August 2, 2011

Funding to Support the Marketing of New Air Service at Northeast Florida Regional

Sponsor: The Northeast Florida Regional Airport

Edward R. Wuellner, AAE, Executive Director

Congressional Code: FL-07

Dun & Bradstreet Number: 14-664-2389

Tax Identification Number (EIN) 59-1163738

NORTHEAST FLORIDA REGIONAL AIRPORT

St. Augustine, Florida

Proposal Under the Small Community Air Service Development Program

Docket DOT-OST-2011-0119
Northeast Florida Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 2

TABLE OF CONTENTS

Introductory Letter of Support 3

Summary Information – Appendix C 4

Introduction 6

The Northeast Florida Regional Air Service Market 8

Location, Catchment and Air Service Airports 8

Northeast Florida Historic Air Service 8

Northeast Florida Domestic Average Fares 11

Northeast Florida Carrier Market Share 12

The First Air Service at Northeast Florida Regional Airport 13

Alternative Airports 14

Northeast Florida Air Service Development Efforts 15

Air Service Needs and Deficiencies 17

Northeast Florida Airfares in comparison to other Florida leisure destinations 17

Northeast Florida Historic Average fares 18

Alternative Airports and traffic leakage 20

The Traffic and Economic impact that less-than-daily carrier service can have 21

Strategic Plan for New Air Service 24

A state of the art airport terminal facility 24

Complete and low cost ground handling 25

Local support via a Public Private Partnership 26

 Aggressive recruitment of new air service 26

A plan for new air service using grant funding 26

Grant application goals and objectives 27

Grant application Target Audience 27

Implementation timeline 29

Funding plan 30

Performance measurements and financial controls 30

Routes self-sufficiency 31

Examples of market pairs that grand funding would support 32

Legal Sponsor 32

Summary 34

Section Page Number
Northeast Florida Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 3

INTRODUCTORY LETTER OF SUPPORT

July 27, 2011

Ms. Aloha Ley

Associate Director

Office of Aviation Analysis

U.S. Department of Transportation

8

th Floor, Room W86-310

1200 New Jersey Avenue SE,

Washington D.C. 20590

Dear Ms. Ley,

Reference: Docket DOT-OST-2011-0119 

The Northeast Florida Regional Airport has submitted to the Department an application for a 2011 Small 

Community Air Service Development (SCASD) Grant. The Airport’s application is for marketing funding 

to support new air service at the Northeast Florida Regional Airport.

Allegiant Air is considering service at this Airport. We believe the Airport may have potential to be a 

destination airport in the growing Allegiant Air system. 

Availability of marketing and promotional funding is critical to the success of new Allegiant Air service. 

Award of a 2011 SCASD Grant to the Northeast Florida Regional Airport will give the airport additional 

marketing funds to support new air service and will aid Allegiant Air in its continuing analysis of the 

potential for the Airport to join the Allegiant system. 

We urge the Department to give the Northeast Florida Regional Airport application all possible favorable 

consideration. Please feel free to contact me with any questions, comments, or concerns. 

Best regards,

E. Keith Hansen

Manager, Airport Planning

Allegiant Air 
Northeast Florida Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 4

SUMMARY INFORMATION – APPENDIX C

Small Community Air Service Development Program

Docket DOT-OST-2011-0119

A. Applicant Information

 Not a Consortium Community now receives EAS subsidy

 Interstate Consortium Intrastate Consortium

 Community previously received a Small Community Grant

 If previous recipient, date of Grant: ________________________________

Expiration date of Grant: _______________________

B. Public/Private Partnership

Public:

1. Northeast Florida Regional Airport, St. Augustine

2. City of St. Augustine

3. St. Johns County Tourism Development Council

Private:

1. Galaxy Aviation

2. Professional Golfers Association (PGA)

3. Ponte Vedra & Beaches Visitors and Convention Bureau

4. St. Johns County Economic Development Council

C. Project Proposal

 Marketing Upgrade Aircraft New Route

 Travel Bank Service Restoration Subsidy

 Surface Transportation Regional Service Revenue Guarantee

 Launch New Carrier Start-Up Cost Offset First Service

 Study Secure Additional Service Other (Specify)
Northeast Florida Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 5

D. Existing Landing Aids at Airport

 Full ILS Outer/Middle Marker Published Instrument Approach

 Localizer Other:

E. Project Cost

1. Federal amount requested: $ 125,000

2. State cash financial contribution: $ 0

Local cash financial contribution:

3a. Airport cash funds: $ 25,000

3b. Non-Airport cash funds: $ 10,000

3. Total local cash funds: $ 35,000

4. TOTAL CASH FUNDING: $ 160,000

In-Kind Contribution:

a. Airport In-Kind contribution: $ 0

b. Other In-Kind contribution: $ 0

5. TOTAL IN-KIND CONTRIBUTION: $ 0

6. TOTAL PROJECT COST: $ 0

F. In-Kind Contributions

For funds in lines 4a (airport in-kind contribution) and 4b (other in-kind contribution), 

please describe the source(s) of fund(s) for each.

G. Is Application Subject to Review by State Under Executive Order 12372 Process?

 This application was made available to the State on ______.

 Program is subject to review, but has not been selected by the State.

 Program is not covered.

H. Is Applicant Delinquent on any Federal Debt?

 No
Northeast Florida Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 6

INTRODUCTION

Northeast Florida stretches from the Georgia border along the Atlantic Coast south to nearly 

Daytona Beach and some 40 miles inland at any point. The six county area has a population of 

over 1.4 million and contains well known metro areas such as Jacksonville and St. Augustine.

The area’s tourism attractions and venues are perhaps less known than those of some other 

Florida areas but are, nevertheless, popular and annual local tourism visit days are measured in 

the millions.

Currently the region has established air service at Jacksonville International, on the far north side 

of Jacksonville, and at Daytona Beach, some 15 miles south of the region’s southern boundary.

The bulk of the region’s population and almost its entire tourism related infrastructure is located 

south of downtown Jacksonville and north of Palm Coast with a center of gravity at St. 

Augustine. If the airline industry were to come today, for the first time, to Northeast Florida, the 

first air service would certainly be at Northeast Florida Regional Airport, perfectly located to 

serve the entire region from one low-cost facility.

The Northeast Florida Regional Airport is a unique aviation facility. It is convenient to the major 

highways of the area and features a well designed and ultra low-cost airline terminal facility. On 

the field are extensive aviation related industrial facilities that contribute significant rental 

income to the airport and thus lower the facility-related cost burdens of scheduled air service.

