## Sponsor: Charlotte County Airport Authority

Punta Gorda Airport Gary Quill , Executive Director

Dun & Brad street DUNS Number : 07

- 323

- 3934 Tax Identification Number: 59

- 1082365 Congres sional District Code: FL

- 16



# Punta Gorda Airport Punta Gorda, Florida

Application Under the Small Community Air Ser vice Development Program

For Marketing and Advertising Support

Docket DOT

- OST

- 201 2

- 0069Charlotte County Airport Authority and Punta Gorda Airport

Application Under the Small Community Air Service Development Program; Docket DOT

- OST

- 201 2

- 0 069 Charlotte County Airport Authority and Punta Gorda Airport Application Under the Small Community Air Service Development Program; Docket DOT

- OST

- 201 2

- 0 069 2 

## TABLE OF CONTENTS

INTRODUCTORY LETTERS

................................ ................................ ................................ ......................... 2 SUMMARY INFORMATION (SOLICITATION APPENDIX C)

................................ ................................ ...... 4
E. Project Cost: Do Not Enter Text in Shaded Area

................................ ................................ .............................. 5
F. In

- Kind Contributions**

................................ ................................ ................................ ................................ .......... 5 G. Is Application Subject to Review by State Under Executiv e Order 12372 Process?

................................ 6 H. Is Applicant Delinquent on any Federal Debt? (If “Yes”, Provide Explanation)

................................ ........ 6



### INTRODUCTION

................................ ................................ ................................ ................................ ....... 7
AIR SERVICE OVERVIEW

................................ ................................ ................................ ......................... 8

Catchment Area

................................ ................................ ................................ ................................ ........................ 8 Existing Air Service

................................ ................................ ................................ ................................ ...................... 9 Punta Gorda Air Service History

................................ ................................ ................................ .............................. 9


### AIR SERVICE NEEDS AND DEFICIENCIES

................................ ................................ .............................. 11

Tourism Industry

................................ ................................ ................................ ................................ ......................... 11 Air Service Deficiencies

................................ ................................ ................................ ................................ ........... 12


### STRATEGIC PLAN FOR NEW AIR SERVICE

................................ ................................ ............................. 13
Allegiant Will Establish a Base at Punta Gorda

................................ ................................ ................................ .. 14 Air Service Development Efforts

................................ ................................ ................................ ............................ 14 Use of Marketing Funds

................................ ................................ ................................ ................................ ........... 15
Public

- Private Partnerships

................................ ................................ ................................ ................................ ...... 15 Funding Plan, Implementation Timeline and the Route to Sustainability

................................ ...................... 16 Monitoring Grant Progress and Legal Sponsor

................................ ................................ ................................ ... 17


### SUMMARY

................................ ................................ ................................ ................................ ............. 19Charlotte County Airport Authority and Punta Gorda Airport

Application Under the Small Community Air Service Development Program; Docket DOT

- OST

- 201 2

- 0 069 Charlotte County Airport Authority and Punta Gorda Airport Application Under the Small Community Air Service Development Program; Docket DOT

- OST

- 201 2

- 0 069 3 

### I NTRODUCTORY LETTERCharlotte County Airport Authority and Punta Gorda Airport

Application Under the Small Community Air Service Development Program; Docket DOT

- OST

- 201 2

- 0 069 Charlotte County Airport Authority and Punta Gorda Airport Application Under the Small Community Air Service Development Program; Docket DOT

- OST

- 201 2

- 0 069 4 

### SUMMARY INFORMATION (SOLICITATION APPENDIX C )

Small Community Air Service Development Program Summary Information: Docket DOT

- OST

- 201 2

- 0 069 

### A. Applicant Information (Check All That Apply)

N ot a Consortium Interstate Consortium Int rastate Consortium Community now receives EAS subsidy Community (or Consortium member) previously received a Small Community Grant If previous recipient: D ate of Grant:

__ ____________ Expiration date of Grant:

_______________ Federal Funds Requested: ________________________________________________________________ Carrier(s) Service Obtained: ______________________________________________________________ Destination(s) Served: ____________________________

________________________________________ 

### B. Public/Private Partnership (List Organization Names)

Public:

1. City of Punta Gorda 2. Charlotte County

Private:

