Application Under Small Community Air Service Development Program Docket Dot-Ost-2020-0231 Summary Information

APPLICATION UNDER SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM DOCKET DOT-OST-2020-0231 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: Volusia County, Florida Name of Signatory Party for Legal Sponsor: Karen K. Feaster, A.A.E., ACE, IACE – Airport Director DUNS Number: 067849901 EIN/Tax ID: N/A

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

1. Volusia County

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. Daytona Beach International Airport (DAB)

IS THE AIRPORT SEEKING SERVICE NOT LARGER THAN A SMALL HUB AIRPORT UNDER FAA HUB CLASSIFICATIONS EFFECTIVE ON THE DATE OF SERVICE OF THE ATTACHED ORDER?

Yes No X

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

D. SHOW THE DRIVING DISTANCE FROM THE APPLICANT COMMUNITY TO THE NEAREST:

1. Large hub airport: Orlando International Airport, FL (MCO), 54 miles 2. Medium hub airport: Jacksonville International Airport, FL (JAX), 98 miles 3. Small hub airport: Orlando-Sanford International Airport, FL (SFB), 30 miles 4. Airport with jet service: Orlando-Sanford International Airport, FL (SFB), 30 miles Note: Provide the airport name and distance, in miles, for each category.

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E. LIST THE 2-DIGIT CONGRESSIONAL DISTRICT CODE APPLICABLE TO THE SPONSORING ORGANIZATION, AND IF A CONSORTIUM, TO EACH PARTICIPATING COMMUNITY.

1. FL-6

F. APPLICANT INFORMATION: (CHECK ALL THAT APPLY)

Not a Consortium Interstate Consortium Intrastate Consortium X

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

NOTE: A community that currently receives subsidized Essential Air Service funding, receives assistance under the Alternate Essential Air Service Pilot Program, or is a participant in, and has received a grant under, the Community Flexibility Pilot Program, is not eligible for SCASDP grant funds. See Section C.1. (“Essential Air Service Communities”)

If previous recipient: Provide year of grant(s): 2002; and, the text of the grant agreement section(s) setting forth the scope of the grant project:

2002

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

PUBLIC

1. Volusia County Government – Economic Development Division 2. New Smyrna Beach Area Visitors’ Bureau 3. West Volusia Tourism Advertising Authority

PRIVATE (Business Partner Program – Airport Revenue Partners) 1. N/A

H. PROJECT PROPOSAL:

1a. GRANT GOALS: (CHECK ALL THAT APPLY)

Launch New Carrier Secure Additional Service Upgrade Aircraft X

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First Service New Route Service Restoration X

Regional Service Surface Transportation Professional Services X

Other (explain) ______

1b. GRANT GOALS: (SYNOPSIS)

CONCISELY DESCRIBE THE SCOPE OF THE PROPOSED GRANT PROJECT (FOR EXAMPLE, "REVENUE GUARANTEE TO RECRUIT, INITIATE AND SUPPORT NEW DAILY SERVICE BETWEEN ___ AND ___. OR "MARKETING PROGRAM TO SUPPORT EXISTING SERVICE BETWEEN ___ AND ___ BY ____ AIRLINES."

Revenue guarantee to recruit, initiate and support restored daily service between Daytona Beach, FL and a hub in the Washington, D.C. or Chicago area.

1c. GRANT HISTORY:

DOES THIS APPLICATION SEEK TO REPEAT A PAST GRANT PROJECT OF THE COMMUNITY OR CONSORTIUM (FOR EXAMPLE, A SPECIFIC DESTINATION AIRPORT)?

Yes No X

IF THE ANSWER TO THE ABOVE QUESTION IS ‘YES’:

A: WHAT YEAR WAS THE FORMER GRANT AGREEMENT SIGNED?

B: HAVE 10 YEARS PASSED SINCE THE PREVIOUS GRANT AGREEMENT WAS SIGNED?

Yes No X

IF THE ANSWER TO ‘B’ ABOVE IS ‘NO,’ THE APPLICANT SHOULD APPLY FOR A FORMAL WAIVER OF THE TEN-YEAR SAME PROJECT LIMITATION (SEE SECTION C.1. “SAME PROJECT LIMITATION”). THE REQUEST FOR WAIVER SHOULD INCLUDE A) A STATEMENT THAT THE COMMUNITY OR CONSORTIUM IS REQUESTING A WAIVER OF THE LIMITATION IN ACCORDANCE WITH THE PROVISIONS OF 49 U.S.C. § 41743(C) (4)(C); AND B) INFORMATION AND EVIDENCE TO SUPPORT A FINDING THAT THE APPLICANT SPENT LITTLE OR NO MONEY ON ITS PREVIOUS PROJECT OR ENCOUNTERED INDUSTRY OR ENVIRONMENTAL CHALLENGES, DUE TO CIRCUMSTANCES THAT WERE

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REASONABLY BEYOND THE CONTROL OF THE COMMUNITY OR CONSORTIUM. IF YOU HAVE ANY QUESTIONS ABOUT YOUR COMMUNITY’S PAST GRANTS, PLEASE CONTACT THE DEPARTMENT.

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

X 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)

X 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 U.S. Air Carrier: air service development activities to recruit new air X 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; X counted as in-kind contributions only

Ground Handling Fee: reimbursement of expenses for passenger, cabin, and ramp (below X 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 a U.S. 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)

______

I. EXISTING LANDING AIDS AT LOCAL AIRPORT:

Full ILS Outer/Middle Marker Published Instrument Approach X X X

Localizer Other (specify) X J. PROJECT COST: DO NOT ENTER TEXT IN SHADED AREA

REMINDER: LOCAL CASH CONTRIBUTIONS MAY NOT BE PROVIDED BY AN AIR CARRIER (SEE “TYPES OF CONTRIBUTIONS FOR REFERENCE).