The Airport briefly had scheduled air service in 2007 and 2008. SkyBus Airlines, a low cost start-up 

carrier, began Airbus A-319 flights from Columbus, Ohio, and then added Portsmouth, New 

Hampshire, and Greenville/Spartanburg, South Carolina. During nine months of service Northeast 

Florida Regional was a traffic and revenue star in the fledgling SkyBus route system. Over 54,000 

enplanements and 108,000 O&D passengers used the Airport during the nine months that SkyBus 

provided service. But while Northeast Florida Regional was a success for SkyBus, the balance of 

the route system was not and the carrier ended all operations in late March of 2008.

Thus the Airport and its surrounding communities know that air service at Northeast Florida 

Regional can generate significant traffic and economic benefit. For that reason the Airport and 
Northeast Florida Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 7

its supporters have continued to work to recruit various airlines to consider the enormous 

potential of this market.

The Airport, in cooperation with one of its Fixed Based Operators, has developed a complete 

and low cost ground handling service package, including above and below wing and fuel-intoplane service. This ground handling service package is available to any qualified airline and the

attractive rate structure is long term. The Airport has in place today the infrastructure to handle 

several hundred thousand annual passengers with airport related costs well below those at 

Jacksonville or Daytona Beach.

For the year 2010 the average domestic air fare at Jacksonville and Daytona Beach was $146, 

measurably higher than the average fare at West Palm Beach, Sarasota, Tampa, Fort Myers, Fort 

Lauderdale and Orlando. Northeast Florida competes with those other cities for tourism visitors 

and tourism dollars. Measurable disparities in the cost of airline 

travel have a direct effect on the ability of Northeast Florida 

area businesses that depend on tourism to compete for visitors.

As is detailed in this document, the Northeast Florida Regional 

Airport has worked hard since 2007 to recruit air service. Several 

airlines have expressed interest and one low fare carrier has

written a letter of support for this grant application. The airlines 

have consistently said, “We love the facility and cost structure, 

how do we market this new airport as a destination to prospective Florida tourists?” 

The Airport and its partners need marketing dollars to aid prospective low fare airlines in 

effectively marketing the Northeast Florida Regional Airport as a gateway to the magnificent 

vacation infrastructure around it to Florida visitors. This Grant application requests $125,000 in 

Department funding matched by $10,000 in local non-airport funds and $25,000 in local Airport

funds. The total of $160,000 will give the Airport the final tool it needs to successfully recruit new 

low fare air service to Northeast Florida Regional. The new service will lower the cost of air travel 

to Northeast Florida, improve tourist access to the region and thus confer a significant local 

economic benefit. This modest Grant funding request is entirely consistent with the purpose of 

the Grant Program and Department funds will enable new low fare service that will have a 

significant positive local economic impact.

“If the Airline Industry were to first 

come today to Northeast Florida, 

the first air service would certainly 

be at Northeast Florida Regional, 

perfectly located to serve the 

entire region from one low cost 

facility.” 
Northeast Florida Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 8

THE NORTHEAST FLORIDA REGIONAL AIRPORT AIR SERVICE MARKET

Location, Catchment Population and Air Service Airports

Northeast Florida is defined as a region by the area from the Georgia state line along the 

Atlantic Ocean and extending some forty miles inland and running south to the northern fringe 

of the Daytona Beach area. The region encompasses the six Florida counties of Nassau, Duval, 

Clay, St. Johns, Putnam and Flagler and those six counties (the map’s gray shaded area) have 

an estimated population of 1,439,421.

The map illustrates that air service in this area is 

concentrated at the Jacksonville airport, north of 

Jacksonville, and in the Orlando metro area, well 

south of the region.

The gap between the Jacksonville Airport, north of 

that metro area, and the Orlando International 

Airport is significant, with an estimated drive time of 

2:51 minutes and a distance of 170 road miles.

Inside this gap only limited network carrier service 

exists at the Daytona Beach Airport. At Sanford 

there is limited less-than-daily service. The Northeast 

Florida Regional Airport at St. Augustine, with its low 

airport costs and convenience to Highway One 

and Interstate I-95, sits nearly at the center of local 

population distribution and the region’s primary 

tourism venues and infrastructure.

Northeast Florida Current and Historic Air Service

The Jacksonville International Airport is the dominant air service airport in Northeast Florida. 

Jacksonville is served by six airlines and has nonstop air service on 28 routes. Just south of the 

Northeast Florida region, at Daytona Beach, two network carriers offer service to two 

connecting hubs.
Northeast Florida Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 9

Jacksonville averages about 90 daily airline departures. Some 20% of seat capacity is provided 

by network carrier regional jets, compared to only about 4% regional jet operations at Fort 

Lauderdale, Fort Myers, Orlando and Tampa. The average seats per flight in 2010 was 109.

Daytona Beach air service is limited to 

Delta service to Atlanta and US Airways 

service to Charlotte.

Delta and US Airways combine to offer 

an average of eight departures per day 

at Daytona Beach.

Average per flight seat capacity at 

Daytona Beach was 93 in 2010, implying 

a mix of regional jet and mainline 

equipment use.
Northeast Florida Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 10

Northeast Florida (Jacksonville and Daytona Beach) regional domestic traffic has declined 15% 

from the 2007 peak while capacity is down 16% and the average fare is up 6%.

Combined Jacksonville & Daytona Beach Traffic, Capacity and Average Fare

Measuring over a longer period of time; the region has slightly less capacity in 2010 (10,811 

SDEW) than it did in 2003 (10,859 SDEW). Measured over that seven year period regional 

domestic traffic is up 10% from 6,834 PDEW to 7,501 PDEW and the average domestic fare is up 

16% from $125 to $145.

Northeast Florida air service is stagnant. The merger of Delta and Northwest, the merger of 

United and Continental and, finally, the merger of Southwest and AirTran has cost Northeast 

Florida three airline brands and reduced pricing competition by that number of carriers. The 

merger of Southwest and AirTran, in particular, reduces the region’s roster of low fare carriers to 

only Southwest and jetBlue.

While the rest of Florida certainly is experiencing the same merger-related impact, the 

significance is that Northeast Florida does not have service from any of the various less-thandaily (LTD) carriers, such as Allegiant, Vision, Direct Air or Sun Country. These carriers focus on 

bringing tourists to Florida and have brought significant capacity to Orlando Sanford, the Tampa 

10,859

11,356

11,925 12,062

12,938

12,240 10,875 10,811

6,834

7,428

8,158

8,222

8,803

8,266

7,560 7,501

$125

$124

$126

$139

$137

$145

$133

$145

$100

$105

$110

$115

$120

$125

$130

$135

$140

$145

$150

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2003 2004 2005 2006 2007 2008 2009 2010

Seats per Day Each Way Domestic PDEW Domestic Avg Fare 
Northeast Florida Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 11

Bay area via St. Pete, southeast Florida via Punta Gorda and Fort Lauderdale in the past five 

years. With Vision Airline’s new focus city at Fort Walton Beach and continued expansion by all 

these carriers, it is estimated that in total they will generate 4,000,000 seats in and out of Florida in 

2011. Vision’s new service at Fort Walton Beach means that Northeast Florida is the only region of 

the state that does not have air service by at least one less-than-daily carrier.