1. Charlotte Harbor Visitors and Convention Bureau


### C. Project Proposal (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 S ervice Other ( explain below ) Service Restoration in specific markets formerly served by Direct Air and/or SkybusCharlotte County Airport Authority and Punta Gorda Airport

Application Under the Small Community Air Service Development Program; Docket DOT

- OST

- 201 2

- 0 069 Charlotte County Airport Authority and Punta Gorda Airport Application Under the Small Community Air Service Development Program; Docket DOT

- OST

- 201 2

- 0 069 5 

### D. Existing Landing Aids at Airport

Full ILS Outer/Middle Marker Published Instrument Approach
Localizer Other: VOR Approach



### E. Project Cost : Do Not Enter Text in Shaded Area

Line Description Sub Total Total Amount 1 Federal amount requested $ 140 ,000 2 Sta te cash financial contribution $

- Local cash financial contribution 3a Airport cash funds $ 30 ,000 3b Non

- airport cash funds $ 30 ,000 3 Total local cash funds (3a+3b) $ 60 ,000 4 TOTAL CAS H FUNDING (1+2+3) $ 150 ,000 In

- Kind contribution 5a Airport In

- Kind contribution** $

- 5b Other In

- Kind contribution** $

- 5 TOTAL IN

- KIND CONTRIBUTION (5a+5b) $

- 6 T OTAL PROJECT COST (4+6) $ 200 ,000



### F. In

- Kind Contributions **

For Fun d s in lines 5a (Airport In

- Kind Contribution) and 5b (Other In

- Kind Contribution), please describe the source(s) of fund(s) for each.Charlotte County Airport Authority and Punta Gorda Airport

Application Under the Small Community Air Service Development Program; Docket DOT

- OST

- 201 2

- 0 069 Charlotte County Airport Authority and Punta Gorda Airport Application Under the Small Community Air Service Development Program; Docket DOT

- OST

- 201 2

- 0 069 6 

### G. Is Application Subjec t to Review by State Under Executive Order 12372 Process?

a. This application was made available to the s tate under the Executive Order 12372
Process for review on (date)

_ _____ _____. b. Program is subject to E. O. 12372, bu t has not been selected by the state for review. c. Program is not covered by E.O. 12372



### H. Is Applicant Delinquent on any Federal Debt? (If “Yes”, Provide Explanation)

No Yes

_ ______________________________________________________________________________________

_______________________________________________________________________________________Charlotte County Airport Authority and Punta Gorda Airport

Application Under the Small Community Air Service Development Program; Docket DOT

- OST

- 201 2

- 0 069 Charlotte County Airport Authority and Punta Gorda Airport Application Under the Small Community Air Service Development Program; Docket DOT

- OST

- 201 2

- 0 069 7 

### INTRODUCTION

Southwest Florida stretches along the Gulf Coast from the south ern shores of Tampa Bay to the w estern e dge of the Everglades . The seven

- county area has a population of over 1. 8 million and contains well known MSA’s including Bradenton

- Sarasota

- Venice, Cape Coral

- Fort Myers, and Naples

- Marco Island.

The area’s touris m attractions and venues are well known and attract millions of annual visitors to our
communities.

The Punta Gorda Airport (PGD) is a unique aviation facility. The airport is immediately adjacent to Interstate 75, the primary highway for all of Southwest Florida. We are the most centrally located airport in the region, with almost every major regional population center and tourist destination within a 90

- minute drive. The airport
features a well

- designed and ultra

- low

- cost airline terminal facility whic h is currently being expanded. 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, while contributing substan tially to the local
economy.

The Airport ’s air service has seen severe ups and downs during the last decade. Low

- cost carrier SkyBus Airlines
flew from Punta Gorda Airport from December 2007 until March 2008. Although the service was brief, passenger

res ponse to it was stunning. In fact, the airport has struggled to obtain similar traffic levels since. The traffic levels did pique the interests of other carriers, with Part 380 charter carrier Direct Air arriving at Punta Gorda Airport in November 2008 f ollowed by Allegiant in March 2009. While the airport was successful in quickly restoring air service, we did not approach passenger levels similar to the Skybus experience until 2011. First quarter 2012 was on track to be a record success as well, when Direct Air suddenly ceased operations.

