LAFAYETTE AIRPORT COMMIS.kON LAFAYETTE REGIONAL A I R P ~ R T

June 26,2003

Ms. Teresa B. Singham Associate Director Office of Aviation Analysis, Small Community Air Service Development Pilot Program C/O Dockets Operations and Media Management M-30, Room PL-401 Department of Transportation 400 7'h Street SW Washington, DC 20590

Re: Docket OST 2003-1 5065 Proposal Under Small Community Air Service Development Pilot Program

Dear Ms. Singham,

On behalf of the city of Lafayette and the Acadiana region, please accept this application for a grant through the Small Community Air Service Development Pilot Program. The official legal sponsor for this application is the Lafayette Airport Commission (LAC). The LAC has received significant support from the Lafayette Economic Development Authority, the Lafayette Convention and Visitors Bureau, The Greater Lafayette Chamber of Commerce.

The enclosed proposal details the current and historical air service environment in the Lafayette and Acadiana region as well as the needs and deficiencies that impede the stability and growth of air service in this area of Louisiana. A three-year strategic plan is outlined to demonstrate the methods to achieve the three goals to be accomplished through this program:

a

Stop the leakage and negative loss of enplanements at MyeAte Regional Airport (LFT). Increase enplanements by 40,000 over a three-year period. (2004 - 2006) By 2007, maintain an annual positive growth rate of enplmements by a mini" of 4% Per Y e a r .

The total project cost is estimated at $540,000.00. We are requesting a grant of $420,000.00 to initiate this program, A 22% match in the amount of $120,000.00 has been secured to demonstrate the strong level of commitment by our state and local community. A detailed outline for the use of these hnds is included as well as the methods to measure and monitor the program. In addition to the proposal, copies of the letters of support and data demonstrating the needs and deficiencies have been included for your review.

200 TERMINAL DRIVE LAFAYETTE, LA 70508-21 59 PH 337-266-4400, EXT 6 FAX 337-266-4410 E-MAIL airportQIftairport.com

Through the strong partnership and commitment that has been developed for this program, the established goals will be achieved thereby providing your department with a proven example of success from assistance through the Small Community Air Service Development Pilot Program. On behalf of the entire commission and community, we thank you for your consideration.

Sincerely,

Grdoryh.I.koberts, A.A.E. Chairman Director of Aviation

APPENDIX B Page 1 of 5

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PILOT PROGRAM DOCKET OST-2003-15065

SUMMARY INFORVIATION

All applicants must submit this information along with their proposal. Previous applicants may incorpo- rate by reference all or any portion of their initial proposals in Docket OST-2002-11590, but must also submit this summary information to be considered for a grant award from the FY 2003 funding for the Pilot Program in this docket.

A. APPLICANT INFORMATION: (CHECK ALL THAT APPLY)

0 Consortium

Community Name Address 1 Address2 City, State Zipcode Point of Contact:

Community Name Address 1 Address2 City, State Zipcode Point of Contact:

Community Name Address 1 Address2 City, State Zipcode Point of Contact:

0 Community now receives EAS subsidy

Point of Contact: Lafayette, Louisiana Phone: 3 3 7- 2 6 6 - 4 4 0 6 200 Terminal Drive Fax: 337-266-441 0

Email: gregrelftairport .COI Lafayette, Louisiana County: Lafa~ette Gregory M. Roberts, A.A.E.

Phone: Fax: Email: county:

Phone: Fax: Email: County:

DESIGNATED LEGAL SPONSOR: (MUST BE A GOVERNMENT ENTITY)

Name Gregory M.Roberts, A.A.E. Phone: 3 3 7- 2 6 6-4 4 0 6 Point of Contact

Title Director of Aviation Fax: 337-366 -441 0 Organization Lafayette Airport Commission Email: "airport. co Address 1 200 Terminal Drive Address2 City, State Zipcode Lafayette, Louisiana 70508

APPENDIX B Page 2 of 5

PUBLIC/PRIVATE PARTNERSHIPS: (LIST ORGANIZATION NAMES)

Public Private - 1,Lafayette Economic Development 1.Lafayette Convention & Visitors Bureau

2. Greater J,afayette Chamber of Cnm 2.Authority 3. 3.

merce

4. 4. 5. 5.

B. PROJECT INFORMATION

PROJECT PROPOSAL: (CHECK ALL THAT APPLY)

Marketing a Upgrade Aircraft 0 NewRoute

Personnel Cl Increase Frequency Secure 0 Low Fare Service

Travel Bank 0 Service Restoration 0 Surface Transportation

Subsidy 0 Regional Service 0 Other (specify)

Revenue Guarantee 0 Launch New Carrier

Start UD Cost Offset 0 First Competitive Service

Study 0 Secure Additional Carrier

PROJECT GOAL: PROJECT IS INTENDED TO ADDRESS PROBLEMS INVOLVING (CHECK ALL THAT APPLY)

Q HighFares 0 Insufficient Air Service Unique Airport Circumstance

0 Access to National Transportation System Needed

& Other Encourage benefit cost analysis & community support.

Please provide a brief synopsis in one para aph) of the highli

fallen nearly 34% since peaking at 214,000 enplanements in 1998 . The proposed program will develop and implement an intensive three year marketinq program to help eliminate the decline and

ts of your proposal. Annual enplanements a I Lafaye F te Regional P irport have

veat- * 7006.