Northeast Florida’s 30 Largest Domestic Markets: Year 2010

The top thirty domestic market chart reflects the nature of Jacksonville air service. Jacksonville 

generates 92% of Northeast Florida’s current domestic O&D traffic and has 93% of the region’s 

seat capacity (2010). Thus, Jacksonville traffic demand and service patterns will dictate the 

composition of the current top O&D traffic list. Nineteen of the top 30 O&D markets above have 

nonstop service from Jacksonville. However, only nine of the top markets have nonstop service 

from one of the low cost carriers at Jacksonville.

Northeast Florida Domestic Average Fares

The average domestic one way net fare paid by Northeast Florida passengers in 2010 was $146. 

For the top thirty domestic markets the average fare was $138 in the same period. This is due to 

the low cost carriers that provide Northeast Florida service concentrating their service and traffic 

0 50,000 100,000 150,000 200,000 250,000

ATL

BWI

PHL

JFK

FLL

LGA

DFW

BOS

ORD

EWR

DCA

LAS

BNA

LAX

ORF

DEN

DTW

MSP

PIT

SFO

SEA

MDW

PHX

IND

CLT

SAN

BDL

IAH

STL

CMH

256,270

245,730

225,810

190,020

173,060

172,940

163,200

158,670

152,270

150,090

143,620

117,330

117,150

110,000

107,570

102,140

99,170

83,500

78,710

75,120

74,460

72,990

69,850

68,080

67,320

67,150

66,310

63,520

63,420

61,080

351.1

336.6

309.3

260.3

237.1

236.9

223.6

217.4

208.6

205.6

196.7

160.7

160.5

150.7

147.4

139.9

135.8

114.4

107.8

102.9

102.0

100.0

95.7

93.3

92.2

92.0

90.8

87.0

86.9

83.7

Annual O&D PDEW
Northeast Florida Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 12

capture in larger city pairs, leaving the bulk of the remaining traffic in smaller city-pairs to 

network carriers and their typically higher fares.

Average Fares in Northeast Florida’s 30 Largest O&D Markets: Year 2010

Northeast Florida Carrier Market Share

Southwest Airlines and Delta Air Lines are the dominant carriers in terms of market share in 

Northeast Florida. Low cost carriers Southwest/AirTran and jetBlue make up only 32% of total 

domestic market share, with network carriers capturing the balance of the traffic in 2010.

$0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200

ATL

BWI

PHL

JFK

FLL

LGA

DFW

BOS

ORD

EWR

DCA

LAS

BNA

LAX

ORF

DEN

DTW

MSP

PIT

SFO

SEA

MDW

PHX

IND

CLT

SAN

BDL

IAH

STL

CMH

$116

$109

$124

$122

$104

$133

$150

$124

$158

$158

$174

$158

$119

$172

$114

$144

$142

$163

$116

$177

$177

$118

$152

$116

$177

$182

$133

$180

$146

$114

Delta, 32%

Southwest/Air

Tran, 27%

US Airways, 

18%

United 

Continental, 

10%

American, 8%

jetBlue, 5%

Northeast Florida Carrier Share 2010

Delta

Southwest/AirTran

US Airways

United/Continental

American

jetBlue
Northeast Florida Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 13

The First Air Service at Northeast Florida Regional Airport

Skybus Airlines began operations from its Columbus, Ohio base in May of 2007. In July of that 

year the carrier became the first to operate at Northeast Florida Regional Airport.

By March of 2008 Skybus was operating four daily departures at Northeast Florida Regional. 

Northeast Florida service was a tremendous success for Skybus, with an average load factor 

over the nine months of operation of 74%. Unfortunately, Skybus was ill prepared for the difficult 

fuel cost and traffic demand environment of 2008 and the carrier shutdown April 5, 2008.

Month

Number of 

Daily Flights

Total 

Landings On Off Total Seats Load Factor

Jul-07 0.5 14 1,308 1,534 2,842 3,864 73.6%

Aug-07 1 31 3,360 3,245 6,605 8,556 77.2%

Sep-07 1 30 3,318 3,429 6,747 8,640 78.1%

Oct-07 1 30 3,385 3,384 6,769 8,640 78.3%

Nov-07 1 30 3,540 3,613 7,153 8,640 82.8%

Dec-07 2.5 59 6,340 6,655 12,995 16,992 76.5%

Jan-08 3.5 106 9,821 10,395 20,216 30,528 66.2%

Feb-08 4 114 10,136 10,381 20,517 32,832 62.5%

Mar-08 4 123 12,932 13,339 26,271 35,424 74.2%

537 54,140 55,975 110,115 154,116 71.4%

Skybus Monthly Data Summary: UST

July 2007 thorough March 2008

Skybus provided service from Northeast 

Florida Regional to three northern cities: 

Columbus, Greensboro and Portsmouth.

The tremendous traffic volumes the 

service generated, given an unknown 

airline, are proof that Northeast Florida 

Regional will support air service.

St. Augustine 

Greensboro 

Columbus

Portsmouth
Northeast Florida Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 14

For the third quarter of 2007, the first quarter of SkyBus operations at Northeast Florida Regional 

Airport, the carrier reported to the DOT 16,210 O&D passengers at $62.30. For the fourth quarter 

of 2007, the carrier reported 26,917 O&D at $72.93. This DOT traffic data for both quarters 

matches the enplanement and deplanement data on the previous page. The carrier failed to 

file DOT traffic reports for first quarter of 2008.

Alternative Airports

Without SkyBus service visitors to the Northeast Florida region and local residents relay primarily 

on the Jacksonville, Florida airport, located 14 miles north of downtown Jacksonville and 52 miles 

north of Northeast Florida Regional or on Daytona Beach, which is 57 miles south of Northeast 

Florida Regional.
Northeast Florida Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 15

NORTHEAST FLORIDA REGIONAL AIRPORT AIR SERVICE DEVELOPMENT 

INTRODUCTION

Local Air Service Development Efforts

The Northeast Florida Regional Airport at St. Augustine has only been active in air service 

development since 2007, after the tremendous potential of the airport was illustrated by the 

SkyBus service of 2007 – 2008. 

