May 2, 2016 Brooke Chapman Associate Director
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May 2, 2016 Brooke Chapman Associate Director Small Community Air Service Development Program Office of Aviation Analysis 1200 New Jersey Avenue, SE Washington, DC 20590 RE: KSLN SCASDP Grant Proposal Dear Ms. Chapman: The following information is submitted in support of a SCASDP grant application for assistance with marketing aimed at building awareness of our new EAS service for the Salina, Saline County and the 25-county North Central KS region. In January 2016, Salina Regional Airport’s air carrier ceased operations at Salina due to a system-wide pilot shortage and an organizational restructuring. We received notice February 10, 2016, that Great Lakes would be providing air service to Salina replacing Seaport with upgraded air service. Great Lakes will be operating 30 seat Brasilia EMB-120 twin turbo prop non-stop to the Denver International Airport. Grant funding would go towards marketing of the new and improved air service to raise awareness of our new air carrier and route. Needs and Deficiencies – Aircraft Size and Hub Airport Over the years, Salina EAS service has been severely limited due to inadequate aircraft size and designated hub. Since 1980, the largest aircraft serving Salina was a 30 seat turboprop operated by Air Midwest. During that short time period passenger enplanements ranged from 9,000 to 10,200 per year for KSLN to KMCI flights. (Source: Salina Airport Authority records) From 1998 to 2000 Salina benefited from EAS service from Salina to the Denver hub. Passenger enplanements ranged from 10,000 to 13,600 per year. The Denver route was operated by Mesa Airlines followed by Great Lakes Airlines with 19-seat turboprop aircraft. Based upon the community’s EAS history, it is our judgment that Salina is best served by service to the Denver hub with connecting flights to high priority destinations for passengers. With Great Lakes coming to Salina with larger aircraft and code-sharing with United we believe that greater awareness of this improved service is needed. Page 2 Ms. Brooke Chapman May 2, 2016 Needs and Deficiencies – Local Area Awareness and Promotion The Salina community and Great Lakes have identified a lack of awareness of the new EAS service as a deficiency. The need is to market and promote Great Lakes’ EAS service over a two year period. The airline, Salina Airport Authority, City of Salina and Saline County have committed funds to build awareness of the new EAS service at the Salina Regional Airport. The 25 county service area marketing program would be greatly enhanced with the assistance of a $275,000 DOT SCASDP grant as our financial resources are a limiting factor in what we can do to market and promote in the greater 25-county region. Driving Distance from Salina • Denver, Co Large hub airport 426 miles • Kansas City, MO Medium hub airport 185 miles • Wichita, KS Small hub airport 95 miles • Manhattan, KS Airport with jet service 60 miles Strategic Plan for Marketing and Promotion Transmitted with this application is a summary of the proposed cooperative, 2016-2018 Salina area marketing plan. The plan lays out how we will raise awareness of the our new direct flights to Denver International and Great Lakes code-sharing with United so our passengers can purchase one ticket in Salina and connect to numerous locations across the globe. The Salina Airport Authority, City of Salina, Saline County, Saline County Economic Development Organization and the Fly Salina Air Service Work Group will work with Great Lakes Airlines to administer a two year program to build awareness of EAS service provided on behalf of the residents of Salina and the North Central Kansas 271,000 person trade region. The marketing and promotion program will consist of the following: • Effectively communicate new EAS service to the region’s estimated 175,000 annual ticketed passengers per previous Sixel Consulting Group, Inc. KSLN Leakage/Retention Report. Page 3 Ms. Brooke Chapman May 2, 2016 • Utilize a combination of direct mail, print, radio, TV, social media, events, and special promotions to communicate the “Fly Salina” message. • Sustain the initial two year marketing and promotion campaign with follow on public and private funding after the completion of the SCASDP grant. Service to Denver – Airports Considered to be Part of the Market The only airport that is considered to be a part of the Denver market is Wichita. A majority (59%) of the Salina Area market leakage is to Wichita followed by Kansas City (38%). Per previous SH&E and Sixel Consulting Group, Inc. Leakage/Retention Report) Benefits of Salina to Denver Service Salina area travelers would benefit from flights to Denver in order to connect with 180 U.S. cities on non-stop flights out of Denver. The top destinations for Salina area travelers are: • Washington, DC • Salt Lake City, UT • Chicago, IL • Atlanta, GA • Orlando, FL • Minneapolis, MN • Phoenix, AZ • Dallas/Ft. Worth, TX • New York, NY • Houston, TX • Las Vegas, NV • Philadelphia, PA • Los Angeles, CA • Miami, FL • Seattle, WA Access to the Denver hub will best serve the air travel needs of the Salina area residents and businesses. Project Funding A total of $387,500 has been identified for an effective two year marketing and awareness program. The program will reach 271,000 area residents (175,000 annual ticket passengers) throughout the Salina trade area. The program budget is as follows: Expense Category Year 1 Year 2 2 year Total Media consultants $20,000 $20,000 $40,000 Direct Mail $5,000 $5,000 $10,000 Print $30,000 $15,000 $45,000 Radio $35,000 $20,000 $55,000 T.V. $75,000 $25,000 $100,000 Social Media $35,000 $25,000 $60,000 Promotions $30,000 $12,500 $42,500 Page 4 Ms. Brooke Chapman May 2, 2016 Events $20,000 $15,000 $35,000 $250,000 $137,500 $387,500 The marketing project will commence immediately following grant award and completed within 2 years from grant award. Previous SCASDP Project Salina has not previously received SCASDP grant funds. The most recent application from Salina was in May 2015. Designated Sponsor for Grant Administration The Salina Airport Authority will be responsible for program administration. Project Outcomes SCASDP grant funding will provide the Salina community the means to adequately communicate the availability, improve awareness and thereby increase the utilization of air service at the Salina Regional Airport. With a robust marketing program aimed at our 25-county catchment area, we are confident an estimated 18,000 passengers per year would board Salina to Denver air service. Additional information can be submitted on request. Thank you for consideration of the Salina SCASDP grant application. Sincerely, SALINA AIRPORT AUTHORITY Timothy F. Rogers, A.A.E. Executive Director .