort Lauderdale, FL 127,820 175.1 $176

Houston, TX 124,000 169.9 $247

Phoenix/Mesa, AZ 121,770 166.8 $242

Minneapolis/St Paul, MN 117,100 160.4 $262

Atlanta, GA 114,350 156.6 $150

Tampa, FL 108,690 148.9 $200

Detroit, MI 103,800 142.2 $241

Providence, RI 102,690 140.7 $119

Seattle/Tacoma, WA 96,960 132.8 $250

Hartford, CT 89,340 122.4 $208

Pittsburgh, PA 86,290 118.2 $189

Indianapolis, IN 80,550 110.3 $181

St Louis, MO 79,720 109.2 $191
Proposal of Concord Regional Airport • Concord, North Carolina • July 2014 7

which generates an average of 455 PDEW; and Chicago, which generates an average of 411

PDEW. Business markets tend to support higher average fares than leisure markets, as business 

travelers are less fare sensitive than leisure travelers, which is part of the reason Charlotte fares 

have been rising so rapidly.

As previously mentioned, the average Charlotte one way fare for 2013 was $229. In markets 

where fares are below $200 each way, it is almost solely due to the short distance of the route 

from Charlotte. The New York/Newark fare, for example, averaged $140 each way in 2013 (see 

figure 4 on previous page), which works out to a yield of 25-cents per mile – much higher than 

the regional average yield of 17-cents per mile. Even on 

short-haul flights, Charlotte’s fares are much higher on a 

mileage basis than other markets up and down the East 

Coast.

Allegiant service at Concord Regional Airport has started to 

bring some fare relief to the Charlotte market. The 

Charlotte – Orlando fare in 2013 was $148 each way (see figure 4 on previous page). While 

there is no complete data for Concord – Orlando/Sanford service during this period, the highest 

fare Allegiant offered for sale in the market was $109 each way, which is 36% less than the 

average at Charlotte. With fares so low, new markets will see significant passenger stimulation –

passengers who might otherwise not have traveled will find the low fares so affordable they will 

fly when they might have driven had fares been higher.

The Airport also continues to improve its facilities so that it can handle expanded air service. Two 

major projects are underway to increase passenger capacity for air carriers. First, the Airport will 

expand its south apron parking area. The current ramp does not allow enough space to handle

all operations. The scheduled charter and air carrier operations have grown beyond the current 

ramp space. The expansion of the ramp is needed to accommodate these operations, 

increase operational efficiency, and maintain safety regulations. The project will cost $4.3 million 

and is in the Federal Aviation Administration (FAA) work plan for funding in 2014.

The second project is the $3.5 million project to construct a new passenger terminal for 

scheduled airline operations. Concord Regional Airport is currently using a temporary terminal 

that was converted from a hangar. This space does not meet projected space needs, nor does 

it meet current Transportation Security Administration (TSA) requirements. The TSA, while doing its 

“Allegiant service at Concord 

Regional Airport has started to 

bring some fare relief to the 

Charlotte market.”
Proposal of Concord Regional Airport • Concord, North Carolina • July 2014 8

best in the current converted hangar, has informed the Airport that the current facilities will not 

be sufficient for additional operations. This new terminal is in the FAA work plan for funding in 

fiscal year 2015.

Through facility improvements and other challenges, 

Concord Regional Airport is committed to 

continuing its air service development work. Its next 

goal is to recruit service to additional Florida airports. 

In support of this goal the Airport has put together a 

community coalition. That coalition has pledged $50,000 in direct cash for marketing of 

expanded service. The Airport is also seeking federal assistance from the Small Community Air 

Service Development (SCASD) Grant Program of $250,000 to allow it to ensure the message of 

low cost service is spread throughout the Charlotte metro area.

