Springfield Airport Authority • Small Community Air Service Development Grant Proposal • July 2014

APPLICATION UNDER 

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT-OST-2014-0113

SUMMARY INFORMATION

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

NUMBER, INCLUDING +4, EMPLOYEE IDENTIFICATION NUMBER (EIN) OR TAX ID.

Legal Sponsor Name: 

Springfield Abraham Lincoln Capital Airport

Name of Signatory Party for Legal Sponsor:

Mr. Mark Hanna, Executive Director

DUNS Number:

782263383

EIN/Tax ID:

37-6002051

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

1. SPRINGFIELD, ILLINOIS

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. Springfield Abraham Lincoln Capital Airport 

SPI

DOES THE AIRPORT SEEKING SERVICE HOLD AN AIRPORT OPERATING CERTIFICATE ISSUED BY THE FEDERAL AVIATION 

ADMINISTRATION UNDER 14 CFR PART 139? (IF “NO,” PLEASE EXPLAIN WHETHER THE AIRPORT INTENDS TO APPLY FOR A 

CERTIFICATE OR WHETHER AN APPLICATION UNDER PART 139 IS PENDING.)

 Yes No (explain) X
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • July 2014

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

CONSORTIUM, TO EACH PARTICIPATING COMMUNITY.

1. IL-18

E. APPLICANT INFORMATION: (CHECK ALL THAT APPLY)

Not a Consortium Interstate Consortium Intrastate Consortium

Community now receives subsidized Essential Air Service

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

Development Program Grant

If previous recipient: Provide Year of grant(s): 2006 and 2008 and 2012 

and, the text of the Grant agreement section(s) setting forth the scope of the grant project:

2006 – Increase enplanement at (SPI) Airport, strengthen existing carriers serving the airport, 

begin nonstop service to Washington D.C., and open up the airport to new one-stop....routes

2008 – To provide central Illinois & SPI a 3rd option to an airline hub offering connections to SPI’s 

top O&D markets, increase awareness about local air service, increase capacity and lower fares

2012 – Secure and support new nonstop low-cost service SPI to leisure destinations via ground 

handling cost offsets and a targeted marketing program.

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

PUBLIC PRIVATE

1. City of Springfield 1. The Greater Springfield Chamber

2. Sangamon County 2. The Quantum Growth Initiative (Q5)

3. THE SPRINGFIELD AIRPORT AUTHORITY 3. CRAWFORD MURPHY AND TILLY

4. 4. Hanson Professional Services

G. PROJECT PROPOSAL:

1. GRANT GOALS: (CHECK ALL THAT APPLY)

Launch New Carrier Secure Additional Service Upgrade Aircraft

First Service New Route Service Restoration

Regional Service Surface Transportation Professional Services

Other (explain below)

Community Engagement Project; 1 to 1 engagement with key local travel generators, develop 

long term awareness campaign, improve social media presence, community video, travel 

agent engagement, enhanced website

X
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • July 2014

2 . FINANCIAL TOOLS TO BE USED: (CHECK ALL THAT APPLY)

Marketing (including Advertising): promotion of the air service to the public

Start-Up Cost Offset: offsetting expenses to assist an air service provider in setting up a 

new station and starting new service (for example, ticket counter reconfiguration)

Revenue Guarantee: an agreement with an air service provider setting forth a minimum

guaranteed profit margin, a portion of which is eligible for reimbursement by the

community

Recruitment of Air Carrier: air service development activities to recruit new air service,

including expenses for airport marketers to meet with air service providers to make the

case for new air service

Fee Waivers: waiver of airport fees, such as landing fees, to encourage new air service;

counted as in-kind contributions only

Ground Handling Fee: reimbursement of expenses for passenger, cabin, and ramp 

(below wing) services provided by third party ground handlers

Travel Bank: travel pledges, or deposited monetary funds, from participating parties for

the purchase of air travel on an air carrier, with defined procedures for the subsequent 

use of the pledges or the deposited funds; counted as in-kind contributions only

Other (explain below)

Community engagement, 1 to 1 with key travel generators, social media development, long 

term market awareness project, community video, airline liaison on marketing and promotion, 

enhanced airport website

H. EXISTING LANDING AIDS AT LOCAL AIRPORT:

Full ILS Outer/Middle Marker Published Instrument Approach

Localizer Other (specify)
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • July 2014

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

LINE DESCRIPTION SUB TOTAL TOTAL AMOUNT

1 Federal amount requested $182,500

2 State cash financial contribution $0

Local cash financial contribution

3a Airport cash funds $5,000

3b Non-airport cash funds $52,500

3 Total local cash funds (3a + 3b) $57,500

4 TOTAL CASH FUNDING (1+2+3) $240,000

In-Kind contribution

5a Airport In-Kind contribution** $25,000

5b Other In-Kind contribution** $40,000

5 TOTAL IN-KIND CONTRIBUTION 

(5a + 5b) $65,000

6 TOTAL PROJECT COST (4+5) $305,000

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.

Airport In-Kind contribution is utilization of airport owned marketing assets.

Other In-Kind contribution is chamber of commerce marketing assets and staff, and financial coop advertising and awareness with private local media.

K. IS THIS APPLICATION SUBJECT TO REVIEW BY AN AFFECTED STATE UNDER EXECUTIVE ORDER 12372 PROCESS?

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

Process for review on (date) _____________.

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

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

L. IS THE LEAD APPLICANT OR ANY CO-APPLICANTS DELINQUENT ON ANY FEDERAL DEBT? (IF “YES”, PROVIDE 

EXPLANATION)

No Yes (explain)

_____________________________________________________________________________________________
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • July 2014 1

TABLE OF CONTENTS

Legal Sponsor 1

Introduction 2

Location, Population and Economy 3 - 4

Current and Historical Air Service 5 - 7

Air Service Needs and Deficiencies 8 - 12

Air Service Development Plan and Implementation Timeline 13 - 15

Public/Private Partnership 16

Air Service Development Efforts 16 - 17 

Previous Grant Awards 18 - 19

Conclusion 19

LEGAL SPONSOR

The Springfield Airport Authority – Springfield, Illinois is the legal sponsor responsible for 

administering the proposed Grant and air service development program. The Airport is a 

government agency.