APPENDIX B Page 3 of 5

PROJECT COST:

420,000 Federal amount requested: Total local financial contribution:

Airport funds:

State financial contribution: Existing funds: New funds:

Non-Axport funds: 1 2 0 , 0 0 0

In-kind contribution: (amount & description)

Total cost of project: 5 4 0 , 0 0 0

c. AIR SERVICE DEVELOPMENT ZONE: (CHECK BOX IF INTERESTED IN DESIGNATION) 0

D. AIRPORT INFORMATION: W H E R E SERVICE WOULD BE PROVIDED)

Airport Name: Lafayette Regional Airport Airport City: Lafavette mort State: Louisiana w o r t Code: LFT

AIRPORT CLASSIFICATION: (AS OF JUNE 2002, PER FAA’s AIRPORT HANDBOOK)

a NonHub 0 SmallHub 0 MediumHub 0 Other

EXISTING LANDING AIDS:

Full ILS 0 OuterMiddle Marker Published Instrument Approach

Localizer

EXISTING SERVICE:

114 Other (specify) GPS/TACoN/VoR

Jet service 0 Low Fare Service Turboprop

APPENDIX B Page 4 of 5

AIR CARRIER(S) SERVING AIRPORT:

Air Carriers Air Carriers

1.Continental Express 6. 2.Atlantic Southeast Airlines 7.

3.Northwest Airlink 8. 4. 9.

CURRENT FLIGHT INFORMATION: (please provide attachment if you need more room)

Number of non-stop roundtrip flights per destination: Number of one-stop, single-plane roundtrip flights per destination per week (identify services that are

Aircraft Type (include number of seats):

See attachment

N/A

seasonal and dates of service): See attachment

Enplanements (last five calendar years to the extent applicable)

1998 214,174 2001 181,213

1999 198,965 2002 159,573

E. AIRFARES: (PROVIDE CURRENT AVAILABLE AIRFARES FOR TOP 3 O&D MARKETS-IF APPLICABLE)

O&D Market: DFW Airfare: $1 31 . O O

$227.00 Airfare: IAH O&D Market:

See attachment A

F. PROXIMITY OF OTHER AIRPORTS: (PER JUNE 2002 FAA HANDBOOK)

What is your closest:

Non-hub (w/jet service) Name Lake Charles Small Hub Name &&on Rouse - Medium Hub Name Jackson

Large Hub Low-fare service

APPENDIX B Page 5 of 5

Current Fight Information Attachment

Number of non-stop roundtrip flights per destination:

8 flights per day to Houston via Continental Express 4 flights per day to Memphis via Northwest Airlirik 2 flights per day to DallasRort Worth via Atlantic Southeast Airlines 2 flights per day to Atlanta via Atlantic Southeast Airlines

Aircraft Type:

1 737-500 per day - 110 seats 7 Embrarer-145 regional jets per day - 50 seats 3 Canadair regional jets per day - 50 seats 3 Saab-340 turbo prop aircraft per day - 33 seats 2 Embrarer - 120 turbo prop aircraft per day - 30 seats

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PILOT PROGRAM PROPOSAL

SUBMITTED BY THE LAFAYETTE AIRPORT COMMISSION

LAFAYETTE, LOUISIANA

Existing Air Service

Lafayette Regional Airport (LFT) is currently served by three airlines - Continental Express, Atlantic Southeast Airlines and Northwest Airlink. LFT offers sixteen departures and sixteen arrivals per day with Continental providing the majority of flights. Continental offers eight departures per day. Continental Express flies to/from LFT to Houston Intercontinental. In June 2003, Continental began one round trip flight per day utilizing a 737-500 aircraft with a seating capacity for 110 passengers. This flight arrives at LFT in the evening and returns the next morning. The seven remaining flights offered by Continental utilize Embrarer 145 regional jets with a seating capacity for 50 passengers.

Atlantic Southeast Airlines offers two flights per day to DallasFort Worth and two flights per day to Atlanta. Aircraft flying to/from LFT for the Dallas flights are the turbo prop Embrarer 120 with a seating capacity for 30 passengers. Service to Atlanta utilizes the Canadair regional jets with a seating capacity for 50 passengers.

Northwest Airlink provides 4 flights per day to Memphis. Three of the four flights utilize a Saab 340 turbo prop aircraft with a seating capacity of 33 passengers. Northwest provides one flight per day with a Canadair regional jet with a seating capacity for 50 passengers.

The top four destinations for passengers flying from LFT are Dallas/Fort Worth, Houston, Las Vegas and Los Angeles. One way air fares range from $131 to fly from LFT to DFW, $227 to Houston, $152 to Las Vegas and $158 to Los Angeles. (See Attachment A)

History of Service

LFT started out more than seventy years ago as a small wooden hangar and has since become a state-of-the-art facility, providing world-class service to area travelers and businesses. Enplanements have increased from 66,712 (lst year of record) to 159,573 in 2002.

LFT saw a substantial increase in passenger boarding until 1998, reaching its peak at over 214,000 enplanements. In 2000, American Eagle began to cut its service to/fiom LFT even though it garnered 24% of the passengers. By April 2002, American Eagle completely stopped service at LFT. The departure of American Eagle resulted in the loss of five daily flights to Dallas/Fort Worth. increased their service. However, enplanements continue to lag with a loss of more than 50,000 enplanements each year since 1998. (See Attachment B)

Since the departure of American Eagle, the other three air carriers have

Service Area

LFT serves approximately 610,654 people in an area referred as the Acadiana region. This eight-parish region includes Acadia, Evangeline, Iberia, Lafayette, St. Landry, St. Martin, St. Mary and Vermilion. (See Attachment C) The Lafayette MSA, defined only as Lafayette and St. Martin parishes, is the fourth largest MSA in Louisiana behind New Orleans, Baton Rouge and Shreveport. The Lafayette MSA comprises 61% of the population base for the Acadiana region. Lafayette is located at the crossroads of Interstate 10 and Interstate 49 and is midway between Houston and New Orleans and 35 miles from the Gulf of Mexico.