2007

 SkyBus begins service at Northeast Florida Regional in July. Airport assists carrier with 

ground handling support and works on additional routes that start in 2008.

2008

 Developed Presentations and Marketing Material for Pittsburgh ACI Jumpstart Meetings 

and met with Gulfstream, Spirit, Alaska/Horizon, Southwest and Vision.

 Follow-up Material Development and Contacts with Jumpstart Meeting participants and 

had Air Service Development Consultant Meetings with United Airlines and Southwest.

 On-site Meeting with Allegiant Airlines.

2009

 Developed Presentations and Marketing Material for ACI Jumpstart Meetings in Montreal.

 Met with Republic, Southwest, Spirit, Gulfstream and Pinnacle Airlines at ACI Jumpstart.

 Air Service Development Consultant Meetings with United Airlines, AirTran and Southwest.

 Follow-up Material Development and Contacts with Jumpstart Meeting participants.

2010

 Developed Presentation and Marketing Materials for Allegiant Airlines.

 Met with Allegiant Airlines at their corporate headquarters in Las Vegas, NV.

 Air Service Development Consultant Meetings with United Airlines and Southwest.

 Developed Presentation and Marketing Materials for Network USA Meetings.

 Met with AirTran, Spirit, Gulfstream, Southwest and Republic Airlines at Network USA, In Ft. 

Lauderdale, FL.

 Follow-up Material Development and Contacts with Network USA participants.

 Developed Email Marketing Materials for pre-conference contact to all Jumpstart 

participant airlines.

 Developed Presentations and Marketing Material for ACI Jumpstart Meetings in San 

Diego, CA.
Northeast Florida Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 16

 Met with Frontier, Southwest, AirTran, and Vision Airlines at ACI Jumpstart.

 Gold Sponsorship and Display and Booth at ACI Jumpstart Event.

 Follow-up Material Development and Contacts with Jumpstart Meeting participants.

 Conference Call with GPT about NE Florida service potential with Vision or ExpressJet.

 Conference Call with Locair.

 Developed Presentation Materials for Sky King Airlines.

 On-site Meeting with Allegiant.

2011

 Ongoing conversations with both Allegiant and Direct Air as those carriers continue to 

evaluate the Northeast Florida Regional Airport and market area.

 Attendance at the Network Conference in Austin, Texas, in March of 2011.

 Formal meetings at Network with six carriers: AirTran, Allegiant, Branson Express, 

Southwest, Vision and ViVaAeroBus.

 Post Network Conference follow-ups, as appropriate, with each of the six carriers with 

whom formal meetings took place. 

DEVELOPMENT EFFORTS

AIR SERVICE NEEDS AND DEFICIENCIES IN IDAHO FALLS

MPLEMENTATION TIMELINE
Northeast Florida Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 17

AIR SERVICE NEEDS AND DEFICIENCIES

Tourism is a major industry in the Northeast Florida region. The St. Augustine area alone hosts 3.4 

million annual overnight visitors per year. Annual regional tourism spending of an estimated $634 

million creates and supports over 11,000 local jobs.

The coastal area of Northeast Florida (called the First Coast) has more tourism attractions than 

any other Florida coastal area:

 Historic sites including Old St. Augustine, the oldest European settlement in North America 

(1565).

 Numerous sites that mark the progress of Old St. Augustine from the earliest settlement 

period to the American Civil Rights movement in the 1960s.

 The area is home to three PGA golf tour events, the World Golf Hall of Fame, the World 

Golf Village and fourteen public golf courses.

 Over 90 marinas and over 10,000 locally based motor and sail boats.

 Miles of uncrowded beaches and world renowned deep sea or fresh water fishing.

To host all these visitors, the St. Augustine area alone has 10,550 total accommodations at 171 

facilities. The entire Northeast Florida region has an estimated 177,000 rental units at 2,452 

facilities. There is great diversity in the local lodging infrastructure from internationally known 

resorts such as Ponte Vedra or the Marriott at Sawgrass down to camping and trailer sites. In April 

of 2011 the average visitor stay in the region was 5.39 days, the ADR was $99.57 and the local 

occupancy rate was 60.2%.

This vast local tourism industry competes for tourism visitors and tourism dollars with other warm 

weather beach locations and venues in Florida, on the North American continent, and in the 

Caribbean. But the region competes with a distinct and significant disadvantage; a lack of 

leisure oriented air service and resulting high average fares that drive some tourism visitors to 

other destinations.

Northeast Florida Airfares in Comparison to other Florida Leisure Destinations

The Northeast Florida region has measurably higher domestic airfares than almost all other leisure 

destination airports in Florida. The region is also the only in Florida (now that Vision Airlines has its 

focus city in Fort Walton Beach) without the benefit of nonstop less-than-daily air service. 
Northeast Florida Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 18

Of the eight Florida airports with a higher domestic average fare than in Northeast Florida, only 

Key West (EYW) and Melbourne (MLB) are primarily leisure destination airports. Of the airports 

that have a lower average fare than Northeast Florida, many are primarily leisure destinations.

Northeast Florida Historic Average Fares

Northeast Florida (Jacksonville/Daytona Beach) has had a higher domestic average fare each 

year 2003 through 2010 in comparison to Orlando, Tampa, Fort Lauderdale and Fort Myers.

NE Florida and Major Florida Markets: Average Fare Comparison

0

50

100

150

200

250

VPS TLH EYW GNV PNS MIA ECP MLB JAX DAB PBI SRQ TPA RSW FLL MCO SFB PIE PGD

$206 $196 $185 $183

$170 $162 $161 $151 $146 $145 $139 $137 $135 $132 $128 $126

$76 $70

$47

Florida Airports Average Fare: 2010

$125 $124

$126

$139

$137

$145

$133

$145

$112

$108

$111

$124 $125

$129

$120

$128

$115

$111 $112

$123 $123

$129

$117

$126

$121 $121

$117

$130

$128

$138

$127

$132

$114

$109 $111

$124

$123

$132

$123

$135

$100

$105

$110

$115

$120

$125

$130

$135

$140

$145

$150

2003 2004 2005 2006 2007 2008 2009 2010

Average Fare

NE FL FLL MCO RSW TPA
Northeast Florida Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 19

In recent years northeast Florida has been well above its peer group, as much as $15 and 12% 

higher than Orlando and Tampa. These average fares paid discrepancies occur despite the 

presence of low-cost airlines at Jacksonville, including Southwest, AirTran and jetBlue.

