2012 yng airport small community air service development grant application

7/31/2019 2012 YNG Airport Small Community Air Service Development Grant Application

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Table of Contents

Executive Summary ..............................................................................................................................................................

Previous Small Community Air Service Development Program Grants ...........................................................................

Youngstown Warren Air Service Market .............................................................................................................................

History of Commercial Air Service at YNG ................................................................................................................

Economic Development .............................................................................................................................................

Economic Stimulus ....................................................................................................................................................

Utica Shale Boom Preparation - Major Investments ..................................................................................................

Air Service Environment .............................................................................................................................................

Leakage Study ..........................................................................................................................................................1

Business Air Travel Survey .......................................................................................................................................1

Strategic Plan ........................................................................................................................................................................1

Strategic Goals .........................................................................................................................................................1

Public Awareness - Marketing - Promotional Campaigns .........................................................................................17

Public/Private Partnership ........................................................................................................................................1

Request for Funds .................................................................................................................................................................2

Federal Support ........................................................................................................................................................2

Community Support ..................................................................................................................................................2

Sponsoring Agency Responsibility ............................................................................................................................2

Summary ..............................................................................................................................................................................2

Appendix A Summary Information Schedule ......................................................................................................................

Youngstown-Warren Regional Airport Proposal Under theSmall Community Air Service Development Program - Docket DOT-OST-2012-0069


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Executive Summary

The Youngstown-Warren Regional Airport (YNG) respectfully submits on behalf of the Youngstown-Warren-Sharo

community a proposal to the U.S. Department of Transportation (USDOT) for a small community air service grant as part o

the USDOTs Small Community Air Service Development Program (SCASDP). YNG requests a $780,000 SCASDP gran

award to reestablish regularly scheduled commercial air service at YNG to a hub of a major U.S. airline in the East, Midwes

or Southeast U.S.. This grant, in combination with an additional $420,000 in local cash contributions, will be used to develo

an airline revenue guarantee program to support the rst 12 months of such air service by mitigating the initial business ris

that a carrier will face in entering a new market.

The Youngstown-Warren Regional Airport represents a critical component of the comprehensive regional transportation pla

for the Youngstown-Warren-Sharon metropolitan area (Columbiana, Mahoning, and Trumbull Counties in Ohio and Lawrenc

and Mercer Counties in Pennsylvania). Also, the return of regularly scheduled commercial air service at YNG has bee

identied collectively by government and community, as one of the primary economic development issues that the regio

must overcome to achieve its vision of providing a competitive economic base that will provide good paying jobs to ensure

high personal standard of living, and punctuates the commitment on the part of government and community to assist in th

development of such air service. In addition, reestablishment of regularly scheduled commercial air service at YNG w

stabilize as well as add value to YNGs growing leisure market air service, which with the assistance of a former SCASDP

grant, allowed YNG to secure its rst and much needed scheduled air services for the community since 2002. Continue

development of air-travel markets is essential to the stability and growth ofYNGs position in the region and the posturing wit

similar U.S. air-travel markets overall. Most importantly, the demand for air service at YNG by gas and oil production energ

companies and the thousands of transient workers who will enter the region due to the Utica Shale play is the most critica

component of the regions economic growth. Gas and oil production energy companies, such as BP America, Chesapeak

Energy, and Carrizo Oil, are in the infantile stages of their operations in Northeastern Ohio and have already inquired as to

YNG can connect these companies to their headquarters in Houston, Oklahoma City, Dallas, etc..

Equally important to the airline revenue guarantee program will be the promotion of new air service at YNG by focusing o

developing awareness within the local community that YNG is again open for business. Considering that YNG has lacke

consistent regularly scheduled commercial air service since 2002, air-travelers within the community have changed the

behavior during the past 10 years by relying on three other Ohio/Pennsylvania airports (Cleveland, Akron-Canton, and Pitts

burgh) that are located within a 2-hour drive. The underlying goal of promoting new air service at YNG will be to chang

air-traveler behavior, by increasing awareness of the air service and highlighting its effectiveness, reliability, and stayin

power. YNG outlined in its proposal its strategic plan as well as dene the public/private partnership that has been forme

to carry out and support this plan. This partnership of committed local organizations supporting YNG has pledged $480,00

in cash contributions and soft dollar contributions (e.g., television, radio, internet and billboard advertising; airport termina

rent abatements; etc.) to assist in sustaining such air service in its rst 3 years. The strategic plan and community suppo

demonstrate a clear, achievable approach to attract effective regularly scheduled commercial air service at YNG, should YN

receive this grant.

The SCASDP is a great opportunity for a community like the Youngstown-Warren-Sharon area. The Youngstown-Warre

Regional Airport looks forward to being seriously considered for an award by the USDOT so that air service developmen

efforts in our region can move forward more rapidly.


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Previous Small Community Air Service Development Program Grants

The Youngstown-Warren Regional Airport (YNG) has been awarded two Small Community Air Service Development ProgramGrants.

2005 SCASDP Grant Award

In 2005, YNG was awarded a $250,000 SCASDP grant to develop and sustain an 18-month marketing program supportin

Allegiant Airs initial leisure commercial air service atYNG to Orlando-Sanford International Airport that began in 2006. YN

was fortunate to receive this award as it, augmented with $170,000 in local contributions, contributed signicantly to th

success of Allegiant Air sustaining and expanding its air service at YNG. This past May, Allegiant Air and YNG celebrate

the six-year anniversary of that rst ight and Allegiant Air providing leisure commercial air service to the community. Als

since that rst ight, Allegiant Air launched additional service to Myrtle Beach International Airport in April 2010 and to S

PetersburgClearwater International Airport in November 2010. According to recent data, YNG is one of the top ve airport

in the entire Allegiant Air system in terms of load factors and yields, despite competitive pricing from competing leisure airline

operating at nearby CAK, CLE, and PIT Airports. In 2011, YNG was the top airport in the entire Allegiant Air system in term

of yields to Myrtle Beach resulting in Allegiant Air increasing its frequency to four ights per week to Myrtle Beach for th

summer of 2012 due to the popularity of the service. With service to Punta Gorda Airport and to Stewart International Airpoon the horizon, the 2005 SCASDP grant award demonstrates how a successful award can lay the foundation for developin

air service programs.