The Lafayette economic region encompasses a diverse mix of businesses. Wholesale and retail trade, construction, manufacturing, mining, tourism, medical, educational and service-related businesses represent the core of the region’s economy. Major manufacturers include: The Ace Group, a transportatiodindustrial supplies and machine manufacturer with over 2,500 employees, The Sunland Group, an oil and gas pipeline constructiodtransportation and farm equipment company with 1960 employees, and Stuller, Inc, a manufacturer and wholesale sales of jewelry components with 1,580 employees.

Medical related businesses with 1 ,OOO+ employees include Our Lady of Lourdes Regional Center, Lafayette General Medical Center and Acadian Ambulance and Air Med Services. Major service related industries include Kergen Brothers, Inc., owners of Sonic Drive-in restaurants with over 3,100 employees and Cingular Wireless with over 1,000 employees.

Educational institutions are major employers for the region. Approximately 14,000 individuals are employed throughout the eight parish school systems. Another 2,000 individuals are employed through the University of Louisiana at Lafayette.

Tourism is a major industry for the region and the state. As the state’s second largest industry, the Acadiana region provides a major attraction for tourists. The cultural traditions of the Cajuns and Creoles blended with the contemporary sophistication of a modem city in Lafayette offers tourists a variety of experiences. The region is known for their cuisine and fine dining as well as excellent h l l service hotels with over 4,000 sleeping rooms citywide. Lafayette continues to grow in the area of conventions with the ability to offer meeting facilities for as many as 12,000 individuals.

In 2001 the median income for the region was $35,211. In 2002, consumers spent 3.6 billion in retail goods and services. The median age in 2002 was 33.62. Over the next five years the region is expected to have a 1.5% growth rate.

Needs and Deficiencies

Annual enplaned passengers at LFT have fallen nearly 34% since peaking at over 214,000 annual enplanements in 1998. This drop can be partially attributed to the exit of American Airlines, the 9/11 terrorist attack and a sluggish economy. However, a recent market demand analysis conducted for the Lafayette Airport Commission (LAC) demonstrated that the airport in New Orleans (MSY) captures almost 40% of the Lafayette regional market. (See Attachment

D) The analysis showed that many travelers are driving to New Orleans to save on airfare by flying Southwest Airlines. Other travelers fly from New Orleans because they prefer direct connections.

Relative traffic from LFT and the region has lagged recent U.S. growth, due mainly to declines in regional capacity. When compared to similar sized markets with commercial air service, LFT suffers in terms of passengers and capacity. The MSA population of the Lafayette region is 373,700. The MSA of Shreveport, LA is less than a 5,000 difference with their MSA being 377,000. The number of seats is almost 50% less in Lafayette with seating capacity being 23,946 and Shreveport having seating capacity of 44,923. The MSA of Corpus Christi, TX is slightly higher with a population of 383,300. Their seating capacity is 56% higher than LFT with their seating capacity being 53,379. (See Attachment E)

LFT retains less than 40% of the locally issued airline tickets. Significant non-stop service, combined with low fares found at nearby MSY in New Orleans draws as many of LFT’s passengers as LFT does. LFT’s proximity to Southwest Airlines in New Orleans is the driving force behind LFT’s leakage. Orlando and Las Vegas are two of the largest leisure destinations in the US. and are the top two leisure destinations booked from the Lafayette area. Nearly 650 passengers daily, each way, utilize alternate airports. On an annual basis, over 230,000 passengers from the LFT catchment area originate air travel at alternate airports. MSY captures 64% of this lost traffic mainly due to Southwest Airlines low airfares and non-stop service. (See Attachments F,G & H)

Retention in similar size markets demonstrates that LFT can achieve a higher retention rate. Gulfport, Mississippi has approximately the same size MSA as Lafayette and is located close to New Orleans (59 miles). However, Gulfport’s retention rate is 64% as compared to Lafayette’s retention rate of 39%. Corpus Christi, as previously noted with a similar MSA, has a retention rate of 80% - double the Lafayette retention rate. (See Attachment I)

Additional evidence that demonstrates a severe leakage problem is seen through the carrier’s share of bookings in the Lafayette region. While Continental Express captures the largest share at 31%, Southwest Airlines is very close behind with 28% of the bookings. ASA receives 12% of the bookings and Northwest Airlink receives 8% of bookings. This is significant in the fact that American Eagle, though no longer serving through LFT, receives 13% of bookings from the region. (See Attachment J)

LFT only captures 42% of the business traveler market. New Orleans is the greatest competitor for these passengers, drawing 3 1.1% of the business traveler market. While similar distance to Houston, LFT only loses 15.9% of the business traveler market to Houston Intercontinental, even though Houston provides competitive fares and direct flights to more markets than offered at New Orleans. (See Attachment K)

A significant factor impeding the growth of passenger use at LFT is that many businesses and individuals in the Lafayette region are unaware of the services and conveniences they can receive by “Flying Lafayette”. The recent addition of jet service through Continental Express, Northwest Airlink and ASA Delta Connection combined with the easy access to LFT are just a few of the

many amenities that LFT has to offer. Key elements to effectively convey this message is the ability to dedicate staff and funding to adequately market the services of the airport,

Strategic Plan

The LAC in partnership with the Lafayette Convention & Visitors Bureau, the Lafayette Economic Development Authority and the Greater Lafayette Chamber of Commerce propose to implement an intensive three-year marketing program for the accomplishment of three goals:

0

0

0

Diminish the leakage and decline of enplanements at LFT. Increase enplanements by 40,000 over a three-year period. (2004 - 2006). By 2007, maintain an annual positive growth rate of enplanements by a minimum of 4% per year.

