Grant Application Under The

Small Community Air Service

Development Grant Program

DOCKET OST-2013-0120

DUNS # 155618283

Congressional District AL-02
Application of Montgomery Regional Airport

The Small Community Air Service Development Program OST – 2013 - 0120

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Proposal Contents

I. THE AIR SERVICE DEFICIENCY........................................................................................... 3

STATEMENT OF PROBLEM ......................................................................................................... 3

OUTLINE OF DEFICIENCY........................................................................................................... 3

APPLICATION OF GRANT............................................................................................................ 4

ACCESS TO THE O’HARE GATEWAY .......................................................................................... 4

THE GRANT REQUEST .............................................................................................................. 4

IMMEDIATE RESULTS & ECONOMIC BENEFITS............................................................................. 5

AIRLINE TARGETS..................................................................................................................... 5

PROGRAM OVERVIEW ............................................................................................................... 6

GRANT ADMINISTRATION........................................................................................................... 6

PRIOR GRANT HISTORY ............................................................................................................ 6

PAST AIR SERVICE DEVELOPMENT ACTIVITIES ........................................................................... 6

PROJECT SPONSOR.................................................................................................................. 7

II. MONTGOMERY MARKET REVIEW...................................................................................... 8

MGM AIR SERVICE – CAPACITY DOWN 23.4% SINCE 2004 ........................................................ 9

ENPLANEMENT HISTORY ........................................................................................................... 9

THE NUMBER ONE DEFICIENCY: ACCESS TO THE O’HARE GATEWAY .........................................10

MONTGOMERY FARES – SIGNIFICANTLY HIGHER .......................................................................10

III. OVERVIEW OF PROPOSAL...............................................................................................11

THE NEW AIR SERVICE DEMANDS AT MONTGOMERY.................................................................11

GENERAL APPLICATION OF GRANT FUNDING .............................................................................11

III. PROJECTIONS OF CHICAGO/O’HARE SERVICE.............................................................12

AIRLINE EXPENSE/REVENUE PERFORMANCE.............................................................................12

MGM-ORD WILL BE A SCASD SUCCESS ................................................................................13

IV. GRANT ADMINISTRATION PLAN......................................................................................14

PROGRAM FUND ALLOCATION ..................................................................................................14

THE RISK-ABATEMENT PROGRAM.............................................................................................14

MARKETING & ADVERTISING SUPPORT .....................................................................................15

POST-GRANT SUPPORT ...........................................................................................................15

V. SUMMARY OF APPLICATION ............................................................................................16
Application of Montgomery Regional Airport

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I. The Air Service Deficiency

Statement of Problem

Montgomery Regional Airport herein applies for a grant under the 2013 Small Community Air 

Service Development Program.

The Airport and its community partners believe that Montgomery fits all the criteria established 

under the SCASD program:

1. Montgomery has a significant air service deficiency – one that can be addressed by the 

grant request herein

2. Montgomery has higher fares than peer cities. This is the result of fundamental changes 

in the airline industry

3. Montgomery suffers significant loss of air passenger traffic due to service that is 

increasingly inadequate to the need of its increasingly global-focused economy

4. The grant requested herein represents a straightforward solution to Montgomery’s air 

service deficiency, and does so with minimal risk to the Department’s funds.

Outline of Deficiency

Montgomery Regional Airport is the access point for an economic base that represents 

relationships with commercial centers across North America, Asia, and the European Union. 

Over the last decade, this expansion of the region’s industrial and business base has coincided 

with a contraction in the US airline industry.

In the last decade:

 Five network airlines have disappeared. Particular to Montgomery, it has lost access to 

two airline gateways (Memphis and Cincinnati/Northern Kentucky) and three network 

airline brands have disappeared.1

 Airline capacity at MGM has plummeted over 23%.

 Fare discrepancies are substantial. It is understandable that fares will be somewhat 

lower at giant Atlanta, but MGM has a 24% fare disadvantage over close-by 

Birmingham.

 This combination of higher fares and lower capacity have resulted in enplanements at 

Montgomery plummeting 20% from a decade ago.

 Traffic leakage from MGM is estimated at approximately 45%, due to the above factors.

