### APPLICATION UNDER SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM DOCKET DOT-OST-2013-0120

SUMMARY INFORMATION All applicants mustsubmit 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. P ROVIDE THE LEGAL SPONSOR AND ITS DUN AND BRADSTREET 

### (D&B) DATA UNIVERSAL NUMBERING SYSTEM 

### (DUNS)NUMBER

### ,INCLUDING 

### +4,EMPLOYEE IDENTIFICATION NUMBER 

### (EIN) OR TAX ID 

### . Legal Sponsor Name: City of Mobile DUNS Number: 010396687-0000 EIN/Tax ID: 63-6001318

B. L IST THE 

### NAME OF THE COMMUNITY OR CONSORTIUM OF COMMUNITIES APPLYING 

### : 1. AIR 

### S ERVICE 

### D EVELOPMENT 

### T ASK 

### F ORCE 

### 2.____________________________________________________ 3.____________________________________________________ 4.____________________________________________________
C. P ROVIDE THE FULL AIRPORT NAME AND 

### 3-L ETTER 

### IATA AIRPORT 

### C ODE FOR THE APPLICANT 

### ( S

### ) AIRPORT 

### ( S

### ) (O NLY PROVIDE CODES FOR THE AIRPORT 

### ( S

### ) THAT ARE ACTUALLY SEEKING SERVICE

### ). 1. Mobile Regional Airport MOB 2. 3. 4.

1

### D. L IST THE 

### 2-DIGIT CONGRESSIONAL DISTRICT CODE APPLICABLE TO THE SPONSORING ORGANIZATION 

### ,AND IF A CONSORTIUM

### ,TO EACH PARTICIPATING COMMUNITY 

### . 1. AL-001 2. 3. 4.

E. APPLICANT 

### INFORMATION 

### : (C HECK 

### ALL 

### T HAT 

### APPLY

### ) Not a Consortium Interstate Consortium Intrastate Consortium Community now receives subsidized Essential Air Service Community (or Consortium member) previously received a Small Community Air Service Development Program Grant If previous recipient: Year of grant(s): 2002 F. P UBLIC

### /P RIVATE 

### PARTNERSHIPS 

### : (L IST 

### O RGANIZATION NAMES

### ) PUBLIC PRIVATE 1. N/A 1. N/A 2. 2. 3. 3. 4. 4. 5. 5.
G. P ROJECT 

### P ROPOSAL 

### : ( CHECK ALL THAT APPLY

### ) 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 (explain below)



### H. E XISTING 

### L ANDING 

### AIDS AT 

### L OCAL 

### AIRPORT 

### : Full ILS Outer/Middle Marker Published Instrument Approach 2 X

X

X

X

### Localizer Other (specify) I. P ROJECT 

### C OST 

### : D O NOT ENTER TEXT IN SHADED AREA L INE D ESCRIPTION S UB T OTAL T OTAL AMOUNT 1 Federal amount requested 710,000 2 State cashfinancial contribution 0 Local cash financial contribution 3a Airport cashfunds 0 3b Non-airport cashfunds 0 3 Total local cashfunds (3a + 3b ) 0 4 TOTAL CASH FUNDING (1+2+3 ) 710,000 In-Kind contribution 5a Airport In-Kind contribution** 200,000 5b Other In-Kind contribution** 900,000 5 TOTAL IN-KIND CONTRIBUTION ( 5a + 5b ) 1,100,000 6 TOTAL PROJECT COST (4+5) 1,810,000



### J. IN-KIND CONTRIBUTIONS** For funds in lines 5a (Airport In-Kind contribution) and 5b (Other In-Kind contribution), please describe the source (s) of fund(s) and the value ($) of each. MOB will abate landing fees up to $100,000 over two years. Local hotels will provide cost savings to airline crews and the Coastal Alabama Partnership will fund a research and branding effort.



