FORBES FIELD AIRPORT, TOPEKA, KANSAS - AirlineInfoairlineinfo.com/ostpdf82/100.pdf · Eric Johnson, President/Director ... FORBES FIELD AIRPORT, TOPEKA, KANSAS. ... Regional air service

August 2, 2011

Sponsor: Metropolitan Topeka Airport Authority, Topeka, Kansas

Eric Johnson, President/Director of Airports

Congressional Code: KS-002

Dun & Bradstreet Number: 150947141

Tax Identification Number (EIN): 48-0878790

Application for Federal Support for New Air Service via:

Revenue Guarantees

Advertising/Marketing Program

Start-Up Cost Offsets

In Support of Non-Stop Service between Topeka and Denver

FORBES FIELD AIRPORT, TOPEKA, KANSAS

Proposal Under the Small Community Air Service Development Program Docket DOT-OST-2011-0119

Metropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 2

TABLE OF CONTENTS

Summary Information – Appendix C 3

Introduction 6

The Topeka Air Service Market 7

Historical Service 7

Air Service Development Efforts 13

Air Service Needs and Deficiencies 14

Strategic Plan for New Air Service 19

Proposed New Route 19

Implementation Timeline 27

Alternate Plan 28

Public/Private Partnership 29

Funding Plan 31

Performance Measures and Financial Controls 33

Legal Sponsor 34

Availability of Alternate Airports 35

Airport Information 36

Community Profile 37

Conclusions 46

INTRODUCTORY LETTERS OF SUPPORT

Section Page Number


SUMMARY INFORMATION – APPENDIX C

Small Community Air Service Development Program

Docket DOT-OST-2011-0119

A. Applicant Information

Not a Consortium Community now receives EAS subsidy

Interstate Consortium Intrastate Consortium

Community previously received a Small Community Grant

If previous recipient, date of Grant: ________________________________

expiration date of Grant: _______________________

B. Public/Private Partnership

Public:

1. Metropolitan Topeka Airport Authority

2. City of Topeka

3. Shawnee County Commission

Private:

1. Greater Topeka Area Chamber of Commerce

2. Coalition of Topeka Area Businesses

C. Project Proposal

Marketing Upgrade Aircraft New Route

Travel Bank Service Restoration Subsidy

Surface Transportation Regional Service Revenue Guarantee

Launch New Carrier Start-Up Cost Offset First Service

Study Secure Additional Service Other (Specify)


D. Existing Landing Aids at Airport

Full ILS Outer/Middle Marker Published Instrument Approach

Localizer Other:

E. Project Cost

1. Federal amount requested: $ 550,000

2. State cash financial contribution: $ 0

Local cash financial contribution:

3a. Airport cash funds: $ 50,000

3b. Non-Airport cash funds: $ 15,000

3. Total local cash funds: $ 65,000

4. TOTAL CASH FUNDING: $ 615,000

In-Kind Contribution:

a. Airport In-Kind contribution: $ Various

b. Other In-Kind contribution: $ Various

5. TOTAL IN-KIND CONTRIBUTION: $ Undetermined

6. TOTAL PROJECT COST: $ 615,000 + In-Kind

F. In-Kind Contributions

For funds in lines 7a (airport in-kind contribution) and 7b (other in-kind contribution),

please describe the source(s) of fund(s) for each.

Fee waivers: landing and terminal fees (airport)

Advertising and marketing match money (media companies)

G. Is Application Subject to Review by State Under Executive Order 12372 Process?

This application was made available to the State on ______.

Program is subject to review, but has not been selected by the State.

Program is not covered.


H. Is Applicant Delinquent on any Federal Debt?

No


INTRODUCTION

Access to air service in and around Kansas’ capital is getting more difficult. The region

surrounding Topeka has seen total airline seat capacity cut by 27% in the last two years. The

result of the seat cuts has been an increase in the average fare paid by Topeka catchment

area passengers – up 14% in just the last year or $20 each way on average.

Topeka is one of the few state capitals in the country without locally-provided air service.

Topeka’s closest service is provided at Kansas City, which is more than an hour’s drive from the

center of the City. Regional air service is also provided in Manhattan, Kansas, but it is also more

than an hour from Topeka, and destinations are limited.

There is no service from central Kansas to Denver, nor is there effective connecting service to the

western US. While Kansas City does have Denver service, airlines have cut the average number

of seats per day each way between Kansas City and

Denver by 707 in the last two years, or by 32% of all

airline seat capacity in the market.

Realizing this weakness in local air service, the

Metropolitan Topeka Airport Authority has spent

considerable time building a local coalition of

support for potential air service. This local coalition

has pledged $15,000 in cash funding for this application – new from previous applications for

Small Community Air Service Development Grant funding.

Additionally, the Airport Authority has met with several carriers in 2011 to talk about Denver

service, including SkyWest, operating as United Express, and Frontier. In those meetings, the

airlines made it clear that a risk mitigation program would be a key to their interest in serving the

route. This application lays out a specific strategic plan to support service to Denver, to replace

a small portion of the Denver seats eliminated by airlines serving the larger region, and to

provide the capital of Kansas with its first scheduled, network airline service in eight years.