 

1

This includes the merger of American and US Airways.
Application of Montgomery Regional Airport

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The US airline industry is not expanding in terms of seat capacity nor in terms of fleets. This 

raises the bar for communities seeking to increase air service. For Montgomery, this means 

that, in addition to demonstrating the economic opportunity for airline expansion, the community 

must also show that any additional air service is a better use of airline resources.2

Application of Grant

This contraction in the airline industry represents the need for Montgomery to assure that the air 

carrier brands serving the Airport continue to provide the air service access to support the 

current and future economic growth of the region.

Being an emerging auto-centric region, and one focused on international business, Montgomery 

suffers from lack of adequate access to key commercial centers in the US, as well as in Asia.

Specifically, MGM has limited access to the commercial centers of the US Midwest and Ontario 

that are a growing part of the trade profile of the MGM region.

Access To The O’Hare Gateway

These growing deficiencies will be addressed by the implementation of access to 

Chicago/O’Hare, where both United and American operate domestic and international hubbing 

operations. The additional capacity this new service will provide will reverse the declines in air 

access to MGM, as well as bring much-needed additional fare discipline to the market. This 

grant application is intended to provide revenue incentives to attract service from one of these 

carrier systems.

The Grant Request

This grant application is intended to gain access to the Chicago/O’Hare hub of American or 

United, which will: a) provide needed new competition, b) reverse the capacity decline, c) 

provide some additional fare discipline, and d) recapture traffic leaking to ATL and BHM.

 

2 As of July 10, 2013, US airlines are scheduling 3.5% fewer departures in the second half of 2013, compared to the same period of 

2012. In addition, based on planned retirements and new aircraft orders, jet fleets in are expected to decline by over 200 aircraft 

between 2012 and 2015. Source: Boyd Group International 2013-2022 Global Fleet Trend & Demand Forecast.
Application of Montgomery Regional Airport

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Montgomery is applying for a grant in the amount of $700,000, with a hard-dollar local match of 

20%, resulting in a total program funding of $840,000. In addition, the Airport will negotiate other 

in-kind support for the carrier, depending if it is American (an incumbent) or United (a newentrant.)

The veracity of Montgomery’s need to address this deficiency is underscored by the increasing 

delays, misconnections, and other operational problems at Atlanta Jackson-Hartsfield 

International Airport. In fact, Hyundai Motors – a major employer in the region - has advised 

repeatedly that these issues are becoming problematic in regard to that company’s future 

expansion plans in Alabama. This air service deficiency, therefore, is a serious economic issue.

Today, top-tier jobs such as those generated by Hyundai are critical to the nation’s emergence 

from the current recession. The service that this grant will facilitate will help preserve and 

increase such employment in Alabama.

Therefore, Montgomery Regional Airport and the Montgomery Area Chamber of Commerce 

hereby respectfully submit this application for a grant under the Small Community Air Service 

Development Program.

Immediate Results & Economic Benefits

The grant requested will successfully accomplish the following:

 Resolve A Clear Air Service Deficiency. Montgomery and its important global 

industries need to replace the capacity lost over the past decade as the airline industry 

has contracted.

 Engender New Investment. Atlanta, being the current major gateway to Montgomery 

and other points in the Deep South, is increasingly problematic to the economic growth 

of Alabama and to Montgomery. The problems of congestion, delays and 

misconnections at ATL are not going to be addressed in the near future. Opening access 

to O’Hare will give immediate relief from this traffic bottleneck.

Airline Targets

As a practical matter, there are only two airline targets for this grant, American or United. 

 United is the combination of the merger of United and Continental. The fleet plan for this 

carrier is not fully determined, particularly in the role of 50-66 seat jets, which are the 

airliners that are best suited for the MGM-ORD route.

 American is in the process of merging with US Airways. It is clear that they are restructuring their regional feed system. The revenues MGM can generate at ORD 

represent an opportunity for the carrier.

The grant will be used to recruit one of these carriers. The Airport would ask the Department’s 

indulgence in this issue. Analyses indicate that either AA or UA will equally meet the 

community’s needs.
Application of Montgomery Regional Airport

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Program Overview

The proposed grant will fund a mechanism that has been used successfully in many prior Small 

Community Air Service Development Grants.