The impact of these much higher average fares on the ability of northeast Florida tourism venues 

and lodging facilities to compete with other regions of Florida is obvious. Especially in these 

austere economic times, vacationers count dollars and consumer consciousness about airfare 

dollars is always high.

This average fare discrepancy is even more glaring given that the two northeast Florida airports 

are closer, being on the north end of Florida, to most of Florida’s top domestic markets, 

especially those in the New England and the northeast U.S. Therefore, from a yield standpoint, 

northeast Florida travelers are paying between 20% and 30% more per mile than Orlando or 

Tampa travelers.

NE Florida and Major Florida Markets: Yield Comparison

Clearly the yield impact is not just from the higher average fares paid at northeast Florida 

airports but also reflects simple geography in that northeast Florida is closer to most of the

nation’s key Florida travel generators than the other major Florida markets.

12.5

12.3

12.6

13.8

13.6

14.3

13.1

14.1

9.3

9.0

9.3

10.4

10.6

11.0

10.2

10.7

10.2

9.8

10.1

11.0 11.1

11.7

10.6

11.4

10.1 10.0 9.9

11.0

10.8

11.7

10.8

11.1

10.4

9.9 10.2

11.4 11.4

12.1

11.3

12.2

8

9

10

11

12

13

14

15

2003 2004 2005 2006 2007 2008 2009 2010

NE FL FLL MCO RSW TPA
Northeast Florida Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 20

The average domestic trip distance chart shows that northeast Florida average passenger trips 

are between 10% and 20% shorter than those at other a major Florida airports. 

Alternative Airports & Traffic Leakage

Northeast Florida Regional Airport is perfectly positioned, both geographically and from an

infrastructure cost standpoint, to draw new low-cost air service to the northeast Florida region. 

This new service will help mitigate the significantly higher average fares that northeast Florida 

passengers are paying in comparison to average fares at other major Florida airports.

The significant average fare differential between northeast Florida airports and nearby Orlando 

(106 road miles and 1:44 drive time) certainly would suggest that some travelers, both local 

residents and inbound tourists, use the Orland airport in lieu of Jacksonville or Daytona Beach.

Market 2003 2004 2005 2006 2007 2008 2009 2010

Northeast Florida 1,003 1,004 1,002 1,006 1,008 1,011 1,023 1,018

Orlando 1,131 1,126 1,112 1,110 1,102 1,105 1,112 1,107

Tampa 1,087 1,098 1,091 1,091 1,084 1,088 1,097 1,092

Fort Lauderdale 1,207 1,205 1,187 1,193 1,184 1,164 1,174 1,181

Fort Myers 1,205 1,202 1,189 1,185 1,179 1,177 1,176 1,172

Average Trip Distance

DOMESTIC TRIP DISTANCE: MAJOR FLORIDA MARKETS FOR 2003 - 2010 NE Florida Orlando

Market Avg Fare Avg Fare Dollars Percent

Atlanta $117 $121 ($4) -3.3%

Baltimore $109 $103 $6 5.8%

Philadelphia $124 $110 $14 12.7%

New York JFK $123 $114 $9 7.9%

Fort Lauderdale $104 $69 $35 50.7%

New York LGA $133 $116 $17 14.7%

Dallas $150 $135 $15 11.1%

Boston $124 $127 ($3) -2.4%

Chicago ORD $158 $131 $27 20.6%

Newark $158 $126 $32 25.4%

Washington D.C. DCA $174 $114 $60 52.6%

Las Vegas $158 $172 ($14) -8.1%

Nashville $119 $134 ($15) -11.2%

Los Angeles $172 $203 ($31) -15.3%

Norfolk $114 $110 $4 3.6%

Denver $144 $149 ($5) -3.4%

Detroit $142 $100 $42 42.0%

Minneapolis $163 $130 $33 25.4%

Pittsburgh $116 $107 $9 8.4%

San Francisco $177 $208 ($31) -14.9%

Difference

NE FLORIDA vs. MCO: TOP TWENTY MARKETS AVERAGE FARE: 2010
Northeast Florida Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 21

In thirteen of northeast Florida’s top twenty markets the Orlando average fare paid is lower, in 

nine of the fifteen markets the percentage lower is double digits. Given the close proximity of 

Orlando and the low cost of rental cars in Florida, these average fare differentials certainly 

suggest significant leakage of northeast Florida traffic to Orlando.

The Traffic and Economic Impact That Less-Than-Daily Carrier Air Service Can Have

In the past eight years Allegiant Air has pioneered the concept of Less-than-Daily (LTD) air 

service from small and medium sized cities to leisure destinations, first at Las Vegas and now at 

four Florida destination airports plus Phoenix, Los Angeles, Oakland and Myrtle Beach.

Several airlines are mimicking the Allegiant Air concept, including Direct Air, Vision and Sun 

Country. Even traditional Low-Cost-Carriers such as AirTran and Frontier have some LTD routes to 

complement their traditional daily service route structures.

LTD air service has one core focus: bring tourists from small and medium sized cities to leisure 

destinations, at low fares and with aggressive sale of ancillary services such as rental cars, hotel 

rooms and leisure activities.

LTD carriers have had a significant impact on the Florida leisure air travel market, bringing 

dramatically lower fare offerings from many northern cities to the Orlando, Tampa Bay, Fort 

Myers and Fort Lauderdale areas. Although data is not yet available, it would appear that the 

new Vision Airlines focus city in Fort Walton Beach will bring the same result to the Florida 

Panhandle.

Domestic Average Fare by Year: Orlando International vs. Sanford 2003 - 2010

$115

$111 $112

$123 $123

$129

$117

$126

$89 $89 $91 $92

$79 $80

$65

$76

$50

$60

$70

$80

$90

$100

$110

$120

$130

2003 2004 2005 2006 2007 2008 2009 2010

Average Fare

MCO SFB
Northeast Florida Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 22

At Orlando, the 2010 average domestic fare paid at MCO was 66% higher than that paid at 

Sanford, where several LTD carriers operate. In 2010 SFB carriers captured about 3% of total 

Orlando domestic traffic. LTD carriers offer nonstop service to 37 cities from Sanford.

In the Tampa Bay region the average fare differential is even greater with the 2010 average 

domestic fare paid at TPA was 93% higher than that paid at St. Petersburg, where LTD carriers 

operate. St. Petersburg carriers captured about 5% of total PIE/TPA domestic traffic and offer 

nonstop service to 29 cities.