The “Fly Lafayette” marketing program will include the following components:

Marketing Director A full-time Marketing Director will be added to the LAC’S staff. The Marketing Director will be responsible for the day-to-day marketing operations including public appearances, building relationships with travel agents, as well as relationship building with travel planners on staff with major employers. Another responsibility will be the development and continued dialogue with airline pricing and sales personnel to help assure that airline tickets purchased for travel through LFT are as competitive as possible. (See attached job description)

Research The marketing campaign will be initiated by launching research to include a combination of target user surveys, focus groups and demographic data, to define baseline segments within key areas of LFT’s overall geographic market which includes Lafayette, St. Martin, St. Mary, St. Landry, Vermilion, Acadia, Iberia and Evangeline parishes. (Based on the results of the research, some of the components may be revised. Any modifications will be submitted to DOT for review and approval.)

Brochure Based on the results of the research, a new airport brochure will be produced to include the matrix that reinforces why people should “Fly Lafayette” instead of driving more than two hours to New Orleans for their air travel needs. The matrix will include “hard fact’ comparisons such as the differential cost in parking, the added cost of vehicle travel (including mileage reimbursement), and the value of the traveler’s time spent driving, as opposed to “being in the air already.” The brochure will also include information about funding the airport receives from local enplanements and the benefits those funds generate in the Acadiana region.

Outdoor Billboards along Highway 90/Interstate 49, particularly in the New Iberia area, will reinforce the message of “How much is your time worth?” in promoting the “Fly Lafayette” campaign.

Direct Mail Campaign Series Direct mail pieces will be developed to bring Lafayette Regional Airport’s message to corporate travel planners and business owners in Acadiana who book airline flights. This effort, designed to promote the savings in time and cost by “Flying Lafayette” rather than driving to New Orleans, will be targeted based on the research developed as part of this campaign.

Airport “Lagniappe” Kiosk The Lagniappe Club is but one amenity of LFT which can be promoted via portable kiosk display to be used by the LFT Marketing Director at events and targeted locations around the Acadiana region. The kiosk will be used to reinforce the “Fly Lafayette” message, including benefits passengers and the community receives from enplanement funds. The kiosk will also be used at events in the Lafayette Cajandome and Convention Center, Acadiana Mall, the Petroleum Club and similar venues as a vehicle for distributing airport brochures. When not used off premises, the kiosk will be displayed in the LFT terminal to help educate passengers and visitors on the benefits and advantages the airport offers.

Local Advertising A local advertising campaign will be initiated with the theme “Fly Lafayette”. A newspaper column will be introduced which will feature a fare comparison column. Radio and television will also feature fare comparisons for both audio and on-screen presentations.

Travel Agent Promotions Direct sales promotions will be instituted to encourage travel agents to book their clients on flights out of Lafayette to help keep enplanements levels as high as possible. This effort will be developed in the form of sales kits and regular “Fly Lafayette” reminders through print materials, mystery shopping and travel agent incentive programs.

AN Presentation An airport multi-media presentation will be developed for use by the LFT Marketing Director at presentations to civic clubs, chambers of commerce, large businesses and governmental bodies throughout the Acadiana region, underscoring the advantages of flying from LFT.

Out-of-S tate Promotions Out-of-state advertising will be directed to the four major hubs served by LFT (Dallas, Houston, Atlanta and Memphis). This will reinforce the “Fly Lafayette” message and encourage travelers to fly directly to LFT, rather than flying to New Orleans and driving to Lafayette, with an emphasis on what travelers will find to do in the Lafayette market-wide area.

It is estimated that LFT will end calendar year 2003 with 150,000 enplanements. During calendar year 2004, the “Fly Lafayette” program will be in the implementation phase. It is estimated that enplanements will increase by 10,000 for a year end total of 160,000 enplanements. It is estimated that calendar year 2005 will be the period where LFT will realize the greatest increase in enplanements due to the fact that the program will be in full execution. It is estimated that LFT will end this calendar year with 180,000 enplanements. During the third

year of the program, it is estimated that LFT will increase enplanements by an additional 10,000 to end this calendar year at 190,000 enplanements.

Through the increase of enplanements, LFT will realize additional revenue. This revenue will allow LFT to support the salary of the Marketing Director and maintain an aggressive marketing program. This proactive position will allow LFT to accomplish the third goal of achieving a positive growth rate of enplanements by a minimum of 4% per year. (See attached timeline detailing the target dates for the accomplishment of each component.)