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LINE DESCRIPTION SUB TOTAL TOTAL AMOUNT 1 Federal amount requested $1,000,000 2 State cash financial contribution Local cash financial contribution 3a Airport cash funds $0 3b Non-airport cash funds $126,000 3 Total local cash funds (3a + 3b) $126,000 4 TOTAL CASH FUNDING (1+2+3) $1,126,000 In-Kind contribution 5a Airport In-Kind contribution** $ 652,073 5b Other In-Kind contribution** $0 5 TOTAL IN-KIND CONTRIBUTION (5a + 5b) $652,073 6 TOTAL PROJECT COST (4+5) $1,778,073

K. 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.

Waiver of Landing Fees – two years ($74,011). Waiver of Ticket Counter / Space Rental – two years ($578,062)

L. 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. X

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

No Yes (explain) X

______

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TABLE OF CONTENTS PAGE

Legal Sponsor…………………………………………………………………………… 2 Introductory Letters of Support……………………………………………...………… 3 Executive Summary…………………………………………………………...………... 5 Catchment Area and Alternate Airports……………………………………………… 6 Driving Distance to Other Airports……………………………………………………… 6 Air Service – Historical Background…………………………………………………. 7 Existing Air Service……………………………………………………………………. 7 Economic Impact of Existing Air Service…………….. ……………………...………. 7 Air Service Development Efforts………………………………………….…………… 8 Current Air Service Development Needs and Deficiencies…………………………. 8 Capacity Trends and Historical Service Highlights…………………………………… 8 Traffic Trends…………………………………………………………………………… 10 Domestic Fare Trends and Market Comparisons…………………………….…………. 10 Nearly the Lowest Seats Per Capita in the State of Florida…………………….……... 12 DAB Leakage: Cause and Effect………………………………………………….…… 13 Strategic Plan…………………………………………………………………………. 15 Revenue Guarantee for Nonstop Service to Washington or Chicago………….……… 15 Prior Service to Washington and Chicago……………………………………………… 15 Shifting Demand Back to Daytona Beach with Washington or Chicago Service...……… 16 Project Goals and Aspirations…….……………………………………………………… 19 Grant Amendments / Alternate Strategies………………………………………………. 20 Project Implementation, Monitoring, and Funding…………………………….…… 20 Public / Private Partnerships………………………………………………….…………. 20 Project Funding…………………………………………………………….………….…. 20 Project Marketing………………………………………………………….……………... 21 Proposed Implementation Timeline……………………………………...………………. 22 Financial Controls……………………………………………………….………………. 22 Conclusion………………………………………………………………………………. 23

PROPOSAL OF DAYTONA BEACH INTERNATIONAL AIRPORT ▪ DAYTONA BEACH, FLORIDA ▪ MARCH 2021 ▪ PAGE 1

LEGAL SPONSOR

Daytona Beach International Airport is owned and operated by Volusia County, Florida. Volusia County, Florida is the legal sponsor responsible for administering the program; Volusia County, Florida is a government entity.

Volusia County, Florida Daytona Beach International Airport 700 Catalina Drive, Suite 300 Daytona Beach, FL 32114

Karen K. Feaster, A.A.E., ACE, IACE Airport Director 386.248.8030 x18304 (office) [email protected]

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INTRODUCTORY LETTER OF SUPPORT #1

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INTRODUCTORY LETTER OF SUPPORT #2

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EXECUTIVE SUMMARY

The Daytona Beach International Airport is proposing a $1,000,000 Small Community Air Service Development Grant to supplement a $100,000 Volusia Country cash contribution, $11,000 from local tourism authorities, a $15,000 cash contribution from local businesses, and airport in-kind incentives valued at $652,073 to provide a minimum revenue guarantee for a restored service from Daytona Beach to Washington D.C. or Chicago.

While COVID-19 impacted all airports during 2020, operations at the Daytona Beach International Airport had already been significantly impacted during the prior decade, when, between 2007-2008, United, Continental, and AirTran ceased services to Chicago, Newark, Cleveland, Washington Dulles, and Baltimore due to the widespread economic fallout of the nationwide, subprime lending housing crisis that kicked off the Great Recession. At the beginning of 2021, service was limited to just two hub markets with daily roundtrips on Delta to Atlanta and a few roundtrips to Charlotte on American. While planned seat capacity in April 2021 will be mostly flat versus April 2019, it will still be down 33% since April 2008. This compares to Orlando International (MCO), which will be up 10%, Orlando Sanford (SFB), which will be up 130%, and nearby Melbourne, which will be flat. Daytona Beach is the only airport in the Central Region of Florida’s Atlantic Coast that has seen its capacity drop since 2008. The other airports, while certainly impacted by COVID-19 like DAB, are still better off going into 2021 than they were prior to the Great Recession in 2008.

As the nation recovers from the pandemic, this continued regional growth and transformation in Volusia County will have increasing need for connectivity and transportation options, with growing demand for additional air traffic connections via new hub service. The proposed new service to a hub in either Washington D.C. or Chicago will address increasing demand within a resurging region once we get past COVID-19. The service will help lower the price-points of average fares, which are some of the highest in Florida, deliver more non-stop service, and will enable DAB to recapture some of the traffic that will otherwise continue to leak to larger airports like Orlando. By addressing these issues and improving connectivity, the proposed initiative will support and further facilitate economic development in Volusia County.

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CATCHMENT AREA AND ALTERNATIVE AIRPORTS

The Deltona - Daytona Beach - Ormond Beach MSA (population of 668,365 according to the 2019 Census Bureau estimate), comprising Volusia and Flagler counties in Florida, is the primary catchment area for the Daytona Beach International Airport:

Driving Distance to Other Airports The Daytona Beach International Airport is located on Florida’s Atlantic Coast, three miles southwest of Daytona Beach, next to Daytona International Speedway, in Volusia County, Florida (see map to the left).

As the crow flies, other regional airports with commercial airline service are located in Sanford (30 miles), Orlando (54 miles), Melbourne (78 miles), and Jacksonville (78 miles). While Sanford is the closest airport, its flight portfolio is primarily focused on inbound leisure demand and does not offer network carrier access. Orlando International offers both hub and low-cost carrier non-stop services, but the actual driving distance to Orlando is 75 miles and takes approximately one and half hours, not accounting for traffic. The drive to Jacksonville is even longer at one hour and forty-five minutes. Due to these drive times, Daytona Beach’s ostensibly close geographic proximity to Orlando and Jacksonville belies the actual ease of accessibility of Volusia Country passengers to the national and international air service grid.