“...the Airport has put together 

a community coalition. The 

coalition has pledged $100,000 

in direct cash...”
Proposal of Concord Regional Airport • Concord, North Carolina • July 2014 9

AIR SERVICE NEEDS AND DEFICIENCIES IN CHARLOTTE-CONCORD

The Charlotte metro area is home to a large airline hub, with more than a thousand flights per 

day to cities all over the world. Despite this, there are a number of deficiencies in air service for 

Charlotte-area travelers. These challenges include high average fares that continue to climb, 

the high cost of travel on a seat-mile basis – with high fares in even short-haul markets, and the 

fact that Charlotte’s hub carrier, American, actually provides more access to connecting 

passengers than it does to local origin and destination traffic at Charlotte Douglas International 

Airport.

Concord Regional Airport is the Charlotte metro area’s secondary airport and a designated 

reliever airport for the Charlotte flight service area. Concord’s position is that of a low fare 

alternative. Allegiant’s presence at Concord is good for the entire Charlotte market, as it helps 

to provide more affordable air service, 

and it provides competition for American, 

which controls more than 80% of the 

available seats in the metro area.

Of all southeast region airports in 2013,

which, for the purpose of this analysis,

includes the airports in North Carolina, 

South Carolina, and Virginia, Charlotte 

has the second highest average fare at 

$229 each way (see figure 5). Only 

Columbia had a higher average fare in 

2013, and it was only $2 more each way 

than the fare at Charlotte. This is 

remarkable as, typically, the larger the 

airport the more competition and the 

lower the fares. American’s large share 

of capacity at Charlotte gives it 

significant pricing power. 

The regional average fare for calendar year 2013 was $185 each way, which is $44 less than the 

Charlotte average (see figure 5). Charlotte area passengers paid an average premium of 24% 

FIGURE 5: Average One Way Fares in Southeast Markets

Source: US DOT OD1A, Calendar Year 2013
Proposal of Concord Regional Airport • Concord, North Carolina • July 2014 10

over the regional average for access to scheduled air service. Airports adjacent to the 

Charlotte market – within a three hour drive – offer lower fares and do pull some passengers 

away. The average fare at Greensboro in 2013 was 

$199 each way, which is 15% less than the Charlotte 

fare. Similarly, the average fare at 

Greenville/Spartanburg in 2013 was $180 each way –

27% less than the fare at Charlotte.

As Charlotte is a major hub airport for American, after 

its merger with US Airways, it is also important to 

analyze it against its peers – other hub airports. Among 

East Coast airports that operate as hubs for one or 

more carriers, Charlotte had the single highest average 

fare in 2013, at $229 each way (see figure 6). The 

average for these hub airports was $185 each way in 

the same period, with Charlotte’s average 24% above 

the East Coast hub average. Those who use Charlotte as their home airport pay, on average, 

$44 more each way then those who live in other east coast hub markets. Surprisingly, Charlotte’s 

average fare is higher than fares at more congested, larger city hubs, such as Washington, DC, 

New York City, and Miami.

The average fares for East Coast hubs do not include those passengers merely changing planes 

at the hub. Charlotte has one of the largest splits between local origin and destination 

passengers and connecting passengers of any 

hub airport in the country. While Charlotte saw 

more than 40 million domestic passengers in 2013, 

only 9.6 million of those passengers were actually 

departing from, or bound for, Charlotte, itself. 

The rest were connecting through the airport.

In 2013, just 23.7% of Charlotte’s available 

domestic seats were filled by Charlotte origin and 

destination passengers (see figure 7). In the 

same period, 76.3% of Charlotte’s domestic 

FIGURE 6: Average One Way Fares at East Coast Hubs

Source: US DOT OD1A, Calendar Year 2013

FIGURE 7: Passenger Breakdown at Charlotte

Source: US DOT T100 and OD1A, Calendar Year 2013
Proposal of Concord Regional Airport • Concord, North Carolina • July 2014 11

available seats were filled by passengers connecting through the airport. It does appear there is 

a deliberate pricing strategy to flow passengers over the Charlotte hub, rather than to fill seats 

with local passengers. In other words, it can be argued that the main hub carrier actually 

suppresses local traffic in favor of carrying flow traffic – or passengers making connections at 

Charlotte. Charlotte acts as American’s major north-south hub on the East Coast, and is vital in 

its competitiveness against other large eastern hubs.

