APPLICATION UNDER SMALL COMMUNITY AIR SERVICE ......Name of Signatory Party for Legal Sponsor: Eric Johnson, President DUNS Number: 15-094-7141 EIN/Tax ID: B. LIST THE NAME OF THE

PROPOSAL OF METROPOLITAN TOPEKA AIRPORT AUTHORITY ▪ TOPEKA, KANSAS ▪ PAGE 1

APPLICATION UNDER

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT-OST-2020-0231

SUMMARY INFORMATION

A. PROVIDE THE LEGAL SPONSOR AND ITS DUN AND BRADSTREET (D&B) DATA UNIVERSAL

NUMBERING SYSTEM (DUNS) NUMBER, INCLUDING +4, EMPLOYEE IDENTIFICATION NUMBER

(EIN) OR TAX ID.

Legal Sponsor Name: Metropolitan Topeka Airport Authority

Name of Signatory Party for Legal Sponsor: Eric Johnson, President

DUNS Number: 15-094-7141

EIN/Tax ID:

B. LIST THE NAME OF THE COMMUNITY OR CONSORTIUM OF COMMUNITIES APPLYING:

1. Metropolitan Topeka Airport Authority, Topeka, Kansas

C. PROVIDE THE FULL AIRPORT NAME AND 3-LETTER IATA AIRPORT CODE FOR THE

APPLICANT(S) AIRPORT(S) (ONLY PROVIDE CODES FOR THE AIRPORT(S) THAT ARE ACTUALLY

SEEKING SERVICE).

1. Topeka Regional Airport, FOE

IS THE AIRPORT SEEKING SERVICE NOT LARGER THAN A SMALL HUB AIRPORT UNDER FAA HUB

CLASSIFICATIONS EFFECTIVE ON THE DATE OF SERVICE OF THE ATTACHED ORDER?

Yes No

DOES THE AIRPORT SEEKING SERVICE HOLD AN AIRPORT OPERATING CERTIFICATE ISSUED BY

THE FEDERAL AVIATION ADMINISTRATION UNDER 14 CFR PART 139? (IF “NO”, PLEASE

EXPLAIN WHETHER THE AIRPORT INTENDS TO APPLY FOR A CERTIFICATE OR WHETHER AN

APPLICATION UNDER PART 139 IS PENDING.)

Yes No (explain)

X

X


D. SHOW THE DRIVING DISTANCE FROM THE APPLICANT COMMUNITY TO THE NEAREST:

1. Large hub airport: Dallas/Ft. Worth Int’l (DFW), 481 miles

2. Medium hub airport: Kansas City Int’l (MCI), 79 miles

3. Small hub airport: Wichita (ICT), 150 miles

4. Airport with jet service: Manhattan (MHK), 70 miles

Note: Provide the airport name and distance, in miles, for each category.

E. LIST THE 2-DIGIT CONGRESSIONAL DISTRICT CODE APPLICABLE TO THE SPONSORING

ORGANIZATION, AND IF A CONSORTIUM, TO EACH PARTICIPATING COMMUNITY.

1. KS-02

F. APPLICANT INFORMATION: (CHECK ALL THAT APPLY)

Not a Consortium Interstate Consortium Intrastate Consortium

Community (or Consortium member) previously received a Small Community Air

Service Development Program Grant

NOTE: A community that currently receives subsidized Essential Air Service funding,

receives assistance under the Alternate Essential Air Service Pilot Program, or is a

participant in, and has received a grant under, the Community Flexibility Pilot Program,

is not eligible for SCASDP grant funds. See Section C.1. (“Essential Air Service

Communities”)

If previous recipient: Provide year of grant(s): 2012; and, the text of the grant agreement

section(s) setting forth the scope of the grant project:

Revenue guarantee, start-up cost offsets, and associated marketing to recruit, initiate, and support

new non-stop service from Forbes Field Airport to Chicago.

G. PUBLIC/PRIVATE PARTNERSHIPS: (LIST ORGANIZATION NAMES)

PUBLIC PRIVATE

1. Metropolitan Topeka Airport Authority 1. Greater Topeka Area Chamber of Commerce

2. City of Topeka 2. Coalition of Topeka Area Businesses

3. Shawnee County Commission

X


H. PROJECT PROPOSAL:

1a. GRANT GOALS: (CHECK ALL THAT APPLY)

Launch New Carrier Secure Additional Service Upgrade Aircraft

First Service New Route Service Restoration

Regional Service Surface Transportation Professional Services

Other (explain)

_____________________________________________________________________

1b. GRANT GOALS: (SYNOPSIS)

CONCISELY DESCRIBE THE SCOPE OF THE PROPOSED GRANT PROJECT (FOR EXAMPLE,

"REVENUE GUARANTEE TO RECRUIT, INITIATE AND SUPPORT NEW DAILY SERVICE

BETWEEN ___ AND ___. OR "MARKETING PROGRAM TO SUPPORT EXISTING SERVICE

BETWEEN ___ AND ___ BY ____ AIRLINES."