Springfield Airport Authority

1200 Capital Airport Drive

Springfield, Illinois 62707

Mr. Mark Hanna, Executive Director

(217-788-1060 X 2211

mhanna@flyspi.com

Section Page Number
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • July 2014 2

INTRODUCTION

The Springfield, Illinois Abraham Lincoln Capital Airport has seen significant declines in network 

carrier capacity (measured in both seats available and flights offered) since 2009. The declines 

are on both our United Express service to Chicago (ORD) and our American Eagle (Envoy) 

service to Dallas (DFW). At the same time exhaustive research and study of our air service 

market indicates very solid traffic demand in our catchment area. The clear conclusion from 

these two facts is that our local air network service is in decline while our local DEMAND for 

network air service is increasing.

Our estimated total network carrier seat count in 

2013 will be 159,000 seats while in 2009 it was 

190,243, a decline of 16.4%. Our estimated total 

network carrier flight count in 2013 will be 3,225 

while in 2009 it was 3,914, a decline of 17.6%.

The 16% decline in network seats and 17% decline in SPI network flights puts the viability of our 

long term network air service in jeopardy, given 50-seat RJ retirements and competition from 

nearby and larger airports.

Springfield is the state capital of Illinois, a growing and prosperous community of 212,081 MSA 

population. Network air service is essential to the continued growth of our community. Yet, while 

our traffic demand measured by the leakage report continues to grow, our network air service 

continues to decline. In order to address this decline in network air service, we believe that we 

have to aggressively engage our local community, its residents, its companies and institutions 

and fully market and promote the air service we have, with the intention of increasing traffic to 

the point that our incumbent carriers can justify reinstating seats and flights that we have lost in 

the past five years.

This SCASD Grant funding proposal is for an innovative community engagement program, 

designed to engage our community at all levels and across both traditional and new media 

venues. Our proposal calls for $182,500 in DOT Grant funds, to be matched by $52,500 in nonaeronautical local funding, $5,000 in Airport funding and $65,000 in in-kind contributions, making 

a total Grant funding of $240,000 in cash plus the $65,000 in-kind amount for a total of $305,000. 

This document outlines in detail the exciting concepts of this community engagement proposal.

“The 16% decline in SPI network seats and 17% 

decline in network flights puts the viability of our 

long term network air service in jeopardy, given 

50-seat RJ retirements and competition from 

nearby and larger airports.”
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • July 2014 3

County 2000 2012 Number Percent

Grand 12,490 14,195 1,705 14%

Jackson 1,576 1,348 -228 -14%

Moffat 13,166 13,200 34 0%

Rio Blanco 5,979 6,857 878 15%

Routt 19,690 23,334 3,644 19%

Total 52,901 58,934 6,033 11%

NORTHWEST COLORADO POPULATION GROWTH

Population Difference

Airport Time Distance

BMI 1:13 69

CMI 1:38 99

DEC :57 50

PIA 1:13 74

STL 1:54 115

UIN 1:50 103

Drive Metrics

SPI ALTERNATIVE AIRPORTS

LOCATION, POPULATION AND ECONOMY

Market Location and Population – Springfield is located in central Illinois about midway between 

St. Louis on the south and Chicago on the north. The City and its Airport sit at the junction of I-55 

and I-72 as well as state highways 29, 

54 and 125.

The City of Springfield had a 2013 

population of 117,006, up 2% from 

2004. Springfield is the second largest 

city in Illinois outside of the Chicago 

metro area. The Springfield MSA had 

a 2013 population of 212,081, up 6% 

since 2004. The one hour drive radius 

from the airport (shown in red) has a 

population of 417,451 and the two 

hour drive radius has a population of 

nearly 3.3 million, owing to inclusion of

much of the St. Louis metro area.

There are six air service airports within a two hour drive of 

Springfield. St. Louis Lambert is just under two hours’ drive, 

although it can be much longer depending on time of day and 

St. Louis metro area traffic congestion. Bloomington, Champaign 

and Peoria are between 1:13 and 1:38 freeway drive to the 

north or east. EAS airports Decatur and Quincy are one hour and 

two hours respectively from Springfield. 

The city, MSA and regional population growth over the past eight years, including a brutal 

recession, defy the national trend of rural population decay and confirm the strong economic 

growth of Springfield and its surrounding area.

Key sectors of the Springfield area economy include the State Government of Illinois, the Illinois 

National Guard headquarters, a large cluster of healthcare facilities and higher education 

facilities. Key private employment sectors include insurance, banking, telecommunications and 
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • July 2014 4

SPRINGFIELD AREA COLLEGE AND UNIVERISTY ENROLLMENT AND EMPLOYMENT

Institution Undergrad Post Grad Faculty & Staff Total

University of Illinois 32,281 12,239 10,349 54,869

Illinois State 17,749 2,523 3,563 23,835

Eastern Illinois 8,347 1,428 1,712 11,487

Western Illinois 11,300 2,300 1,941 15,541

Millikin University 2,000 400 1,393 3,793

Quincy University 1,169 216 1,385

Illinois College 1,021 224 1,245

Bradley University 5,000 700 842 6,542

Southern Illinois Med 610 574 1,184

Total 78,867 20,200 20,814 119,881

2013 Enrollment and Staffing Employer Workers Sector

State of Illinois 18,000 Government

Memorial Health System 5,940 Health Care

St. Johns Hospital 2,980 Health Care

Springfield Clinic 1,950 Health Care

Illinois National Guard 1,850 Military

Southern Illinois Univeristy 1,541 Education

University of Illinois Springfield 1,110 Education

Blue Cross/Blue Shield 1,100 Health Care

Horace Mann Companies 980 Insurance

AT&T 830 Telecommunications

The Hope Institute 610 Education

American General Life 400 Financial Services

Express Personnel Services 400 Employment Services

Freeman United Mining 400 Mining

Lincoln Land Community College 400 Education

Levi, Ray and Shoup, Inc 400 Software

Bunn-O-Matic 250 Beverage Equipment

SPRINGFIELD MAJOR EMPLOYERS: 2013

light manufacturing. The diversity of the Springfield economy and orientation toward the 

