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Application Under the Small Community Air Service Development Program Docket DOT-OST-2020-0231

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Application Under the Small Community Air Service Development Program Docket DOT-OST-2020-0231 Application under the Small Community Air Service Development Program Docket DOT-OST-2020-0231 By the Toledo-Lucas County Port Authority For the Eugene F Kranz Toledo Express Airport Congressional Districts: OH-09 Dun & Bradstreet Number: 51625127 Table of Contents Application under the Small Community Air Service Development Program ............................................................. 1 Executive Summary ................................................................................................................................................................ 3 Our Proposal ............................................................................................................................................................................ 3 About Toledo ........................................................................................................................................................................... 4 Air Service Overview ............................................................................................................................................................ 5 Catchment Area ............................................................................................................................................... 5 Existing Air Service ......................................................................................................................................... 6 Alternative Airports/ Leakage Study ............................................................................................................... 6 Air Fares at Toledo Express Airport ................................................................................................................. 9 Historical Air Service ..................................................................................................................................... 10 Capacity Reductions Due to Coronavirus ...................................................................................................... 12 Air Service Development Efforts .................................................................................................................... 13 AIR SERVICE NEEDS AND DEFICIENCIES .......................................................................................................................... 14 Comparable Communities ............................................................................................................................. 14 Why DFW would be a successful route for TOL ............................................................................................. 14 STRATEGIC PLAN .................................................................................................................................................................. 18 Proposed New Route..................................................................................................................................... 18 Target Airline Support ................................................................................................................................... 18 PROJECT IMPLEMENTATION, MONITORING, AND FUNDING ................................................................................... 18 Public / Private Partnerships ......................................................................................................................... 18 Project Funding ............................................................................................................................................. 19 Implementation Timeline ............................................................................................................................... 20 Legal Sponsor ................................................................................................................................................ 20 Success Metrics/Goals ................................................................................................................................... 20 Financial Controls ......................................................................................................................................... 20 Use of Local and Department Funds .............................................................................................................. 20 The Right Choice .................................................................................................................................................................... 21 Appendix: Airline Letter of Support ................................................................................................................................. 22 Appendix: Letters of Support ............................................................................................................................................. 23 Appendix: Standard Form 424 .......................................................................................................................................... 48 Appendix: Summary Information Sheet ............................................................................................................................ 51 2 Executive Summary Toledo Express Airport (TOL) is the primary commercial service airport for the Toledo, OH MSA and surrounding areas. It is served by American Airlines to two major hubs: Chicago O’Hare (ORD) and Charlotte (CLT) and by Allegiant Air to three Florida leisure markets: Orlando (SFB), Punta Gorda (PGD), and St Petersburg (PIE). Industry consolidation over the last 10-15 years has negatively impacted TOL causing leakage to other airports in the region with more service. Ten years ago, there were six flights a day out of TOL and today there are only one to five flights per day depending on the day of week. TOL is the largest MSA in the country served by only one legacy carrier with service to two hubs. Our proposal is to recruit American Airlines to add service to a third hub, Dallas/Ft. Worth (DFW). This service will not only provide nonstop service to an important business market for Toledo businesses, but it will also connect to American’s global network from DFW providing greatly improved connections in both important business and leisure markets. American fully supports this application for daily service to DFW on regional jets. When American previously started service to CLT in 2017, it quickly became a strong performing market, and we are confident that the same strength will be produced with new service to DFW. Award of a SCASD grant will give local Toledo residents more air service options and reduce leakage to Detroit (DTW). With increased service and investment from American in the TOL market, other carriers will realize the market potential and be willing to enter (or renter) the market, providing the community with more options and increased competition that will in turn lower fares and lower the leakage to DTW. We believe that this application is a perfect fit for the SCASD program. TOL is a non-hub airport in a populated region that has suffered significant air service loss since industry consolidation. We have a willing partner in American Airlines to an important hub. Partnering with the SCASD program provides a viable platform for this exciting opportunity! Our Proposal The Toledo-Lucas County Port Authority is requesting a SCASD grant in the amount of $750,000 as part of a $1.6 million effort to increase retention of Northwest Ohio passengers at Toledo Express Airport (TOL) through new year-round, daily American Airlines service in the Toledo-Dallas/Ft. Worth market. The Department of Transportation’s role would be to support a $1 million minimum revenue guarantee (MRG) with a $750,000 grant. The remaining $250,000 would be financed by JobsOhio and The Toledo-Lucas County Port Authority. The MRG would be supported by $250,000 of cash marketing support and $319,766 of in-kind services from the airport and community. 3 About Toledo Toledo is a city of business, culture, and education, rich in diversity and community. Located in Northwest Ohio, Toledo is situated along Lake Erie and bisected by the Maumee River. More than 601,000 people call the Toledo metropolitan area home, giving the region all the attributes of a large cosmopolitan area, but still retaining the advantages of small-town atmosphere and charm. The Toledo MSA area includes Lucas, Fulton, Wood and Ottawa counties. Traditionally a manufacturing region, this area is reinventing itself as a leader in technology and research. Capitalizing on the expertise in manufacturing and an experienced and educated workforce, new technologies are emerging enabling the region to become a national leader in solar technology and manufacturing. Utilizing the natural resources available has also led to advancements in wind technology. Northwest Ohio is in a state of reinvention and refocus, which is leading to new economic development opportunities and advancement. With its rich diversity of people, the Toledo area boasts a nationally recognized zoo, a world-class art museum, a symphony orchestra, opera, ballet, and theater groups, as well as a wide variety of neighborhood and ethnic festivals. An abundance of outdoor recreation and sports, including the Metroparks system, is also available on the area’s lakes and rivers. With its close proximity to the Lake Erie Islands and Cedar Point, Toledo is a natural destination point for summer recreation. Toledo is also home to the Mud Hens Triple
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