Topeka Regional Airport and its community funding partners seeks a Small Community Air

Service Development Grant in support of a revenue guarantee to recruit non-stop service to

Dallas/Ft. Worth, providing broad connectivity to much of the country.

1c. GRANT HISTORY:

DOES THIS APPLICATION SEEK TO REPEAT A PAST GRANT PROJECT OF THE COMMUNITY OR

CONSORTIUM (FOR EXAMPLE, A SPECIFIC DESTINATION AIRPORT)?

Yes No

IF THE ANSWER TO THE ABOVE QUESTION IS ‘YES’:

A: WHAT YEAR WAS THE FORMER GRANT AGREEMENT SIGNED? _____

B: HAVE 10 YEARS PASSED SINCE THE PREVIOUS GRANT AGREEMENT WAS SIGNED?

Yes No

X

X

X

X

X

X


IF THE ANSWER TO ‘B’ ABOVE IS ‘NO,’ THE APPLICANT SHOULD APPLY FOR A

FORMAL WAIVER OF THE TEN-YEAR SAME PROJECT LIMITATION (SEE SECTION C.1.

“SAME PROJECT LIMITATION”). THE REQUEST FOR WAIVER SHOULD INCLUDE A) A

STATEMENT THAT THE COMMUNITY OR CONSORTIUM IS REQUESTING A WAIVER

OF THE LIMITATION IN ACCORDANCE WITH THE PROVISIONS OF 49 U.S.C. § 41743(C)

(4)(C); AND B) INFORMATION AND EVIDENCE TO SUPPORT A FINDING THAT THE

APPLICANT SPENT LITTLE OR NO MONEY ON ITS PREVIOUS PROJECT OR ENCOUNTERED

INDUSTRY OR ENVIRONMENTAL CHALLENGES, DUE TO CIRCUMSTANCES THAT WERE

REASONABLY BEYOND THE CONTROL OF THE COMMUNITY OR CONSORTIUM. IF YOU

HAVE ANY QUESTIONS ABOUT YOUR COMMUNITY’S PAST GRANTS, PLEASE CONTACT

THE DEPARTMENT.

2. FINANCIAL TOOLS TO BE USED: (CHECK ALL THAT APPLY)

Marketing (including Advertising): promotion of the air service to the public

Start-up Cost Offset: offsetting expenses to assist an air service provider in setting up a

new station and starting new service (for example, ticket counter reconfiguration)

Revenue Guarantee: an agreement with an air service provider setting forth a minimum

guaranteed profit margin, a portion of which is eligible for reimbursement by the

community

Recruitment of U.S. Air Carrier: air service development activities to recruit new air

service, including expenses for airport marketers to meet with air service providers to make

the case for new air service

Fee Waivers: waiver of airport fees, such as landing fees, to encourage new air service;

counted as in-kind contributions only

Ground Handling Fee: reimbursement of expenses for passenger, cabin, and ramp (below

wing) services provided by third party ground handlers

Travel Bank: travel pledges, or deposited monetary funds, from participating parties for

the purchase of air travel on a U.S. air carrier, with defined procedures for the subsequent

use of the pledges or the deposited funds; counted as in-kind contributions only

Other (explain below)

______________________________________________________________________

X

X

X

X

X


I. EXISTING LANDING AIDS AT LOCAL AIRPORT:

Full ILS Outer/Middle Marker Published Instrument Approach

Localizer Other (specify)

J. PROJECT COST: DO NOT ENTER TEXT IN SHADED AREA

REMINDER: LOCAL CASH CONTRIBUTIONS MAY NOT BE PROVIDED BY AN AIR CARRIER (SEE “TYPES

OF CONTRIBUTIONS FOR REFERENCE).

LINE DESCRIPTION SUB TOTAL TOTAL AMOUNT

1 Federal amount requested $800,000

2 State cash financial contribution $0

Local cash financial contribution

3a Airport cash funds $50,000

3b Non-airport cash funds $300,000

3 Total local cash funds (3a + 3b) $350,000

4 TOTAL CASH FUNDING (1+2+3) $1,150,000

In-Kind contribution

5a Airport In-Kind contribution** Fee Waivers

5b Other In-Kind contribution** $0

5 TOTAL IN-KIND CONTRIBUTION

(5a + 5b)

Undetermined – based on

aircraft size

6 TOTAL PROJECT COST (4+5) $1,150,000

K. IN-KIND CONTRIBUTIONS

For funds in lines 5a (Airport In-Kind contribution) and 5b (Other In-Kind contribution), please describe

the source(s) of fund(s) and the value ($) of each.