The same theory appears to be proven out in Florida markets. Fares have continually been rising

on flights between Charlotte and major Florida cities. Orlando is not considered in this analysis 

since Allegiant already launched Concord service, and since the service has already lowered

the region’s average fare in the 

city-pair. But fares to Tampa, 

Ft. Lauderdale, and Ft. Myers 

have all risen since the 

beginning of 2011 (see figure 

8).

The average one way fare in 

the Charlotte – Ft. Lauderdale 

market has risen from $151 

each way in the first quarter of 

2011 to $180 each way in the third quarter of 2013 (see figure 8), an increase of 19%. At the 

same time the average fare between Charlotte and Ft. Myers has risen from $156 each way to 

$171, an increase of 10%. And finally, the average one way fare between Charlotte and Tampa 

has risen from $164 in the first quarter of 2011 to $200 in the third quarter of 2013, which is an 

increase of 22%.

While the breadth of service offered at Charlotte Douglas International Airport is impressive, it is 

dominated by a strong hub carrier. This results in high average fares that suppress the local 

Charlotte market. Concord Regional Airport represents the relief-valve for high fares, as its low 

cost service slowly works to reinvigorate the local passenger market and bring down fares at 

both airports.

FIGURE 8: One Way Fares between Charlotte and Florida Markets

Source: US DOT OD1A, First Quarter 2011 – Third Quarter 2013
Proposal of Concord Regional Airport • Concord, North Carolina • July 2014 12

STRATEGIC PLAN FOR ADDITIONAL SERVICE

Before carrier recruitment began, Concord Regional Airport developed its low cost air service 

strategy. Since Charlotte is a large legacy carrier hub, the Concord airport leaders realized 

legacy carrier service at Concord would likely be unsuccessful in competing against the sheer 

breadth of service in Charlotte. Charlotte is, however, missing a significant low cost carrier 

presence. Concord’s strategy was to

become the low cost and low fare 

airport for the region, re-stimulating 

passengers by bringing down the high 

fares.

This strategy proved to be solid, as 

Concord leaders were able to recruit 

Allegiant to the market with its flights 

to Orlando/Sanford beginning last 

December. As chronicled in this 

application, Allegiant has seen strong 

loads on its initial service and is 

already planning an expansion in 

Concord frequency for this fall. Allegiant has been able to re-stimulate the greater Charlotte 

market, and there is much potential for the same model 

to work in a number of non-stop markets where current 

Charlotte fares are high.

Concord’s next air service targets are additional markets 

in Florida. These relatively short stage lengths can be 

operated at lower expenses than long haul markets and 

they have high current fares at Charlotte. Orlando is the 

largest Florida market from the Charlotte area, with an 

average of 325 passengers per day each way (PDEW) in 

calendar year 2013, which is why Allegiant chose to 

launch Concord service to that market first (see figure 9). 

This top market list yields insight into the next set of 

potential markets for Allegiant to launch from Concord. 

MAP 2: Target Routes for Concord

Source: Concord Regional Airport, July 2014

FIGURE 9: Statistical Analysis of Charlotte’s Top Florida O&D Markets

Source: US DOT OD1A, Calendar Year 2013

Market Passengers PDEW One Way Fare Coupons

Orlando 237,120 324.8 $156 1.1

Fort Lauderdale 173,430 237.6 $175 1.4

Tampa 150,570 206.3 $197 1.3

MiamI 103,440 141.7 $199 1.1

West Palm Beach 67,010 91.8 $189 1.3

Jacksonville 63,720 87.3 $200 1.3

Fort Myers 60,330 82.6 $178 1.2

Sarasota 25,450 34.9 $177 1.3

Pensacola 24,670 33.8 $161 1.4

Daytona Beach 17,110 23.4 $162 1.2

Tallahassee 16,720 22.9 $188 1.3

Key West 15,700 21.5 $180 1.6

Fort Walton Beach 13,220 18.1 $163 1.4

Melbourne 11,990 16.4 $168 1.3

Gainesville 11,300 15.5 $196 1.2
Proposal of Concord Regional Airport • Concord, North Carolina • July 2014 13