Because of the growing number of passengers at the airport, a number of growth initiatives were underway. A new control tower opened in February 2012. A comprehensive project to relocate the airport operator’s offi ces to accommodate a terminal expansion was well underway. The Charlotte County Airport Authority elected to continue the terminal expansion after Direct Air ceased operations. This was a good decision, as just a month later, in April 2012, Allegiant ann ounced it would base at least two aircraft at the airport and add additional
new routes.Charlotte County Airport Authority and Punta Gorda Airport

Application Under the Small Community Air Service Development Program; Docket DOT

- OST

- 201 2

- 0 069 Charlotte County Airport Authority and Punta Gorda Airport Application Under the Small Community Air Service Development Program; Docket DOT

- OST

- 201 2

- 0 069 8 The a irport and its community partners need marketing dollars to aid Allegiant and prospective new airlines in effectively marketing the Punta Gorda Airport as a gate way to Southwest Florida . This Grant application requests $ 140 ,000 in Department funding matched by $ 60 ,000 in local funds. The total of $ 200 ,000 will give the Airport the ability to ensure the success of existing routes and encourage carriers to add ad ditional flights. Additional flights will lower the cost of air travel to Southwest Florida, improve access to the region for tourists, residents, and businesses, 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 air service that will have a significant positive local economic impact.



### AIR SERVICE OVERVIEW

Catchment Area

Punta Gorda Airport (UST) is situated in Charl otte County, Florida, about midway between Fort Myers and Sarasota

. There are over 1. 8 million people within the airport’s seven

- country
catchment area . This area includes the entirety of four Metropolitan Statistical Areas (MSAs):
Bradenton

- Sarasota

- Ven ice, Punta Gorda, Cape
Coral

- Fort Myers, and Naples

- Marco Island.

The airport is within a 90

- minute drive from almost any location in the seven

- country catchment area. The major population and tourist areas in Fort Myers, Cape Coral, and Sarasota are wit hin a
60

- minute drive. This is due to our extremely convenient location, just off Interstate 75. As the primary highway in Southwest Florida, I

- 75 singularly provides access to the entire region with ample support from surface roads. Exhibit 1 : Catchment Area of Punta Gorda Airport Source: Sixel Consulting GroupCharlotte County Airport Authority and Punta Gorda Airport

Application Under the Small Community Air Service Development Program; Docket DOT

- OST

- 201 2

- 0 069 Charlotte County Airport Authority and Punta Gorda Airport Application Under the Small Community Air Service Development Program; Docket DOT

- OST

- 201 2

- 0 069 9 

### Existing Air Servic e

Within Punta Gorda’s seven

- county catchment area, Southwest Florida International Airport (RSW) is the primary air carrier airport in the region. All of the network carriers have a presence at RSW, located in the southern half of the region near Fort M yers. Sarasota

- Bradenton International Airport (SRQ) also hosts air carrier flights, although service is much more limited than at RSW. SRQ is located in the northern half of the catchment area.

It is widely established, despite commercial air service a t SRQ, that the northern portion of Punta Gorda Airport’s catchment area suffers from severe “ leakage ”

. Leakage is an industry term referring to when passengers destined to or from one region use an airport in another region. In the case of Sarasota and Manatee Counties, the leakage is primarily to Tampa International Airport, although likely occurs to other airports as well. The passenger leakage from which this area suffers is likely related to SRQ’s higher average fare and largely duplicative flight o fferings versus other airports in the region

.

Punta Gorda Airport is a distinctly different airport. PGD is designed to be an extremely low cost airport. This is in stark contrast to the other airports in our catchment area, which have some of the high est cost per enplaned passenger in Florida. This focus has allowed Punta Gorda’s airline and destination offerings to be unique . The airlines that have flown to PGD have flown to no other airport in our region and typically few others in the state
of Flo rida. These carriers have focused on airports with no other nonsto p service to Southwest Florida.