Topeka Regional Airport will offer one year of full terminal rent and landing fee waivers as an in-kind

contribution. The amount of the waiver will depend on aircraft size and the amount of terminal space required by

the carrier operating service.

X

X

X

X


L. IS THIS APPLICATION SUBJECT TO REVIEW BY AN AFFECTED STATE UNDER EXECUTIVE

ORDER 12372 PROCESS?

a. This application was made available to the State under the Executive Order 12372

Process for review on (date) _____________.

b. Program is subject to E.O. 12372, but has not been selected by the State for review.

c. Program is not covered by E.O. 12372.

M. IS THE LEAD APPLICANT OR ANY CO-APPLICANTS DELINQUENT ON ANY FEDERAL DEBT?

(IF “YES”, PROVIDE EXPLANATION)

No Yes (explain)

___________________________________________________________________

X

X


Legal Sponsor 7

Introduction 8

The Topeka Air Service Market 9

Catchment Area Demographics 9

Regional Pandemic Service Losses 10

Performance of Previous Service 12

Air Service Needs and Deficiencies 14

Passenger Retention and Drive Diversion 14

Point-of-Origin on Previous Service 15

Air Service Development Plan 16

Targeted Service: Topeka – Dallas/Ft. Worth 17

Project Timeline 19

Funding Plan 19

Public/Private Partnership 20

Conclusion 21

The Metropolitan Topeka Airport Authority is the legal sponsor responsible for this Grant program. The

Authority is the governmental agency that owns and operate Topeka Regional Airport.

Metropolitan Topeka Airport Authority

Topeka Regional Airport

6510 SE Forbes Avenue, Suite One

Topeka, Kansas 66619

Eric Johnson, President/Director of Airports

(785) 862-2362

[email protected]

TABLE OF CONTENTS

SECTION PAGE NUMBER

LEGAL SPONSOR


Airline service in Kansas and nearby Missouri has been decimated by the pandemic. The two states have

lost 40% of their airline capacity – an average of 9,400 departing seats each and every day that have been

removed from service. Topeka’s main alternate airport, Kansas City, has lost 42% of its capacity, or an

average of 8,400 departing seats per day.

Topeka is looking to take advantage of this shift is airline capacity to secure its own scheduled airline

service, post-pandemic. Topeka Regional Airport is seeking Small Community Air Service Development

Grant funding for daily scheduled service to Dallas/Ft. Worth on the American Airlines code. The project

will re-allocate some of the region’s lost capacity to Topeka – an airport without current scheduled flights.

In preparation for this application, the Airport has been working with its community partners to grow its

local risk mitigation funding. It has increased the local share in this application from $250,000 in 2019 to

$350,000 in 2021. Community support for service has not

lagged, even during the pandemic.

The Airport met with executives from American Airlines and

SkyWest Airlines, in person, this fall to discuss this specific

project and earn each Airline’s support. While both carriers are

still working to determine what their networks will look like as

the pandemic wanes, both were very supportive of the concept

of serving Topeka from DFW.

Topeka is one of only a handful of state capital cities without scheduled airline service. The region is

quickly growing with the lowest unemployment in the region. Yet business development will be hindered

following the pandemic due to the difficulty in traveling to and from the community.

Topeka Regional Airport has seen success in leveraging a Small Community Air Service Development

Grant award airline service. In 2014, United launched service between Topeka and Chicago O’Hare – the

exact goal of the application. The Airport converted the award into service in less than 12 months. That

service brought fares to the Topeka catchment area that were 19% below the prevailing average offered at

other airports – which it hopes to duplicate with this project.

INTRODUCTION

“Topeka is looking to take advantage of this shift is

airline capacity to secure its own scheduled airline

service, post-pandemic. The project will re-allocate some

of the region’s lost capacity to Topeka – an airport without

current scheduled flights.”


Topeka is at the center of a region that has lost more than 40% of its capacity during the pandemic. While

Topeka does not have current air service, the airports the region relies on for access to the world have seen

flight schedules slashed. While demand is currently down, it will return and Topeka has the opportunity to

be better positioned to serve east central Kansas than it was before the pandemic.

The Topeka area is home to 8% of the population of the State of Kansas but Topeka Regional Airport is

one of the few state capitals without airline service. The Airport is at the center of an area with a population

of almost 360,000 people (refer to

map 1). The Topeka metro area

(MSA) is home to 232,594 people

as of the 2019 US Census

estimate. The 30-minute drive

time catchment area for Topeka

Regional Airport is home to

176,500 people. The 45-minute

drive time catchment has a

population of 295,500 people.

The hour drive time catchment

has a population of 359,000

people.