Ft. Lauderdale, which can access passengers to Miami and West Palm Beach, is a natural future 

market (see map 2 on previous page), especially considering the current average one way fare 

is $175, which is 12% higher than the Orlando fare before Concord service began. Tampa is 

another target market, which Allegiant could serve through St. Petersburg-Clearwater 

International Airport. Tampa currently generates 206 PDEW to and from Charlotte at an average 

one way fare of $197. The final natural Florida target for air service would be Ft. Myers, which 

could be served by Allegiant through Punta Gorda. Ft. Myers currently generates 83 PDEW to 

and from Charlotte at an average one way fare of $178. 

It should be noted, the passenger and fare numbers in figure 9 are not seasonally adjusted. 

Florida markets can be highly seasonal. A good example is the Charlotte – Ft. Lauderdale 

market which peaks in the first quarter and sees a lull in the hot summer months of the third 

quarter (see figure 

10). Airlines in 

Charlotte boarded an 

average of 1,118 

passengers per day 

each way (PDEW) 

between Charlotte 

and Ft. Lauderdale in 

first quarter of 2013, 

but only 954 PDEW in 

third quarter of the 

same year.

Interestingly, less than 

30% of passengers flying between Charlotte and Ft. Lauderdale are beginning or ending their 

trip in Charlotte (see figure 10). In the first quarter of 2013, just 21% of passengers on non-stop 

flights between Charlotte and Ft. Lauderdale were origin and destination (O&D) Charlotte – 79% 

were connecting at Charlotte from other cities. This passenger split reinforces the impression that 

local passengers in Charlotte are being suppressed by high local pricing in favor of carrying 

connecting traffic over Charlotte.

The same passenger split is seen in Charlotte’s other Florida markets and can be even more 

pronounced. Between Charlotte and Tampa, just 18% of passengers carried on non-stops were 

FIGURE 10: Local and Connecting Passengers, Charlotte – Ft. Lauderdale

Source: US DOT OD1A and T100, First Quarter 2011 – Third Quarter 2013
Proposal of Concord Regional Airport • Concord, North Carolina • July 2014 14

O&D Charlotte in 

first quarter of 2013 

(see figure 11). On 

the route, an 

average of 82% of 

passengers on each 

flight were

connecting at 

Charlotte to or from 

another city. The 

Charlotte – Tampa 

market repeatedly 

sees fewer than 20% 

of passengers flying on origin and destination itineraries.

The Charlotte – Tampa market is another Florida market that peaks in first quarter. The market 

saw an average of 1,192 onboard PDEW in first quarter of 2013 (see figure 11). Charlotte –

Tampa onboard passengers have increased by 12% since first quarter of 2011, but the local 

share of passengers on the route has declined, with more Charlotte planes being filled with 

connecting passengers.

On the Charlotte – Ft. 

Myers route, just 12% of 

passengers flying nonstop between the cities 

were local, with 88% 

connecting at Charlotte 

from other cities (see 

figure 12). Ft. Myers’ 

seasonal spikes are the 

most pronounced of 

any Charlotte – Florida 

market. While the route generated an average of 776 onboard PDEW in first quarter of 2013, it 

generated just 521 onboard PDEW in third quarter of the same year – a variance of 49%. If 

FIGURE 11: Local and Connecting Passengers, Charlotte – Tampa

Source: US DOT OD1A and T100, First Quarter 2011 – Third Quarter 2013

FIGURE 12: Local and Connecting Passengers, Charlotte – Ft. Myers

Source: US DOT OD1A and T100, First Quarter 2011 – Third Quarter 2013
Proposal of Concord Regional Airport • Concord, North Carolina • July 2014 15

Allegiant serves the Concord – Punta Gorda market it would likely begin as seasonal service in 

the winter and spring.