2007 SCASDP Grant Award

In 2007, YNG was awarded a $575,000 SCASDP grant to secure daily airline service on regional jets to a connecting hu

within the region. The award was intended to act as an Airline Revenue Guarantee to help mitigate the initial business ris

of a network carrier in its initial two years of service at YNG. However, the signicant decline in the National economy an

signicant increased fuel costs at the time of the award made network carriers hesitant to initiate new air service at YNG an

other communities with similar economies, demographics, and need for air service. In addition, at the time of the award

50-seat to 90-seat regional jet aircraft was the appropriate aircraft for the market availability to YNG. Therefore, due t

these economic conditions, regional jet aircraft became less efcient and less attractive to network carriers for short-haul aservice and network carriers quickly moved to providing the same air service with commuter prop jet aircraft. It was extreme

difcult in the rst 3 years of the award to seek interested network carriers. However, in the nal year of the award, expresse

interest by United Airlines, Delta Air Lines, and US Airways to provide the type of air service sought by the community increase

signicantly.

At the time of the expiration of the award, the Community was in promising negotiations with United Airlines through the

codeshare partner Silver Airways in providing daily connecting service from YNG to Washington DC (IAD) at 2-3 roun

trip ights per day, including over-nighting of an aircraft for early morning departure times. United Airlines and Silve

Airways are currently discussing the addition of gates at IAD to add additional new service from IAD, to include YNG

Additionally, due to the Utica Shale boom in the region, oil and gas companies are requesting daily service at YNG. Delta A

Lines has voiced an interest in providing daily connecting service between YNG and Detroit Metro (DTW) as early as 201

to meet the air travel needs of the oil and gas companies. The goals of the 2007 SCASDP grant differ from the goals withthis proposal in that the 2007 SCASDP grant required that air service, supported by the airline revenue guarantee program

established by the 2007 SCASDP grant, was to be provided specically in 50 - 90 seat regional jet aircraft and this proposa

species that such air service is to be provided by aircraft of the appropriate size for the market being served.


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History of Commercial Air Service at YNG

Exhibit 3.1 - Youngstown-Warren Regional Airport Total Passenger 1998-2011

Exhibit 3.1 provides the number of annual commercial air service passengers at the Youngstown-Warren Regional Airpo(YNG) from 1998, when daily scheduled air service was prevalent, through 2011 with only Allegiant Air operating at YNGDespite double-digit percentage losses in commercial passenger trafc from 1998 through 2004, the success of leisurcommercial air service at YNG is reected from 2006 through 2011.

Exhibit 3.2 - Air Service History at the Youngstown-Warren Regional Airport

Year Airline Service1998 UA (3x daily) - ORD, NW (4x daily) - DTW, US (5x daily) - PIT

2000 NW (2x daily) - DTW via CAK, US (5x daily) - PIT

2001 NW (2x daily) - DTW via CAK

2002-2003 No Scheduled Commercial Air Service (casino resort junket ights only)

2004 Vacation Express (4x weekly) - SFB, (2x weekly) - MYR

2005 Vacation Express leaves

2006 Allegiant Air (2x weekly) - SFB

2010 Allegiant Air (2x weekly) - SFB, (2x weekly) - MYR

2011 Allegiant Air (2x weekly) - SFB, (2x weekly) - MYR, (2x weekly) - PIE

Exhibit 3.2 provides the schedule of regularly scheduled commercial air service at the Youngstown-Warren Regional AirporIn 1998, YNG had three legacy airlines operating 12-daily ights from YNG. That number decreased to two airlines operatin7-daily ights in 2000 and one airline operating 2-daily ights in 2001. United Airlines, US Airways, and Northwest Airlineceased service at YNG due to the EAS 70-Mile rule which eliminated YNG from EAS funding eligibility due to its proximitto the former US Airways hub at Pittsburgh International Airport and the impact of 9/11 . Allegiant Airs low frequency leisurair service has operated successfully for six years and the frequency of its Myrtle Beach route is increasing to 4-times weekin the summer of 2012 and additional service to new destinations such as Punta Gorda and Stewart International Airports othe horizon.


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Economic Development

The economic engine of the Youngstown-Warren-Sharon metropolitan area has been revving in recent years punctuating th

need for the return of regularly scheduled commercial air service at the Youngstown-Warren Regional Airport.

This spring, George Zeller, a Cleveland based economic research analyst, said the Youngstown-Warren-Sharon area is thfastest growing economy in the entire state of Ohio. According to April 2012 unemployment rates for Mahoning, Trumbu

and Columbiana Counties, unemployment decreased from 9.7% in April 2011 to 7.9 % in April 2012, lower than the nationa

unemployment rate. The above average decline in unemployment can be attributed to the diversication of the Youngstown

Warren-Sharon economy. A combination of high tech, logistics, health care, energy, and entertainment companies ar

growing throughout the region.

High-Tech Development

Youngstowns high-tech Business Incubator continues to promote local growth of the high-tech industry with annual revenu

of $152 million from its current company portfolio. The Youngstown Business Incubator, based in Downtown Youngstown,

home to eight start-up technology companies focused on medical, communication, and imaging design software with world

wide markets.

Logistics

Two major Interstates, I-76 and I-80, SR-11, the only major Lake-to-River State Highway, and Norfolk Southern and CS

Railroads all intersect in the heart of the Youngstown-Warren-Sharon area. The geographic proximity of our community to

these major transportation arteries has attracted investments in new warehousing and transport logistics companies in th

region.

Health Care

On May 21, 2012, Humility of Mary Health Partners (HMHP) announced that $203.3 million in expansion will be invested a

their three major hospitals across the Youngstown-Warren-Sharon area including the construction of a second seven-stor

tower at their ve-year old St. Elizabeth Health Center in Boardman.