### Punta Gorda Air Service History

For most of the period since the airline industry was deregulated in 1978, Punta Gorda has not had
commercial air service. Intrastate turboprop flights were offered early on, but were largely discontinued by
the mid

- 1980s. The airport was left
without commercial service until 2007, when low

- cost Skybus Airlines
came to PGD. Exhibit 2 : Annual Passengers at Punta Gorda Airport Source: Punta Gorda AirportCharlotte County Airport Authority and Punta Gorda Airport

Application Under the Small Community Air Service Development Program; Docket DOT

- OST

- 201 2

- 0 069 Charlotte County Airport Authority and Punta Gorda Airport Application Under the Small Community Air Service Development Program; Docket DOT

- OST

- 201 2

- 0 069 10 Skybus began service in December 2007 from its h ome base in Columbus, Ohio

, and from Portsmouth, New Hampshire. A month later, flights to a new base in Greensboro, North
Carolina

, began. The initial services to Columbus and Portsmouth were an immediate success, with December load factors of 76% and 8 1% respectively. Greensboro service, which began in January

, was not as well received, attaining load factors of less than 50%. Although not included in Department T

- 100 data, March 2008 was the best month for Skybus at Punta Gorda. According to airport records, Skybus recorded over forty thousand passengers using six daily flights to the three airports.

Unfortunately for Skybus, the success at Punta Gorda Airport was not enough to overcome mounting challenges. Fuel was persistently high and increasing at an alarming rate. Aggressive growth led the carrier into markets which did not perform financially, such as Columbus, Ohio

, to Niagara Falls, New York, which was cancelled before a single flight left the ground. There were operational problems where

, over Christmas 2007, employees damaged two of the company’s seven aircraft resulting in cancelled vacations, angry passengers and negative media coverage. The result of the mounting pressure was that Skybus suspended operations in early April 2008

– due e ntirely to issues unrelated to the success found at Punta Gorda Airport.

After the collapse of Skybus, airport officials went to work on recruiting replacement air service. New flights from two carriers were secured by early 2009. The first carrier was a FAR Part 380 charter operator marketing
itself as Direct Air. Flights began in November 2008 and

, within a year, Direct Air was flying to a number of cities, most without any nonstop service to Southwest Florida, including Allentown, Pennsylvania, Toled o, Ohio, and Kalamazoo, Michigan.

The second carrier was ultra

- low

- cost Allegiant. Flights on Allegiant began in March 2009 to destinations in the
mid

- South including Greenville/Spartanburg, South Carolina

, and Knoxville, Tennessee. In order to operate in Punta Gorda, Allegiant stepped outside of its already well

- defined business model. Allegiant’s model typically requires aircraft, flight crews, and maintenance facilities in the destination city , such as Punta Gorda. But the company was not prepared t o commit such resources to PGD. Thus flight opportunities were limited by the location of Allegiant’s flight bases, crew duty limits, and other efficiency requirements.Charlotte County Airport Authority and Punta Gorda Airport

Application Under the Small Community Air Service Development Program; Docket DOT

- OST

- 201 2

- 0 069 Charlotte County Airport Authority and Punta Gorda Airport Application Under the Small Community Air Service Development Program; Docket DOT

- OST

- 201 2

- 0 069 11 Through March 2012, both carriers were able to increase passengers, add destinations, and grow their business. Traffic was increasing annually, and airport facilities became constrained. Thus, the Charlotte County Airport Authority began to move forward with its master plan including construction of a control tower and larger terminal bu ilding.

In March 2012, Direct Air, the larger of the two carriers operating at Punta Gorda Airport, suddenly suspended all operations. Financial difficulties related to its fueling supply had caused a few flights to be
cancelled on March 12. The carrie r suspended operations, promising to return to the skies on May 15,
2012. That was not to be
, a s within a few days the carrier filed for bankruptcy liquidation.

On April 10, 2012, Punta Gorda Airport’s other carrier, Allegiant, announced it would base up to one ai rcraft at PGD with new flights to Niagara Falls, New York, Peoria, Illinois, and South Bend and Fort Wayne,
Indiana

, beginning June 27, 2012. Only Niagara Falls, among Allegiant’s new destinations, directly replaces service previously offered by Direct Air from Punta Gorda.



### AIR SERVICE NEEDS AND DEFICIENCIES

Tourism Industry

Tourism is a major industry in Southwest Florida

. There are over 26,000 rooms at over 425 hotels within 90 minutes of the Punta Gorda Airport. The Lee County Visitors an d Convention Bureau reports that tourism in the Fort Myers area contribute s $3 Billion to the economy and is directly responsible for 1 of 5 jobs. The y estimate that
over 4.6 million people visited Fort Myers and Lee County in 2011. Similarly, the Braden ton Area Convention E xhibit 3 : Map of Suspended Direct Air Flights Source: Punta Gorda AirportCharlotte County Airport Authority and Punta Gorda Airport

Application Under the Small Community Air Service Development Program; Docket DOT

- OST

- 201 2

- 0 069 Charlotte County Airport Authority and Punta Gorda Airport Application Under the Small Community Air Service Development Program; Docket DOT

- OST

- 201 2

- 0 069 12 and Visitors Bureau estimates that Manatee County sees about 2.5 million annual visitors, each of whom contribute $945 to the county’s economy.