The Airport has developed a comprehensive local public-private partnership in support of this 

Grant application. The City of Concord is the Airport’s main public partner. The Airport’s private 

partners include the Cabarrus County Convention and 

Visitors Bureau, the Cabarrus Regional Chamber of 

Commerce, and the Cabarrus Economic Development 

Corporation. The City and these organizations have 

pledged $50,000 in cash funding for this air service 

development project (see figure 13). With this local cash 

in hand, the Airport is seeking $250,000 in federal SCASD 

Grant funding, for a total project cost of $300,000. The 

local share of the total project is 17% of the funding needed, with the federal share comprising 

the remaining 83% of the total project cost.

All funding will be used for marketing and advertising of alternate low cost airline service for the 

Charlotte metro area. The funding amount is larger than some other airports’ previous requests 

for marketing support, but it reflects 

the relatively high cost of media 

placement in the Charlotte market.

The anticipated timeline for the 

project assumes a Grant would be 

awarded in September of 2014 (see 

Figure 14). If the Grant agreement 

with the DOT is finalized in October 

of 2014, during the fall of 2014, the Airport will work to finalize an agreement for additional lessthan-daily, low cost air service through the incentives offered under this program. As soon as 

that service is launched, the campaign, in support of that new service, will launch. The Airport 

anticipates closing the Grant by March of 2016.

FIGURE 14: Project Timeline

Source: Concord Regional Airport, July 2014

FIGURE 13: Project Funding Plan

Source: Concord Regional Airport, July 2014

Funding Source Funding Amount

Local Cash $50,000

Federal DOT Cash $250,000

Total Project Cost $300,000

Local Project Share 17%

Federal DOT Project Share 83%

Activity/Project Milestone Estimated Date

SCASD Grant Award Announcement September 2014

Executive Grant Agreement with DOT October 2014

Meet to Determine Additional Service Fall 2014

Targeted Announcement Date for Service Fall 2014

Develop Creative/Launch Marketing Fall 2014

Targeted Start Date for Service Winter 2014 - 2015

Submit Grant Status Reports to DOT Quarterly Q4 2014 - Q1 2016

Close Grant March 2016
Proposal of Concord Regional Airport • Concord, North Carolina • July 2014 16

PUBLIC/PRIVATE PARTNERSHIP

This application for federal Small Community Air Service Development Grant funding is 

supported by a number of community partners who have pledged matching cash. The public 

partners include the Concord Regional Airport, the City of Concord, which owns and operates 

the Airport, and Cabarrus County, in which the Airport is located. The three major economic 

development and outreach organizations in the region are also partners in this application.

City of Concord

Concord, North Carolina, is likely best known as the home to the famous Charlotte Motor 

Speedway and NASCAR headquarters. But Concord is the second largest city in the Charlotte 

area, with a population just under 80,000. The City owns and operates Concord Regional 

Airport.

Cabarrus County

Cabarrus County is home to approximately 175,000 residents living within the Charlotte metro 

area. The county’s business community is diverse with a mix of small and large organizations and

industries ranging from bioscience, motorsports, tourism, retail, and manufacturing. While the 

County has no official oversight of Concord Regional Airport, it is a partner with the Airport due 

to the Airport’s role in developing the County’s economy.