A structured agreement will determine exact cost and revenue projections for the service, with 

shortfalls – if any – determined after each three-month period. Specific requirements will be 

included regarding flight reliability, fare levels, and service quality.

A part of the $840,000 fund will be used to market and promote the new service in the MGM 

service area. This will be accomplished by laser-focused electronic media, including e-mail, 

social media, and direct contact with key travel generators in the region.

Grant Administration

This application is submitted jointly by the Montgomery Regional Airport and a community 

coalition led by the Montgomery Chamber of Commerce. The community support for this 

application is broad and encompasses the entire business base of the region.

The unique community enthusiasm for business development that will support this new service 

is showcased by the growing investment in the region by Hyundai. The community competed 

with cities across the nation for this huge auto facility. It was the enthusiasm and drive of the 

business community that convinced this Korean conglomerate to invest in Montgomery. This 

local pride will assure that the new Chicago service is a success, and that the Department’s 

grant dollars provide a solid air service return on their investment.

Prior Grant History

The community was honored to have been awarded a Small Community Air Service Grant in 

2005. The objective of that grant was to support implementation of nonstop service to the 

Northwest Airlines hub at Detroit to better support the Alabama auto industry. 

Unfortunately, a set of events precluded the ultimate use of the 2005 grant. At the bottom line, 

Northwest Airlines found itself in Chapter 11 bankruptcy and therefore in a contraction mode. As 

a result, the grant was not utilized.

Past Air Service Development Activities

The airport and the community have worked very hard to retain existing service and recruit new 

carriers to the market. In the very tough environment of the past five years, it has been a very 

difficult challenge.

The Airport recruited American Airlines for DFW access in 2009. This success will now begin to 

pay additional rewards as it will provide access to American’s new service to Seoul, as well as 

Tokyo

The Montgomery Chamber of Commerce is also actively involved in dealing with potential new 

carrier opportunities. Because of the industrial relationships between this region of Alabama and 

Asia, there are efforts to increase access with global carriers. The Chicago service outlined in 

this application will benefit from the research and business connections the Chamber has 

developed with Asian and EU traffic generators.
Application of Montgomery Regional Airport

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Project Sponsor

The official sponsor of this project is the Montgomery Airport Authority. The community 

partnership is a coalition of civic organizations led by the Montgomery Chamber of Commerce.

The community and the Airport appreciate the time and efforts of the Department in reviewing 

this application, and look forward to a favorable decision. Please direct any correspondence 

regarding this matter to

Mr. Phil Perry

Executive Director

Montgomery Airport Authority

4445 Selma Highway

Montgomery, Alabama 36108

334-281-5040
Application of Montgomery Regional Airport

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II. Montgomery Market Review

The air service market area of Montgomery Regional Airport comprises all or parts of 13 

counties, with a population base of approximately 575,000 and a city population alone of 

205,764 according to the 2010 census. The city itself experienced a growth of 2.1% between 

2000 and 2010.

Note that basic reviews of air passenger traffic demand generation in the region indicate that 

there is approximately 45% leakage – i.e., passengers using other airports (particularly ATL and 

BHM), or not traveling due to lack of service options and high fares.3

The role of Montgomery – beyond that of being the capital of Alabama – is a commercial center. 

Well situated at the intersection of Interstate 65 and Interstate 85, the community has 

experienced population and economic growth in the past decade.

But this strong location for manufacturing and logistics also allows relatively easy access to 

much larger Birmingham and Atlanta, facilitating loss of passenger traffic to those airports. This 

grant application is intended to implement service that will begin to materially reverse this loss.

 

3 Based on earlier analyses, the region generates a core enplanement level of approximately 320,000 passengers annually.

Air Service Market Area

Montgomery Regional Airport

MGM Air Service Market Area



To BHM

To ATL
Application of Montgomery Regional Airport

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MGM Air Service – Capacity Down 23.4% Since 2004

Montgomery Regional Airport, despite its growing economy, has suffered material losses of 

airline capacity. This is the result of airline consolidation and federally-approved mergers that 

have removed several competing airline brands from the marketplace.4

The additional Chicago service this grant will make possible will begin to reverse this trend. In 

addition, it will provide stronger international access to support the economy of this region of 

Alabama.