healthcare, insurance, higher education and 

government sectors means that the area was able 

to navigate the great recession of 2008 – 2009 

relatively well. Indeed, in May of 2014, the 

Springfield MSA unemployment rate was 6.0%, tied 

for the lowest in the entire state of Illinois with 

Bloomington/Normal and well below the state 

average of 7.5%. This means that the MSA has 

trimmed its unemployment rate from the recession 

peak of 9.9% in February 2010 to 6.0% in only a little 

over four years.

The higher education sector of the 

local economy features nine 

colleges and universities within a 90 

minute drive of the Springfield 

Airport. These institutions employ 

about 20,785 faculty, 

administration and staff and have 

about 99,000 under and post grad 

students enrolled in a typical year.

The final key sector of the Springfield MSA economy is one not typically associated with a rural 

Midwestern city, tourism. Springfield is a tourism destination in its own right. Eight major local 

tourism sites document and honor the life and times of Abraham Lincoln. In 2013 just over 2.2 

million individual tourist visits were recorded at these eight sites, an average of just over 6,000 per 

day.

Springfield’s economy is healthy and growing. Network carrier air transportation is absolutely 

essential to the continued health and growth of that economy. The trend of network air service 

flight frequency and seat capacity reductions is a direct contradiction to local economic 

growth and a threat to the continuation of that economic growth.
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • July 2014 5

HISTORICAL AND CURRENT AIR SERVICE

Traffic and Service History – Springfield can trace its air service routes all the way back to 1928. 

There actually was no local air service from 1939 until 1947 due to, initially, the lack of an 

adequate airport and then World War II related delays in building an adequate airport until 

1947. Local air service has been continuous since that time and was for many years provided by 

Ozark Airlines. Today Springfield is served by three airlines; daily service from network carriers 

United Express (SkyWest) to Chicago and American Envoy to Dallas and low cost carrier 

Allegiant Air with less-than-daily service to Punta Gorda and Orlando Sanford.

SPRINGFIELD TOTAL ON/OFF ANNUAL PASSENGERS 2004 - 2013 

In the past ten years Springfield total traffic has dropped from 222,900 in 2004 to 144,853 in 2013, 

a decline of 35% in a decade. And the 2013 traffic number is up significantly from our low point 

of 113,199 in 2008. It has been a turbulent decade for Springfield air service; the closure of the 

American Airlines hub in St. Louis mid-decade devastated our air service, and it has been a 

constant struggle to rebuild it and retain what we rebuilt since then.

The significant decline in Airport traffic is explained by the dramatic decline in service, measured 

both in terms of available seats and flight schedules operated. The following charts summarize 

SPI air service by route and include the services of Direct Air on three routes in years 2009 to 2012.

0

50,000

100,000

150,000

200,000

250,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

222,900 

163,960 

130,437 

123,261 113,199 119,509 125,369 

148,077 138,135 144,953 
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • July 2014 6

City 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

DFW 49,938 57,820 58,186

IAD 24,200 17,666

LAL 16,800 5,320

LAS 10,650

MDW 98,702 3,287 17,480

MYR 8,880 6,480 7,680 6,644

ORD 168,300 172,722 163,682 137,816 142,769 190,243 192,596 130,853 129,046 112,356

PGD 4,320 11,560 16,240 9,996 28,168

SFB 4,006

STL 95,802 103,924 48,281 14,983 60,185

Total 362,804 276,646 215,250 205,129 220,620 203,443 210,636 221,511 208,826 202,716

-23.7% -22.2% -4.7% 7.6% -7.8% 3.5% 5.2% -5.7% -2.9%

-44.1%

SPI SEATS BY YEAR 2009 - 2013: ALL CARRIERS 

Y/Y Change

Period Change

CITY 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

DFW 1,045 1,344 1,287

IAD 484 353

LAL 120 38

LAS 71

MDW 2,903 173 924

MYR 74 54 64 47

ORD 3,366 3,447 3,273 2,756 2,867 3,914 3,941 2,632 2,579 2,242

PGD 36 88 116 38 172

SFB 24

STL 3,117 3,429 1,853 410 1,204

Total 9,386 6,876 5,299 4,645 4,424 4,024 4,083 3,977 4,046 3,725

-26.7% -22.9% -12.3% -4.8% -9.0% 1.5% -2.6% 1.7% -7.9%

-60.3%

SPI FLIGHTS PER YEAR 2004 - 2013: ALL CARRIERS

Period Change

Y/Y Change

Measured in flights operated per 

year, Springfield air service is down 

60.3% in 2013 compared to 2004. 

Total flight segments operated per 

year has declined every year 

except 2010 and 2012. If only 

network carrier flights are counted, 

2013 had 3,529 (ORD + DFW) 

whereas 2004 at 9,386, a decline of 

a shocking 62%.

The same trend is clear in annual capacity, measured in seats offered on each route each year.

For the ten year period SPI seat 

capacity is down 44.1%. Seat 

capacity has declined every year 

except 2008, 2010 and 2011.

Again, if only network seats are 

counted 2013 had 170,542 (ORD + 

DFW) whereas 2004 had 362,804, a 

decline of a full 53%.

Springfield airfare pricing trends show significant increases in average fare paid in the past ten 

years, both in simple increase and relative to the national average for domestic fares.