### 3

### K. I S 

### T HIS 

### APPLICATION 

### S UBJECT 

### T O 

### REVIEW 

### B Y 

### S TATE 

### UNDER 

### E XECUTIVE 

### O RDER 

### 12372 P ROCESS 

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

### T HE 

### APPLICANT 

### D ELINQUENT 

### O N 

### ANY 

### F EDERAL 

### D EBT 

### ? (I F 

### “YES 

### ”, P ROVIDE 

### E XPLANATION

### ) No Yes (explain)

______________________________________________________________________________

______________________________________________________________________________

4 X

X

# Proposal Under the Small Community Air Service Development Program Docket DOT-OST-2013-0120 An Effort of the Air Service Development Task Force to Increase Connectivity in the Gulf Coast Region Legal Sponsor - City of Mobile DUNs Number for City of Mobile: 010396687-0000 Congressional District AL-001

# I. Introduction

Mobile currently has 25 daily non-stop flights to 5 destinations aboard United Airlines, Delta Air Lines, American Airlines and US Airways. Mobile’s largest domestic markets are business markets and include: New York, Washington DC, Houston, Atlanta and Dallas. Mobile had the 13th highest domestic fares in 2012 with an average one-way fare of $240.65 among airports with over 250 passengers per day each way. According to the Mobile Bay Convention and Visitors Bureau, the number one reason Mobile Bay loses convention business is due to high fares and lack of non-stop routes. Even among benchmark cities, fares are higher than average as indicated in the chart below. Benchmark City (by PDEW) Average One-Way Fare Passengers Per Day Each Way Rapid City, SD, US $235.41 613 Bismarck, ND, US $239.87 615 Fayetteville, NC, US $225.48 640 Charleston, WV, US $209.08 647 Green Bay, WI, US $250.78 655 Mobile, AL, US $240.65 668 Augusta, GA, US $202.12 674 Shreveport, LA, US $240.87 684 Fort Wayne, IN, US $205.45 687 Jackson Hole, WY, US $252.73 687 Peoria, IL, US $188.67 694

# I. Introduction

Historically the greater Gulf Coast Region has suffered from high fares and a lack of domestic and international connectivity. This lack of connectivity has increased over the last 10 years (chart below) as airlines cut service in smaller markets which lead to fewer seats and thus passengers utilizing Mobile Regional Airport. Only very recently has Mobile Regional Airport begun to experience an increase in aircraft seats and passengers. Even so, the Mobile Regional Airport, and the region it represents, remains substantially underserved.

After extensive surveying, 4 non-stop destinations were chosen as key areas that lacked adequate connectivity: Washington DC - BWI, Chicago, Nashville and St. Louis. 0 88 175 263 350

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 0 275 550 825 1,100

922 816 792 817 866 799 777 739 747 742 778 751 $207 $188 $192 $201 $216 $247 $252 $272 $243 $287 $283 $300Average One-Way FarePassengers Per Day Each Way



### Average Fare Passengers per Day

# I. Introduction

In 2007 the Mobile Airport Authority reached out to the greater Gulf Coast community and asked for help with this problem. The result? A strong and committed group of 70 businesses, organizations and non-profits joined together to create an Air Service Development Task Force. This Task Force is lead by the Mobile Area Chamber of Commerce and works to achieve 3 goals: Retain existing air service Grow existing air service Secure new air service 

### Recently this group was successful in securing new air service on United Airlines to Chicago O’Hare and enhancing current service on Delta Air Lines to Atlanta (larger jets). The Air Service Task Force (ASTF) is lead by the Site Director of Airbus locally, and two years ago was further organized into four committees: Market, Affinity/Integration, Risk Mitigation, and Regional Brand Development. Community leaders were assigned to lead these 4 committees and deal with all aspects of attracting and, more importantly, retaining air service in our region. The committees meet regularly and work on a comprehensive set of deliverables. The ASTF believes that the deliverables, once complete, will provide an airline the necessary risk mitigation and support for new air service.

# I. Introduction

Sample of Air Service Task Force Member Companies/Organizations: Airbus Americas Engineering, Inc. Austal USA Baldwin County Economic Development Alliance City of Mobile Congressman Jo Bonner CPSI Hancock Bank Merrill Lynch/The Whiting Group MLK Avenue Redevelopment Corporation Mobile Airport Authority Mobile Area Chamber of Commerce Mobile Bay Convention & Visitors Bureau Mobile County Commission Page & Jones Inc. Press-Register Renaissance Mobile Riverview Plaza Hotel Scotch & Gulf Lumber LLC SH Enterprises, Inc. White-Spunner Construction Inc.