Enplanement History

In conjunction with declines in capacity, enplanements registered at Montgomery Regional 

Airport have not kept pace with the rapid economic growth and globalization of the industrial 

base.

 

4

In 2004, for example, Delta and Northwest competed for MGM passengers. Today, after the merger, that is not the case. With the 

expected AA/US merger

Carrier Dest 2004 2013 Change % 

Change 2004 2013 Change % 

Change

AA 1,052 1,052 51,640 51,640

DFW 1,052 1,052 51,640 51,640

DL 3,645 2,852 (793) -21.8% 214,794 144,082 -70,712 -32.9%

ATL 2,574 2,852 278 10.8% 161,244 144,082 -17,162 -10.6%

DFW 1,071 (1,071) -100.0% 53,550 -53,550 -100.0%

NW 1,101 (1,101) -100.0% 54,074 -54,074 -100.0%

MEM 1,101 (1,101) -100.0% 54,074 -54,074 -100.0%

US 1,025 991 (34) -3.3% 51,250 49,550 -1,700 -3.3%

CLT 1,025 991 (34) -3.3% 51,250 49,550 -1,700 -3.3%

Total 5,773 4,895 (878) -15.2% 320,382 245,272 -75,110 -23.4%

Departures Seats

213,175

203,104

186,574 180,599

172,347

161,272

188,539 184,463 181,743

171,565

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Est

Montgomery Enplanement History
Application of Montgomery Regional Airport

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Based upon known and expected airline capacity strategies, passenger enplanements at 

Montgomery are forecast to decline another 5% - 6% in 2013.

These data underscore Montgomery Regional Airport’s need, and the eligibility of this grant.

The Number One Deficiency: Access To The O’Hare Gateway

One of the most glaring deficiencies in MGM air service is lack of nonstop service to the global 

hub at Chicago/O’Hare. 

Montgomery’s economy is now heavily auto-centric, yet there are limited seats and access to 

the industrial centers in the US Midwest. Furthermore, there is a huge challenge in that 

Montgomery is closely tied to key Asian industrial points, such as Seoul, Tokyo, Shanghai, and 

Taipei by virtue of the Hyundai plant. There is a pressing need for more access to these points. 

Both of the hubbing carriers at ORD (American and United) can provide this access.

The additional capacity that this service would add will bring more fare discipline into the MGM 

market, as well as substantially reduce travel time to important automotive centers in Illinois, 

Michigan, Wisconsin, and Indiana.

Montgomery Fares – Significantly Higher 

Fares at MGM average significantly higher than at either Birmingham or at Atlanta. Below are 

average one-way fares paid, including federal fees and taxes in Montgomery’s top 15 O&D 

markets for 2012.

5

Overall, MGM consumers pay almost one fourth more for air travel than those at Birmingham.

 

5 Source: Analysis of BTS data full year 2012, computed as one-way fares with federal fees and taxes.

Rank Market Avg OW Fares Avg OW Fares Pct Variance

1 DFW $236.82 $210.82 12.3%

2 DCA $307.51 $186.09 65.3%

3 CLT $159.12 $176.85 -10.0%

4 LGA $237.57 $224.82 5.7%

5 BWI $236.10 $180.88 30.5%

6 LAX $297.06 $278.74 6.6%

7 BOS $247.47 $256.53 -3.5%

8 SAT $261.13 $235.92 10.7%

9 DEN $256.11 $257.19 -0.4%

10 DTW $275.25 $316.90 -13.1%

11 ORD $262.13 $224.83 16.6%

12 EWR $246.90 $213.24 15.8%

13 MCO $229.72 $153.97 49.2%

14 LAS $319.44 $237.30 34.6%

15 PHL $308.03 $227.36 35.5%

$284.94 $229.37 24.2%

MGM BHM

Total
Application of Montgomery Regional Airport

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III. Overview of Proposal

The New Air Service Demands At Montgomery

Alabama has emerged as one of the major auto-manufacturing centers in the world, and 

Montgomery is the main gateway to this economic growth. 