It is important to note that an accurate reading of Springfield domestic average fares must 

exclude Chicago ORD traffic, revenue and average fare. For many years and until just recently, 

SkyWest, the at-risk United Express carrier in the SPI – ORD market has employed a very low 

Chicago local fare structure. This structure was designed to create sum-of-two-local fare 

booking options in instances where the published thru fare of United Airlines (who controls 

connect pricing in at-risk markets) was publishing what SkyWest deemed were non-competitive 

Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Avg Fare $146 $174 $190 $196 $191 $174 $176 $187 $215 $226

19.2% 9.2% 3.2% -2.6% -8.9% 1.1% 6.3% 15.0% 5.1%

54.8%

Y/Y Change

2004 - 2013 Change 

SPRINGFIELD AVERAGE NETWORK CARRIER DOMESTIC FARE 2004 - 2013

Excludes ORD local traffic, reveue and fare
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • July 2014 7

thru fares. For some years now the SPI – ORD local passenger count would be disproportionate 

to its true value in that many passengers shown as local were actually sum-of-two-locals 

connect passengers recorded as locals. Excluding these passengers gives a true picture of what 

SPI market passengers were paying for connection travel via ORD.

Springfield’s current air service (summer of 2014) consists of three times daily United Express 50-

seat regional jets to ORD, American Envoy 50-seat regional jets twice daily to DFW and less-thandaily (twice per week) Allegiant Air MD80 service to Punta Gorda and Orlando Sanford. Both 

Punta Gorda and Sanford service is suspended for several months each year in late summer and 

early fall.

The decline in Springfield network air service measured both in terms of flight frequency and 

seats offered, is alarming. Industry consolidation has reduced the number of network carriers 

and regional fleet composite shifts mean that markets like Springfield must either grow to support 

66 and 76-seat aircraft or risk the loss of all network service.
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • July 2014 8

AIR SERVICE NEEDS AND DEFICIENCIES

The Springfield Abraham Lincoln Capital Airport has seen a huge decline in air service in the past 

ten years, measured in terms of both seat capacity (-60%) and frequency of flights (-44%). But 

even more important than the overall seat and flight frequency declines, is the specific decline 

of network carrier service.

Springfield is a city of government, education and business. Network air service with global 

connectivity is essential to the operation of those functions and to the growth of local business 

and industry. Yet the decline in Springfield network airline service is even worse than the overall 

declines already documented.

When only network carrier service is considered the Springfield market has lost 62.4% of its flight 

frequency in ten years and 65.2% in eleven years if 2014 projected results are included. This 

compares to a loss of 60.3% of seats in ten years for all carrier service. 

When only network carrier service is considered the Springfield market has lost 53% of its seat 

capacity in ten years and 56% in eleven years if 2014 projected service results are included. This 

compares to a loss of 44.1% of seats in ten years for all carrier service.

CITY 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

DFW 1,045 1,344 1,287 1,270

IAD 484 353

MDW 2,903 173 924

ORD 3,366 3,447 3,273 2,756 2,867 3,914 3,941 2,632 2,579 2,242 2,000

STL 3,117 3,429 1,853 410 1,204

Total 9,386 6,876 5,299 4,574 4,424 3,914 3,941 3,677 3,923 3,529 3,270

-26.7% -22.9% -13.7% -3.3% -11.5% 0.7% -6.7% 6.7% -10.0% -16.6%

-62.4% -65.2%

SPI FLIGHTS PER YEAR 2004 - 2014: NETWORK CARRIERS

Y/Y Change

Period Change

City 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

DFW 49,938 57,820 58,186 59,690

IAD 24,200 17,666

MDW 98,702 3,287 17,480

ORD 168,300 172,722 163,682 137,816 142,769 190,243 192,596 130,853 129,046 112,356 100,000

STL 95,802 103,924 48,281 14,983 60,185

Total 362,804 276,646 215,250 194,479 220,620 190,243 192,596 180,791 186,866 170,542 159,690

-23.7% -22.2% -9.6% 13.4% -13.8% 1.2% -6.1% 3.4% -8.7% -14.5%

-53.0% -56.0%

SPI SEATS BY YEAR 2004 - 2014: NETWORK CARRIERS

Y/Y Change

Period Change
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • July 2014 9

Springfield’s network air service average fare is significantly above that of the national average, 

and significantly above that of nearby St. Louis (primary leakage point), and often the highest 

among its peer group of cities in central Illinois.

The first four data lines of the chart compare SPI’s domestic average fare to that of the national 

average, with the SPI – ORD city pair removed for clarity and Allegiant Air results removed from 

both average fare numbers. Allegiant has generated significant traffic at SPI in recent years and 

inclusion of that carrier’s average fare would dilute SPI’s domestic average unfairly given that 

Allegiant only serves two Florida cities from SPI but generates disproportionate traffic at low fares 

on those two routes. The chart shows that SPI’s core domestic average fare was 18.6% higher 

than the national average fare (adjusted for Allegiant in both cases) in 2013. 

The middle four lines of data show the SPI core domestic fare compared to the same fare at St. 

Louis. Where the difference was only $1.57 and 1.1% in 2004, in 2013 it is $53.33 and 23.6%.

The final four data lines show the core domestic average fare (excluding AirTran, Frontier and 

Allegiant) at SPI against its peer group; Bloomington, Champaign and Peoria. In three of the last 

ten years SPI has had the highest core domestic fare in the group and in two years, including 

2013 the SPI fare was the second highest in the group.