Publicmrivate Partnership

One of the most vital components needed to assure the success of the “Fly Lafayette” marketing program is the development of a public/private partnership. The LAC has initiated this effort through a partnership with the Lafayette Convention and Visitors Bureau, the Lafayette Economic Development Authority and the Greater Lafayette Chamber of Commerce. Each of these entities has recognized the need to mitigate the continued decline of passengers flying to/f?om Lafayette. Quality air service is critical for tourism and economic development. The loss of American Eagle demonstrated to these organizations that the Acadiana region must be proactive in order to maintain and expand air carrier service. All of these organizations have agreed to actively assist the LAC in the development of the “Fly Lafayette” Task Force.

The current partners will work with the LAC board of commissioners and staff to create a ten member task force. gas and oil, manufacturing and tourism. The task force will be educated on the advantages and benefits of flying through LFT. These individuals will become community representatives to help promote the concept of “Flying Lafayette”. direction and guidance of the marketing program. Upon completion of the three-year project, the task force will remain active to help assure the continued growth of enplanements at LFT.

These members will represent major industries in the area such as medical,

The task force will also assist with providing

Project Funding

The total three-year project is estimated to cost $540,000.00. The LAC is requesting a grant of $420,000.00 from the Small Air Service Development Pilot Program. The remaining $120,000.00 will be funded by a $60,000.00 grant from the Lafayette Convention & Visitors Bureau and $60,000.00 from the Lafayette Economic Development Authority. (See attached letters of commitment.) A detail of the proposed expenditures are listed below:

Marketing Director 120,000.00 Research 15,000.00 Brochure 20,000.00 Outdoor Advertising 60,000.00 Direct Mail Campaign Series 24,000.00 Airport “Lagniappe” Kiosk 16,000.00 Local Advertising 189,000.00 Travel Agent Promotion 14,000.00 AN Presentation 12,000.00

Out-of-state Promotion 70,000.00

Total Project Budget 540,000.00

Funding Assurances

The LAC will use the approved accounting procedures to track the project’s expenditures as outlined in the DOT contract. The LAC staff will be responsible for the administration of the grant and the monitoring of the project’s goals and objectives. The LAC will accept all grant assurances that all funds (federal and local) intended for this project will not be diverted to other uses, as required in the terms and conditions of the grant offer.

Monitoring of Project

As stated above, the LAC staff will be responsible for the monitoring of the program’s goals and objectives. Monthly reporting will be conducted and provided to DOT, the “Fly Lafayette” Task Force and the LAC Board of Commissioners. The timeline as detailed in this proposal will be used to help assure the program is meeting the objectives in a timely manner.

The monthly enplanement report will provide an accurate and measurable method for monitoring the overall success of the program. The first goal of diminishing the decline of enplanements will be reviewed on a monthly basis. Each of the marketing components will be reviewed monthly to determine the most effective marketing methods for the future. Once, the decline of enplanements has been mitigated, the growth of enplanements will be closely monitored to evaluate the effectiveness of achieving the second goal of increasing enplanements by 40,000 by the end of calendar year 2006. While the third goal of maintaining a minimum growth rate of enplanements by at least 4% will occur after the third year of the project, this goal will continue to be monitored on a monthly basis to assure the projected growth rate is being achieved.

Another method to help assure the goals are being achieved will be done through a comprehensive six-month report. The Marketing Director will maintain contact sheets and other information to demonstrate which objectives are being met. If the six-month report demonstrates that certain objectives have not been achieved as expected, the staff and task force will make recommendations and modifications to help assure the overall goals will be achieved.

At the end of the initial three year program, a comprehensive report will be prepared to detail the program’s outcomes, methodology and deliverables. The report will demonstrate the achievement of the goals, the tracking of each particular strategy and recommendations for maintaining a quality marketing program upon completion of the grant. This information will provide a documented evaluation for fbture planning at other airports in the nation working to develop and implement an effective marketing program.

Conven t ionJa n d Visi tors Commission Post Office Box 52066 Lufuyette, Louisiana 70505 3371232-3737

June 23,2003

Mr. Greg Roberts, A.A.E. Director of Aviation Lafayette Airport Commission 200 Terminal Drive Lafayette, LA 70508

Dear Greg,

1-800-346-1 958 U.S. 1-800-543-5340 Canada

ww w. lafa ye t tet ravel. com FAX: 337/232-0161

On behalf of the Lafayette Convention and Visitors Commission (LCVC), I have been authorized to extend this letter of support toward the Lafayette Airport Commission's (LAC) grant request through the Small Community Air Service Development Pilot Program. I f the grant award is made to the LAC, the LCVC will provide a monetary contribution of $60,000.00 over a 3-year period. The LCVC will also participate and provide a representative to serve on the "Fly Lafayette" Task Force. As we discussed, the LCVC logo, 800 number and web address will be included on all printed materials.

The ability to offer quality air service is a critical economic development component, especially for tourism. If the enplanements continue to decline at LFT, present carriers will reduce the number of daily flights and possibly eliminate service completely. This project will provide the LAC the opportunity to eliminate the current downward trend and simultaneously create a competitive edge for the attraction and retention of passengers flying to and from Lafayette Regional Airport.

In addition to instituting an effective marketing program, this project will bring area organizations together to work collectively on this important issue. Through education and collaboration, the goal of strengthening and expanding air service in the Acadiana region will be achieved. I would like to commend the LAC for their diligent efforts and look forward to working on this very necessary endeavor. Please call if I may be of any further assistance.

.4

Executive Director

GPB:nln

LAFAYETTE ECONOMIC DEVELOPMENT AUTHORITY

June 18,2003

Mr. Greg Roberts, A.A.E. Director of Aviation Lafayette iilrport Commission 200 Terminal ! 3 ~ Lafayette, I,& 7clr308

Dear Greg.