Energy Development

The Youngstown-Warren-Sharon area sits on top of the Utica and Marcellus Shale Oil and Natural Gas Fields which ha

attracted energy companies such as Chesapeake, Consol, Chevron, British Petroleum, Shell, and EnerVest. Information o

the Utica Shale play continues in the next section.

Entertainment

Penn National Gaming Inc. is beginning construction of a $250 million racetrack and casino in Mahoning County.


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Economic Development (Continued)

Also, the Youngstown-Warren-Sharon area has been recognized recently by the following:

= Brookings Institutions Metropolitan Policy Forum released a 2012 survey showing that the Youngstown - W a r ren

Sharon Metropolitan area ranked third among the 100 largest U.S. metro areas for percentage increase in manufacturing jobfrom 2010 to 2011 and that the area was one of only six metro areas in the U.S. with manufacturing growth of more than 1percent.

= Forbes Magazine, in April 2012, listed the Youngstown-Warren-Sharon area as the fourth best metro area in the U.Sto nd employment and the fourth best metro area in the U.S. to raise a family.

= National Association of Home Builders, in its 2012 index, ranked the Youngstown-Warren-Sharon area as the mosaffordable major metro area in the nation to buy a home.

In addition, the Youngstown/Warren Regional Chamber recently hosted the rst Youngstown Ohio Utica & Natural GaConference and Trade Show attracting a sold-out audience of 1,750 from across the U.S.. In February 2012, TV crews fromJapan, Sweden, Denmark, and France were in the Youngstown-Warren-Sharon area documenting the economic growtbeing experienced here. All of this activity (and this is only the start of the rebirth of the region) again punctuates the need fo

the return of regularly scheduled commercial air service at the Youngstown-Warren Regional Airport.

Economic Stimulus

According to 2011 consumer expenditure statistics for the Youngstown-Warren-Sharon Metropolitan area, householdspent $114 million on airline fares. The return of regularly scheduled commercial air service at YNG would allow the locaeconomy to retain a portion of that multi-million dollar gure, in addition to approximately $1.8 million more in hotel, restauranshopping, and miscellaneous revenue from visitors and business travelers visiting the Youngstown-Warren-Sharon area.

As an example, a currently proposed YNG-IAD connection will deplane approximately 17,250 passengers, of which 3,45(20%) will be visitors to the region. These visitors will spend approximately 10,350 visitor days in our community. Thestimation for average visitor expenditures during their stay in the region is calculated below. (Note: This estimation onincludes travel related expenditures)

Exhibit 5.1 - Visitor Expenditures for New YNG Daily Service

Estimated Visitors 3,450

Estimated Visitor Days in Mahoning Valley 10,350

Average Hotel Expenditure $103

Average Other Daily Expenditures $70

New Visitor Expenditures $1,790,550

The reestablishment of regularly scheduled commercial air service at YNG is expected to create 6-8 jobs in thcustomer service and ground handling areas. Additional jobs for ancillary services such as car rental, restaurant, an

security operations atYNG

may also be created. In addition, according to an Ohio Airports economic impact report, for each $million spent by air carrier visitors in Ohio, approximately 17 full-time positions are created in the local economy. By using thfactor of 17, this service will support the creation of 30 new jobs with a payroll of $975,000.

Furthermore, the induced effects of the visitor expenditures will lead to an additional $1.1 million in economic growth and 1additional full-time-positions with a payroll of $698,939. The combined economic stimulus created through the direct aninduced impact of the new service is $2,911,434 in economic growth and the creation of 49 full-time-positions with a payroof $1,672,998.


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Utica Shale Boom Preparation - Major Investments

Exhibit 6.1 - Ohio Utica Shale Map - Ohio Department of Natural Resources

In April 2012, th

Ohio Department oNatural Resources releasethe map found in Exhib6.1 which shows the prospects of oil and gas yieldthroughout Northeast anEastern Ohio. The maindicates that oil and gayields across Mahoninand Trumbull County aranticipated be Very Goodto Excellent in returns.

This nding, coupled witthe shallow depth of the Utca Shale in the YoungstownWarren - Sharon areaputs the region at thepicenter of thUtica Shale gas and oenergy production iNortheast Ohio.

Drilling activities across Ohio in the areas shaded in yellow-to-red are expected to take-off signicantly through 2014According to the Ohio Shale Coalition, as of May 2012, 65 wells have been drilled in Ohio. By the end of 2013, the numbeof wells drilled across Northeastern and Eastern Ohio is expected to reach 850. That number will increase into the severathousands by the end of 2014 according to the Coalition.

Exhibit 6.2 - Economic Impact of Utica Shale Development in Ohio

2012 2013 2014

Value Added $878,982,133 $2,980,378,198 $4,857,632,095

Employment 12,150 40,606 65,680

Labor Income $571,543,463 $1,994,216,405 $3,298,757,195

Output $1,667,574,417 $5,823,268,396 $9,642,544,988

Total State/Local Taxes $73,422,148 $271,539,607 $433,528,922

As shown in Exhibit 6.2, billions of dollars of economic output is expected to enter the Eastern and Northeastern Oheconomies through 2014 once drilling is accelerated. A large percentage of this economic output will be centered on thyellow-to-red areas on the map in Exhibit 6.1, which includes Mahoning and Trumbull Counties, and the Youngstown-WarreRegional Airport. Therefore, the return of scheduled commercial air service at the Youngstown-Warren Regional Airpobecomes even more essential to the community as it will be urgently needed in the near future to meet the air servicdemands of the energy companies and the thousands of transient workers who will enter the region.


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Utica Shale Boom Preparation - Major Investments (Continued)

CNN Money, in a video piece on oil and shale development in January 2012, saidAmericas next boom town is....... Youngstown.