City 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

SPI $145.88 $173.72 $189.57 $195.68 $191.00 $174.18 $175.91 $186.93 $215.24 $225.88

Nation $134.39 $137.18 $149.59 $149.84 $160.21 $144.72 $160.01 $174.15 $180.43 $183.91

Difference $ $11.49 $36.54 $39.98 $45.84 $30.79 $29.46 $15.90 $12.78 $34.81 $41.97

Difference % 7.9% 21.0% 21.1% 23.4% 16.1% 16.9% 9.0% 6.8% 16.2% 18.6%

SPI $145.88 $173.72 $189.57 $195.68 $191.00 $174.18 $175.91 $186.93 $215.24 $225.88

STL $144.31 $142.11 $148.61 $146.30 $153.08 $140.06 $152.74 $162.07 $169.59 $172.55

Difference $ $1.57 $31.61 $40.96 $49.38 $37.92 $34.12 $23.17 $24.86 $45.65 $53.33

Difference % 1.1% 18.2% 21.6% 25.2% 19.9% 19.6% 13.2% 13.3% 21.2% 23.6%

SPI $145.88 $173.72 $189.57 $195.68 $191.00 $174.18 $175.91 $186.93 $215.24 $225.88

BMI $148.16 $148.47 $155.64 $159.45 $166.44 $151.81 $160.43 $181.84 $211.04 $220.10

CMI $157.28 $162.80 $179.78 $188.77 $202.29 $186.03 $206.98 $219.67 $232.17 $233.20

PIA $159.00 $165.03 $181.23 $178.47 $193.77 $172.12 $191.44 $214.03 $222.81 $222.19

SPI Rank 4th 1st 1st 1st 3rd 2nd 3rd 3rd 3rd 2nd

SPI REGION AND NATIONAL AVERAGE FARE 2004 - 2013

Excluding SPI ORD city pair and carriers AirTran, Frontier and Allegiant 
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • July 2014 10

Domestic Airport O&D PDEW Fare Share

1 SPI 112,014 153.4 $210 9.2%

2 STL 553,729 758.5 $165 45.3%

3 ORD 331,899 454.7 $179 27.1%

4 MDW 133,162 182.4 $139 10.9%

5 PIA 43,749 59.9 $121 3.6%

6 IND 23,966 32.8 $148 2.0%

7 BMI 15,025 20.6 $141 1.2%

8 Other 10,137 13.9 $100 0.7%

1,223,681 1676.3 $167 100.0%

International Airport O&D PDEW Fare Share

1 SPI 10,286 14.1 $508 16.7%

2 STL 9,902 13.6 $494 16.1%

3 ORD 39,930 54.7 $592 64.8%

4 MDW 1,032 1.4 $263 1.7%

5 PIA 102 0.1 $655 0.2%

6 IND 235 0.3 $556 0.4%

7 BMI 72 0.1 $487 0.1%

8 Other 44 0.1 $705 0.1%

61,603 84.4 $557 100.1%

Area Total Airport O&D PDEW Fare Share

1 SPI 122,300 167.5 $235 9.5%

2 STL 563,631 772.1 $170 43.9%

3 ORD 371,829 509.4 $224 28.9%

4 MDW 134,194 183.8 $140 10.4%

5 PIA 43,852 60.1 $123 3.4%

6 IND 24,201 33.2 $152 1.9%

7 BMI 15,097 20.7 $143 1.2%

8 Other 10,180 13.9 $104 0.8%

1,285,284 1760.7 $167 100.0%

Catchment Area Total 

Catchment Area Total 

Catchment Area Total 

SPI CATCHMENT AREA TRUE TRAFFIC DEMAND: 2012 - 2013

The clearest demonstration of Springfield’s air service deficiencies is found in the data from a 

comprehensive True Market Study done in 2013. Parameters of the study were;

 Used an 11 county catchment area with a combined population of 470,517

 Studied traffic demand in the catchment area for the 12 months ended 3/31/2013.

 Sampled 24,972 catchment area tickets

 Three part analysis; ARC ticket sample, DOT data analysis and macroeconomic formulas

Conclusions of the study include;

 SPI gained 9.2% of area domestic traffic

 STL gained 45.3% and ORD 27.1%

 MDW gained 10.9%

 BMI captured 1.2%, down from 11.4% in a 

2010 analysis, showing market shifts from 

AirTran’s BMI market exit.

 Average fare paid at SPI was $210.

 Average fare at STL $165, $45 lower.

 Average fare at ORD was $179, 

suggesting ORD driving was not primarily 

fare driven as the savings of $31 are not 

significant compared to the distance of 

drive to ORD. 

 SPI gained 16.7% of international traffic

 ORD gained 64.8% and STL 16.1%

 Pricing was not a factor in international 

leakage.

 For all traffic SPI gained 9.5%, leaking 

90.5% of its catchment area true demand 

to other airports.

 STL gained 43.9% and ORD 28.9%

 MDW gained 10.4%
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • July 2014 11

Airport Avg Fare Change from SPI

SPI $210

STL $165 -21.4%

ORD $179 -14.8%

MDW $139 -33.8%

PIA $121 -42.4%

IND $148 -29.5%

BMI $141 -32.9%

Other $100 -52.4%

Airport Avg Fare Change from SPI

SPI $508

STL $494 -2.8%

ORD $592 16.5%

MDW $263 -48.2%

PIA $655 28.9%

IND $556 9.4%

BMI $487 -4.1%

Other $705 38.8%

International

Domestic

SPI CATCHMENT AREA AVERAGE FARE

Carrier Airport PDEW Share Share @ SPI Fare

Southwest STL & MDW 608.8 35% 0% $149

United SPI & Other 402.1 23% 6% $244

American SPI & Other 336.0 19% 3% $239

Allegiant SPI & Other 77.8 4% 1% $106

Delta Other 167.8 10% $182

US Airways Other 97.9 6% $206

Frontier Other 28.4 2% $133

Spirit Other 25.8 1% $73

Alaska Other 14.3 1% $213

Total All 1,758.9 100% $186

SPI CATCHMENT AREA TRAFFIC BY CARRIER

Average Fare and Leakage – The chart at the right more 

clearly illustrates the role that average fare plays in 

domestic traffic leakage from the SPI catchment area.

The average fare paid at the SPI airport during the study 

period was $210, which is 21.4% higher than at STL, 14.8% 

higher than at ORD and 33.8% higher than at MDW. On the 

international side, with the exception of traffic leaked to 

MDW, fare was not a driver of leakage.

For domestic traffic, none of the price gaps, by themselves, 

represent a major customer savings after the cost of driving 

(auto costs, time costs and parking costs) are factored in. 

