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SGF 2020 SCASD Proposal with Boyd Comments Copy

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SGF 2020 SCASD Proposal with Boyd Comments Copy Springfield-Branson National Airport SGF Springfield, Missouri Small Community Air Service Development Program Proposal Docket DOT-OST-2020-0231 Dun & Bradstreet DUNS Number: 24-706756 Tax Identification Number: 44-6000268 Two-Digit Congressional Code: MO-7 Table of Contents LETTER OF INTRODUCTION ............................................................................................................. 2 AMERICAN AIRLINES LETTER OF SUPPORT ................................................................................. 3 SPRINGFIELD CONVENTION AND VISITORS BUREAU LETTER OF SUPPORT .......................... 4 MISSOURI DEPARTMENT OF TRANSPORTATION LETTER OF SUPPORT .................................. 5 CITY OF SPRINGFIELD LETTER OF SUPPORT ............................................................................... 6 AIR SERVICE OVERVIEW ................................................................................................................ 10 Catchment Area and Access to Alternate Airports ......................................................................... 10 Existing Air Service ........................................................................................................................ 14 Air Service Development Efforts .................................................................................................... 15 Marketing and Promotion of Air Service ......................................................................................... 15 AIR SERVICE DEVELOPMENT NEEDS AND DEFICIENCIES ........................................................ 16 Capacity Trend ............................................................................................................................... 16 Traffic and Fare Trends .................................................................................................................. 17 Domestic Fare and Yield Trends Relative to Other U.S. Airports .................................................. 18 Leakage to Other Airports in the Region ........................................................................................ 20 STRATEGIC PLAN ............................................................................................................................ 21 Proposed New RoUte ..................................................................................................................... 21 Self-Sufficiency of the Proposed New RoUte ................................................................................. 22 Goals and Objectives ..................................................................................................................... 22 Target Airline Support .................................................................................................................... 23 Springfield-Washington Reagan Traffic and Fare Trends .............................................................. 23 Connecting Traffic OpportUnities on American at Washington Reagan ......................................... 24 Grant Amendments/Alternate Strategies ....................................................................................... 25 PROJECT IMPLEMENTATION, MONITORING AND FUNDING ...................................................... 25 Public/Private Partnerships ............................................................................................................ 25 Project Funding .............................................................................................................................. 26 Implementation Timeline ................................................................................................................ 26 PROJECT MONITORING AND FINANCIAL CONTROL ................................................................... 27 Success Metrics ............................................................................................................................. 27 PrevioUs SCASDP Funding ........................................................................................................... 28 Legal Sponsor ................................................................................................................................ 28 Financial Controls .......................................................................................................................... 28 APPENDIX A: REQUIRED SUMMARY INFORMATION .................................................................. 29 APPENDIX B: LETTERS OF SUPPORT .......................................................................................... 