The closest Small hub airport is Orlando-Sanford Int’l Airport, FL (SFB) at 30 miles. The closest Medium hub airport is Jacksonville International Airport, FL (JAX) at 98 miles. The closest Large hub airport is Orlando International Airport, FL (MCO) at 54 miles. The closest airport with Jet service is Orlando-Sanford Int’l Airport, FL (SFB) at 30 miles.

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AIR SERVICE – HISTORICAL BACKGROUND

Existing Air Service DAB currently has two airline tenants. Delta Air Lines offers daily service to its Atlanta hub, and American connects DAB passengers via its hub in Charlotte. Through August, American is also flying one daily seasonal flight to Dallas / Fort Worth, and through September, to Philadelphia. Prior to COVID-19, American also flew Saturday/Sunday service to New York LaGuardia on a 76-seat regional jet, but quarantine restrictions quickly made the flights unviable. Sunwing Airlines also previously offered a weekly scheduled charter from Toronto during the winter; however, the service was directional only, generally flying Toronto – Daytona Beach – Orlando - Toronto. While each DAB Departures and Seats by Month (source: Schedules via Airline Data Inc) Toronto flight operated with 2019 2020 2021 176 seats on a 737-800, the Departures Seats Departures Seats Departures Seats January 275 30,316 302 33,137 307 30,484 actual capacity available to February 277 29,635 294 32,263 272 26,196 March 369 40,372 322 35,878 358 40,022 DAB passengers varied April 334 36,634 179 18,909 276 35,145 May 322 36,100 97 9,843 274 35,377 because of the combined June 306 33,308 93 8,229 266 34,370 July 295 33,184 163 16,436 Orlando sector. The number August 277 32,090 215 21,257 September 256 29,889 209 19,847 of flights and seats per October 269 31,490 204 19,448 November 260 30,924 227 22,592 month scheduled at DAB December 277 31,832 272 27,334 from 2019 through early Totals 3,517 395,774 2,577 265,173 2021 is illustrated at the left.

Economic Impact of Existing Air Service The existing air service at DAB, while limited compared to its peers in Florida, makes a significant contribution to the local economy. According to an economic impact study commissioned by the airport in 2019, the existing air service at DAB directly supports 329 on- field FTE (full-time equivalent) jobs, adding an estimated $12.7 million in annual labor income to the local economy. When accounting for both direct and indirect job creation, the flights yield 2,383 local FTE jobs and an estimated $65.6 million in annual labor income. The estimated total annual economic impact on the community is $189.7 million.

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Air Service Development Efforts Daytona Beach International Airport has accelerated its air service development efforts during the pandemic. It has developed a new incentive program emphasizing marketing funds, which is slated to go to the County for approval in the near future. It completed a refreshed leakage study last February, which it was able to present to airlines at the Mead & Hunt conference in March, as well as ASM’s TakeOff conference in Denver this past October. It had planned to attend Jumpstart last June and the Volaire Aviation forum last August, but those events were pushed into this year. Its proactive communication with airlines helped secure its new seasonal service to Philadelphia and Dallas / Fort Worth on American, although the additional capacity did little to remedy the airport’s overall capacity imbalance versus the Orlando-area airports. DAB’s Leadership has regularly engaged the Volusia County Council members and community stakeholders. The Airport meets biweekly with the Council, which has been highly supportive of the Airport’s airline engagement. Since mid-2018, DAB has attended seven air service development conferences, five airline headquarters visits, and one onsite visit with a prospective carrier. It has also invited several other carriers to visit throughout the period:

Date Event Location Airlines March 2018 Mead & Hunt Conference Pheonix, AZ April 2018 MRO Americas Orlando, FL May, 2018 Sunwing - HDQ Visit Toronto, ONT Sunwing June 2018 Jumpstart Cleveland, OH September 2018 Sunwing - HDQ Visit Toronto, ONT Sunwing September 2018 JetBlue - HDQ Visit Long Island City, NY JetBlue September 2018 American - HDQ Visit Fort Worth, TX American February 2019 Frontier HDQ Visit Denver, CO Frontier March 2019 Mead & Hunt Conference Pheonix, AZ June 2019 Jumpstart Nashville, TN October 2019 TakeOff Sanford, FL Allegiant, Elite, SkyWest, Southwest, Spirit, United November 2019 Elite - On-Site Visit Daytona Beach, FL Elite March, 2020 Mead & Hunt Conference Pheonix, AZ Allegiant, Delta, Southwest, Sun Country, United October 2020 TakeOff Denver, CO American, Frontier, JetBlue, SkyWest, Southwest

CURRENT AIR SERVICE DEVELOPMENT NEEDS AND DEFICIENCIES

Capacity Trends and Historical Service Highlights DAB capacity peaked 14 years ago at 400,000 annual departing seats, but it has lost a great deal of network hub access since then. At DAB’s apex in 2008, Continental, US Airways, Delta, and AirTran served the market. Continental offered daily and extra weekend service to Newark, and

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it flew Saturday-only service to Cleveland. US Airways flew three daily roundtrips to Charlotte. Meanwhile, AirTran flew one to two times weekly to BWI depending on the month, and it used Atlanta as a connecting point for the rest of its network by offering one to two daily flights. For a few months in 2008, it also operated service to New York LaGuardia. Delta was flying to Atlanta with six to seven daily roundtrips, and for two months during the winter of 2008, weekend service to Cincinnati operated. Like AirTran, it offered its own LaGuardia service during the 2007-2008 period. It’s also noteworthy that United was in DAB between 2006 and 2007 with double daily flights to Washington Dulles and weekend-only service to Chicago O’Hare. O’Hare ended only a year later in February 2007 and Dulles followed that March.