And price in not a driver of any international leakage 

except that to Midway Airport.

Carrier Preference and Leakage – Three carriers captured significant shares of Springfield 

catchment area true traffic demand in the study period.

Southwest Airlines captured 35% of total 

demand mostly at St. Louis but also at 

Chicago Midway.

United captured 23% of catchment 

demand, but only 6% of that demand 

boarded United at Springfield; the rest 

drove to use United service at other 

airports.

American captured 19% of catchment demand, but only 3% of that boarded American at 

Springfield, the rest drove to use American service at other airports.

Airline Capacity and Traffic per Capita – One common measurement of local air service is airline 

capacity (seats) per capita and airline passengers per capita at the local airport and in 

comparison to peer airports and primary leakage airports.
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • July 2014 12

Market MSA Pop Airline Seats Seats/Capita MSA Pop Dom O&D O&D/Capita

BMI MSA 191,850 540,572 2.82 191,850 384,910 2.01

CMI MSA 235,380 217,004 0.92 235,380 145,050 0.62

PIA MSA 382,104 777,205 2.03 382,104 516,770 1.35

SPI MSA 212,081 208,086 0.98 212,081 134,110 0.63

STL MSA 2,810,056 16,831,628 5.99 2,810,056 9,396,390 3.34

COMPARISON OF AIRLINE CAPACITY & TRAFFIC PER CAPITA: YEAR 2013 SPI REGION

By these measures Springfield does poorly compared to its peer group (except Champaign) and 

in comparison to St. Louis, its primary leakage point and nearest large airport.

In the seats per capita column, Springfield has the second lowest count per capita at .98. In the 

O&D per capita (measuring domestic passengers) Springfield again has the second lowest 

count per capita, essentially tied with Champaign at .63 domestic O&D per MSA capita.

In summary, network air service at Springfield, measured in flights offered and seats offered, is in 

decline and that decline is in direct contradiction to the growth in local population and 

economic output. Furthermore, a detailed study of true traffic demand in the Springfield 

catchment area shows that the local airport is only capturing 9.5% of catchment area true 

traffic demand. This means that 90.5% of air travel from the catchment area uses another 

airport.

It is completely understandable that while 35% of true demand uses Southwest Airlines at 

another airport it is startling to note that 42% of catchment area true demand uses United and 

American Airlines service for travel, but that only 9% of that true demand uses those carriers at 

the local airport.

With mergers having reduced the number of conventional network carriers to just three and 

those three carriers reducing 50-seat fleets, it becomes critical for small and medium sized 

airports to fill the seats on their network flights and grow their network traffic to levels that can 

support, in a few years, larger regional jet equipment. The alternative to accomplishing network 

traffic growth is a day of reckoning for network service, a day when 50-seat gauge service is no 

longer viable. If larger RJ service cannot, at that time be justified, network carrier service is in 

jeopardy at that airport. Springfield believes that scenario is possible locally and we are 

energized to recapture leaked traffic to our existing network service so that lost flight frequency 

and seat capacity can be restored. 
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • July 2014 13

The Springfield Abraham Lincoln Capital Airport Authority has developed a comprehensive Plan 

to reverse documented traffic leakage and increase Airport airline traffic and revenue. The 

increased traffic will drive reinstatement of lost network carrier capacity and, in time, become a 

self-supporting cycle of recaptured local traffic leakage driving additional capacity additions, 

driving more recaptured traffic.

This Plan is called an “Air Service Community Engagement Project”.

The Core Elements of the Plan are;

A. One to one outreach visits with key community leaders and corporate travel generators

B. Improve social media presence

C. Implement a sustained (2-3 year) awareness campaign using traditional and social media

D. Produce a community airport and air service video

E. Comprehensive local travel agent engagement to reinforce a “fly local” concept

F. Expanded engagement with incumbent carrier sales and marketing representatives

G. Rebuild and enhance Airport website

H. Refinement of Airport brand and projection of that brand region wide

I. Set specific and measurable goals for reversing catchment leakage 

J. Ongoing true market study snapshots to define progress in leakage reversal

The core elements will be implemented via a step-by-step process of community engagement;

 Reviewing current marketing plan for the Airport to evaluate goals for the program;

 Refine existing air service marketing/advertising materials;

 Media outreach (including outreach to communities at other end of route(s));

 Corporate Travel Outreach (including meetings with top companies in region to discuss 

airport air service offerings and identify opportunities for traffic recapture and retention; 

 Development of more effective Airport communications (internal and external);

 Participating in marketing sales events for the Airport within the region;

 Developing route specific marketing strategy tactics and promotions to stimulate interest 

in new routes and air service development efforts within the market;

 Work with marketing/sales teams at Airline partners to ensure cross-promotional efforts;

 Identifying unique marketing and partnership opportunities. 

AIR SERVICE IMPROVEMENT PLAN, FUNDING AND IMPLEMENTATION
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • July 2014 14

Source Amount Cash %

DOT $182,500 76.0%

LOCAL NON-AERONAUTICAL $52,500 21.9%

AIRPORT $5,000 2.1%

TOTAL CASH FUNDING $240,000 100.0%

SPRINGFIELD IN-KIND $65,000

TOTAL GRANT FUNDING $305,000

SPRINGFIELD SCASD GRANT FUNDING PLAN 

One fundamental key to any community engagement program is the ongoing measurement of 

success or failure, which allows for course adjustments toward successful program elements and 

away from unsuccessful program elements.

Program Effectiveness Measurement – This community engagement program will measure every 

element of every initiative on an ongoing basis.