Exhibit 7.1 - Utica Shale Pre-Drilling Youngstown-Warren-Sharon Area Investments

Business Investment County

Chesapeake Energy (Construction of Natural Gas Processing Facility) $900 million Columbiana

Vallourec & Mannesmannn (Construction of Pipe Manufacturing Plant) $650 million Mahoning

British Petroleum (Oil & Gas Leases Signing Bonuses Trumbull County) $330 million Trumbull

British Petroleum (Oil & Gas Leases Signing Bonuses Mahoning/Columbiana County) $205 million Mahoning/Columbiana

VAM USA (Expansion of Existing Pipe Manufacturing Plant) $57 million Mahoning

Exterran (Construction of Natural Gas Processing Facility) $13 million Mahoning

Wheatland Tube (Expansion of Existing Pipe Manufacturing Plant) $11.4 million Trumbull

TMK-IPSCO (Oil & Gas Well Drilling Products and Services) $10 million TrumbullWeatherford International (Oil & Gas Well Drilling Products and Services) $3.4 million Mahoning

Dearing Pump (Expansion of Existing Gas & Oil Drilling Pump and Compressor Plant) $3 million Mahoning

Ohio Department of Development (Railroad Enhancements) $2 million Trumbull

DeCal (Expansion of Existing Gas & Oil Drilling Mechanical Fabrication Plant) $1.3 million Mahoning

Total Investment $2.186 billion

The Northeast Ohio / Northwest Pennsylvania region is on track to become a hotbed of innovation, one that which will almoscertainly focus on 21st century manufacturing. The catalyst for this is the oil and gas energy production based on the fathat Youngstown-Warren-Sharon region sits above the massive geophysical Marcellus and Utica Shale structure formationlocated thousands of feet below the surface. These shale layers are richly endowed with billions of barrels of liquid angaseous hydrocarbons and hydro-fracking allows possible practical access to the resources. To date, $2.186 billion in predrilling investments have been publicly announced in the Youngstown-Warren-Sharon area for new manufacturing facilitiespipelines, lease signing bonuses, railroads, etc. directly related to oil and gas energy production. Many additional multi-milliodollar projects have been publicly discussed and are anticipated in the near future.

The oil and gas energy production in Northeast Ohio will attract many visitors to the Youngstown-Warren-Sharon area tsupport such operations. According to a 2011 study prepared for the Ohio Governors Ofce, 204,500 new jobs aranticipated to be created in Eastern and Northeastern Ohio by 2015 to support Utica Shale oil and gas energy production. is expected that the Youngstown-Warren-Sharon area will be a regional supply chain center for oil and gas energy producRecently, to meet the anticipated demand of visitors to the area, 4 national hotel chains announced the construction of newhotels in the region.

The Lycoming County Airport in Williamsport, Pennsylvania is an Essential Airline Service funded non-hub commerciaservice / general aviation airport with three daily commercial passenger ights to Philadelphia using 34-seat turbopro

aircraft and is very similar in size and use as the Youngstown-Warren Regional Airport. In 2008, Marcellus Shale oil angas energy production began and now the Airport is known for its support of such operations in its region. The Airport haexperienced a dramatic increase in air service with about one-third of its commercial air service being used for Marcellus Shalrelated operations. The Airport is now in the midst of acquiring additional scheduled commercial air service to provide energcompanies better services to the cities they want to travel to and from. The activities at the Lycoming County Airport provide strong indication of what the Youngstown-Warren Regional Airport can expect as energy companies continue leasing land ansoon begin drilling into the Utica Shale formation.


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Air Service Environment

The Youngstown-Warren Regional Airport is located in Trumbull County in Northeastern Ohio approximately 68 milenortheast of Akron-Canton Airport, 70 miles southeast of Cleveland Hopkins International Airport, and 67 miles northwest oPittsburgh International Airport.

YNGs primary catchment area contains at least a portion of six counties in Ohio and four counties in Pennsylvania and haa population of 682,767. Additionally, road networks overlaid with socio-economic data further redenes and reasonabextends the primary catchment area, thus incorporating an additional population of 509,426, providing an aggregatmarketing area with a population of approximately 1.2 million. Coupling these numbers with the recent trend of high-incompopulation from Cleveland and Pittsburgh moving into closer proximity ofYNG, provides additional opportunity for a networcarriers success at YNG.

Within a 90 mile radius of the Youngstown-Warren Regional Airport, there are over 7.5 million people.

Exhibit 8.1 - Catchment Area

Site Demographics

The following contains additional demographics for the Youngstown/Warren/Sharon, PA Metropolitan Statistical Areautilizing data from the 2010 U.S. Census.

= Female Population (x 51.7%) 344,212= Male Population (x 48.3%) 321,575= Population Density 323 per square mile= Population Median Age 42.1 years old= Total Employees 386,505= Total Establishments 21,358


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Air Service Environment (Continued)

Exhibit 9.1 displays the existing air service options from the Youngstown-Warren Regional Airport. The followinsummarizes the schedule and frequency of the air service options:

= Allegiant Air provides twice-a-week year-round service to the Orlando-Sanford International Airport onMD-83 aircraft.= Allegiant Air provides twice-a-week year-round service to the St. Petersburg-Clearwater International Airport onMD-83 aircraft.= Allegiant Air provides twice-a-week service to the Myrtle Beach International Airport on a seasonal basis fromMay through September on MD-83 aircraft. The service is expanded to four ights per week in June and July of2012.= Total Rewards Air, through Caesars Entertainment, provides twice-a month charter service on Boeing 737aircraft to the Atlantic City International Airport.= Additional charter airline service is offered on a monthly basis to the Tunica Airport and the Gulfport/BiloxiInternational Airport.

Exhibit 9.1 - Existing Air Service


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Leakage Study

According to year ending 3Q 2011 MIDT Passenger Booking Data, the Youngstown-Warren Regional Airport retained jus

22% of the total Youngstown/Warren/Sharon O&D Market with leakage of 209,576 passengers. The entire passenge

retention is from low frequency leisure commercial air service aboard Allegiant Air. In addition, according to year ending 1Q

2011 MIDT Passenger Booking Data, approximately 63% of the leakage is to business travel destinations.

Exhibit 10.1 - O&D Passenger Leakage

As reected in Exhibit 10.2, YNGs leakage is being served primarily by Pittsburgh International Airport, Cleveland Hopkin

International Airport, Detroit Metro Airport, and Akron-Canton Airport.