By all accounts, DAB was on a roll, and 2008 was poised to be a banner year, even after accounting for United’s exit in 2007. Then the Great Recession hit, and everything changed. In May 2008, Continental discontinued the Cleveland flights, and AirTran left the market altogether, leaving DAB without any nonstop service to the Washington area. Four months later, Continental discontinued Newark, marking its own exit from the market. This left DAB with daily flights to Atlanta on Delta and US Airways’ Charlotte service. Capacity immediately plummeted 50% to around 200,000 annual seats by 2010. Going into the pandemic, DAB had still only recovered a little over 75% of the capacity lost during the prior decade as illustrated in the exhibit below: DAB Outbound Demand and Capacity History (12-Month Rolling Total 2002-2019) 94% LF 450,000 83% LF Seats B6 Seats begins 364,039 400,000 397,851 JFK

350,000 FL and CO exit 300,000 250,000 200,000 150,000 100,000 Passengers 50,000 0

20022003 12 2003 04 2003 08 2004 12 2004 04 2004 08 2005 12 2005 04 2005 08 2006 12 2006 04 2006 08 2007 12 2007 04 2007 08 2008 12 2008 04 2008 08 2009 12 2009 04 2009 08 2010 12 2010 04 2010 08 2011 12 2011 04 2011 08 2012 12 2012 04 2012 08 2013 12 2013 04 2013 08 2014 12 2014 04 2014 08 2015 12 2015 04 2015 08 2016 12 2016 04 2016 08 2017 12 2017 04 2017 08 2018 12 2018 04 2018 08 2019 12 2019 04 2019 08 12 (source: U.S. DOT T-100 and OD1B data via Airline Data Inc)

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Traffic Trends Mirroring capacity, DAB’s total passenger traffic dropped sharply from 2007 to 2009, when demand fell from 673,653 annual origin and destination (O&D) passengers in 2007 to 394,010 passengers in 2009, a jaw-dropping 42% decline:

800,000 Daytona Beach (DAB) Annual Roundtrip Passengers

727,031 691,138 700,000 672,653 680,345 674,247

605,174 599,022 600,000 576,063 550,414 563,417 533,440 521,797

500,000 478,429

394,010 400,000

300,000

200,000

100,000

0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

(source: U.S. DOT T-100 and OD1B data via Airline Data Inc)

Fortunately, total traffic had mostly recovered to 2007 levels as of CY 2019, but that recovery came with significantly higher fares for DAB passengers, as discussed in the next section.

Domestic Fare Trends and Market Comparisons From 2010 through 2015, Average Domestic Airfares - DAB versus U.S. as demand slowly began $200 $194 to recover, average fares $189

$182 $182 $182 $180 $181 in DAB trailed the $178 $177 $175 $172 $172$173 $172 $171 $170 $170 national average by about

$162 $158 DAB U.S. $15 each way, but that $154 $150 gap decreased from about $144 $15 in 2010 to near-parity

$125 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 during 2015-16. Since

(source: U.S. DOT OD1B data via Airline Data Inc) then, DAB’s domestic

PROPOSAL OF DAYTONA BEACH INTERNATIONAL AIRPORT ▪ DAYTONA BEACH, FLORIDA ▪ MARCH 2021 ▪ PAGE 10

fare increases have markedly outpaced the Lower 48. However, that gap reached critical mass in 2019 when average one-way fares jumped from $182 to $194 in just one year versus the national average of $172. To summarize, DAB fares went from being $15 below the national average in 2010 to $24 above average in 2019.

A fare trend analysis indicates DAB’s disparity versus the State of Florida is particularly acute. While the average fares in Florida began dropping in 2014, DAB fares went the other direction. By 2019, DAB fares had outpaced other Florida airports to such a degree that, at $194 each way, they were an astonishingly 32% higher than the State’s average of $147, as shown below.

Average Domestic Airfares - DAB versus Florida

$200 $194

$182 $180 $181 $177 $175 $173 $171 $167 $162 DAB Florida $159 $157 $154 $155 $150 $148 $147 $147 $144 $144 $144

$135

$125 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

(source: U.S. DOT T-100 and OD1B data via Airline Data Inc)

It would be remiss of this petition to ignore the impact of the unbundled fare model brought by ultra-low-cost carriers (ULCCs) serving the State, but as the next exhibit will show, DAB fares are still markedly higher than similar Florida markets with a marginal ULCC footprint. In fact, not only are DAB’s average fares much higher than the State average, but DAB has the second highest fares on Florida’s Atlantic Coast while having the fifth highest fares in the State, as shown on the next page.

PROPOSAL OF DAYTONA BEACH INTERNATIONAL AIRPORT ▪ DAYTONA BEACH, FLORIDA ▪ MARCH 2021 ▪ PAGE 11

Rank Orig Arpt City Name Avg Fare 1 Key West $247 2 Tallahassee $232 3 Gainesville $217 4 Melbourne $199 5 Daytona Beach $194 6 Pensacola $192 7 Miami $188 8 Panama City $185 9 West Palm Beach $178 10 Sarasota/Bradenton $170 11 Jacksonville $161 12 Fort Myers $156 13 Fort Walton Beach $156 14 Tampa $145 DAB @ $194 = 15 Fort Lauderdale $136 16 Orlando - MCO $132 Second Highest Fares on 17 Destin $125 Florida’s Atlantic Coast 18 Vero Beach $122 19 Punta Gorda $74 20 St. Petersburg $62 22 Orlando - SFB $60 Average FLORIDA $203

(source: U.S. DOT OD1B data via Airline Data Inc)

The highest rank in the State goes to Key West, which has a far different air service dynamic than DAB. Nearby Melbourne in only slightly higher than DAB at $199. However, the $5 difference between fifth place DAB at $194 and fourth place MLB is trifling in a State where the average fares on the lower end of the spectrum mostly range from $60 to $160.

Nearly the Lowest Seats Per Capita in the State of Florida Going into 2021, DAB has gradually restored its 2019 capacity levels due to temporary seasonal service additions this Spring and Summer, but that single bright spot has done very little to remedy a very stark capacity imbalance that has existed for nearly 14 years – at least since the Great Recession of 2008 – versus other Florida airports. As of April 2021, DAB’s seats-per- capita of 0.6 is still the lowest among all Florida airports other than Melbourne, which sits only a snudge higher at 0.5. For all intents and purposes, DAB is tied with MLB, as shown on the next page.