One of the key elements of a strong tourism industry is access to transportation. In Flori da, access to air transportation and direct flights from many origin markets is critical. Southwest Florida’s tourism industry competes for visitors and tourism dollars with other warm weather beach locations and venues in Florida, on
the North American c ontinent, and in the Caribbean.



### Air Service Deficiencies

Commercial airline capacity and traffic are declining in Southwest Florida. For an economy that depends on transportation and tourism, a continuation of this trend will be an incredible challeng e. Since 2007, average daily departures from Southwest Florida airports are down 14%. Average daily seats over the same period are down 11%. This indicates that aircraft with more seats per flight are being used. This is a national trend
related to inc reasing seats on existing narrow

- body aircraft and reduced reliance on the smallest regional jets in airline fleets.

Fortunately for our tourism industry, traffic is only down 7% during this period. The performance of traffic relative to capacity sugge sts that airlines are accommodating more passengers per flight though increased load factors. This trend is also pervasive throughout the industry, with some carriers like Allegiant routinely achieving system

- wide load factors in excess of 90%. While it is a positive that reductions in traffic have been less severe due to increased load factors, this is a trend that cannot continue as it becomes more and more difficult to increase load factors. Thus any future capacity reductions will have similar reduct ions in traffic. Exhibit 4 : Seats, Passengers, and Fights per Day from Southwest Florida Source: Punta Gorda AirportCharlotte County Airport Authority and Punta Gorda Airport

Application Under the Small Community Air Service Development Program; Docket DOT

- OST

- 201 2

- 0 069 Charlotte County Airport Authority and Punta Gorda Airport Application Under the Small Community Air Service Development Program; Docket DOT

- OST

- 201 2

- 0 069 13 Beyond the pure loss of seats, the quality of air service to Southwest Florida has deteriorated. Since 2007, the airports in the seven

- county catchment area have seen service eliminated from Long Island/Islip, Memphis, Providence, Roches ter, and Washington

- Dulles. Several markets have seen year

- round service reduced to seasonal service, or seasonal service with shorter runs. The region has lost important low fare competition from Air Tran Airways at Sarasota

- Bradenton International Airp ort and both Skybus and Direct Air from Punta Gorda Airport.

When compared to the other major tourist regions of Florida, Southwest Florida competes at a distinct disadvantage. Our region has nonstop access from only 50 airports across the United States. In addition to having more flights and seats, our competitor regions have access to more domestic destinations nonstop:

 Orlando (includes Orlando and Orlando/Sanford): 122
 Tampa Bay (includes Tampa and St. Petersburg/Clearwater): 84
 South Florida (includ es Miami, Fort Lauderdale, and West Palm Beach): 78
 Southwest Florida (includes Punta Gorda, Fort Myers, and Sarasota/Bradenton): 50



### STRATEGIC PLAN FOR NEW AIR SERVICE

In order for Southwest Florida and its tourism economy to grow, it is critical that a ir service continue to grow. Growth can be in the form of additional flights to existing destinations as well as service to new destinations. Punta Gorda Airport is uniquely positioned to be the airport to support that growth.

First, PGD is the most con veniently located airport in the region. Airlines can operate from one airport , yet with proper marketing support, compete for passengers destined anywhere in Southwest Florida, from Bradenton to
Marco Island.