Addressing the air service deficiencies at Montgomery will benefit not only Alabama, but the 

entire US. For example, the first- second- and third-tier suppliers to the giant Hyundai plant 

generate jobs at facilities across the nation. Improved air access to MGM will enhance their 

business and engender new economic investment.

To support these jobs, adequate and affordable air access is essential. Unfortunately, airlines 

have cut capacity, and fares have literally skyrocketed at MGM. The new capacity that 

Chicago/ORD service can provide will be a major step in addressing both of these challenges.

Today, the need for US and global access for Montgomery is more critical than ever. 

Unfortunately, the main international gateway for MGM remains the Delta Air Lines hub at 

Atlanta Jackson-Hartsfield International Airport. ATL remains congested and delay-prone. 

Without question, flights to another major global portal is necessary to assure that MGM has 

adequate air access and more reasonable fare levels from the rest of the nation and the globe.

Chicago/O’Hare meets this requirement.

Furthermore, there is a substantial demand for nonstop service from Montgomery to the 

Chicagoland area, and the data support the contention that such service will quickly become 

profitable on a fully-allocated flight sector basis.

General Application of Grant Funding

The grant requested in this application will be applied to only to provide assurances regarding 

the levels of revenue the target airline will attain, based on reasonable, pre-negotiated 

passenger projections.

Fundamentally, this is not a subsidy – if the revenue targets are met, no funds will be due the 

carrier. The program will simply provide a safety net to offset the airline’s legitimate initial risks 

in opening a new nonstop market.

This approach has been used successfully at a number of other small airports with the 

assistance of SCASD program grants. It will also be successful at Montgomery.
Application of Montgomery Regional Airport

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III. Projections of Chicago/O’Hare Service

Airline Expense/Revenue Performance

The route and market proformas accomplished by the Airport show that when fully developed, 

the MGM-ORD market is clearly one that this grant can attract and make successful for both the 

community and for the airline. Below are cost projections based on the 50-seat ERJ-145 aircraft 

operated by American – American Eagle. The data for 50-seat CRJ airliners operated by the 

United system are nearly identical.

These data represent the market subsequent to the initial ramp period, which the grant is 

intended to address. The Airport would point out that the grant is intended only to reduce the 

risk level to encourage the carrier to enter the market. While these data reflect analyses of the 

American Airlines system distribution at O’Hare, the results from a review of the United system 

would not vary materially.

Operational Projections - MGM-ORD

MGM - ORD Mileage 674

Aircraft ERJ-145

Service Pattern 2 R/Ts

Annual Flights 1,427

Completion Factor 98%

Block Time 1.95

Annual Block Hours 2,782

Annual Seats 71,344

ASM 48,085,856

Cost Per Hour $4,061

CASM 0.235

Annual Segment Operating Cost $11,300,176

Traffic & Revenue Projections:

Passengers Revenue

Local Traffic MGM-ORD 22,790 $4,757,842

Online Domestic Connections 34,734 $8,561,739

International Passengers 1,139 512,772

Total 58,663 $13,832,353

Less Displacement (10%) $1,383,235

Net System Revenue $12,449,118
Application of Montgomery Regional Airport

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MGM-ORD Will Be A SCASD Success

The data compiled by the Airport clearly show that the Chicago – Montgomery market meet the 

criteria set by congress in developing the Small Community Air Service Development Grant 

Program. This award will accomplish the following:

 It will address an immediate air service deficiency

 It will enhance economic development in the region

 It will incubate service that would help address a capacity shortage and have the effect 

of bringing more fare discipline into the market.

The Airport and the Community respectfully ask the Department to review these compelling 

data, and give favorable consideration to a grant that will address a demonstrable air service 

deficiency at Montgomery.
Application of Montgomery Regional Airport

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IV. Grant Administration Plan 

Program Fund Allocation

The program is intended to primarily provide a revenue guarantee to reduce the carrier’s initial 

risk in entering and building the Chicago route from Montgomery. In addition, there will be a 

local marketing effort that will engender local awareness and support for the new service.

The Risk-Abatement Program

Montgomery Regional Airport and the community are in on-going contact with many carriers

regarding new service opportunities. These include American and United. Upon favorable 

notification of grant award, the Airport will enter into substantive negotiations with American 

Airlines to secure two daily nonstop Eagle flights to Chicago/O’Hare.