Domestic Average Fare by Year: Tampa International vs. St. Petersburg 2003 - 2010

In Southwest Florida the Punta Gorda Airport has just, in the past two years, gained LTD carrier 

service. In both 2009 and 2010 the LTD carriers at Punta Gorda captured about 1% of total 

Southwest Florida domestic traffic at average fares about 200% lower than at Fort Myers 

International airport. The Airport has mostly seasonal winter service to six cities. 

Clearly LTD carriers have a huge impact on air service in Florida markets that draw inbound 

leisure traffic. Small and medium sized markets in the northern, mid-Atlantic and Midwest regions 

of the country gain significantly lower average fares and nonstop service to Florida.

The economic impact of new less-than-daily air service is significant. A twice weekly service with 

a 150 seat aircraft will generate 208 segments and 31,200 seats per year. At an 85% load factor 

26,520 O&D passengers are carried. 

$114

$109 $111

$124 $123

$132

$124

$135

$95

$88 $88

$101

$85 $85

$65

$70

$60

$70

$80

$90

$100

$110

$120

$130

$140

2003 2004 2005 2006 2007 2008 2009 2010

Average Fare

TPA PIE
Northeast Florida Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 23

TERNATE PLAN

Even with modest assumptions about the percent of inbound origin passengers and using 

Northeast Florida averages for length of stay and daily spend, one single route flown twice a 

week brings over 4,400 new visitors to Northeast Florida, over 20,000 visitor days and over $2.6 

million in local visitor spending. 

Element Metric Remarks or Source

Annual Segments 208 52 x 4

Aircraft Seats 150

Annual Seats 31,200

Load Factor 85% Typical for LTD service

O&D Passengers 26,520

Round trip passengers 13,260

Percent Inbound Origin 67% Allegiant at Orlando

Inbound Visitors 8,884

New Visitor percentage 50%

New Visitors 4,442

Average Visitor Stay (days) 5.4 St. Johns County TDC

New Visitor Stay (days) 23,987

Average Spend per Visitor Day $110 St. Johns County TDC

Total New Visitor Spend $2,638,607

One Less-Than-Daily Route Flown Twice a Week Annually

THE ECONOMIC IMPACT OF NEW AIR SERVICE
Northeast Florida Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 24

STRATEGIC PLAN FOR NEW AIR SERVICE

The Northeast Florida Regional Airport believes that the successful recruitment of LTD air service, 

in the model of Punta Gorda, Sanford or St. Petersburg, will have a huge positive economic 

impact on tourism dependent businesses in Northeast Florida.

The Airport’s guiding strategic principals are;

 Develop a state-of-art airport facility that can offer ultra low costs for airlines, give 

passengers a pleasant transit experience and that is convenient to all of Northeast 

Florida.

 Build a partnership with on-field Ground Handling and Fueling companies and develop a 

complete and low cost ground handling package, including above and below wing 

service and low cost fueling service, for use by prospective LTD carriers.

 Bring together the local tourism industry, via their associations, and reach agreement 

that potential new LTD air service carriers will be able to reach commercial terms on the 

sub-sale of Northeast Florida hotel/motel rooms, rental cars and other leisure activities via 

the carrier’s ancillary service offerings. 

 Recruit LTD carriers aggressively, listen to their needs and concerns and respond as 

possible.

 Build a significant marketing and advertising fund for use in partnership with LTD carriers 

to support their market entry and address their number one concern, how to market new 

LTD air service to Northeast Florida, which has not traditionally had such service.

All of the above principals are in place except for the development of a significant marketing 

and advertising fund for use in partnership with LTD carriers to address their concern about 

adequate marketing of new Northeast Florida LTD air service.

The Airport seeks to put that last principal in place via this Grant application for marketing 

funding.

A State-of-the-Art Airport Terminal Facility

Allegiant Air is considered the most efficient LTD carrier in the United States. When Allegiant 

officials first toured the Northeast Florida Regional Airport terminal facility they stated that this
Northeast Florida Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 25

was exactly how they would design a facility. This is high praise for an outstanding airport 

terminal facility.

The terminal building is designed for ease of use by both the customer and the airline. The above 

photo shows the terminal during SkyBus operations in 2007. The building is capable of handing 

two aircraft at once and several hundred thousand annual O&D passengers. 

Complete and Low Cost Ground Handling Service

The Airport receives significant rental revenue from various aviation related industries on the 

property. The Airport also will generate parking and rental car fees related to airline passenger 

through-put. Thus the Airport is able to offer LTD carriers a long term waiver on all airport fees 

including landing fees, terminal or gate fees, bag claim or common use fees and fuel storage 

charges. The Airport has teamed with one of its Fixed Base Operators to offer a long term $350 

per turn cost for any LTD carrier using typical mainline aircraft such as a 737, MD80 or Airbus 

A319. This cost includes above and below wing service and in-to-plane fueling charges. For a 

typical LTD carrier with an 80% load factor on a 150 seat aircraft this is means a total Cost Per 

Enplaned (CPE) of less than $3.
Northeast Florida Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 26

Local Support via a Public Private Partnership

The Airport’s government and private sector partners in air service development include;

The City of St. Augustine – The oldest city in North America is an active supporter of the Northeast 

Florida Regional Airport. 

St Johns County Tourism Development Council – The Mission Statement of the TDC is to enhance, 

advertise and promote St. Johns County as a desirable travel destination, encouraging 

overnight stays and day visits, attracting visitors especially during non-peak periods and 

encouraging visitor expenditures across all segments of the County’s tourism and travel industry.

Professional Golfers Association – The PGA hosts three tour events annually in the St. Augustine 

area and is a strong advocate for local air service. The World Golf Hall of Fame is located at the 

World Golf Village in St. Augustine. It is supported by all the world’s leading golf organizations.

St. Augustine – Ponte Vedra & Beaches Visitors & Convention Bureau (VCB) - The mission of the 

VCB is to brand and market the destination globally as a premier leisure, convention and 

business destination; to communicate the area's assets and inherent benefits to consumers, 

meeting planners, travel trade, media, local community and constituents; and to facilitate the 

opportunity for partners to promote their individual businesses within that framework.

Galaxy Aviation – Galaxy is a full service Fixed Based Operator with six locations nationwide.

St. Johns County Economic Development Council – The Council has 304 members and its mission

is to bring new business into the community and to help existing business and industry to prosper.

Aggressive Recruitment of New Air Service

The earlier section on history of recruiting efforts detailed the many years and many contacts the 

Airport has made to recruit new air service. Representatives from two LTD carriers have visited 

the airport and region and one carrier has written a letter of support for this Grant application.