34 PROPOSAL OF SPRINGFIELD-BRANSON NATIONAL AIRPORT DOCKET DOT-OST-2020-0231 PAGE 1 LETTER OF INTRODUCTION January 26, 2020 Brooke Chapman Associate Director Small Community Air Service Development Program U.S. Department of Transportation 1200 New Jersey Avenue, SE Washington, DC 20590 Dear Ms. Chapman, Springfield-Branson National Airport serves the residents and visitors to Springfield, Missouri metropolitan area and the region surrounding Springfield. The Airport is submitting the attached proposal for a Small Community Air Service Development Grant in the amount of $750,000 for nonstop service to Washington Reagan National Airport on American Airlines. Our case for SCASD funding meets the Department’s key selection criteria, including high air fares, locally-sourced supplemental funding, a public-private partnership, a benefit to a large segment of the traveling public, use of funding in a timely manner and support for the application from the targeted airline. An important component of our business case is our public-private partnership. The Springfield- Branson National Airport, the Springfield Convention and Visitors BureaU, the Springfield Area Chamber of Commerce, and the MissoUri Department of Transportation are partnering in this project and will provide funding totaling $150,000 to supplement SCASD funding for the proposed minimUm revenUe gUarantee. Springfield has a successful SCASDP track record, so the Department can award the funds we are requesting with a high degree of confidence the funds will be used for the requested project. The Airport and the community partnered with American in 2014 to provide a minimum revenue guarantee for Springfield-Charlotte service, service American continues to operate today with two daily flights. In addition to Charlotte, American serves its Dallas/Ft. Worth and Chicago hubs from Springfield; new service from Springfield to Washington would be a natural extension of American’s service in Springfield. We appreciate your consideration of our proposal. Sincerely, Brian C. Weiler, A.A.E. Director of Aviation Springfield-Branson National Airport PROPOSAL OF SPRINGFIELD-BRANSON NATIONAL AIRPORT DOCKET DOT-OST-2020-0231 PAGE 2 AMERICAN AIRLINES LETTER OF SUPPORT PROPOSAL OF SPRINGFIELD-BRANSON NATIONAL AIRPORT DOCKET DOT-OST-2020-0231 PAGE 3 SPRINGFIELD CONVENTION AND VISITORS BUREAU LETTER OF SUPPORT PROPOSAL OF SPRINGFIELD-BRANSON NATIONAL AIRPORT DOCKET DOT-OST-2020-0231 PAGE 4 MISSOURI DEPARTMENT OF TRANSPORTATION LETTER OF SUPPORT PROPOSAL OF SPRINGFIELD-BRANSON NATIONAL AIRPORT DOCKET DOT-OST-2020-0231 PAGE 5 CITY OF SPRINGFIELD LETTER OF SUPPORT PROPOSAL OF SPRINGFIELD-BRANSON NATIONAL AIRPORT DOCKET DOT-OST-2020-0231 PAGE 6 SPRINGFIELD AREA CHAMNBER OF COMMERCE LETTER OF SUPPORT PROPOSAL OF SPRINGFIELD-BRANSON NATIONAL AIRPORT DOCKET DOT-OST-2020-0231 PAGE 7 EXECUTIVE SUMMARY Springfield-Branson National Airport (the Airport) is seeking SCASDP grant funding in the amoUnt of $750,000 under the Small Community Air Service Development Program to fund a minimum revenUe gUarantee for service from Springfield to Washington Reagan National Airport on American Airlines. In addition to the amoUnt reqUested from the Department, the Springfield Convention and Visitors BureaU, Springfield Area Chamber of Commerce, City of Springfield, and the MissoUri Department of Transportation have pledged $150,000 in cash that can be applied to the minimUm revenUe gUarantee. The Airport will provide $25,000 in cash for marketing and promotion of the new service, and waive landing fees, estimated at $90,277 over two years, for the proposed service. The Springfield-Washington/Baltimore market is relatively large. Based on U.S. Department of Transportation data, the Springfield-Washington/Baltimore market size (to inclUde DCA, IAD and BWI) was 40.4 passengers per day each way (PDEW) at an average one-way fare of $230 prior to the COVID-19 pandemic in 2019. Based on a recently completed leakage stUdy using 2019 data, the true Washington/Baltimore market size was 104.1 PDEW at an average fare of $202, but 61.2% of the Washington/Baltimore traffic generated in Springfield’s catchment area leaked to other airports in the region. In addition to serving the local Springfield-Washington/Baltimore market, the proposed service would also enable on-line connections on American beyond Washington. The proposed Washington Reagan service will enable Springfield to recapture some of the traffic leaked to other airports, and put downward pressure on air fares. Springfield meets the Department’s primary and secondary selection criteria for SCASDP funding: • Air fares are higher than the national average air fares for all communities. In 2019, Springfield’s average domestic air fare was $198 and $155 in the first three qUarters in 2020; the average domestic air fare for all commUnities in the U.S. was $172 in 2019 and $144 in the first three quarters
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