Exhibit 10.2 - O&D Passenger Leakage by Airport

Airport Passengers % of Passenger Leakage

Pittsburgh International Airport 103,013 49%

Cleveland Hopkins International Airport 69,369 33%

Detroit Metro Airport 21,914 11%

Akron-Canton Airport 14,477 7%

Other Airports 804 0%

Because approximately 63% ofYNGs leakage is to business travel destinations, such leakage is serviced primarily b

regularly scheduled commercial air service on network carriers such as United Airlines, Southwest Airlines, Delta Air Lines

and US Airways. Therefore, it is reasonable to believe that YNG can retain a signicant percentage of its leakage witregularly scheduled commercial air service to the hubs of network carriers such as Washington Dulles and Chicago

OHare.


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Leakage Study (Continued)

Exhibit 11.1 - Catchment Leakage Served by United Airlines at Washington Dulles and Chicago OHare

Business Air Travel Survey

Analysis 2 - Business Air-Travel Demand

The Western Reserve Port Authority conducted an air-travel business survey (YNG 2012 Business Air-Travel Survey) t

update the air-travel tendencies of businesses in the Youngstown-Warren-Sharon metropolitan area. The Youngstown

Warren Regional Chamber made available a listing of its members, representing 2,379 businesses and approximately 84,98

employees, within the Youngstown-Warren-Sharon area. This listing provided the population for the survey. Surveys wer

distributed to 750 businesses of random size and industry, representing a sample of 32% of the population. 308 surveys wer

responded to of the 750 surveys distributed, representing a 41% response rate of the sample.

Certain issues and their corresponding responses were excerpted from the survey results for the purposes of this analysis

Included in the survey were requests for opinions on the below-mentioned points of focus based on the following assumption

Assuming YNG offered daily commercial air service that offered the following:

= 2 3 daily ights connecting to one or more airport hubs

= Flown by regional aircraft (34 -70 seat aircraft)

= Offered connecting ights to all major domestic and international destinations

= Priced competitively at prices similar to surrounding airports

Air-Travel Ticket Purchases

The survey asked participants to respond to what is the approximate number of roundtrip airline tickets purchased by youcompany in 2011. The total of all responses was 8,532. The survey asked participants to respond to what is the estimate

number of roundtrip airline tickets your company will purchase annually if able to y from YNG. The total of all responses wa

5,829. Therefore, area businesses responding estimate that approximately 68% of their companys roundtrip airline ticke

would be purchased to y from YNG. Furthermore, by extrapolating the estimated number of roundtrip airline tickets tha

area businesses responding will purchase annually if able to y from YNG to the total population sampled for the survey, it

estimated that the total population sampled will purchase 45,011 roundtrip airline tickets annually to y from YNG.


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Business Air Travel Survey (Continued)

308 Businesses Responding to Survey Question

2,379 Total Population Sampled

.1295 Response Factor

5,829 Respondents Estimate ofYNGAnnual Roundtrip Ticket Purchases


45,011 Estimate of Total Population Sampled YNG Annual Roundtrip Ticket Purchases

Please note that for the purposes of this survey that the total population sampled only represents Youngstown-Warren

Sharon area businesses that are members of the Youngstown/Warren Regional Chamber and does not consider a

businesses and organizations in the Youngstown-Warren-Sharon area. Therefore, these estimates are very conservative sinc

the total population sampled represents only 2,379 businesses and approximately 84,987 employees within the Youngstown

Warren-Sharon area, which is approximately 22% of the businesses (labor force) within the Youngstown-Warren-Sharon are

(2010 U.S. Census Bureau Demographic Prole Reports). If it is estimated that the total population sampled will purchas

47,901 roundtrip tickets annually to y from YNG then it may be factored that the aggregate of businesses (labor force) withi

the Youngstown-Warren-Sharon area will purchase 195,700 roundtrip tickets annually to y from YNG.

45,011 Estimate of Total Population Sampled YNG Annual Roundtrip Ticket Purchases

.23 23% Sample vs. Aggregate Factor

195,700 Estimate of Aggregate Businesses YNGAnnual Roundtrip Ticket Purchases

Air-Travel Expenditures

The survey asked participants to respond to what is the approximate annual budget for air-travel expenditures your compan

will spend annually to y from YNG. 253 (82%) of the respondents provided amounts to this issue. The total estimate

minimum air-travel dollars of all responses was $1,572,620 and the total maximum air-travel dollars of all responses wa

$1,878,540. Furthermore, by extrapolating the estimated minimum and maximum amounts of air-travel dollars that are

businesses responding will spend annually if able to y from YNG to the total population sampled for the survey, it reasonable to estimate that the total population sampled will expend a minimum air-travel dollars of $14,794,167 and

maximum air-travel dollars of $17,672,060 annually to y from YNG.

253 Businesses Responding to Survey Question

2,379 Total Population Sampled


$1,572,620 Respondents Estimate ofYNGAnnual Air-Travel Ticket Expenditures


$14,794,167 Estimate of Total Population Sampled Minimum YNGAnnual Air-Travel Expenditures

$1,878,540 Respondents Estimate of Maximum YNGAnnual Air-Travel Expenditures


$17,672,060 Estimate of Total Population Sampled Maximum YNGAnnual Air-Travel Expenditures


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Air-Travel Increase

The survey asked participants to respond to would your companys air-travel increase ifYNG offered services to meet you

air-travel needs. 166 (54%) of the respondents stated that their companys air-travel would increase and 142 (46%) of threspondents stated that their companys air-travel would not increase.

Of those respondents who stated that their companys air-travel would increase, the survey asked them to respond to bapproximately what amount would your companys air-travel increase. The average of the respondents stated increase wa29%.

Therefore, based upon 54% of the respondents stating that their companys air-travel would increase by an average of 29%it is reasonable to estimate that business air-travel in the Youngstown-Warren-Sharon area as a whole will increase by 16%(54% x 29%) ifYNG offered services to meet area business air-travelers needs.