A Plan for New Air Service Using Grant Funding

Award of Grant funding for marketing and advertising will mean the Airport has all the pieces in 

place for the recruitment of successful new air service. Key steps in the successful 

implementation of new LTD air service using Grant funding include:

 A clear set of goals and objectives
Northeast Florida Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 27

 A defined target audience for grant supported services

 A detailed implementation timeline

 A funding plan

 Performance measurements and Grant related financial controls

 Self-sufficiency contingency plans 

 Designation of a legal sponsor to oversee the Grant

Grant Application Goals and Objectives

This Grant document has illustrated that Northeast Florida air service is priced significantly higher 

than in the Orlando area, the Tampa Bay area, the Fort Myers area and at Fort Lauderdale. 

Furthermore, the primary tourism areas of Northeast Florida are some distance from the 

Jacksonville or Daytona Beach Airports.

Less-than-daily (LTD) airlines such as Allegiant, Direct Air, Vision and Sun Country are 

demonstrating on a daily basis the ability to profitably transport tourists to Florida, at Orlando 

Sanford, St. Petersburg and Punta Gorda.

The Northeast Florida Regional Airport, and its local public and private partners, believe that the 

Airport is the next LTD focus city in Florida. Our goal is simply to recruit and support LTD service 

from northern tier, mid-Atlantic and Midwest cities to the Airport, bringing significant numbers of 

new tourists and their dollars to the economy of Northeast Florida.

We have all the pieces in place to do this, including an ultra low cost airport facility and ground 

handling program. We need grant funding to address the remaining concern of prospective LTD 

carriers, that being how to market this new Florida destination airport in small and medium sized 

cities in competition with the more traditional and already known leisure magnets like Orlando or 

Fort Myers.

Grant Application Target Audience

The primary target audience for the Grant funded marketing and promotional efforts will be 

consumers interested in visiting Florida that reside in the city and region near the airport that will 

receive nonstop flights to Northeast Florida Regional Airport.
Northeast Florida Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 28

As was explained earlier in this document, one of the hesitations of airlines that the Airport has 

spoken to is related to consumer perception of gateway airports in Florida and that places like 

Orlando or Tampa are likely well known in that regard and Northeast Florida Regional at St. 

Augustine is most likely not known at all.

Thus a focused program to promote the new air service in the northern tier or central U.S. city 

and region that will receive the new Northeast Florida Regional air service is a priority.

The Airport will have many allies in this effort, including;

 The Airline, which has a vested interest in the success of the new service and also will 

want all marketing and promotional efforts to conform to its brand and advertising 

protocols.

 The Tourist Development Council of St. Johns County, which is strongly motivated to 

nurture low fare air service at Northeast Florida Region, as a successful low fare service 

at this Airport is a huge boon to county tourism.

 The resort and lodging entities and the tourism venues of the St. Augustine area, all of 

which have suffered a loss of business activity due to the recession and are hungry for 

methods to expand visitor events.

While exact marketing and advertising plans cannot be determined until the carrier and route 

are known, the Airport envisions that a typical new air service to a northern or central U.S. city will 

use some or all of the following marketing and promotional methods in the origin city;

1) Radio promotions and ticket/hotel package giveaways.

2) Billboards, advertising the destination as much as the airline.

3) Emails and postal mailings to consumers that are identified as previous visitors from zip 

code and address retention programs at northeast Florida lodgings and leisure venues.

4) Careful coordination with the existing northeast Florida promotional efforts of the TDC, 

turning those efforts to focus on the region where the new air service is to originate. TDC 

efforts cross a wide spectrum of media venues including newspaper, internet and radio.

Depending on the route and carrier business model the Airport will also market and promote the 

new air service in the northeast Florida region. To clarify this, if Allegiant is the carrier and the 

route is twice weekly to Allentown, PA, the Airport is unlikely to commit measureable promotional 
Northeast Florida Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 29

resources to the local northeast Florida market. If, on the other hand, the carrier is Frontier with 

year round three or four times weekly service to Milwaukee or Kansas City with an extension to 

Denver, then the Airport may commit measureable promotional resources to the local market, 

given that Frontier does not serve Jacksonville, operates a network type route system, and is 

committing significantly more frequency to the market than an Allegiant might.

Implementation Timeline

Small Community Air Service Development Grant proposals are due to the Department on 

August 2, 2011. The Department has indicated a tentative timeline for proposal evaluation and 

grant awards that will announce grant designees in early fourth quarter of 2011. Based on that 

tentative award timeline the Airport has developed the following timeline for implementing the 

use of Grant funding in support of new LTD air service at the Northeast Florida Regional Airport.

The timeline is tentative and will be driven by the date of Grant Award. The Airport believes that 

Grant Award will be the final piece of the puzzle and that new LTD service at Northeast Florida 

Regional Airport will be agreed upon and announced within months of Grant award 

announcement.
Northeast Florida Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 30

Funding Plan

The Airport requests in this Grant document $125,000 in Grant funding for the purpose of 

supporting the marketing and promotion of new air service at the Northeast Florida Regional 

Airport. The Grant funding of $125,000 would be supported by $10,000 is local non-airport 

funding and $25,000 in local Airport cash funding for a total Grant funding of $160,000.

While we cannot know the exact expenditure rate for Grant funding, we believe that Grant 

supported marketing efforts will be distributed throughout the year 2012 and 2013, as 

appropriate for optimum support of new air service. Thus the Airport requests that its Grant have 

at least a two year term.

Performance Measurements and Financial Controls; Monitoring Grant Progress

All stakeholders in the Grant implementation, the Airport, its partners, the Airline, the TDC and 

local lodging and leisure venue entities, will be regularly apprised of the performance of the new 

air service, in terms of load factor, average fare, revenue, and profitability. To the maximum 

extent possible, the stakeholders will reference actual market share performance and traffic mix 

metrics to determine if marketing and promotional efforts are successful. This will include 

mapping zip codes for origin of traffic and comparison of that mapping to expenditures of Grant 

marketing and promotional funds. This will be done even if the route is performing well, since it 

may be performing well despite badly aimed marketing and promotional efforts, and could be 

doing even better with resource allocation adjustments.

Line Description Sub Total Total Amount Description

1 Federal amount requested $125,000

2 State cash financial contribution $0

Local cash financial contribution $0

3a Airport cash funds $25,000 $0 Airport marketing funds

3b Non-airport cash funds $10,000 Ponte Vedra & Beaches VCB

3 Total local cash funds (3a + 3b): $35,000

4 TOTAL CASH FUNDING (1 + 2 + 3): $160,000

In-Kind contribution

5a Airport in-kind contribution** $0

5b Other in-kind contribution** $0

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

6 TOTAL PROJECT COST (4 + 5): $160,000

Northeast Florida Regional Airport

2011 SCASD Project Cost Detail
Northeast Florida Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 31

Key milestones along the path of Grant success include:

 Having a clear understanding from the LTD carrier regarding its cost of operations and 

breakeven or profit making traffic and revenue targets.