 Tabulation of one to one outreach visits with grading of effectiveness of visit

 Standard measures of social media penetration and presence

 Annual survey of airport and local air service awareness among target audiences

 Tracking of the uses of the Airport and air service video

 Tracking of catchment area travel agent engagement events and quarterly survey of 

travel agent community sentiment and booking (airport of use) patterns

 Tabulation of contact with incumbent carrier sales and marketing representatives

 Timeline for website reconstruction and graphing of consumer use pre and post redesign

 Quarterly survey of target audience perception of Airport brand

 Bi-annual True Market Study updates to survey overall catchment area demand and

airport and carrier preference shifts

Funding Plan – The Airport Authority and its community partners propose a total Grant funding 

level of $305,000. The DOT funding contribution would be $182,500, matched by $52,500 in nonaeronautical funds from Springfield, $5,000 in Airport funds and $65,000 of in-kind funding from

three local sources.

Grant Implementation Timeline – The Airport 

and its community partners anticipate very 

prompt implementation of the Air Service 

Community Engagement Project upon Grant 

award and contract completion. We 

anticipate full use of the Grant funding in eight quarters beginning fourth quarter of 2014 and 

completing Grant funding program in third quarter of 2016. We believe that this Program will 

measurably increase Airport enplanements and, via the Airport revenue increases propagated 

by increased enplanements, this Community Engagement Program will become self-sustaining.
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • July 2014 15

The Grant implementation timeline assumes Grant award and Grant contract execution in late 

third (calendar) quarter of 2014. Based on that starting point the timeline defines major initiatives 

by quarter for an eight quarter period. As elements of the plan roll out they do continue quarter 

to quarter. Comprehensive measurement of effectiveness occurs every six months in the 

program.

This Community Engagement Program will have a goal of increasing Airport network carrier 

enplanements year over year by 3% per quarter beginning in first quarter of 2015. This means 

that the program will achieve at least 1,135 added network carrier enplanements in 2015 Q1 

based on 2014 Q1 results.

Event Timeframe

SCASD Grant Award

Grant Agreement with DOT Cash In-Kind

Hold a Series of Project Stakeholder Meetings

Initiate 1 to 1 Community Engagement

Conduct First Snapshot Leakage Update Study

Conduct First Target Audience Survey 

Initiate Incumbent Airline Engagement

Rebuild and Enhance Airport Website

Submit First Grant Status Report to DOT

Engage Travel Agency Community

Initiate New Social Media Program

Submit Second Grant Status Report to DOT

Rollout Travel Agent Engagement Program

Produce Community Video

Submit Third Grant Status Report to DOT

Conduct Second Snapshot Leakage Update Study

Conduct Second Target Audience Survey Q4 2015

Submit Fourth Grant Status Report to DOT

Hold Second Set of Stakeholder Meetings

Review 2015 and Adjust 2016 Plan

Submit Fifth Grant Status Report to DOT

Conduct Third Leakage Update Study

Conduct Third Target Audience Survey 

Submit Sixth Grant Status Report to DOT

Renew Travel Agency Engagement Program

Renew 1 to 1 Community Engagement

Close Out Grant

$240,000 $65,000

Q2 2015

Q3 2015

Estimated Spend

SPRINGFIELD SCASD GRANT IMPLEMENTATION TIMELINE

$32,000 $9,000

$32,000 $8,000

Q3 2014

Q4 2014

Q1 2015

Q1 2016 $31,000 $8,000

Q2 2016

Q3 2016

$32,000

$32,000 $8,000

$31,000 $8,000

$8,000

$25,000 $8,000

$25,000 $8,000

Grant Funding Expenditure Total
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • July 2014 16

SPI's PUBLIC / PRIVATE PARTNERSHIP FOR AIR SERVICE RECRUITMENT

The Springfield Airport Authority

The City of Springfield

Illinois National Guard

Southern Illinois University, Springfield

Sangamon County

Springfield Convention and Visitors Bureau

Greater Springfield Chamber of Commerce

Crawford Murphy & Tilly

Hanson Professional Services

Horizon Aviation

Q5 Quantum Growth Partnership

Private Members

Public Members

SPRINGFIELD’S PUBLIC PRIVATE PARTNERSHIP

The Springfield Airport Authority is very active in air service retention, enhancement and new 

service recruitment. The Authority works closely with both public sector and private sector 

partners on air service matters. The Authority has formed a strong public private partnership for 

air service retention and recruitment efforts.

Thanks to an active local public 

private partnership the Airport 

Authority has successfully 

administered three previous 

SCASD Grants and undertaken 

other air service related projects.

AIR SERVICE DEVELOPMENT EFFORTS

The Springfield Airport Authority is very active in air service development. The Airport’s Executive 

Director retains close contact with representatives of each incumbent airline, attends multiple 

air service development conferences annually and retains a well-known Air Service Consulting 

firm to assist with research, carrier liaison and business case development and presentation. In 

the past three years 2011 – 2013 the Airport has spent approximately $120,000 on air service 

conference attendance and related travel, consultant retainer fees and research or business 

case documents. A year by year detail of formal air service development efforts are below;

2011:

February – Springfield Ticket Lift and True Traffic Demand and Leakage Study completed

February – Attended Network USA, presented to Southwest, Vision, Branson Express, Spirit, 

Allegiant Air, Pinnacle, and Air Tran. 

March – Attended Sixel Consulting Air Service Conference, meetings with Frontier and SkyWest. 

April – American Eagle terminated SPI-ORD route and added SPI-DFW route. 

June – Attended Jumpstart Conference, met with Southwest, United, US Airways, Allegiant Air, 

Republic and Vision Airlines. 

June – Direct Air began three times weekly year around service to Lakeland, Florida 
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • July 2014 17

Year Advertising Spend Approximate Allocation of Spending

2011 $348,493 Newspaper/Print: 45%

2012 $452,902 Billboards: 5%

2013 $430,609 Radio: 20%

Television: 20%

Promotional: 5%

Misc./Other: 5% 

SUMMARY OF SPRINGFIELD AIR SERVICE MARKETING: 2011 - 2013

October – Met with Direct Air principals in Myrtle Beach, SC. Discussions about market 

opportunities to Nassau, Bahamas and Gulfport, MS.

November - Attended Sixel Consulting Air Service Conference, met with Frontier and US Airways. 