Topeka has weathered the

pandemic much better than most

other areas of the Midwest, and of

the country. Topeka

unemployment in September was 5.9%, which was two points better than the national average of 7.9%.

Lawrence unemployment was 6.2%, which is still better than average. Kansas City, by comparison, had

unemployment at 6.1%. People are still able to work in the region – as it has a high percentage of essential

jobs in health care and agriculture.

THE TOPEKA AIR SERVICE MARKET

MAP 1: TOPEKA REGIONAL AIRPORT CATCHMENT AREA CY2019; SOURCE: US CENSUS DATA


Colleges and universities surrounding Topeka enrolled more than 72,000 full-time students for the fall 2020

semester – with most of the learning taking place in person. The nearby University of Kansas (also known

as KU) in Lawrence is just 25 minutes from the terminal at Topeka Regional Airport. In a typical Athletic

Year, University of Kansas teams and the teams they are scheduled to play, will travel by air at least 70

times. Major KU teams use Topeka for charters to events. The smaller teams and fans of KU are forced

to fly through Kansas City, with no local travel option. The University would like to move that travel to

Topeka, post-pandemic, if service was offered.

Its currently more difficult

than ever for passengers

traveling to and from the

Topeka catchment area to

fly. While a new study of

2019 data completed for this

application shows the

catchment generates an

average of 1,600 passengers

per day each way (PDEW),

airports in the region have had service levels collapse during the pandemic.

The region, including all

airports in both Kansas and

Missouri, had 17 million

scheduled seats in 2019

(refer to chart 1). That

dropped to 10 million in

2020. The region has lost an

average of 9,400 departing

seats per day – or more than

120 departing flights per

day. A total of 40% of

available seats were pulled from airports in the region in 2020.

CHART 1: SCHEDULED AIRLINE SEATS IN KANSAS AND MISSOURI 2020 VS. 2019; SOURCE: AIRLINE DATA, INC. SCHEDULES

CHART 2: SCHEDULED AIRLINE SEATS AT KANSAS CITY (MCI) 2020 VS. 2019; SOURCE: AIRLINE DATA, INC. SCHEDULES


Topeka’s main alternate airport, Kansas City, has been even more impacted. Airlines serving MCI cut

available seats by 42% in 2020, as compared to 2019 (refer to chart 2 on the previous page). Kansas City

had 15 million scheduled seats in 2019. That dropped to 8 million in 2020. Kansas City has lost an average

of 8,400 departing seats per day during the pandemic.

Kansas City has lost more than

just available seats and flights.

It has lost nonstop service in 15

markets (refer to map 2). It no

longer has nonstops to many

cities on the east and west

coast, along with some primary

leisure markets. With fewer

nonstops from MCI, many who

fly to and from Kansas City

will be forced to make

connections in the future,

where they once had the

convenience of flying direct.

This will make it easier for

Topeka to convert local

passengers to Topeka flights,

even if those flights are not as well timed or if they require connections. Kansas City’s competitiveness

has been permanently weakened by the pandemic resulting in new opportunity for Topeka to support air

service.

The current situation is much different than it was the last time Topeka had air service. In 2014, Topeka

Regional Airport successfully leveraged its previous Small Community Air Service Development Grant

award for United Airlines-coded regional jet service to Chicago O’Hare. It took the Airport less than a year

to secure service once its Grant was awarded. But the service immediately ran into difficulty due to

operational challenges. Topeka had the unique, unfortunate distinction of having its inaugural flight – the

very first flight to and from Chicago – cancelled due to weather. The immediate media narrative was that

Topeka’s new airline service was unreliable.

MAP 2: ROUTES PERMANENTLY CANCELLED AT KANSAS CITY (MCI) AS OF JANUARY 2021; SOURCE: AIRLINE DATA, INC. SCHEDULES


Unfortunately, that narrative proved to be true. United cancelled 14% of flights in the first month of service

and 10% of flights in the second month (refer to chart 3). United cancelled 1.3% of all scheduled flights

for the full period. United only had two months with fewer than 4% of flights cancelled. The businesses

that supported the introduction of

service quickly found their

employees booking away from

Topeka, flying instead out of

Kansas City as so many of their

flights were cancelled.

With such poor operational

reliability, it is no mystery as to

why the service ended so quickly.

The impact of the Topeka

community’s perception that service to Chicago was often cancelled and delayed is clear in the passenger

origin and destination data. Most passengers were worried about making connections at Chicago; those

flying to other cities often drove to Kansas City for flights instead of attempting to connect at O’Hare.

Topeka’s previous Grant did achieve the goal of lowering fares for passengers in the Airport’s catchment

area. The average fare they paid to use United service at Topeka Regional Airport was $183 each way.