Second, Punta Gorda Airport has available ca pacity. With the suspension of flights by Direct Air, the airport now has adequate capacity to accommodate additional service. When the terminal expansion is completed the airport will have even more capacity available for the airlines and a friendly

, in viting environment for
passengers.Charlotte County Airport Authority and Punta Gorda Airport

Application Under the Small Community Air Service Development Program; Docket DOT

- OST

- 201 2

- 0 069 Charlotte County Airport Authority and Punta Gorda Airport Application Under the Small Community Air Service Development Program; Docket DOT

- OST

- 201 2

- 0 069 14 

### Allegiant Will Establish a Base at Punta Gorda

On April 10, 2012, Allegiant issued a press release indicating that it will establish a base of operations at Punta Gorda Airport. This exciting news means that Allegiant will assign one aircraft to be based at the airport, along with an appropriate amount of pilots, flight attendants, mechanics, and support facilities to run the new operation. This decision by Allegiant will allow the company to consider new markets
from Southwest Florida which did not fit in its previous method of operating in the region and create a platform for air service growth . In fact, Allegiant also announced new service to four destinations: Niagara Falls, New York, Peoria, Illinois, and Fort Wa yne and South Bend Indiana. Three of the four destination airports will receive their first nonstop flights from Southwest Florida through this announcement, with Niagara Falls service essentially replacing the flights suspended by Direct Air.

Although t he announcement of a base by Allegiant creates a platform for air service growth, it by no means assures success. In order to maintain profitability and respond to customer demand, the company has made the difficult decision to close bases in its past. T he carrier has also discontinued flights on underperforming routes, including flights from Punta Gorda to Grand Rapids, Michigan

, and Greensboro/Winston

- Salem, North Carolina.



### Air Service Development Efforts

Punta Gorda Airport has been active in air ser vice development recruitment. In addition to working with Allegiant to secure the base, airport officials have meet with planners from US Airways, Frontier, Republic Holdings, Direct Air, Cap e Air , SeaPort, and Pinnacle Airlines within the past year. Th e airport will continue to pursue additional air service from incumbent carriers and bringing new airlines to the airport. Exhibit 5 : Allegiant Punta Gorda Base Source: OAG / UBM AviationCharlotte County Airport Authority and Punta Gorda Airport

Application Under the Small Community Air Service Development Program; Docket DOT

- OST

- 201 2

- 0 069 Charlotte County Airport Authority and Punta Gorda Airport Application Under the Small Community Air Service Development Program; Docket DOT

- OST

- 201 2

- 0 069 15 

### Use of Marketing Funds

Should the airport be awarded a grant under this program, it is our intention to aggressively market Punta
G orda Airport as the gateway to Southwest Florida. The airport will work with all airlines at the airport to assist in
route

- specific marketing for existing, recently announced, and potential new routes. We intend to use the marketing funds as a mechanism to entice additional service for Winter of 201 2

- 2013 and beyond. The marketing funds will also be used to ensure passengers are aware of service restorations, particularly when service is restored by a different carrier.

While the exact marketing progra m will depend on details of the carrier, market, and available resources, the airport envisions the marketing funds being use d both in Southwest Florida and destination markets. The marketing may include many different media, including:

 Radio promotions a nd ticket/hotel give

- a

- ways

.  Billboards emphasizing the destination and carrier in addition to the airport.
 Print and newspaper advertisements.
 E

- mail and postal mailings to targeted potential customers

.  Online advertising tied to internet search engines a nd online travel agencies.
 Grass roots efforts designed to maximize exposure in both the destination market and our region.

Finally, the airport would work in cl ose coordination with other entities with an interest in marketing o ur airport. This might inc lude existing destination marketing campaigns outside of this program organized by other organizations such as the Charlotte Harbor Visitor and Convention Bureau. The airport would also work with the carriers involved to benefit from their expertise in ma rketing travel and air service to their customers.



### Public

- Private Partnership s

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

 The City Punta Gorda

 Charlotte County Airport Authority

 Charlotte Harbor Visitor and Convention BureauCharlotte County Airport Authority and Punta Gorda Airport

Application Under the Small Community Air Service Development Program; Docket DOT

- OST

- 201 2

- 0 069 Charlotte County Airport Authority and Punta Gorda Airport Application Under the Small Community Air Service Development Program; Docket DOT

- OST

- 201 2

- 0 069 16 

### Funding Plan

Charlotte County Airport Authority and Punta Gorda Airport are requesting grant funds in the amount of $ 140 ,000 from the Department . This funding will be matched $45,000 in local funding

- $30,000 provided by
Charlotte Ha rbor Visitor and Convention Bureau and $ 30 ,000 provided by Charlotte County Airport Authority

. Thus the Punta Gorda community will fund 30 % of the $ 200 ,000 marketing project.

While we cannot know the exact expenditure rate for Grant funding, we believe that Grant supported marketing efforts will be gin in October 2012 and run through September 2014 , as appropriate for optimum support of new air service. Thus the Airport requests that its Grant have at least a two year term.