Cabarrus County Convention and Visitors Bureau

The Cabarrus County Convention and Visitors Bureau (CVB) is working to grow the travel industry 

to become the number one economic activity in the County. Visitors to the county are critical in 

sustaining the local economy. According to the North Carolina Department of Commerce 

Division of Tourism, Travel and Trade, domestic tourism in Cabarrus County generated an 

economic impact of $281 million in 2009. As local businesses benefit, tourism generates tax 

revenues which equal savings for county residents. In 2009, state and local tax revenues from 

travel to Cabarrus County amounted to $21.8 million. This represents a tax savings of 

approximately $310 for each household in Cabarrus County. Air service is the key to additional 

tourism growth, and the CVB will financially support efforts to bring visitors to Cabarrus County.
Proposal of Concord Regional Airport • Concord, North Carolina • July 2014 17

Cabarrus Economic Development Corporation

The Cabarrus Economic Development Corporation is the premier organization fostering 

economic growth in Concord and surrounding communities. Cabarrus County continues to be 

defined by its 20 percent annual population growth, low cost of living, diversified workforce, 

favorable climate, employment opportunities and reduced tax base. Here, you will find the 

reasons Site Selection Magazine has named North Carolina the number one business climate for 

eight consecutive years. The economic development will be best supported through additional 

local air service.

Cabarrus Regional Chamber of Commerce

The Cabarrus Regional Chamber of Commerce has been serving businesses in Cabarrus County,

North Carolina, and the entire Charlotte region as a trusted advocate, excellent resource, and 

proactive catalyst for quality business and community service. The Chamber accomplishes this 

through programs focused on advocacy, economic development, events and direct services to 

its members. The Cabarrus Regional Chamber is a community leader in positive change, while 

fostering prosperity and building a stronger economic future. As the trusted voice for all 

Cabarrus County businesses, it works with education, government, and non-profits to address 

the region’s current and future needs. Its members are supporters of the effort to bring 

additional low cost air service to Concord Regional Airport.
Proposal of Concord Regional Airport • Concord, North Carolina • July 2014 18

CONCLUSION

Concord, as part of the fast-growing Charlotte metro area, is “where racing lives,” as the slogan 

says. It is the home to NASCAR, the Charlotte Motor Speedway, and 90% of the teams in racing. 

Racing is a huge economic driver in the region, generating more than $280 million per year in 

local economic impact and bringing in more than 1.5 million tourists each year. Beyond racing, 

the Charlotte-Concord area is home to almost two million people with jobs in dozens of high 

tech industries – from racing to biosciences to advanced manufacturing.

Concord Regional Airport is now the Charlotte metro area’s secondary airport. Concord’s 

position is that of a low fare alternative. Allegiant’s presence at Concord is good for the entire 

Charlotte market, as it helps to provide more affordable air service, and it provides competition 

for American, which controls more than 80% of the 

available seats in the metro area.

Because of its status as a “fortress hub,” Charlotte Douglas 

International Airport has some of the highest fares in the 

nation. In fact, of all East Coast airports that serve as hubs for one or more airlines, Charlotte has 

the highest average fare, at $229 each way. In the southeast region, Charlotte has the second 

highest average fare, even when compared to smaller regional airports with only one carrier 

and few daily flights.

Charlotte Douglas Airport is not designed to serve the local customer as much as it is designed 

to connect traffic between the northeast US and the Southeast. Just 24% of the passengers that 

passed through Charlotte in 2013 were either starting or ending their journey. The majority – 76% 

– of passengers were connecting through the airport.

Concord Regional Airport’s low cost service is designed to serve all of Charlotte, helping to lower 

fares in the region and making more local seats available. To expand this service the Airport is 

seeking federal assistance, in the form of a Small Community Air Service Development (SCASD) 

Grant of $250,000, to ensure low cost service is successful. The Airport has already developed a 

local public-private partnership with $50,000 in cash funding for this proposal – evidence that the 

region sees the expansion low cost air service as a priority.

“Concord Regional Airport 

is now the Charlotte metro 

area’s secondary airport.”