Those who continued to drive to other airports in the region paid a premium of 19% over the Topeka fare,

or $218 each way. The fact that travelers were willing to pay this premium, while still spending hours in a

car to access air service, indicates just how much the poor initial operational reliability of service damaged

community perceptions.

Topeka Regional Airport has learned a number of lessons from its previous network carrier service. First,

with the breadth of service available at Kansas City and the high share of business travelers, it must have

service that is reliable. Second, it must have service to a hub with better weather than Chicago. Third, it

must work to launch service in a favorable time of the year, as the effects of the pandemic are waning.

This application for support from the Small Community Air Service Development Grant Program achieves

all three of these goals. The Airport seeks service to Dallas/Ft. Worth, on a regional carrier that can offer

connections to American Airlines’ large DFW hub. The service is targeted to begin between spring and

fall and not in the winter.

CHART 3: OPERATIONAL RELIABILITY OF FOE-ORD SERVICE JANUARY 2014 – AUGUST 2014; SOURCE: AIRLINE DATA, INC.


The Airport has conducted meetings with stakeholders in the community to determine whether or not

regional businesses even want local air service. Despite the previous experience, the vast majority of local

businesses are behind this application. They believe Topeka can support the right service. They are willing

to back their demand for air service with matching funds for this application – which have been increased

from $200,000 to $300,000 from the last application in 2019.

The end of the pandemic will represent a unique opportunity for Topeka Regional Airport. Air service in

the region will be re-distributed. Kansas City will not regain all of the seats and nonstop destinations it had

in 2019. With air service less convenient at Kansas City, more passengers will be interested in using

Topeka. This Grant is the key to securing that service.


Many areas of the country have seen massive aviation impacts due to the pandemic. Topeka does not have

scheduled airline service – but its residents have been impacted by huge capacity cuts at Kansas City,

Wichita, Omaha, and Manhattan. The pandemic is likely to change the way Topekans travel for many years

to come. But it also presents an opportunity to reprogram passengers to fly from their local airport. And

there is no question that the underlying market demand is sufficient to support flights.

The withdrawal of United Airlines service from Topeka Regional Airport in 2014 left eastern Kansas with

no scheduled airline service. With a large and growing economy, more than 360,000 people who live closer

to Topeka Regional Airport than any other airport, and a state capital, the Airport will be able to support

the right air

service.

The Airport

commissioned a

new passenger

retention study for this application. Data from 2019 was analyzed, to provide a market baseline, pre-

pandemic. The study shows the immediate Topeka Regional Airport catchment area generates more than

1.1 million annual airline passengers (refer to chart 4). Before the pandemic, the catchment area generated

an average of 1,572 passengers per day each way (PDEW), enough to fill 31 daily 50-seat regional jet

departures.

Topeka catchment area

passengers pay high fares no

matter what airport they use for

service. The average fare in the

catchment, paid by all passengers

at all the airports they use, is $214 one-way. The vast majority of Topeka catchment area passengers, 99%,

use flights at Kansas City International. Other airports get much smaller shares of Topeka area passengers.

Topeka’s closest airport, Manhattan, has an average one-way fare of $246 on flights to Chicago and

Dallas/Ft. Worth.

AIR SERVICE NEEDS AND DEFICIENCIES

CHART 4: TOPEKA PASSENGER LEAKAGE CY2019; SOURCE: VOLAIRE AVIATION, INC.

CHART 5: FARE BY AIRPORT OF ORIGIN CY2019; SOURCE: VOLAIRE AVIATION, INC.

Rank Airport Code Airport Location and Name O&D Passengers PDEW Share

1 MCI Kansas City International Airport 1,133,463 1,552.7 98.8%

2 ICT Wichita Dwight D. Eisenhower Nat'l Airport 7,707 10.6 0.7%

3 OMA Omaha Eppley Airfield 4,487 6.1 0.4%

4 MHK Manhattan Regional Airport 1,684 2.3 0.1%

All Airports 1,147,342 1,571.7 100.0%

Rank Airport Code Airport Location and Name RDEW Fare

1 MCI Kansas City International Airport $332,107 $214

2 ICT Wichita Dwight D. Eisenhower Nat'l Airport $2,246 $213

3 OMA Omaha Eppley Airfield $1,174 $191

4 MHK Manhattan Regional Airport $567 $246

All Airports $336,093 $214


The Airport also wanted to understand passenger behavior from its last scheduled service, United to

Chicago, which operated in 2014. It commissioned a point-of-origin study to determine where the

passengers using that United service were coming from. The study shows that while passengers came from

miles away, the majority who used the service were from the immediate area.

The study further showed an

average of 27 passengers per day

(PDEW) originated their trips at

Topeka Regional Airport. 93% of

passengers came from Kansas,

while 5% came from Missouri, and 2% came from Nebraska (refer to chart 6). The passengers who came

from Topeka paid an average of $240 one way and generated $2.2 million in ticket revenue.