The Airport will propose the following, with the final agreement subject to Department approval:

 Provision for two daily (with reduced week-end) frequencies, timed to connect with the 

carrier’s flight banks at ORD;

 A pre-agreed per-segment cost for the operation. This will include a fuel factor (escalator 

and deflator) and will be based on historical American Eagle (or alternatively, United 

Express) published costs for ERJ (or CRJ) aircraft. The cost will include a reasonable 

profit hurdle to be agreed upon.

 It is understood that MGM-ORD is not a market that is a long-shot from potential 

profitability. The data definitely show that, with initial risk-offset in the starting months, 

MGM-ORD can be a strongly contributory route for either of the hubbing carriers (AA or 

UA) at Chicago. Therefore the period of the risk-offset agreement will be for one year 

only, starting from the date of service initiation.

 Reliability is critical to the success of the service. Therefore, the agreement will include 

specific performance metrics. Schedule reliability: 98% controllable flight completion. 

On-time arrivals within 15 minutes of published schedule: 95%. 

 Pricing dynamics will be driven by the market and by competing service options to 

Chicago and points served by the target carrier beyond ORD. However, the carrier must 

agree to price the service within the relative confines of service at other, similar markets 

at ORD.

Montgomery 

Grant Program

Risk Abatement

Local Marketing 

Support

Total

Program Funds $ 625,000 $ 75,000 $700,000

Local Match $ 70,000 $ 70,000 $140,000

Total $ 695,000 $ 145,000 $840,000
Application of Montgomery Regional Airport

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 The performance of the service, including reliability and passenger traffic, will be 

monitored by the Airport. The airline will be required to provide revenue reports, 

including local ORD O&D and beyond traffic revenues, every three months subsequent 

to service initiation.

 Risk-abatement determination and settlement will be made at the end of each threemonth period.

The Airport will seek DOT approval prior to any agreement with the target carrier under this 

grant. 

Marketing & Advertising Support

The Community intends to implement an aggressive targeted program of advertising and 

marketing to assure that the new service builds traffic quickly and with minimum draw on the 

revenue guarantee. These will include:

 Pre-Operational Media: A targeted program of newspaper and electronic media 

placement – including targeted e-mail and an aggressive social media program - will 

begin 30 days prior to the announced date of start-up service.6

 Community Outreach. There are only 100 daily departing seats envisioned in this 

program. Therefore the community outreach will be highly targeted on the specific 

industries that have a need for Chicago, Upper Midwest, and Asia access. These efforts 

will include direct e-mail, presentations at Chamber and other civic events, and liaison 

with the travel managers of key corporations in the MGM region.

Post-Grant Support

Montgomery Regional Airport and the Montgomery Chamber of Commerce have a recognized 

program to support and build local businesses. This includes the carriers serving the Airport. 

At the end of the grant period of one year, the new Chicago service will continue to receive 

aggressive marketing support in the community, as do all carriers at MGM. Therefore, the 

Department’s grant investment will be protected and enhanced into the future.

 

6

This is now fairly close to a normal consumer booking window. Media placements earlier than is will be diluted and ineffective.
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V. Summary of Application

The Montgomery Regional Airport believes that this application is consistent with the goals of 

the Small Community Air Service Development Grant Program. 

 It meets the emerging needs of the globalized MGM region economy – Access to 

ORD via either American or United will not only open up new access to the Midwest, but 

will give MGM much-needed new access to Asia. United’s nonstops to Tokyo have 

connectivity via its Haneda hub. American has connectivity over both Haneda and Narita 

via its oneworld Alliance relationship with Japan Air Lines. Both carriers have nonstops 

between Chicago and China.

 The ORD service will begin to recover leakage to BHM and ATL. The important 

local MGM-ORD today involves a circuitous routing – almost 20% more travel miles than 

nonstop flights. This literally drives consumers to use BHM and ATL.

 It will reduce the reliance on congested Atlanta Jackson-Hartsfield as the major 

gateway for Montgomery.