As President and CEO of the Lafayette Economic Development Authority (LEDX), L extend our oxgariization’s support toward the Lafayette Aurport Corrmission’s &.+IC) $300,000 gzar;t rcquest through &he Small Community Air Service ~kvdOFmC!F,t Pilo: Program. Upnn awarrl of &is grant, LEDA wdl financially support t h s project through a contribi.it-mi Laf $60,000 (subject to comission approval). In adktion , a deaigiiat.ed LK!A Comrnissioiw will serve ov. the “Fly LafApette” Task Force.

The loss of Axerican Eagle and contiuritd deche in enplanements at : h h j e r t e Rcgjcmil Alrport is a srrious coiiccm for the Acadnca region. Quality air service is a ci t icd f C i g ? : for the attracticn of new busiiizsses and is a key component for the retentjon and zspansio;: of current biisi.ri.- ..,.JP_S.

I fully agrx t kar a:? jnteiisc inarkethg rtffart is required. The h g of a 6~1; h i e inarketiiig hector \VIU a l h i the LAC. to kiplenient an effective plan. Through this grant, &.e 12iC wiU be able to iqittxte h s effort whch wdl help mitigate the current deche in enplanements atid establish a posisve growth pattern that will demonstrate to the existii7.g airlines that ;erv-lng the Lafayette region is a sound investment.

I am looking forward to workmg with you and the task force. Community education and involvement is the key to our success. Please keep me informed of your progiess.

Sincerely,

G r e g Gothreaux President & CEO

211 E A S T D E V A L C O U R T ST

L A F A Y E T T E . L A 7 0 5 0 6 U S A

P H O N E 3 3 7 5 9 3 1 4 0 0

F A X 3 3 7 2 3 4 3 0 0 9

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GREATER

LAFAYETTE June 13,2003

Mr. Greg Roberts, A.A.E. Director of Aviation Lafayette Regional Airport 200 Terminal Drive Lafayette, LA 70508

Dear Greg:

On behalf of the Greater Lafayette Chamber of Commerce, I extend the organization’s full support toward the development of an intensive marketing program to communicate the advantages of flying into and out of Lafayette Regional Airport. Our airport offers tremendous advantages to the business and pleasure traveler, especially with the addition of regional jet service by all three of our carriers.

One of the priorities for our chamber is communicating information to area businesses that will help their profitability. One very effective method is through our monthly magazine “Inforum”. As part of the Chamber’s effort to assist in this marketing program, we will publish articles about the airport and the many advantages when an individual chooses to “Fly Lafayette”.

Other vehicles to convey the message is though the Chamber’s Web site and through systematic E-Flash notes to the membership.

Additionally, our Chairman will appoint a member of the chamber to serve on the “Fly Lafayette” task force. Our representative will provide information about the needs of current businesses and learn about potential businesses seeking to locate in the Acadiana region.

Maintaining and expanding quality air service for the Acadiana region is a key ingredient for successful economic development. The Greater Lafayette Chamber of Commerce is eager to partner with you in this marketing program.

n Sincerely,

RobGuidry \ President & CEO

804 E. ST. MARY BLVD. P. 0. BOX 51 307 LAFAYETTE, LA 70505-1 307 (337) 233-2705 FAX (337) 234-8671 email lafchamber.org www.lafchamber.org

LAFAYETTE AIRPORT COMMISSION MARKETING DIRECTOR

PRELIMINARY JOB DESCRIPTION

The Lafayette Airport Commission (LAC) Marketing Director position will be a full-time, salaried, exempt position. In addition to the typical Monday - Friday work week, this position will require additional evening and weekend hours as needed to accommodate the LAC’S aggressive schedule of marketing activities. Requirements for this position include a Bachelor’s or Master’s degree in Marketing, Advertising or Journalism with a minimum of six years of experience in marketing related positions, preferable in an airport, travel agency or advertising agency environment. Equivalent combinations of education and professional experience will be considered.

The Marketing Director will posses proven skills and abilities in public speaking, strong writing, proofreading and editing skills and excellent interpersonal communication skills. The Marketing Director must posses the ability to perform multiple, deadline projects and perform successfully with limited supervision. The Marketing Director will perform the following duties throughout the Lafayette Regional Airport’s eight-parish market area:

Maintain current research, information and prospect files on: Air carrier services and air fares. New airport products/services being introduced. New airport marketinglpromotion strategies and techniques. New airport tenants, vendors, fixed-base operators, etc. New and existing travel agencies in the market area. New and existing corporate travel planners in the market area. New and existing chambers of commerce, economic development groups, travel promotion groups and other business/travel related professional associations.

Actively participate or perform specific functions in each of the following areas: Planning, strategy and development of airport marketing activities in partnership with the airport’s contracted advertisinglpublic relation’s agency, the airport director of Aviation and the “Fly Lafayette” task force. Present speeches and other visually aided presentations to business, travel and other industries and community groups. Represent the airport at community events and functions. Develop and maintain strong relationships with airline pricing and sales personnel, travel agents and corporate travel planners within the market area. Develop and maintain strong relationships with media outlets in the market area. Maintain and update the airport’s web site. Participate in continuing educatiodtraining programs as appropriate for optimal service to the airport. Track, evaluate and report results of airport marketing strategies, plans and expenditures. Keep airport staff, commission members, task force members and contracted vendors appropriately informed about program results, potential new business and/or marketing opportunities and challenges as they arise.