Zip codes in Topeka generated 47% of outbound passengers, while Lawrence generated 21%, Overland

Park generated 16% (refer to map 3). Topeka did draw a small number of passengers from Manhattan

(3%), Kansas City (3%), and

Wichita (1%), but the number

of passengers from those areas

was negligible. The bottom

line: Topeka service was

supported by Topeka

passengers.

While the pandemic has

undoubtedly changed travel

patterns, the Airport knows

from the study of past

experience it can pull local

travelers away from far-away

alternate airports. The

pandemic is creating an

unforeseen opportunity to bring Topeka travelers back to their local airport. To do that, the Airport will

need to mitigate risk, cultivate its relationship with the airline partner, and effectively market its benefits to

the community.

MAP 3: ROUTES PERMANENTLY CANCELLED AT KANSAS CITY (MCI) AS OF JANUARY 2021; SOURCE: AIRLINE DATA, INC. SCHEDULES

CHART 6: POINT-OF-ORIGIN FOR TOPEKA UNITED PASSENGERS CY2014; SOURCE: VOLAIRE AVIATION, INC.

State of Origin Passengers PDEW Fare Revenue Pax Share Rev Share

Kansas 9,056 24.8 $240 $2,175,846 93.1% 91.5%

Missouri 440 1.2 $347 $152,718 4.5% 6.4%

Nebraska 232 0.6 $208 $48,141 2.4% 2.0%

Totals 9,728 26.7 $244 $2,376,706


Even during the pandemic, Topeka Regional Airport leadership continued to work with business partners

throughout the eastern half of Kansas on its strategic plan to secure network airline service. Those business

partners have been clear their preference of hub

is Dallas/Ft. Worth and that DFW serves most

of their destinations with a single stop. With

confidence that business travelers will use local

service once the pandemic relents, the Airport

seeks a minimum revenue guarantee in support

of American Airlines-coded service to DFW.

Topeka’s market, including passengers that

drive to other airports to access airline service,

ranks as the third-largest in the Midwest

without a Dallas/Ft. Worth nonstop flight (refer

to chart 7). The Topeka catchment area

generated an average of 19 passengers per day

each way (PDEW) to and from Dallas before

the pandemic. With such a large local traffic

component, Topeka Regional Airport is

confident flights to and from DFW will be full.

The size of the local market also makes it

attractive for a carrier that is considering

service.

Topeka was able to quickly leverage its previous Small Community Air Service Development Grant

(SCASDG) award for service, with United announcing its Chicago flights less than a year after Topeka’s

Grant was awarded. Topeka’s Grant also lowered the average fare paid by its catchment area passengers

by 19%, meeting the main goal of the SCASDG Program, to provide fare relief. Service to and from

Dallas/Ft. Worth should have the same positive impact on the community.

AIR SERVICE DEVELOPMENT PLAN

CHART 7: DALLAS/FT. WORTH’S TOP 30 UNSERVED MARKETS YE1Q20; SOURCE: AIRLINE DATA, INC.

Market Passengers PDEW O/W Fare

Green Bay, WI 15,695 21.5 $247

Appleton, WI 14,996 20.5 $234

Topeka True Market 13,832 18.9 $168

Akron, OH 10,828 14.8 $234

Flint, MI 10,532 14.4 $199

Kalamazoo, MI 7,858 10.8 $229

Lansing, MI 7,309 10.0 $206

Mosinee, WI 6,957 9.5 $231

Rochester, MN 6,690 9.2 $201

Williston, ND 6,391 8.8 $342

La Crosse, WI 5,973 8.2 $200

Minot, ND 5,678 7.8 $283

Saginaw/Bay City/Midland, MI 5,489 7.5 $242

Duluth, MN 5,477 7.5 $213

Grand Forks, ND 3,503 4.8 $259

Dubuque, IA 2,992 4.1 $245

Toledo, OH 2,857 3.9 $242

Marquette, MI 2,725 3.7 $242

Lincoln, NE 2,486 3.4 $244

Dickinson, ND 1,654 2.3 $258

Rhinelander, WI 1,641 2.2 $220

Bemidji, MN 1,506 2.1 $230

Aberdeen, SD 1,374 1.9 $219

Waterloo, IA 1,342 1.8 $205

International Falls, MN 1,323 1.8 $226

Pellston, MI 1,209 1.7 $324

Sault Ste. Marie, MI 1,160 1.6 $243

Pierre, SD 1,065 1.5 $190

Muskegon, MI 936 1.3 $167

Eau Claire, WI 903 1.2 $201


The Dallas/Ft. Worth hub

would connect Topeka to 158

cities, omni-directionally (refer

to map 4), even taking into

account current pandemic

schedules at the DFW hub.