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Rank City 2019 Population 2019 Seats 2019 Seats per Capita 1 Orlando 2,608,147 29,072,857 11.9 2 Sanford 2,608,147 25,769,086 11.9 3 Fort Lauderdale 1,952,778 22,098,906 11.3 4 Miami 2,716,940 13,296,867 9.5 5 Key West 74,228 6,073,468 8.0 6 Fort Myers 770,577 4,338,907 7.9 7 Punta Gorda 188,910 4,236,089 5.0 8 Tampa 3,194,831 1,856,099 4.6 9 St. Petersburg 3,194,831 1,382,016 4.6 10 Panama City 174,705 1,316,790 4.4 11 Fort Walton Beach 284,809 1,169,524 3.6 12 Destin 284,809 1,022,218 3.6 13 West Palm Beach 1,496,770 945,916 2.8 14 Jacksonville 1,559,514 773,131 2.8 15 Pensacola 502,629 594,735 2.7 16 Sarasota/Bradenton 836,995 540,717 1.4 17 Tallahassee 387,227 395,774 1.4 18 Gainesville 329,128 322,050 1.0 19 Daytona Beach 668,365 276,440 0.6 20 Melbourne 601,942 6,470 0.5 21 Vero Beach 159,923 2,287 n/a

DAB @ 0.6 = Second Lowest Seats per Capita on Florida’s Atlantic Coast

The seat disparity is driven primarily by the unfortunate impact of extreme market leakage, which will be covered in the next section. DAB needs to take action to correct this imbalance via an additional airline, year-round service to an additional hub (or both) with the help of initiatives such as the SCASDP grant.

DAB Leakage: Cause and Effect True traffic destined for DAB far exceeds the approximately 950 passengers daily each way that were using the airport through the end of 2019. In fact, the most recent leakage study covering CY 2019 estimates DAB’s true demand to be closer to 3,700 PDEW. These values aren’t beefed up or massaged to exaggerate the scope of DAB’s leakage [by manipulating the reasonable boundaries the airport’s catchment area]; these are numbers derived from a conservatively- defined area within Volusia County (see map at left) that sits well-within an hour’s drive of the airport. Moreover, much of the traffic is actually within 30 minutes of DAB.

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Airlines rely heavily on internal bookings information and flown U.S. DOT data to inform their network planning decisions. When scheduling thousands of flights per day, it’s expedient for

DAB Leakage by Airport airlines to assume much of the traffic using flights (source: Volaire Aviation Leakage Study, Fall 2019) to Orlando International (MCO) or Sanford (SFB) is going to the theme parks or conference centers in the area. Said another way, domestic demand to the Orlando area is so large at 56,500 passengers daily each way (PDEW) that the airlines might view the 2,660 PDEW actually headed to DAB, a mere 4% of the combined MCO/SFB total, as adequately covered already via Orlando. However, as shown on the adjacent exhibit, that ignores the inconvenience faced every day by nearly 70% of true DAB passengers when they must drive 90+ minutes to/from Orlando for more [and cheaper] nonstop service options.

Those 2,660 PDEW are not insignificant. In other multi-airport markets in Florida and around the country with demand also near 2,600 PDEW; such as Phoenix-Mesa (AZA), Punta Gorda (PGD), or Sarasota (SRQ); airlines have been more than DAB Catchment Area Airline Usage willing to invest capacity alongside much larger airports (source: Volaire Aviation Leakage Study, Fall 2019) like Phoenix Sky Harbor (PHX) or Fort Myers (RSW).

What’s happened in DAB during the past 15 years is a G4 5% DL classic case of cause and effect: the growth at Orlando NK 29% 7% causes airlines to add flights there, which causes more F9 people to leak from DAB, which in turn leads to more 8% capacity at MCO or SFB. It should be noted, however, AA UA 9% 18% that very little of DAB’s estimated true demand traffic B6 uses SFB and, by extension, Allegiant Air (G4). As seen 11% WN 13% at the right, SFB/G4 only accounts for 5% of DAB traffic, with most using carriers at MCO.

PROPOSAL OF DAYTONA BEACH INTERNATIONAL AIRPORT ▪ DAYTONA BEACH, FLORIDA ▪ MARCH 2021 ▪ PAGE 14

In summary, the unusually high domestic fares and inadequate seat capacity versus true demand highlight the imperative for more air service in the Daytona Beach region. This underscores the opportunity and need for introducing more options and/or competition, which a SCASDP grant could help remedy.

STRATEGIC PLAN

Revenue Guarantee for Nonstop Service to Washington or Chicago The market exits of AirTran and Continental took a significant toll on the Daytona Beach International Airport. Passenger traffic dropped alarmingly, and fares rose dramatically, outpacing the State of Florida and the nation. Restored hub service to Washington or Chicago would provide numerous, additional major hub connections to the community, adding more consumer choice for local businesses and educational institutions. In fact, Daytona Beach is an important location for a wide range of companies, such as NASCAR, the International Motor Sports Association, International Speedway Corporation, Grand-American Road Racing, Daytona International Speedway, the United States Tennis Association Florida, Ladies Professional Golf Association, Amazon, Brown & Brown Insurance, Halifax Health, Halifax Media Group, Gambro-Renal Products, and SunTrust Bank.

Additional hub connections would also help Embry-Riddle Aeronautical University, which is the nation’s largest aviation-focused college. It has its largest residential campus in Daytona Beach with 5,600 students (17% international from 98 countries) and 2,200 staff. Other local educational institutions include: Daytona State College at 30,000 students, Stetson University with 4,300 students, Bethune-Cookman University with 3,500 students, and the University of Central Florida Daytona Beach Campus with 1,000 enrollees. Expansion of new air service would augment the attractiveness of these institutions on a national and international scale, as evidenced by Embry-Riddle’s already diverse global student mix.