 It represents an opportunity for the target carriers. The Asian and other international 

traffic generated by MGM represent strong, net new revenues for either of the target 

carriers.

 It will help to bring fare discipline to the MGM market. Today, consumers at MGM 

are actually paying on average almost 25% more than consumers at nearby 

Birmingham, resulting in significant leakage and lost economic impact to Montgomery.

Based on these data, the Airport would ask the department for favorable consideration to this 

application.
APPENDIX B 

Page 1

APPLICATION UNDER

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM 

DOCKET DOT-OST-2013-0120

SUMMARY INFORMATION

All applicants must submit this Summary Information schedule, as the application coversheet, 

a completed standard form SF424 and the full application proposal on

www.grants.gov.

For your preparation convenience, this Summary Information schedule is located at

http://www.dot.gov/policy/aviation-policy/small-community-rural-air-service/SCASDP

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

NUMBERING SYSTEM (DUNS) NUMBER, INCLUDING +4, EMPLOYEE IDENTIFICATION 

NUMBER (EIN) OR TAX ID.

Legal Sponsor Name:

Montgomery Regional

Airport

DUNS 

Number: 155618283

EIN/Tax ID:63-0638943

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

1. City of Montgomery, Alabama

2. Alabama Department of Transportation

3. Montgomery Area Chamber of Commerce

4.

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

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

1. Montgomery Regional Airport MGM 2.

3. 4.
APPENDIX B 

Page 2

D. LIST THE 2-DIGIT CONGRESSIONAL DISTRICT CODE APPLICABLE TO THE SPONSORING

ORGANIZATION, AND IF A CONSORTIUM, TO EACH PARTICIPATING COMMUNITY.

1. 02 2. 07

3. 03 4.

E. APPLICANT INFORMATION: (CHECK ALL THAT APPLY)

x Not a Consortium □ Interstate Consortium □ Intrastate Consortium D 

□ Community now receives subsidized Essential Air Service

x Community (or Consortium member) previously received a Small Community Air Service 

Development Program Grant

If previous recipient: Year of grant(s): 2005

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

PUBLIC PRIVATE

1. 1.

2. 2.

3. 3.

4. 4.

5. 5.

G. PROJECT PROPOSAL: (CHECK ALL THAT APPLY)

x Marketing j—j Upgrade Aircraft x New Route

□ Travel Bank j_] Service Restoration x Subsidy

□ Surface Transportation □ Regional Service x Revenue Guarantee

□ Launch New Carrier □ X Start-up Cost Offset □ First Service

□ Study □ Secure Additional Service □ Other (explain below)

H. EXISTING LANDING AIDS AT LOCAL AIRPORT:

 X Full ILS Outer/Middle Marker

X Localizer □ Other (specify)

 X Published Instrument Approach
APPENDIX B

Page 3

I. PROJECT COST: DO NOTENENTER TEXT IN SHADED AREAS

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.

Montgomery Chamber of Commerce - $70,000 toward hiring an Air Service Development director

LINE DESCRIPTION SUB TOTAL TOTAL AMOUNT

1 Federal amount requested 700,000.00

2 State cash financial contribution 28,000.00

Local cash financial contribution

3a Airport cash funds

3b Non-airport cash funds 42,000.00

3 Total local cash funds (3a + 3b) 42,000.00

4 TOTAL CASH FUNDING (1+2+3) 770,000.00

In-Kind contribution

5a Airport In-Kind contribution** 70,000

5b Other In-Kind contribution**

5 TOTAL IN-KIND CONTRIBUTION (5a + 5b) 70,000.00

6 TOTAL PROJECT COST (4+5) 840,000.00
K. IS THIS APPLICATION SUBJECT TO REVIEW BY STATE UNDER EXECUTIVE ORDER 12372 

PROCESS?

□ a. This application was made available to the state under the Executive Order 12372

Process for review on (date) n/a .

□ b. Program is subject to E.O. 12372, but has not been selected by the state for review.

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

L. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT? (IF "YES", PROVIDE

EXPLANATION)

X No □ Yes (explain)

2003 206,341

2004 213,175

2005 204,896

2006 186,574

2007 180,333

2008 169,528

2009 161,272

2010 188,522

2011 184,485

2012 181,997