# I. Introduction (Market Study)

One committee deliverable, and the foundation of the project moving forward, was to better understand our diverse region and the opportunities within. To do this the ASTF commissioned Campbell/Hill Aviation Consultancy to conduct a detailed Market Study. The findings of the Market Study again show how the region, served by MOB, remains critically underserved. There are 4.8 million people, 2.2 million households within the Gulf Region that runs from New Orleans (MSY) to Panama City (ECP), the area covered by this analysis. In 2012, 2.38 million trips by commercial air carrier originated from this area. Mobile (MOB) has 15% of the population and 15% of the households within the Gulf Region, but captured only 6% of trips in 2012 (graphic next page). Only 52% of originating passengers from the region closest to MOB use MOB airport. Note: Based on 2 hour drives around each gulf airport as outer bounds. Then the areas are subdivided by closest drive time. For example, the red area is the area within 2 hours that is closest to MOB. 

# GULF COAST REGION

# I. Introduction (Market Study)

= 10 Bookings 

# SHARE OF PASSENGERS USING CLOSEST AIRPORT PAX USING ALL AIRPORTS IN REGION BY WHERE THEY LIVE

# I. Introduction

The preliminary results of Campbell-Hill’s Study are complete. Mobile passengers are being forced to drive to neighboring airports. Among Gulf Coast Airports (New Orleans, Gulfport, Mobile, Pensacola, Fort Walton, Panama City), Mobile had the highest aggregate income, population and number of households but the lowest seat capacity. Clearly, Mobile is underserved and has a critical need to attract additional air service. As the Air Service Task Force continues to meet with airlines, one resounding question is asked again and again. Who are you? This question, unanswered, will discourage airlines from adding new air service at MOB. Airlines want to know how to market the Mobile region as a destination to their passengers. We aim to answer that question.

# II. Strategic Plan

The Air Service Task Force intends to use Small Community Air Service Development Grant funds to purchase media for an aggressive social media and traditional media branding campaign. This campaign would be offered with the launch of new air service in conjunction with: Hotel Accommodations Package Mobile Regional Airport Abatement Package/Participation in Station Services Program Brand Advertising (with airlines name included in content funded by the grant). 

### We are asking the Department of Transportation for $710,000 for air service marketing efforts.

# II. Strategic Plan

The Air Service Development Task Force (ASTF) has completed a substantial amount of work that distinguishes our community from other applicants. We are not asking for funds for a stand-alone project. The media buys are part of a detailed plan. Here is an overview of what our committees have undertaken to make new air service a reality: Risk Mitigation Committee: Goal - creatively determine how to best mitigate risks using the region’s diverse assets. An accommodations package including free/discounted room nights for airline staff has already been finalized. This package is worth $500,000 in potential savings over 1 year. The Coastal Alabama Partnership, a private entity, has applied for a BP-Coastal Recovery grant to fund the ASTF’s Market Study and part of the regional branding initiative. The award is pending. Fee abatements totaling no more than $100,000 from the Mobile Airport Authority will be available each year for 2 years. Market Committee: Goal - redefine the new regional market and the market surrounding destination cities. Campbell-Hill Aviation Group, LLC, a Washington, DC based aviation consulting firm was selected to conduct a study that outlined MOB’s true market as well as the true market for destination cities.

# II. Strategic Plan

Brand Development Committee: Goal - determine the true identity and brand that best defines our region and determine ways to creatively market that brand. The Coastal Alabama Partnership is developing a regional brand that will be the umbrella that all the region’s organizations (business and leisure) can embrace. The Coastal Alabama Partnership will fund this effort. Affinity/Integration Committee: Goal - to build a strong partnership/family between target airlines and the Region and for airline recruitment efforts to promote goodwill in the community and build brand loyalty. This group has identified over 200 of the region’s main influencers and is devising a plan to reach-out to this group and include them in our efforts moving forward. A critical task ahead for the Air Service Task Force is to develop funding for the airline service launch social and traditional media campaign. Once the Campbell-Hill Market Study is complete (August 2013), the Coastal Alabama Partnership expects to begin the brand collaboration process. After that the Air Service Task Force needs to fund the traditional and social media buys.

# II. Strategic Plan

PROJECTED ANNUAL PAID MEDIA ALLOCATION: Digital/Online - $70,000 Search Engine Marketing Campaign - $10,000 Banner Campaign - $60,000 

### Print - $75,000 Press-Register (1/4 page vertical, Sunday w/color) - $2,500/ insertion (24 insertions = $60,000 Mobile Bay Monthly (1/2 page, 4/c, 6X rate) - $1,550/ insertion (6 insertions = $9,200) Business View (full page 6 x = $1,000/insertion - less 20% discount = $6,000 - $1,200 = $4,800) 

### Outdoor / Directional Locators - $125,000 Airport Blvd. - $2,500/mo. ($30,000/yr.) Digital, Airport & McGregor- $3,800/mo. (highest weekly impressions = $46,000/yr.) Additional budget to include negotiation of boards placed around I-10/I-65 as well as key placements throughout the Gulf Coast. 