“FLY LAFAYETTE” MARKETING PROGRAM TIMELINE

MARKETING DIRECTOR January 2004 - Advertise, interview and hire director February 2004 - Director begins work

RESEARCH January 2004 - Research begins March 2004 - research completed

BROCHURE March 2004 - Copy development April - Design May 2004 - Printing completed

OUTDOOR March 2004 - Design April - Printing May 2004 - Posting June 2004 - December 2006 - Outdoor remains posted

DIRECT MAIL # 1 March 2004 - Concept and copy development April 2004 - Design May 2004 - Print and mail

Direct MAIL # 2 August 2004 - Concept and copy development September 2004 - Design October 2004 - Print and mail

DIRECT MAIL # 3 March 2005 - Concept and copy development April 2005 - Design May 2005 - Print and mail

KIOSK April 2004 - Concept and copy development May 2004 - Design June 2004 - December 2006 - Kiosk placed in use

LOCAL ADVERTISING Television March 2004 - Concept and copy development

April 204 - Production May 2004 - Placement begins May 2004 - December 2006 - Promotion continues

Newspaper March 2004 - Concept and copy development April 2004 - Design May 2004 - Placement begins May 2004 - December 2006 - Newspaper runs

TRAVEL AGENT PROMOTIONS April 2004 - Concept development May 2004 - Begin promotions Promotions continue once every quarter through 2006

AV PRESENTATION April 2004 - Concept and copy development May 2004 - Design June 2004 - December 2006 -Presentations continue

OUT-OF-STATE ADVERTISING Mardi Gras - 2004 March 2004 - Festival International August 2004 - Festivals Acadien Mardi Gras - 2005 March 2005 - Festival International August 2005 - Festivals Acadien Mardi Gras - 2006 March 2006 - Festival International August 2006 - Festivals Acadien

1 DFW (Dallas-Ft. Worth) 32.8 $4,289 $131 2 IAH (Houston) 21.4 $4,848 $227 3 lAS (Las Vegas) 13.0 $1,982 $152 4 LAX (Los Angeles) 12.8 $2,018 $158 Currently served markets are

h@hl@hted in yellow (A TL is served on 6 MCO (Orlando) 10.3 $1,161 $113 a one-stop basis through M.0. 7 LGA (New York LaGuardia) 10.3 $1,643 $160

MEM (Memphis) 6.1 $725 $119 TPA (Tampa) 6.1 $700 $115

BWI (Baltimore) 5.9 $880 $150 TUL (Tulsa) 5.8 $802 $139

PHL (Philadelphia) 57 $1.013 $178 Sub-total 204.8 $31,413 $153

Other 203.1 $33.335 $164 Total 407.9 $64,748 $159

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Tlv br . ib rrre lo Tb#

Lafayette Regional Airport - - L -

2 H U L . P I

mal Attachment A

Annual Enplaned Passengers: LFT L FT saw a substantial increase in passenger boardings until 7998, as a result of American Eagle enteing the market in the 4th quarter of 7992. The recent 20% decline is a result of Ameican Eagle 3 cut in capacily which began two years before completely exiting the market in April 2002.

210,000

200,000

190,000

& 180,000 C Q, 170,000 8 160,000 CL

150,000 9, cc C= 140,000

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LFT Catchment Area Airfine tickets booked in e@htparishes are included in this anawsis for the Lahyetfe Regional Airpod. For the purpose of this exercise, tbis will be referred to as L FT's catchment area.

I

-a- -

F/v &Limyerrr Io KIEHL HENDRICKSON Lafayette Re

I 78 GROUP

\ 1

- . . ~

Booking Distribution by Airport of Origin C L . .

LFTretains less than 40% of the locally issued airkne tickets. LFTs 40% retention rate is lower than similarly-served markets. Skpficant non-stop service, combined with WN3 low fares found at nearby MSK draws as many of LF7s passengers as LFTdoes.

AEX HOU JAN

DFW 2%\ 1% f 1% . -. .

Population vs. Traffic and Capacity Comparison

Wben compared to similar sized markets witb commercial air service, La fayette (L FT) sufers in terms of passengers and capacity (Note: L ouisiana markets are bigbbgb fed in red).

Appleton, WI 352,600 276,390 39,073 0.11 0.78

Moline, L 359,200 411,760 56,196 0.16 1.15 Manchester, NH 366,400 1,870,230 198,353 0.54 5.10

Reading, PA 357,700 32,780 3,755 0.01 0.09

Beaumnt-Port Arthur, TX 382,900 75,140 1 1,354 0.03 0.20 Corpus Christi, TX 383,300 332,760 53,379 0.14 0.87 Boise ID

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r.,.__. -

F/v lxtyrrte /b The- 20 Lafayette Regional Airport

Attachment E

Near& 650 passengers dai& each way utilize alternate airports.