Prior Service to Washington and Chicago Prior service to Baltimore, Washington Dulles, and Chicago O’Hare proved the scope of demand to Daytona Beach when nonstop service is available and passengers are not relegated to using

PROPOSAL OF DAYTONA BEACH INTERNATIONAL AIRPORT ▪ DAYTONA BEACH, FLORIDA ▪ MARCH 2021 ▪ PAGE 15

Orlando, which is 90 minutes DAB TO WASHINGTON D.C. ROUNDTRIP LOCAL O&DS 18,000 from DAB, as their gateway 16,000

14,000 into Central Florida. As shown 12,000 at the left, demand responded 10,000

8,000 heartily to daily hub service to 6,000 Washington Dulles (United) 4,000

2,000 and Baltimore (AirTran) from 0 2006-2008. During that time

2004 Q1 2004 Q3 2005 Q1 2005 Q3 2006 Q1 2006 Q3 2007 Q1 2007 Q3 2008 Q1 2008 Q3 2009 Q1 2009 Q3 2010 Q1 2010 Q3 2011 Q1 2011 Q3 2012 Q1 2012 Q3 2013 Q1 2013 Q3 2014 Q1 2014 Q3 2015 Q1 2015 Q3 2016 Q1 2016 Q3 2017 Q1 2017 Q3 2018 Q1 2018 Q3 2019 Q1 2019 Q3 period, annual demand (source: U.S. DOT OD1B data via Airline Data Inc) doubled from around 8,000 DAB TO CHICAGO ROUNDTRIP LOCAL O&DS annual passengers to 16,000 9,000 8,000 passengers. Similarly, and 7,000

6,000 perhaps more incredibly, 5,000 Chicago demand temporarily 4,000

3,000 tripled in 2007 from 3,000 2,000 annual passengers to 9,000 1,000

0 when United offered mere weekly service to Chicago 2004 Q1 2004 Q3 2005 Q1 2005 Q3 2006 Q1 2006 Q3 2007 Q1 2007 Q3 2008 Q1 2008 Q3 2009 Q1 2009 Q3 2010 Q1 2010 Q3 2011 Q1 2011 Q3 2012 Q1 2012 Q3 2013 Q1 2013 Q3 2014 Q1 2014 Q3 2015 Q1 2015 Q3 2016 Q1 2016 Q3 2017 Q1 2017 Q3 2018 Q1 2018 Q3 2019 Q1 2019 Q3

(source: U.S. DOT OD1B data via Airline Data Inc) O’Hare. The key point is that the demand surge wasn’t just a by-product incremental traffic that manifested from service stimulation. It was direct evidence of real, quantifiable share shift from Orlando International Airport to DAB. Most telling is that the Chicago demand surge continued into 2008 even after United had ended its O’Hare service the year before. The service had brought awareness to inbound demand about using DAB until the Great Recession quelled demand Florida demand.

Shifting Demand Back to Daytona Beach with Washington or Chicago Service Daytona Beach already demonstrates significant demand to/from Washington and Chicago, but its local residents and inbound visitors are getting there by way of connections, and more commonly, nonstop service into MCO. According to a Volaire Aviation leakage study commissioned by the Airport in 2019, Washington and Chicago are DAB’s true #2 and #3 largest markets, respectively, when accounting for leakage:

PROPOSAL OF DAYTONA BEACH INTERNATIONAL AIRPORT ▪ DAYTONA BEACH, FLORIDA ▪ MARCH 2021 ▪ PAGE 16

Top 15 True DAB Markets, Including Leakage (source: Volaire Aviation Leakage Study, Fall 2019)

Not only are 72% of Washington/Baltimore passengers (138 PDEW) and 79% of Chicago passengers (112 PDEW) flying 90-minutes away into Orlando instead of their intended destination, DAB, but they are paying far lower fares. A Washington passenger will pay $160 to fly via a connection to DAB or $115 to fly nonstop into MCO; similarly, a Chicago passenger pays either $184 to use DAB or $129 to use MCO. Between the lack of nonstop service and dramatically higher fares, it’s no wonder that these travelers are using Orlando. Even if they were willing to pay a premium to use DAB, it wouldn’t matter. Available DAB seats woefully underserve the true market demand, hovering at just 0.6 per capita.

Nonstop service to either a hub in Washington or Chicago would add plentiful 1-stop connections to points beyond either hub market, boosting connecting options across all airports and further remedying DAB’s inadequate seat capacity. The following map shows the scope of connecting options that would open for DAB passengers on either United or American to Washington, whether via Washington Dulles (IAD) or Reagan Airport (DCA):

PROPOSAL OF DAYTONA BEACH INTERNATIONAL AIRPORT ▪ DAYTONA BEACH, FLORIDA ▪ MARCH 2021 ▪ PAGE 17

IAD

DAB

IAD

DCA

DAB

DAB (source: April 2021 Schedules via Airline Data Inc) Similarly, service to Chicago, as shown below, and Chicago Midway (not shown) would boost service options all across the Midwest, many markets along the West Coat, and the Inter- Mountain West region:

to London (Heathrow)

ORD

(source: April 2021 Schedules via Airline Data Inc)

DAB DAB

Finally, DAB is currently one of the only major Florida airports without nonstop service to at least one of the hub airports in Washington D.C. or Chicago. With higher fares and less seats per capita than these other markets, missing out on Chicago and Washington, two of the largest markets to Florida, only adds insult to injury. Most every other major market in Florida has at least one flight to each city, and most Florida markets have service to both cities, including multiple hubs at one or both markets:

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Industry Florida - Washington Capacity Industry Florida - Chicago Capacity (April 2021 - Monthly Outbound Seats) (April 2021 - Monthly Outbound Seats)

BWI DCA IAD Total Seats ORD MDW Total Seats Orlando 71,874 42,200 23,454 137,528 Orlando 76,909 37,414 114,323 Fort Lauderdale 61,220 26,752 9,960 97,932 Fort Myers 49,859 26,503 76,362 Tampa 45,562 31,890 14,940 92,392 Tampa 48,555 27,001 75,556 Miami 28,578 45,120 7,560 81,258 Fort Lauderdale 53,339 18,884 72,223 Fort Myers 27,207 19,595 4,200 51,002 Miami 55,661 12,870 68,531 Jacksonville 14,733 12,750 4,500 31,983 West Palm Beach 25,271 1,861 27,132 West Palm Beach 15,819 9,853 2,100 27,772 Sarasota/Bradenton 12,354 5,863 18,217 Sarasota/Bradenton 14,544 2,280 4,200 21,024 Jacksonville 7,616 3,067 10,683 Pensacola - 4,516 3,000 7,516 Key West 5,888 - 5,888 Panama City 922 2,236 1,500 4,658 Pensacola 4,634 1,065 5,699 DAB Key West - 2,280 2,100 4,380 Fort Walton Beach 3,780 1,404 5,184 DAB Fort Walton Beach 1,404 1,950 - 3,354 Panama City 2,100 2,495 4,595 Tallahassee - 1,950 - 1,950 Punta Gorda - 1,674 1,674 Daytona Beach - - - - Daytona Beach - - - Monthly Total 281,863 203,372 77,514 562,749 Monthly Total 345,966 140,101 486,067

Project Goals and Aspirations The Daytona Beach International Airport has set the following major goals for the proposed project:

ü Restore non-stop flying to a Washington or Chicago hub to foster ongoing, strong business/tourism connections to either area, which are established DAB markets with strong demand.