### Radio - $140,000 6 Month Schedule / Four, 4-week flights / 2,000 GRPs - $140,000

# II. Strategic Plan

PROJECTED ANNUAL PAID MEDIA ALLOCATION (CON’T): Television - $200,000 6 Month Rotation Flighted / 200 GRPs - $200,000 

### Cable - $70,000 6 Month Rotation / 250 spots - $70,000 

### Social Media: $2,500 per month = $30,000 

### Total: $710,000 This represents an annual paid media allocation that will be spread from the beginning/middle of 2014 through 2015.

# III. Funding: Risk Mitigation Package

Hotel Accommodation Package Value of Free Nights - $500,000/year for 1 year 

### Coastal Alabama Partnership Funds Research and Planning - $150,000 Creative (Brand Creation) - $250,000 

### Mobile Airport Authority Abatement of fees (value) - $100,000/year for 2 years



### TOTAL VALUE OF AIR SERVICE TASK FORCE RISK MITIGATION PACKAGE - $1,100,000

# IV. Legal Sponsor

Legal Sponsor: City of Mobile, Alabama Contact: Rebecca Christian, CPA, CGMA Title: Accountant II Department: City of Mobile, Accounting Dept. Phone: (251) 208-7201 Fax: (251) 208-7756 E-Mail: christianr@cityofmobile.org Mailing Address: P.O. Box 1827 Mobile, AL 36633-1827

# Case Study: ASTF - Partnership Success

In April 2013, United Airlines launched non-stop daily service from Mobile to Chicago-O’Hare. The Air Service Task Force joined together to attract and promote the service. Air Service Task Force members wrote letters of support. A community event was held at the airport. Advertising was spread by traditional means such as billboards, TV and by word of mouth and social media. Air Service Task Force members continue to support that service and indications from United schedule planners are that the service is doing well and Mobile may have the opportunity for a second flight. They welcome dollars to continue the awareness effort.

# V. Past Grant Award

A Small Community Air Service Development Grant was awarded to Mobile Regional Airport (MOB) in 2002 to fund MOB’s Station Services Program. After September 11, 2001, MOB lost its United Airlines service. At that time, United also ground handled all US Airways flights. Mobile would have lost both carriers but created the Station Service Program and was able to retain US Airways flights to Charlotte. Station Services is a program where the airport owns, operates and equips an airline’s station thus lowering the barriers to entry for new or existing air service. US Airways continues to participate in the Station Services Program. Station Services was vital to attracting American Airlines to Mobile in 2005. Station Services is offered to all airlines as part of the Airport's risk mitigation package.

# VI. Letters of Support

In separate attachment.

# 31-315t RESOLUTION 

# 2 13

Sponsored by: Mayor Samuel L. Jones

BE 

### IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MOBILE, ALABAMA, 

### that the Mayor and the City Clerk be, and they hereby are, authorized and directed, for and on behalf of the City of Mobile, to take all actions necessary to apply for and administer a grant offered by the "Small Community Air Service Development Program," U. S. Department of Transportation. The grant application has been developed by the Air Service Development Task Force, a group of 70 businesses, organizations and non-profits, at no cost to the City. The local match will be provided through in kind contributions offered by the Mobile Regional Airport, the Coastal Alabama Partnership and cost savings from local hotels. The purpose of the grant program is to attract and grow air service to Mobile. Adopted: 

## JUL 2 3

## 2013

C:\Documents and Settings\ 18221Local Settings\Temporary Internet Files\OLK10\00029011.DOCAr-ABAMA 

# T^qfu*AUrHoRrrY

luly 26,2013

Department of Transportation Office of Aviation Analysis Office of Aviation and lnternational Affairs 1200 New Jersey Ave, SE Washington 

### DC 20590 Docket DOT-OST-20 I 3-0 I 20 

## Re: Letter supporting the 

### Air Service Development Task Force's Small Community 

### Air Service Development Grant Application To Whom It May Concern: 

### I am writing on behalf of the Alabama State Port Authority in support of the Mobile Area Chamber 

### of Commerce 

### Air Service Development Task Force's Small Community 

### Air Service Development Grant Application. The Alabama State Port Authority is 85 years old and specializes in providing port facilities that support business and industry throughout the State of Alabama and surrounding regions. We currently employ 25 people that 

### fly approximately I l0 times per year. Connectivity is vital to the success 

### of my business and to the morale 

### of my employees that frequently 

### travel. The Alabama State Port Authority is committed to utilizing the Mobile Regional Airport and all the airlines serving the Mobile region whenever possible; however, the lack of non-stop service and high fares often results in employees being forced to drive or fly from neighboring airports. 