Air-Travel Arrangement Factors

The survey provided a list of 8 popular factors that are considered in air-travel arrangements and asked participants to ranin order of importance (with #1 being the most important), the top considerations of your Companys air-travel arrangemendecisions. The respondents 1st and 2nd most important factors, the number of responses to each, and the percentages ototal responses to each follow:

Most Important Factor PercentageTicket pricing 42%Drive time to airport 27%Number of daily ights 19%Other (Less than 20 responses@) 12%

2nd Most Important Factor PercentageDrive time to airport 31%

Number of daily ights 21%Ticket pricing 19%Ease of check-in 16%

Other (Less than 20 responses@) 13%

Airport Hub Destinations

The survey asked participants to respond to which airport hubs would your company employees prefer to y to most oftenif the ight operated at YNG, and rank in order of estimated frequency (with #1 being the most frequent). The respondentmost preferred airport, the number of responses, and the percentages of total responses follow:

Airport Hub PercentageChicago (ORD) 34%

Dulles (IAD) 21%Detroit (DTW) 12%Newark (EWR) 9%Charlotte (CLT) 8%

Atlanta (ATL) 6%Philadelphia (PHL) 6%Other (Less than 20 responses@) 4%


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Projected Aggregate Businesses Annual Roundtrip Ticket Purchases

By applying the above percentages of the preferred airport hub destinations that businesses would y to most often if able t

y from YNG, against the estimate of 195,700 annual roundtrip tickets that the aggregate of businesses (labor force) withi

the Youngstown-Warren-Sharon area will purchase, it is reasonable to project the annual roundtrip tickets that businesses w

purchase to each of these preferred airport hub destinations, as reected in exhibit 14.1.

Exhibit 14.1 - Projected Aggregate Businesses Annual Roundtrip Ticket Purchases by Hub Airport


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Exhibit 15.1 - Strategic Route Planning Map

In summary, the results of the Business Air-Travel Survey provide support, that because of anticipated time and monesavings, that businesses in the Youngstown-Warren-Sharon area have indicated strong support for the return of frequenregularly scheduled commercial air service at YNG to a hub of a major U.S. airline in the East, Midwest, or Southwest U.Smore specically to Chicago (ORD) and Dulles (IAD). Additionally, the results reect that a generally higher proportionatshare ofYNGs core air market segment bookings may be business air-travelers which can be considered as a beneciaattribute for prospective network carriers as the YNG core business air-travel segment is signicant enough to more thasupport such air service. The business traveler is generally the preferred customer to network carriers as this segment alspurchases a signicant percent of its tickets at a full Y fare level (fully refundable) - the highest economy class fare level anbecause of their discretionary fare behavior and last-minute buying characteristics.

Not considered in the consequential projections of the Leakage Studies and the Business Air-Travel Survey, is the demanfor air service at YNG by gas and oil production energy companies and the thousands of transient workers who will enter thregion due to the Utica Shale play. As stated previously, the Lycoming County Airport has experienced a dramatic increasin air service with about one-third of its commercial air service being used for Marcellus Shale related operations and is nowin the midst of acquiring additional scheduled commercial air service to provide energy companies better services to the ciies they want to travel to and from. Gas and oil production energy companies, such as BP America, Chesapeake Energand Carrizo Oil, are in the infantile stages of their operations in Northeastern Ohio and have already inquired as to ifYNcan connect these companies to their headquarters in Houston, Oklahoma City, Dallas, etc., thus punctuating the urgency treestablish frequent regularly scheduled commercial air service at YNG.


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Strategic Plan

Strategic Goals

The specic goals of the Community include the following:

= To reestablish regularly scheduled commercial air service at YNG to a hub of a major U.S. airline in the

East, Midwest, or Southeast U.S. on aircraft of appropriate size for the market being served.

= To formulate and conduct comprehensive public awareness, marketing, and promotional campaigns in

support of new air service.

= To direct the existing public / private partnership to concentrate on 1) supporting the airline revenue

guarantee program, 2) contributing and executing the public awareness, marketing, and promotional campaigns in

support of new air service, and 3) continue to attract Community partners to support the collaborative efforts..

Assuming the USDOT awards the SCASDP Grant in September 2012, the Community will undertake an aggressive schedu

to negotiate an agreement for air service and structure an airline revenue guarantee program with a network carrier. Th

milestones of this timeline can be reasonably achieved since the Community is currently in promising negotiations with UniteAirlines through their codeshare partner Silver Airways in providing daily connecting service from YNG to Washington D

(IAD) at 2-3 round trip ights per day, including over-nighting of an aircraft for early morning departure times. United Airline

and Silver Airways are currently discussing the addition of gates at IAD to add additional new service from IAD, to includ

YNG. In addition, since summer is a peak air-travel season in most markets, the optimal time to initiate air service would b

May 2013. Should the Community be successful with a SCASDP Grant Award, the schedule of planned major tasks and th

time frame for performance follows.

Exhibit 16.1 Gannt Chart

The anticipated budget for this proposal is $1,680,000, $1,200,000 to establish an airline revenue guarantee program an

$480,000 to conduct comprehensive public awareness, marketing, and promotional campaigns. Exhibit 17.1, which reects

prot and loss forecast for the YNG-IAD connection based on moderate expectations, provides the foundation for determinin

the anticipated amount needed to establish an airline revenue guarantee program. Moderate expectations also forecast tha

the YNG-IAD connection will be self-sustaining in the 11th month of operations.