Rank Market Retentian Usaae Leaked Booked 1 MCO 11% 10.3 82.3 92.6 2 LAS 34% 13 25.1 38.1 3 DFW 87% 32.8 4.7 37.5 4 TPA 18% 6.1 27.9 34.0 5 LAX 40% 12.8 19.3 32. I 6 ATL 31 % 9.8 21.5 31.3 7 HOU 0% 0 7.1 7.1 a FLL 18% 3.5 15.5 19.0 9 DEN 53% 10.3 9.1 19.4 10 LGA 58% 10.3 7.3 17.6 11 DCA 57% 9.4 7.0 16.4 12 BWI 25% 5.9 18.1 24.0 13 BNA 32% 9.2 19.7 28.9 14 SAN 45% 6.9 8.3 15.2 15 ORD 47% 7.6 8.7 16.3 16 PHX 41 % 6.5 9.5 16.0 17 DAL 7% 1.2 15.2 16.4 18 MEM 74% 6.1 2.1 8.2 19 BHM 19% 2.8 11.6 14.4 20 SAT a 5 2 m

Other - 2 3 7 . 8 3 1 7 . 4 m Sub-total 34% 170.1 325.3 495.4

407.9 642.8 1,050.7

I

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f/y i4mj t w /o

Lafayette Regional Airport

Nearby Commercial Airline Service: MSY L FT's proximify to Southwest Airlines (WN)-dominated MSY is the driving force behind LFTs 'ireakage ":

us

C

Carrier Capacity Share

Other' AirTran 4%

2% Northwest

I

Airways 7%

bntinent 10%

American - 11%

,Out hWSt 38%

Delta 15%

Source: November 2002 Industry Schedule *Other includes Frontiec JetBlue, America Wesf, Air Canada, Midwest Express, and Tam

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LFT Catchment Area Originating Passenger Traffic

Lafayette (LFT)

New Orleans (MSY)

Houston Intercontinental (IAH)

Baton Rouge (BTR)

Dallas-Ft. Worth (DFW)

Houston Hobby (HOU)

On an annual basis, over 230,000 passengers from the LFT Catchment Area oryginate air travel at alternate airports. MS Y captures 64 % of this lost trafic due to WN and that carrier3 low fares.

148,884 407.9 38.8%

150,544 4 12.4 39.3%

38,753 106.2 10.1%

17,747 47.9 4.6%

11,211 30.7 2.9%

9,264 25.4 2.4%

KIEHL 7

Source: D.O. T. IO% Coupon Sample and M D T (YE April 2002)

HENDRICKSUN

Retention Comparison With the amount of service provided at L FTj retention at LFT is lower than comparable markets. Proximi@ to MS Y (and WN’S low fares) is a hindrance to retention at L FT.

Market: Cape Chrdeau, Missouri Groton/New London, Connecticut Watertown, New York Ogdensburg, New York Oshkosh, Wisconsin Lafayette, Indiana Reading, Pennsylvania Grand Island, Nebraska Burlington, Iowa Newport NewslWilliamburg, Vuginia Mason City, Iowa Massena, New York Atlantic City, New Jersey St. Cloud, Minnesota Carlsbad, New Mexico Oainsville, Florida Brained, Minnesota Parkersburg, West Viginia Laredo, Texas Brownsville, Texas Monterey, Califomia Huntington, West Viginia Bemidji, Minnesota Hibbing, Minnesota Lafayette, Louisiana

Daily Non-stop Retention: Markets &g&

2% 3% 3% 4yo 5% 7% 8% 12% 14% 1 7% 19% 19% 21% 22% 29% 300/0 30% 33% 36% 37% 37% 39?! 39% 39% 39%

1 1 1 1 1 I 2 1 1 6 1 1 8 1 1 2 1 1 3 1 3 3 1 1 3

~

51 51 71 33 48 62 120 26 50

1,374 146 24

1,182 199 21 535 160 82

3% 290 832 334 155 37 722

Market: Daytona Beach, Florida Rhmelander, Wisconsin Farmington, New Mexico Waterloo, Iowa Champaign, Itlinois Lawton, Oklahoma &and Rapids, Minnesota Rochester, Minnesota Lansing, Michigan Augusta, Georgia Appleton, Wisconsin AsheviIle, North Carolina Thief River Falls, Minnesota Wausau, Wisconsin W ilkes -Bam/Scrsnton, Pennsylvania Gulfport, Mississippi Duluth, Minnesota Bingharnton, New York Savannah, Georgia Columbia. South Carolina Corpus Christi, Texas Moline, Illinois Grand Forks, North Dakota Sacramento, Califomia

Wily Non-stop Retention: Markets &&

41% 41% 43% 47% 48% 49% 54% 55% 58% 59% 60% 60% 6oo/o 61% 62% 64% 66% 70% 74% 78% 80% 80% 82% 86%

3 2 3 3 3 1 1 2 6 2 5 6 1 5 5 5 2 4 9 12 4 9 1

23

629 I50 220 253 534 190 34 942

1,411 735

1,259 1,213

17 728

1,194 1,473 8% 644

3,619 2,378 1,776 2,199 473

16,825

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Carrier Share: Lafayette Catchment Area Bookings

The current local camers (CO? DL, and NW) only make up about half the local bookings.

United AirTran America West 1% Other

I f 7% -, ., US Airwavs CJ Northwest

e 12%

A

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HENDR I c K

Lafayette (L FT) captures a sl@ht& h@her share of ';oremium "passengers than it does overall. In many cases, retention of these %igh endpassengers is much h@her than the overall capture rate. This is due to the value put on time, thus the convenience of the local airport The proximity of LFT to MSY and the low fares offered by WN are attractive. IAH offers non- stop sewice to nearly every major domestic market. Given these options, even 58% of the time-sensitive business tra veler opts to fly from alternative airports.

HOU m JAN

2A%\ r 0 . 8 % DFW

KIEHL -7 HENDRICKSON