### Additional connectivity 

### would greatly increase 

### my company's use 

## of our local airport and the productivity of my workforce. 

### As an active partner 

### in our region's growth, 

## I truly understand the role 

### my company plays 

### in the fulfillment of our air service goals. Thank you Sincerely, for your consideration.

JKL/dg

Alabama State PonAuthoriry 

### . PO. Box 1588 

### . Mobilc, AL36633-1588 

### . www.asdd.comJO BONNER

]sT D sTR cT, AL^BAMA AssrsraNr REPUBLicAN WHrP SERV,Nc B^rDw N. clAAk.. EscaM€ra, MoB LE, MoNFo€ rND WASH N.roN CouNlEs APPRoPRTATToNS

CoMMERcE, J!srcE, ScrENcf vrc€ CHATFMAN FrNA\c aL SERv cLs ALAN C. SPENcEF 

## @ongreee 

# of 

# 0e ?dniteD 

# $tates Ibouge 

## of l&eprpgentatibeg 0filasbington, @@ 20515 

### July 19,2013

er 

### of Congress 

### Ms. Susan Kurland Assistant Secretary 

### for Aviation and International 

### Affairs U.S. Department 

### of Transportation 

### Office of Aviation Analysis 1200 New Jersey Avenue, SE Washington, DC 20590-0001 

### RE: DOT-OST-2013-0120 Dear 

### Ms. Kurland: 

### I would like to take this opportunity to 

### offer my support 

### for the 

### Mobile Area chamber 

### of commerce's 

### Air service Development Task Force who is applying 

### for funding through the 

### U.S. Department 

### of rransportation's smal/ community 

### Air service Development-Grant Program. For years, the lack 

### of non-stop flights and high rates at the 

### Mobile Regional 

### Airport have forced residents and businesses to drive to neighboring airports to 

### utilize their 

### airline services. 

### I commend the 

### Mobile Area Chamber 

### of Commerce 

### for pursuing opportunities such as this which 

### will not 

### only enhance travel options 

### for the entire 

### gulf coast region, but increase 

### city revenue and boost 

### tourism. Therefore, 

### I respectfully request that you give the 

### Mobile Area chamber 

### of commerce's 

### Air Service Development Task Force's application every consideration. 

### If you feel that 

### I may be 

### of further assistance 

### or can provide you 

### with any additional 

### information, please 

### don't hesitate to let me know. 

### With best regards, 

### I am

JB:bj

2236 R^YB!RN HousE OFFcr SurLorNc wAsr NcroN, OC 20515 t202) 225-4931 F^x \202) 225-0562 www house.gov/bonner lr NoArr WaEF SrFEEr, SurrE r5290 MoBrLE, AL 36602 1251)690 2a11 F^x 1251)690-2815 ToLL FFEE: 1 800 288-USA1 201 Easr SEcr oN AvENU! 1251t 912 4545 FAx: 12511972 8546July 26, 2013 Department of Transportation Office of Aviation Analysis Office of Aviation and International Affairs 1200 New Jersey Ave, SE Washington, DC 20590 Docket DOT-OST-2013-0120 Re: Letter supporting the Air Service Development Task Force’s Small Community Air Service Development Grant Application To Whom It May Concern: Please be advised that we, the undersigned Mobile County Commissioners, are in full support of the Small Community Air Service Development Grant Application sponsored by the Mobile Area Chamber of Commerce Air Service Development Task Force and request your utmost consideration of the grant proposal. Connectivity is vital to economic development of the Mobile area in the ability to attract businesses and industry. The Mobile County Commission is committed to utilizing the Mobile Regional Airport and all the airlines serving the Mobile region whenever possible; however, the lack of non-stop service and high fares often results in citizens being forced to drive or fly from neighboring airports. Additional connectivity would greatly increase citizen use of the Mobile Regional Airport and improve the productivity of the Mobile workforce. Thank you for your consideration. Sincerely,

Merceria Ludgood President District 1 Connie Hudson Commissioner District 2 Jerry Carl Commissioner District 3