December – Updated presentations prepared and provided to Allegiant Air and Spirit Airlines

December – Community Air Service Survey conducted

2012:

March – Updated presentation sent to Allegiant suggesting service to Las Vegas, Phoenix/Mesa, 

Tampa/St Petersburg and Sanford/Orlando

March – Attended Network USA, met with Allegiant, Spirit, US Airways, United, and PeoplExpress. 

March – Direct Air abruptly terminated all service to all markets, Airport scrambled to find short 

term replacement service from Vision Airlines. 

April – Attended Sixel Consulting Group Air Service Conference, met with US Airways, American 

Eagle, and SkyWest Airlines.

May – Vision Airlines operated summer service to Myrtle Beach, SC, abandoned by Direct Air

June – Attended ACI Jumpstart Air Service Conference, met with United, US Airways, Allegiant,

PeoplExpress, Spirit and Sun Country. 

2013:

February – Attended Allegiant Air conference in Phoenix. 

April – Attended Sixel Consulting Group Air Service Conference in Tucson, met with SkyWest 

(United Express), American, and US Airways.

August – Completed a True Market Study, updating previous similar studies in 2011 and 2009.

September – Attended Sixel Consulting Group Air Service Conference in Albany, met with 

American and US Airways.

So far in 2014 the Airport has attended the Sixel Spring conference, the Allegiant Conference 

and will attend Routes in Chicago in September and Sixel Fall Conference in November.

Springfield’s annual air service 

marketing budget is significant and 

reflects the importance that the 

Airport Authority attaches to 

continually marketing itself.
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • July 2014 18

PREVIOUS GRANT AWARDS

The Springfield Airport Authority has been awarded and has successfully used three previous 

SCASD Grants. The first two of those Grants were for Minimum Revenue Guarantee (MRG) 

funding for the specific purpose of recruiting a new air service or air service carrier to a specific 

destination or for a specific purpose. The third Grant award was for an innovative Ground 

handling cost-offset program aimed somewhat narrowly at recruiting Allegiant Air less-than-daily 

leisure destination service. None of the three previous grants is similar to this Grant proposal for a 

well-defined Community Engagement Program.

The first Grant (awarded 9/5/2006) had project goals and objectives as follows: Increase 

enplanements, strengthen existing carriers at the airport, begin nonstop service to Washington 

D.C. and open up the Airport to new one-stop domestic and international routes. The Grant was 

in the amount of $390,000 and was matched by $975,000 in local cash and $100,000 in local inkind contributions. Springfield successfully recruited United Airlines to begin regional jet service to 

Washington Dulles. The service operated from April of 2007 to early July of 2008. Unfortunately, 

during this time fuel prices soared. Also, the United Airlines regional partner assigned to operate 

the flights had reliability and on-time performance issues. The Grant was closed on 6/13/2008.

The second Grant (awarded 9/19/2008) had project goals and objectives as follows: Provide 

central Illinois and its Capital City a third option to a major airline hub offering connections to top 

destinations, increase awareness about local air service and to increase availability of seats and 

provide more competitive airfares. The Grant was in the amount of $750,000 and was matched 

by $100,000 in local cash and $375,000 of in-kind contributions. The primary target carrier/route 

combination for the MRG funding of the Grant was Northwest Airlines and service to Memphis. 

Northwest merged with Delta Air Lines in late 2008 and did not have interest in the market and 

route concept. Springfield network service was reduced in 2009 to American Eagle and United 

Express both offering flights to Chicago ORD. In late 2010, Springfield and American Eagle 

proposed to the DOT that this Grant’s funding be put toward supporting American Eagle service 

from SPI to DFW. With DOT approval of that proposal, that service began in April of 2011 and 

continues today. This Grant was closed on 4/17/2012.

The innovative third Grant award (September, 2012) was for ground handling and marketing 

cost-offsets for the recruitment of Allegiant Air service to Springfield. Within weeks of Grant 

award Allegiant announced Grant supported service to Punta Gorda, which began in 
Springfield Airport Authority • Small Community Air Service Development Grant Proposal • July 2014 19

November of 2012. Since the Grant award Allegiant has not only retained the Punta Gorda 

route but also added service to Orlando Sanford. This Grant was closed in July of 2014.

None of the first three Grants have the focus or purpose of this Grant proposal. The only 

common thread in the three Grants and this Grant proposal is the aspect of air service 

marketing. However, basically every SCASD Grant, with rare exceptions perhaps involving a 

study, involve some element of marketing, be they MRG, EAS marketing, ground handling, etc.

Springfield has won three previous Grants because Springfield made, each time, a compelling 

case for Grant funding. This Grant application also has a compelling case, but it has no MRG, no 

targeting of a specific carrier and no ground handling or other carrier cost off-sets. Thus it is a 

different Grant application and not subject to a “same purpose” consideration.

CONCLUSION 

The Springfield Airport Authority and its many community partners have been dealt, again and 

again, a tough hand in the area of air service. The St. Louis hub closure devastated our local air 

service, yet we preserved and gained regional jets to Dallas. We pioneered Direct Air less-thandaily leisure service in central Illinois, when that carrier failed due to mismanagement, we not 

only recruited Allegiant Air to replace them, but have helped that carrier grow service well 

beyond any level that Direct Air offered us.

Now we face a measurable and continuing and alarming decline in our network carrier service. 

And network air service is essential to the well-being of the Springfield community and economy. 

This Grant application has demonstrated Springfield’s clear air service deficiencies and how we 

will address those deficiencies;

 Market fares well above the national average and well above those at primary leakage 

point St. Louis.

 Continuing declines in network carrier seat capacity and flight frequency.

 A detailed Community Engagement Program designed to reverse the documented 

market leakage we have, which will improve our traffic and cause re-instatement of 

capacity reductions. This is essential in supporting our growing population and economy. 

 The community has a powerful public private partnership for air service, as is 

demonstrated by our successful administration of three previous Grants.

 We will be able to use the Grant is a timely manner.