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Strategic Plan (Continued)

Exhibit 17.1 - YNG-IAD Proft and Loss Estimation

Period Pax PDEW Segment

Fare

Segment

Revenue

Operating

Expenses

5% Proft Payments Proft

1st Month 1,295 21 $127.99 $165,704 $357,501 $17,875 ($209,672)

2nd Month 1,395 23 $127.99 $178,607 $357,501 $17,875 ($196,769)

3rd Month 1,518 25 $127.99 $194,272 $357,501 $17,875 ($181,105)

4th Month 1,662 27 $127.99 $212,770 $357,501 $17,875 ($162,606)

5th Month 1,828 30 $127.99 $234,018 $357,501 $17,875 ($141,358)

6th Month 2,014 33 $127.99 $257,757 $357,501 $17,875 ($117,619)

7th Month 2,215 36 $127.99 $283,554 $357,501 $17,875 ($91,822)

8th Month 2,428 40 $127.99 $310,821 $357,501 $17,875 ($64,555)

9th Month 2,647 44 $127.99 $338,854 $357,501 $17,875 ($36,522)

10th Month 2,866 47 $127.99 $366,888 $357,501 $17,875 ($8,489)11th Month 3,080 51 $127.99 $394,155 $357,501 $17,875 $18,778

12th Month 3,281 54 $127.99 $419,952 $357,501 $17,875 $44,575

Year 1 Total 26,231 36 $127.99 $3,357,350 $4,290,014 $214,501 ($1,210,518) $63,354

Public Awareness - Marketing - Promotional Campaigns

In the last 18 months, the Youngstown-Warren Regional Airport, YNGAir Partners, the Youngstown/Warren RegionaChamber, and other Community organizations, partnered to conduct an extensive public awareness/promotional campaigsupporting YNG. The success of Allegiant Air, the signicant increase in private charter, corporate, and general aviatioactivity, the increase in non-aeronautical activity surrounding YNG, and the heightened general community support ofYNare resultant of this collaborative effort. Once the Youngstown-Warren Regional Airport and a network carrier have na

ized an agreement for regularly scheduled commercial air service, these same partners will launch comprehensive publiawareness, marketing, and promotional campaigns in support of the new air service. These campaigns will comprise of foucomponents:

1. Earned Mediaa. Upon signing of the agreement:

1. Conduct a press conference at YNG to announce the start-up of the new air service. Attendees wiinclude:a. YNG and Western Reserve Port Authority ofcialsb. Network carrier ofcialsc. State and local public ofcials and community leaders

2. Issue press releases to local, state, and national media announcing the start-up of the new airservice.

3. Arrange one-on-one interviews with local media forYNG, network carrier, and state and local publicofcials.

b. On rst day of air service:1. Arrange for local morning news shows to broadcast from YNG.2. Arrange a remote radio broadcast.3. Conduct press conference at YNG at the time of the rst ight.4. Arrange one-on-one interviews with YNG ofcials, network airline representatives, and passengers5. Issue press release to local, state, and national media.


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c. Ongoing earned media:1. Monthly press releases featuring news about the air service including success of the ights

2. Paid media directed at the general publica. TV, radio, and print ads in markets within a 45-mile radius ofYNG. Ads will begin to run

approximately three months before initiation of service and will continue for twelve monthsafter the rst ight.1. TV spots will appear on the four Youngstown-based network TV outlets and the

Time-Warner and Comcast cable systems that serve the market area. Most spotswill run on shows popular with business travelers.

2. Radio spots on stations within the market area that reach business travelers3. Print ads in the Vindicator, Warren Tribune Chronicle, Sharon Herald, and

Youngstown Business Journal.

3. Paid media specically targeted to business travelersa. Direct mail piece to members of the Regional Chamber and YNGAir Partner (membership

rolls collectively exceed 2,500). Mail pieces will be sent three months before servicebegins, at start-up, and one month after air service is underway.

b. E-mail blasts to members of the Regional Chamber and YNGAir Partner two months andone month before air service begins, at start-up, and monthly thereafter.

4. Digital Marketing/Social Mediaa. Notice of agreement will be posted on YNG, Regional Chamber, and YNGAir Partners web

sites and Facebook pagesb. Press conferences and other events surrounding the rst ight will be live streamed on

YNG websitec. Schedule and real time ight information will be posted on YNG website and

Facebook page.

In addition, the Convention and Visitors Bureaus of Mahoning, Mercer, and Trumbull Counties will augment the above

campaigns by communicating to potential visitors to the Community that air service has returned to YNG and to consider aservice as a travel option.

Public/Private Partnership

Recognizing that the development and success of the Youngstown-Warren Regional Airport, most importantly the returof regularly scheduled commercial air service, is one of the primary economic development issues that the region musovercome to return to economic prominence, community leaders created YNGAir Partners, an organization whosmembership has vested a civic desire to assist in the development ofYNG including the resumption of regularly schedulecommercial air service. YNGAir Partners is a 501(C)(3) non-prot organization providing community-based support for thYoungstown-Warren Regional Airport. As the face of the community, YNGAir Partners acts on behalf of the community tsupport 1) the return of regularly scheduled commercial air service at YNG, 2) YNGs plan for capital development, 3) thsustaining and expansion of leisure, corporate, and general aviation air service at YNG, and 4) the solicitation of donations an

grants on behalf ofYNG

. YNGAir Partners is comprised of local public ofcials, area business and community leaders, and otheenergetic members of the community who participate throughout the region by 1) arranging community and businesspeaking engagements, 2) conducting rallies and special events, 3) managing fundraising events, 4) providing local matchinfunding for grants and loans, 5) promoting YNG on social media sites, and 6) acting as a marketing arm forYNG.

Also, the Western Reserve Port Authority, Mahoning County, Trumbull County, and the Youngstown/Warren RegionaChamber have become strong partners with YNG in its continued efforts to develop the Airport, most importantly to retur

regularly scheduled commercial air service to the community.


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During the past 2 years, these entities have collaborated with YNG, working aggressively to attract network carriers to YNand have all invested signicant nancial and human resources to analyze the local air service market, educate network cariers regarding the region, and promote and market YNG as a viable facility for commercial airline service. These entitie

maintain a committed partnership and believe the SCASDP is a great opportunity to help furtherYNGs air service development efforts.