ü Augment consumer choices for viable connections to Midwest, Upper-Midwest, and Northeast destinations with historically robust demand, which would supplement – not cannibalize – existing Charlotte and Atlanta flights by reducing leakage.

ü Recapture the enormous levels of traffic currently leaking to Orlando International Airport, which sits at 2,500 PDEW, or about 70% of all passengers in DAB’s catchment area.

ü Provide relief to the many would-be DAB originating and destination passengers, who often drive 90 minutes to Orlando, wasting time and fuel, while placing unnecessary added strain on Orlando’s already crowded road infrastructure.

ü Reduce the onerously high fares experienced by DAB passengers. At $194, they are nearly the highest on Florida’s Atlantic Coast and the fifth highest in the State overall.

ü Remedy the local tourism impacts of COVID-19 with new fights that would add between $29 million to $48 million annually to the local economy depending on the type of service.

PROPOSAL OF DAYTONA BEACH INTERNATIONAL AIRPORT ▪ DAYTONA BEACH, FLORIDA ▪ MARCH 2021 ▪ PAGE 19

Grant Amendments / Alternate Strategies The primary goal of this proposal is the establishment of restored service from Daytona Beach to an airline hub in Washington or Chicago, which will greatly expand service opportunities for the local community. The community has a signed letter of support from two airlines interested in the service. However, if the DOT awards DAB a FY 2019 SCASD Grant, and if the community is unable to execute its plan within a reasonable timeframe due to circumstances beyond its control (aircraft availability, mergers, etc.), the Airport and the community might request that the DOT consider redirecting the award funding. In keeping with the spirit of the original request, the intent of the redirect would be to assist DAB in recruiting other new, non-stop hub service that would bring more seats to the community, provide more nonstop or 1-stop options, or lower DAB’s high fares compared to other Florida airports.

PROJECT IMPLEMENTATION, MONITORING, AND FUNDING

Public / Private Partnerships The Airport, local governments, and business organizations in the region understand the importance of affordable airfares and the relationship between airfare affordability and economic growth. Based on this recognition and awareness, the Airport Director regularly conducts community outreach meetings with business and government organizations to discuss the importance of air service to the economy of Daytona Beach, including using the local airport when traveling both for business and leisure – at least when connectivity is available. As a result, local tourism authorities have responded with $11,000 in revenue guarantee funding, along with $15,000 from local businesses.

Project Funding In addition to the SCASDP grant of $1,000,000 requested from the Department, organizations in the community are willing to provide a significant amount of funding for a minimum revenue guarantee and marketing for a new route. In addition to a Volusia County cash contribution of $100,000, businesses have contributed $15,000, and local tourism authorities have also written strong letters of support and are committing more than $11,000 for new service. This unified support, especially in light of COVID-19’s impacts, are nothing short of heartening. DAB has

PROPOSAL OF DAYTONA BEACH INTERNATIONAL AIRPORT ▪ DAYTONA BEACH, FLORIDA ▪ MARCH 2021 ▪ PAGE 20

always been the first choice of leisure and business travelers, but with the limited service and uncompetitive pricing during the past decade, it hasn’t always been possible (or practical) for them to fly from it.

Finally, there is a local allocation for marketing and start-up cost assistance for the first two years of service. The total value of cash and in-kind contributions from the community and the airport is $778,073, or 44% of the total project cost of $1,778,073, as shown in the table below:

Funding Source Grant Cash In-Kind Total Department of Transportation $1,000,000 $1,000,000 Country Government $100,000 $100,000 Airport $652,073 $652,073 Local Business Community $26,000 $26,000 TOTAL $1,000,000 $126,000 $652,073 $1,778,073

Project Marketing A portion of the funding available for this project ($126,000) would be allocated to marketing. This would be critical to the success of any new route launch.

In addition to the new funding planned in this proposal, the airport also has a new incentive program, which provides up to $200,000 in marketing support for new air service. That program was recently used for the seasonal flights to the Dallas / Fort Worth and Philadelphia. The airport provided $150,000 to the airline for each new route, totaling $300,000. In turn, the airline matched that amount, so the total marketing budget for the new flights was $600,000. In addition, the airport funded a $110,000 supplmental marketing campaign to help ensure the success of the new routes. As a result, after just a month into the new service, the airline extended the duration of the planned seasonal service – scheduled to end in April – through the end of summer.

Annually, the airport budgets more than $450,000 for general marketingof the airport, and its current airlines are included in this effort. For this grant request, support from our local tourism agencies is $11,000, which will be dedicated to marketing. We also receive valuable in-kind

PROPOSAL OF DAYTONA BEACH INTERNATIONAL AIRPORT ▪ DAYTONA BEACH, FLORIDA ▪ MARCH 2021 ▪ PAGE 21

marketing support from our local tourism agencies throughout the year, and the airport hosts monthly meetings with those agencies to keep them up-to-date on the latest airport/airline news.

As previously discussed, while the new seasonal flights have done little to ameliorate DAB’s high fares and seat deficiency versus other Florida airports, the local initiatives discussed above underscore the airport and community commitment to supporting air service growth.