The Topeka catchment area

currently generates more than

845,000 passengers that could

flow over Dallas/Ft. Worth to

those cities, or an average of

1,159 passengers per day each

way (PDEW). If the market is

served with two daily 50-seat

regional jet flights, the carrier

providing service would need

to capture just 14% of available

passengers to achieve an 85% load factor.

As mentioned, in the local Dallas/Ft. Worth

market, the Topeka catchment area

generates an average of 19 PDEW (refer to

chart 8). Dallas ranks as Topeka’s 19th

largest origin and destination passenger

market overall.

Uniquely among major airline hubs in

proximity to Topeka, Dallas/Ft. Worth

provides connectivity to both the east and

west coast. Dallas service would be able to

access passengers in the large

Washington/Baltimore market, which

generates an average of 86 PDEW, just as

well as it would access passengers in the

MAP 4: CONNECTIVITY OVER DALLAS/FT. WORTH ON THE AMERICAN CODE AS OF JANUARY 2021; SOURCE: VOLAIRE AVIATION, INC.

CHART 8: TOP 25 MARKETS OVER DFW ON AA CODE CY2019; SOURCE: VOLAIRE AVIATION, INC.


Los Angeles market, which generates 80 PDEW (refer to chart 8 on the previous page). The wide breadth

of connectivity should help ensure the service’s success and differs from previous Chicago service that only

connected directionally to the east.

The current Topeka catchment area average fare

over Dallas/Ft. Worth is $191 one-way, including

all passengers to all available destinations (refer to

chart 9). Somewhat unusually, the highest fares are

not found in the longest haul markets. For example,

the New York/Newark fare is significantly higher

than the Los Angeles fare.

Overall, Topeka catchment area passengers would

benefit from fare relief with nonstop DFW flights.

They would also have reduced expenses, which

average $80 roundtrip, by avoiding the drive to

Kansas City on the Kansas Turnpike tollway.

Service would also be good for the State of Kansas,

and its capital. Data from the Airport’s leakage

study showed that Kansas lost $245 million in

airline ticket revenue to Missouri in 2019. Keeping

that revenue from leaving the State is a focus of its

leadership post-pandemic.

In preparation for this application, Topeka Regional Airport met with executives from both American

Airlines and SkyWest Airlines, in person, in October. While neither American nor SkyWest could commit

to serving the market, both stated the market would be high on their list of new options post-pandemic

should the Airport be able to develop a revenue guarantee.

If the Airport is awarded a Small Community Air Service Development Grant by May of 2021 it would

work to finalize a contract for new service with a carrier, including the details of its minimum revenue

guarantee (MRG), by winter of 2021 (refer to chart 10 on the following page). It would hope to announce

CHART 9: FARE IN TOP MARKETS OVER DFW ON AA CY2019; SOURCE: VOLAIRE AVIATION, INC.


new service in February of 2022, with service

launch in May of 2022, pending the trajectory

of the pandemic. The goal would be to wrap-

up the project after two years, by June of 2024,

assuming most potential travelers get

vaccinations in 2021.

Collectively, businesses and governmental

agencies in Topeka have pledged $300,000 in

cash support for a minimum revenue guarantee

(MRG) for service between Topeka and Dallas/Ft. Worth, which is up from $200,000 in the last application

filed by the Airport in 2019 (refer to chart 11). Additionally, the Airport has committed $50,000 in

marketing cash to advertise and promote the new service. Beyond the matching cash in this application,

Topeka Regional Airport will offer the carrier landing fee and terminal rent waivers for a period of one

year. The value of these in-kind contributions is undetermined and will

depend on the size of aircraft used for the service and the amount of terminal

space the airline requires.

The Airport and its community partners seek a federal Small Community

Air Service Development Grant of $800,000 to enhance the minimum

revenue guarantee (MRG) for service to Dallas/Ft. Worth (refer to charts 11 and 12). The grant will allow

the Airport to offer a total MRG of $1.1 million for new service. This amount is believed to be sufficient

to cover a potential loss in the start-up phase of service as we exit the pandemic. The total project amount

is $1.15 million. The vast majority of funding, 96%, will support

the minimum revenue guarantee (MRG). The Airport’s

contribution will support the marketing effort.

While the main target of service in this application is service to

Dallas/Ft. Worth, with broad connectivity, Topeka Regional

Airport is prepared to shift the focus should that service be found

to be unattainable. The alternate project would be to connect to a hub to the south and/or west of the market

that could provide similar connectivity. Hubs in Houston and Denver would be strong alternate choices.