### Route to Sustainability

Ma rketing 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 key elements, combined with local funding,

a nd committed airline partners

, will allow new air service to thrive in Punta Gorda

. We will also be prepared to
make mid

- course adjustments in strategy and tactics, as needed. The Airport and its local partners understand the need for success and will commit additional resources, as needed, to ensure that success.Charlotte County Airport Authority and Punta Gorda Airport

Application Under the Small Community Air Service Development Program; Docket DOT

- OST

- 201 2

- 0 069 Charlotte County Airport Authority and Punta Gorda Airport Application Under the Small Community Air Service Development Program; Docket DOT

- OST

- 201 2

- 0 069 17 

### Mon itoring Grant Progress and Legal Sponsor

The airport will monitor performance of the grant and submit quarterly summaries to the Department.
Performance measurements will include:

 Status and activity related to air service recruitment efforts.
 Communica tions with the air carrier to review advanced bookings.
 Review ing and Monitoring of Department data sources including T

- 100 and Table DB1A.

The Charlotte County Airport Authority, operator of Punta Gorda Airport, is the legal sponsor for this project.
Exe cutive Director Gary Quill will be responsible for the administration of the grant. O versight will include (but not be limited to):

 Liaison with the Department, including the timely filing of all quarterly Grant status update reports
 Conclusion of all ag reements 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:

Punta Gorda Airport Gary Quill
Executive Director
28000 A

- 1 Airport Road
Punta Gorda , Florida 33982
9 41.639.1101 gquill@flypgd.comCharlotte County Airport Authority and Punta Gorda Airport

Application Under the Small Community Air Service Development Program; Docket DOT

- OST

- 201 2

- 0 069 Charlotte County Airport Authority and Punta Gorda Airport Application Under the Small Community Air Service Development Program; Docket DOT

- OST

- 201 2

- 0 069 18 

### Implementation Timeline

Applications for Small Community Air Service Development Grants are due to the department on June 11, 2012. It is anticipated that awards will be granted in the Third Quarter with final contracts signed with the Department by September 2012. Based on that schedule, the airport has developed the timeline displayed in
Exhibit 6 . Although the timeline is tentative, we anticipate that we will begin the marketing project immediately , as the airport has already secured new air service on Allegiant to four cities as described earlier.

Exhibit 6: Marketing Project Implementation Source: Punta Gorda AirportCharlotte County Airport Authority and Punta Gorda Airport

Application Under the Small Community Air Service Development Program; Docket DOT

- OST

- 201 2

- 0 069 Charlotte County Airport Authority and Punta Gorda Airport Application Under the Small Community Air Service Development Program; Docket DOT

- OST

- 201 2

- 0 069 19 

### SUMMARY

The economic vitality of Southwest Florida depends on a strong tourism industry. Tourism requires substantial access to transpo rtation, including air service. In order for Southwest Florida ’s economy to grow, it must grow its air service offerings. The best opportunity to grow air service in the region is at Punta Gorda Airport.

Since commercial air service at PGD was restored in 2007, the airport has had a legacy of cultivating air service that is unique in Southwest Florida, rather than duplicative with other regional airports. While the airlines and their business plans may change, the traffic growth that has been achieved a t Punta Gorda Airport is proof that our concept is working.

Few airports apply for a Small Community Air Service Development Grant with a plan for growth as solid as this application. Should Punta Gorda Airport be awarded a grant, the airport will have t he ability and mechanisms in place to immediately move forward with the marketing project. In fact, this project will not even need to wait for an airline to be recruited, as Allegiant has already announced new flights from Punta Gorda Airport.

While All egiant’s new operational base at the airport provides a platform for growth, it cannot be taken for granted. The decision to create a base at Punta Gorda Airport does not ensure its success. Instead, the airport
will take the lead and ensure the communit y’s interest is protected by ensuring the success of new air service by Allegiant or new carriers through marketing, thus creating economic benefits throughout Southwest Florida.

In this Grant proposal the Punta Gorda Airport is seeking a modest amount of Grant funding for the marketing and promotion of new air service at the airport. The Airport already has in place an innovative and creative package of airport facility and ground handling services that will allow new entrant carriers to operate at much
lower costs than at other regional airports

.

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.