Upon the award of a SCASDP grant, all of the above and other organizations will contribute to the overall efforts of returninregularly scheduled commercial air service to YNG at varying levels. Roles and responsibilities will include:

Youngstown-Warren Regional Airport

Act as legal sponsor; administrate the SCASDP grant; make direct cost operating concessions to the network carrier; ancoordinate the efforts of the community.

Mahoning and Trumbull Counties

Provide the local cash nancial contribution toward the airline revenue guarantee program.

Western Reserve Port Authority

Provide the local cash nancial contribution toward the airline revenue guarantee program and contribute hard dollars towarthe promotional and marketing campaigns.

Youngstown/Warren Regional Chamber

Provide in-kind marketing by promoting new air service at its core events (annual meeting, economic forecast breakfastsother large events, etc.); promoting the utilization of the new air service to its membership including encouraging enrolling the network carriers frequent yer program and corresponding credit card program; utilizing the Chambers media outreacto continually promote the new air service through its magazine, monthly e-newsletters, and social media; and ensure that itbusiness members who travel frequently have signicant interaction with the network carrier and their sales representativeencourage increased business travel out ofYNG.

YNGAir Partners

YNGAir Partners will provide the local cash nancial contribution toward the airline revenue guarantee program and contributhard dollars toward the promotional and marketing campaigns.

Rubenstein and Associates Media Relations

Formulate separate comprehensive public awareness and promotional campaigns through earned, print, radio, antelevision media; develop digital marketing / social media mechanisms; formulate the marketing campaign though earned anprint media; arrange for in-kind contributions from media partners; and contribute staff time and in-kind media contributions

Clear Channel Communications Youngstown

Formulate the marketing campaign through local radio and television media and contribute staff time and in-kind medicontributions

Mahoning, Mercer, and Trumbull Counties Convention and Visitors Bureaus

Contribute to the public awareness and promotional campaigns by focusing primarily on communicating to potential visitors tthe community that air service has returned to YNG and contribute staff time and in-kind media contributions.


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Request for Funds

Federal Request

The Youngstown-Warren Regional Airport, on behalf of the Community, is requesting $780,000 to support the $1,200,00

airline revenue guarantee program structured and adequate to attract regularly scheduled commercial air service at YNG ba network carrier.

Should this proposal result in a successful SCASDP grant award for an airline revenue guarantee program, and a networcarrier initiates regularly scheduled commercial air service at YNG that does not become self-sustaining, the Community wundertake efforts to generate the additional nancial support necessary to augment the airline revenue guarantee programand to amplify its public awareness, marketing, and promotional campaign efforts.

Community Support

The Western Reserve Port Authority, Mahoning County, Trumbull County, and YNGAir Partners will provide collectively th$420,000 local cash contribution toward the airline revenue guarantee program. The Western Reserve Port Authority anYNGAir Partners will contribute hard dollars necessary for the public awareness, marketing, and promotional campaigns.

YNGAir Partners will monitor the network carriers performance and undertake passenger surveys and other researctechniques to increase its understanding of passenger behavior from which it will derive ideas regarding possible airporservices and amenities that could improve the overall air-travel experience at YNG. The results will be shared with thnetwork carrier to take advantage of all opportunities.

As one of its most important initiatives, YNGAir Partners will continue aggressively to attract community partners and to solicdonations and in-kind services to support YNGs efforts.

Sponsoring Agency Responsibility

The Youngstown-Warren Regional Airport, as the legal sponsor of this grant, will be responsible for the overaadministration of the SCASDP grant award. YNG will provide progress reports required by the USDOT, and will summarizthe relevant accounting information regarding expended funds and in-kind services. These periodic reports will also includ

a progress report regarding the network carriers operational performance and the effectiveness of the local marketing anadvertising campaign. In addition, YNG will provide a 2-year abatement of landing, passenger boarding bridge, and gate feeand terminal ofce and ticket counter rents. Finally, YNG will communicate with all of the oil and gas energy companieoperating in the region to facilitate their air travel needs for the thousands of their transient employees.

In all, it is conceivable that in excess of $1 million dollars in hard dollars and in-kind services will be provided by theCommunity in a collaborative and focused effort to promote regularly scheduled commercial air service at YNG.

Summary

The Community of the Youngstown-Warren-Sharon Metropolitan area is focused and committed toward reestablishing ansustaining a much needed and critical aspect of its transportation system. The return of regularly scheduled commercial aservice at the Youngstown-Warren Regional Airport has been identied collectively by government and community, as on

of the primary economic development issues that the region must overcome to achieve its vision of providing a competitiveeconomic base that will provide good paying jobs to ensure a high personal standard of living, and punctuates thcommitment on the part of government and community to assist in the development of such air service. In addition, thdemand for air service at YNG by gas and oil production energy companies and the thousands of transient workers who wenter the region due to the Utica Shale play is a critical component of the regions economic growth. Gas and oil productioenergy companies, such as BP America, Chesapeake Energy, and Carrizo Oil, are in the infantile stages of their operationin Northeastern Ohio and have already inquired as to ifYNG can connect these companies to their headquarters in HoustonOklahoma City, Dallas, etc..


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Summary (Continued)

Without regularly scheduled commercial air service, the Community could lose a considerable amount of development an

infrastructure investment that will go to other areas with adequate air service. At the time of the expiration of the Community

2007 SCASDP grant, expressed interest by United Airlines, Delta Air Lines, and US Airways to provide the type of air servic

sought by the community to support Utica Shale operations increased signicantly.

In summary, should the Community be awarded this grant, the Community will regularly monitor air service performance a

YNG as well as ongoing measurements of the effectiveness of the public awareness, marketing, and promotional campaig

efforts. Today, with the current and favorable results being experienced by Allegiant Air, along with the knowledge of th

potential YNG has in reestablishing regularly scheduled commercial air service, the Community and its leaders are extreme

excited about the future of the Youngstown-Warren Regional Airport. In the end, all federal grant funds received by th

Community under the SCASDP Grant program will be spent carefully and efciently, with an eye toward generating maximum

benet for the traveling public of Youngstown-Warren-Sharon area.


2012 yng airport small community air service development grant application

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