CHART 11: FUNDING SOURCES SOURCE: TOPEKA AIRPORT

CHART 12: FUNDING PLAN SOURCE: TOPEKA REGIONAL AIRPORT

CHART 10: PROJECT TIMELINE SOURCE: TOPEKA REGIONAL AIRPORT

Task Targeted Date

SCASD Grant Award May 2021

Finalized SCASD Grant Contract May 2021

Continue Meetings with Targeted Carriers Summer/Fall 2021

Negotiate Minimum Revenue Guarantee (MRG) Winter 2021

Development of Initial Advertising Winter 2021

Service Announcement February 2022

Advertising Launch February 2022

Service Launch May 2022

End of MRG Program May 2024

SCASD Grant Closed June 2024

Funding Source Amount

Local Contributors $300,000

Airport $50,000

SCASD Grant Award $800,000

Total $1,150,000

Funding Use Amount

Minimum Revenue Guarantee (MRG) $1,100,000

Marketing and Advertising $50,000

Landing Fee Waivers TBA

Total $1,150,000


Topeka Regional Airport works with multiple community partners on support for air service development

and expansion. It has continued to keep contact with these partners throughout the pandemic. The Airport

counts upon its partners to develop support and funding for the recruitment of airline service. Many in the

community realize the value of scheduled air service in growing the local economy and in supporting the

capital of the State of Kansas.

The Greater Topeka Chamber of Commerce has the mission of working to get the things done that a

company cannot do alone. A Chamber membership is seen as an investment in both a company's and the

community's future. The membership of the Greater Topeka Chamber of Commerce represents the entire

community with members from business and industry, private associations, civic organizations, home based

businesses, social service agencies, education, government, and individuals. Over 1,200 member firms,

representing over 1,900 individuals, are Chamber members, joining in their support of Topeka Regional

Airport.

Dozens of local businesses will work with the Chamber to support the push to bring air service to eastern

Kansas. These businesses will not only pledge to use new service at Topeka Regional Airport, but also

work to make sure the air service marketing message is spread throughout the community.

As the State’s capital, the City of Topeka is glad to have the opportunity to partner with the Greater Topeka

Chamber of Commerce and Topeka Regional Airport to bring air service to the City. Community leaders

support the effort to bring sustainable network carrier service to the region.

A three-person board oversees the operation of Shawnee County, the home of the City of Topeka and

Topeka Regional Airport. The Commission is publicly elected, and in charge of a multi-million-dollar

annual budget. The Commission has a current emphasis on economic development and, as such, supports

the effort to bring air service back to Topeka Regional Airport, as it supports the efforts of the Greater

Topeka Chamber of Commerce.

PUBLIC/PRIVATE PARTNERSHIP

GREATER TOPEKA AREA CHAMBER OF COMMERCE


The end of the pandemic will represent a unique opportunity for Topeka Regional Airport. Air service in

the region will be re-distributed. Kansas City will not regain all of the seats and nonstop destinations it had

in 2019. With air service less convenient at Kansas City, more passengers will be interested in using

Topeka. This Grant is the key to securing service.

Before the pandemic, the Topeka market generated almost 1,600 passengers per day each way (PDEW)

despite an average fare near $200 each way. The fundamentals of the market are strong. While demand

has been suppressed by the pandemic, once vaccination is widespread, Topeka’s passengers will be

traveling again.

American-coded flights to Dallas/Ft. Worth are considered to be the ideal service for Topeka. The market

is the third-largest in its region without any DFW nonstop. Connections over Dallas on the American code

also access 75% of the Topeka catchment area’s 1.1 million

annual passengers. Topeka Regional Airport would need to

capture less than 15% of its market to entirely fill all DFW

flights once the pandemic subsides.

Topeka did win service under a previous Small Community

Air Service Development Grant. That Grant achieved its goal

of lowering fares. And unlike the Airport’s previous Grant,

the matching funding for this proposal comes from a large

collection of businesses instead of a block grant from the state. This should ensure the very people who are

providing funding will use the service.

Topeka’s Airport continues its hard work, even in the midst of the pandemic to develop local air service.

It has met with both targeted carriers in this application, American Airlines and SkyWest Airlines, in person

in the last few months. It believes either American or SkyWest would be an excellent partner with service

using the American code. The community and the Airport have committed $350,000 to this project. The

Airport seeks a $800,000 Small Community Air Service Development Grant match to bring total risk

mitigation to $1.15 million for daily scheduled service.

CONCLUSION

“Kansas City will not regain all of the seats and nonstop

destinations it had in 2019. With air service less convenient

at Kansas City, more passengers will be interested in

using Topeka. This Grant is the key to securing service.”

Documents

APPLICATION UNDER SMALL COMMUNITY AIR SERVICE ......Name of Signatory Party for Legal Sponsor: Eric Johnson, President DUNS Number: 15-094-7141 EIN/Tax ID: B. LIST THE NAME OF THE