 Monitoring of carrier advance booking and actual performance reports, not just for load 

factor volume, but also for average fare and ancillary revenue.

 Continuous monitoring of carrier operational performance. Less-than-daily air service 

demands near 100% flight completion performance, for the simple fact that the next 

flight is not in a few hours but in a few days. Any reliability or on-time performance issues 

will be addressed with the carrier as soon as they emerge.

 

The Airport and its Executive Director will oversee performance measurement and ensure that 

Grant funds and local match fund spending is carefully tracked and wisely executed.

Route Self-Sufficiency

Marketing and promotion alone cannot make a new air service successful, nor be its downfall. 

However, the Airport and all Grant stakeholders recognize that marketing and promotion are 

one essential element of a successful new air service.

The Airport has a comprehensive airport facility and ground handling package that 

complements the marketing and promotional efforts this Grant will support. These two key 

elements, combined with a passionate local commitment to make low fare air service happen 

at Northeast Florida Regional and a commitment to closely monitor new route performance, 

suggest that new low fare air service at Northeast Florida Regional will be successful or that midcourse adjustments in strategy and tactics, undertaken as needed, will result in eventual 

success. The Airport and its local partners understand the need for success and will commit 

additional marketing and promotional resources, as needed, to ensure that success.

While the shutdown of SkyBus in 2008 was not in any way the fault or responsibility of the Airport, 

that sudden end of a popular air service is still well remembered. The Airport and its local air 

service development partners have no intention of allowing a repeat of the SkyBus shutdown in 

late March of 2008.
Northeast Florida Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 32

Examples of Market Pairs that Grant Funding Would Support

The Airport does not, at this time, know what markets might be chosen by a carrier for new 

nonstop service to the Northeast Florida Regional Airport. Based on conversations with both 

Allegiant Air and Direct Air we can make the reasonable assumption that new service would be 

from northern tier, Midwest or mid Atlantic markets at which these two carriers already have 

established service to other leisure destinations. Some of these potential destinations and 

relevant market metrics for each are listed below.

In these five examples the average fare differential is very significant, averaging 30% to 50% 

higher at Northeast Florida than at Orlando or Tampa. With the exception of Chicago ORD to 

Jacksonville, none of the area markets listed have nonstop service to Jacksonville or Daytona 

Beach.

Grant Application Legal Sponsor

 

The legal sponsor of this application, Mr. Edward R. Wuellner AAE and Executive Director of the 

Northeast Florida Regional Airport, will oversee the implementation of this Grant. This oversight 

will include (but not be limited to):

Area Year 2011 Q1 NE Florida Orlando Tampa Bay

Allentown O&D 99,600 177,740 51,620

Avg Fare $134 $85 $97

Western Michigan O&D 16,240 200,880 113,030

AZO/GRR/LAN Avg Fare $157 $101 $104

Rockford Area O&D 203,550 1,053,100 559,250

MKE/MSN/ORD Avg Fare $153 $124 $127

Pittsburgh O&D 79,730 480,670 263,940

Avg Fare $117 $108 $113

Detroit/Toledo O&D 101,400 878,510 491,240

Avg Fare $143 $99 $102

POTENTIAL NORTHEAST FLORIDA MARKETS

NE Florida consists of Jacksonville and Daytona Beach

Western Michigan consists of Kalamzoo, Grand Rapids and Lansing

Rockford area consists of Chicago ORD, Milwaukee and Madison 

Orlando is MCO and SFB airports

Tampa Bay is TPA and PIE airports
Northeast Florida Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 33

 Liaison with the Department, including the timely filing of all quarterly Grant status 

update reports

 Conclusion of all agreements with prospective airlines to serve the Airport

 Coordination and oversight of the implementation of Grant supported marketing and 

promotional efforts

 Oversight and coordination of the regular performance reviews of Grant supported 

efforts to ensure program success

 Approval of all expenditures of Grant funding, in close coordination with the Department 

and Grant program stakeholders

The contact information for the Legal Sponsor is:

Northeast Florida Regional Airport

Edward R. Wuellner, AAE

Executive Director

4796 U.S. 1, North,

St. Augustine, Florida 32095

904.209.0090

erw@sgj-airport.com
Northeast Florida Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 34

SUMMARY

If the Airline Industry were to first come to Northeast Florida today, the first flights would not be at 

Jacksonville International or Daytona Beach, but at Northeast Florida Regional, an ultra low cost 

airport perfectly located in the center of the region’s population and tourist attractions.

But the Airline Industry is already in Northeast Florida and at the aforementioned Jacksonville 

and Daytona Beach facilities. The result of that is air service distant from the true destination of 

tourist visitors and air service priced significantly higher than at other Florida airports like Orlando, 

Tampa, Fort Myers or Fort Lauderdale.

In this Grant proposal the Northeast Florida Regional Airport is seeking a modest amount of Grant 

funding (with a healthy local cash match) for the marketing and promotion of new less-thandaily low fare air service at the Northeast Florida Regional Airport.

The Airport already has in place an innovative and creative package of airport facility and 

ground handling services that allow prospective new entrant LTD carriers to operate at much 

lower costs than at Jacksonville or Daytona Beach.

The need for low fare air service at Northeast Florida Regional is clear:

 Northeast Florida air travelers using Jacksonville or Daytona Beach pay significantly 

higher average fares and exceedingly higher yields than do passengers using Orlando, 

Tampa, Fort Lauderdale or Fort Myers.

 In northeast Florida tourism is a critical aspect of the economy. Tourist lodging and leisure 

venues in the region must compete for tourist visitors and dollars with other parts of the 

state. High airfares and limited nonstop low fare service is costing northeast Florida tourist 

visitors and dollars.

 Skybus served Northeast Florida Regional for less than a year in 2007 – 2008. Yet this 

essentially unbranded startup airline generated over 107,000 O&D passengers in that 
Northeast Florida Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 35

brief period before the airline, due to its own business miscalculations, shut down. The 

brief service does prove that “fly it and they will come” does apply to this Airport.

 The Airport and its local partners have a well structured plan to ensure that new low fare 

air service that is introduced will be successful.

This Grant application is both modest in its funding need and precise in its focus. It is precisely the 

type of innovative and creative air service development effort the SCASD program was 

intended to support.

The Airport and its partners thank the Department for its consideration of this application.

LETTERS OF SUPPORT

AVAILABILITY OF ALTERNATE AIRPORTS