Proposed Implementation Timeline If DAB is a successful applicant for the Grant, the Airport will advise United and American of the opportunities afforded by the Grant. In consideration of the COVID-19 environment, and based on typical legacy airline planning lead times, we assume the new service could not begin until Fall 2021 or Winter 2022 at the earliest. However, we have conservatively assumed the service wouldn’t begin until Spring 2022 or even into 2023 depending on the state of global passenger demand. The proposed project timeline for the planned two-year term of the minimum revenue guarantee is shown below:

Project Milestone Estimated Dates SCASD Grant Award Announcement Spring 2021 Execute Grant with DOT Summer 2021 Airline Meetings April 2021 - October 2021 Announce Service November 2021 Publish Schedule November 2021 Route Marketing Before Inaugural November 2021 - April 2022 Monitor Advance Bookings November 2021 - April 2022 Adjust Market Plan Based on Booking November 2021 - April 2022 Inaugural Flight(s) April 2022 Ongoing Route Marketing May 2022 and Beyond Operate Service with MRG April 2022 - March 2023 Monitor Route Performance April 2022 and Beyond Submit Recurring Grant Status Reports to DOT Quarterly 2Q 2022 - 1Q 2023

Financial Controls As the sponsor, the Daytona Beach International Airport and its governing body, Volusia County, FL, will be the responsible parties for all fiscal matters and the Department's reporting requirements. Volusia County is established as a public governing body. As a public entity, the

PROPOSAL OF DAYTONA BEACH INTERNATIONAL AIRPORT ▪ DAYTONA BEACH, FLORIDA ▪ MARCH 2021 ▪ PAGE 22

Department can be assured that proper financial controls are in place to guarantee that the Department’s Grant will be used in accordance with any subsequent agreement. Volusia County understands that the Grant is a reimbursable grant, meaning the County is responsible for program expenditures and will submit invoices to the Department for reimbursement based on a percentage of the total Grant request. The Greater Daytona Beach International Airport is well- versed in these types of grant agreements through experience with the State of Florida, DOT, and FAA AIP programs.

Conclusion The Daytona Beach International Airport has seen a massive reduction in capacity and connectivity due to the market exits of AirTran, Continental, and United Airlines after the Great Recession – and that was before the impact of COVID-19. DAB’s passenger leakage is greater than ever before with reduced service and fares that have never been higher. The Daytona Beach International Airport needs all the help that it can get to attract and retain additional service. Should Daytona Beach International Airport win a grant, other than Tallahassee’s (TLH) $750,000 grant in 2015 and Northwest Florida Beaches International Airport’s (ECP) $400,000 grant in 2014, it would be the first grant awarded to a Florida State airport since 2012. Prior to 2012, only six other grants have been awarded to the State since 2002.

With this application, DAB seeks to be awarded a Grant to help support restored service to Washington or Chicago. The local community, the Volusia County Government, and the Airport have collectively raised $778,073 in matching funds to assist with marketing and supporting the ramp-up of new nonstop service. The Airport is requesting $1,000,000 in Federal funding through the SCASDP grant process. The proposed hub service will help curb the high level of passenger traffic leaked to Orlando, provide additional one-stop connecting opportunities, and help reduce the very high average fares currently being paid by DAB compared to other Florida airports – ultimately contributing to the growth and economic development of the Greater Daytona Beach Area. Thus, according to the most recent economic impact study, the potential growth is estimated to be at least $30 million annually for x1 daily network carrier service to a new hub, and $49 million annually for new ULCC service.

PROPOSAL OF DAYTONA BEACH INTERNATIONAL AIRPORT ▪ DAYTONA BEACH, FLORIDA ▪ MARCH 2021 ▪ PAGE 23

CEO Business Alliance

J. HYATT BROWN Chairman January 19, 2021 Brown & Brown, Inc.

JIM FRANCE Chairman & CEO NASCAR Brooke Chapman, Associate Director Small Community Air Service Development Program LESA FRANCE KENNEDY U.S. Department of Transportation Executive Vice Chair NASCAR 1200 New Jersey Ave, SE Washington, DC 20590 JOHN P. ALBRIGHT President & CEO CTO Realty Growth, Inc. Dear Ms. Chapman,

ED NOSEWORTHY The CEO Business Alliance’s sole mission is to stimulate new job creation CEO AdventHealth Daytona Beach and capital investment in Volusia County. The Alliance works to recruit new businesses to the area; assist local business growth and retention; and GLENN RITCHEY President & CEO support initiatives that enhance economic development efforts. Southeast Automotive Management, Inc. We are pleased to share our support for the Small Community Air Service MIKE PANAGGIO CEO Development Grant (SCASDG) funding request submitted by Daytona DME Holdings, LLC Beach International Airport. When recruiting new businesses from the

MIKE READ northeast region to our community, the advantage of direct flights to our President airport is greatly appreciated. Additionally, many of our existing companies Teledyne Marine have business ties to the northeast region and having a nonstop service to TIM PHILLIPS the area would save them time and expense. President P & S Paving, Inc Thank you for your consideration of Daytona Beach International Airport’s BRUCE HEUGEL Sr. Vice President & CFO SCASDG funding request. B. Braun of America

RANDY DYE President & CEO Speedway Dodge, Inc. D. Kent Sharples President

The CEO Business Alliance is a 501(c)6 corporation consisting of eleven corporate

leaders. Our single mission is business recruitment resulting in job creation.

825 Ballough Rd., Suite 210 Daytona Beach, FL 32114 Ph. 386.256.4900 [email protected]

February 25, 2021

Ms. Brooke Chapman, Associate Director, Small Community Air Service Development Program U.S. Department of Transportation 1200 New Jersey Ave, SE Washington, DC 20590

Dear Ms. Chapman:

The New Smyrna Beach Area Visitors Bureau (NSBVB) is pleased to submit this letter of support for the Small Community Air Service Development Program (SCASDP) grant.

The mission of the NSBVB is to contribute to and enhance the overall economic prosperity of the New Smyrna Beach area and all of Volusia County through the destination marketing of the area. The NSBVB has a longstanding partnership with DBIA and our teams often work together to promote the Daytona Beach International Airport and visitation to the surrounding areas. NSBVB is committed to providing marketing support in the amount of $10,000 to advertise the attractions in Southeast Volusia area that can be accessed by new air service, which is reflected in this budget.

The global pandemic has had an incredible impact on area tourism. Prior to the pandemic, our area leaked a significant number of passengers to regional airports more than an hour away. New air service would decrease this leakage factor and provide more options for visitors to come to the New Smyrna Beach area as well as Daytona Beach and the beautiful surrounding areas of Volusia County.

The New Smyrna Beach area Visitors Bureau supports Daytona Beach International Airport’s application for the SCASDP grant. We are proud of our local airport and always promote the convenience and positive customer experience it provides our visitors and residents alike.

Debbie Meihls, CDME President & CEO NSBVB