“[A] local coalition has pledged

$15,000 in cash funding for this

application – new from previous

applications…”


THE TOPEKA AIR SERVICE MARKET Historical Air Service

In the context of this application, Topeka may be best known as one of the few state capitals in

the country without scheduled air service. The Topeka metro area is home to almost a half

million people. The City is more than 70 miles from its nearest air service – in Kansas City. In 2011,

Topeka suffers from declining airline seat capacity in the region – with seats down 27% in the last

two years in the area surrounding Topeka. Subsequently, fares in the region have gone up by an

average of $20 each way in just the last year.

The 30 minute drive time Topeka catchment area (see within the dotted line in map 1) is home

to 168,139 people as of

the latest US Census

estimates. The one hour

drive time catchment area

(seen inside the solid line in

map 1) is home to 464,809

people.

The areas shaded in green

in map 1 represent areas

where residents must pass

the Topeka – Forbes Field

Airport on their way to

access air service at other

airports in the region –

namely Kansas City

International. The

population of the total

area in green is 199,623,

while the population of the area in dark green is 130,134, or 77.4% of the Topeka’s immediate

catchment area. Topeka is not isolated, but the areas to the north and west of the Airport

certainly are isolated.

MAP 1: Immediate (30 Minute) and Extended (60 Minute) Catchment Areas, Forbes Field Airport, Topeka


The Forbes Field Airport lost its last scheduled air service in July of 2007. Allegiant Air provided

non-stop flights, twice per week, between Topeka and Las Vegas from March of 2006 through

the summer of 2007. The service performed well, from an analysis of all data points, but it was

ended as Allegiant was beginning to see margins in the 20% to 25% range – slightly higher than

the projected margin it was likely earning in Topeka.

For the full 17-month operation of Topeka – Las Vegas service, Allegiant averaged a load factor

of 79% (see figure 1). The carrier averaged 44 available seats per day each way (SDEW), and

boarded an average of 36 passengers per day each way (PDEW) – despite the fact that the

service operated just twice per week.

Topeka – Las Vegas service performed best just before it was pulled. In the last two months of

Allegiant service, the route averages 40.3 passengers per day each way – the highest two-

month average for the entire duration the route was served (see figure 1). In the last two months

of service in Topeka, Allegiant averaged a load factor just above 91%.

12

40

4445

44

39

4544

40

44 44

48

4445

39

4544

9.4

20.3

30.0

40.839.6

34.2

36.134.8

28.5

35.5

31.1

36.535.7

32.7

29.9

40.6 40.2

0.0

10.0

20.0

30.0

40.0

50.0

60.0

2006-03 2006-04 2006-05 2006-06 2006-07 2006-08 2006-09 2006-10 2006-11 2006-12 2007-01 2007-02 2007-03 2007-04 2007-05 2007-06 2007-07

Available SDEW Onboard PDEW Load Factor

77.7%

50.7%

68.8%

90.6% 91.1% 88.5%

80.1% 79.9%

71.2%

81.5%

71.5%75.7%

82.1%

72.7%77.3%

90.3% 92.3%

FIGURE 1: Departing Seats per Day, Departing Passengers per Day, and Load Factor Topeka – Las Vegas Service, March 2006 – July 2007; Source: US DOT T100 Data


Topeka lost is last commercial hub service in 2003, when the Department of Transportation

ended its status as an Essential Air Service (EAS) market. The judgment was made due to the

fact that the average subsidy, per passenger, had topped the $200 cap. Otherwise, Topeka

would still qualify as an EAS service point today, as it had commercial service at the end of

deregulation and it lies more than 70 miles from the nearest medium hub airport, in Kansas City.

Previous scheduled hub service was not ideal, as service was provided only to Kansas City.

There was virtually no value to the local segment, so all traffic was connecting. The service was

not altogether operationally reliable, which led many to conclude a drive to Kansas City was

easier than the flight. This is what caused the EAS subsidy per passenger to spike. Any future

service in the market must connect through a hub farther away than Kansas City, to ensure

there is value for a local passenger.

The Topeka area currently makes up a small portion of the Kansas City International Airport

catchment area, as there is no current scheduled air service in Topeka. The Topeka – Forbes

Field Airport 30-minute

catchment area represents

6.59% of the total

population of the 90-

minute Kansas City

catchment area (see map

2). The immediate Topeka

catchment area,

represented in map 2 in

purple, includes 168,139

people.

Only those living in the

immediate, 30-minute

Topeka catchment area

are considered in the

origin and destination

passenger analysis

included in this proposal, as Forbes Field would be significantly more convenient for them than

Kansas City International Airport (MCI). For the purposes of these projections, it is assumed

Topeka Would Be Significantly More Convenient for 6.59% of the Kansas City International

Airport Catchment Area

MAP 2: Topeka’s Catchment Area Relative to the Kansas City International Catchment Area


service at Topeka would draw passengers only from its 6.59% share of the Kansas City catchment

area (see map 2).

When these assumptions are taken into account, it becomes apparent that even the immediate

Topeka catchment area generates enough passengers to support local air service. The Topeka

catchment generated an estimated 593,820 origin and destination passengers in calendar year

2010, or an average of 813 passengers per day each way (see figure 2). Passengers generated

in the Topeka catchment area in 2010 were flat over 2009, despite regional fares increasing by

14%. The average fare paid by passengers from the Topeka catchment area went up by $20

each way in 2010, to $168 each way.

Passengers generated in the immediate Topeka catchment area have fallen by an estimated

13% since 2007, or an average of 121 passengers per day each way (see figure 2). A

combination of volatile fares and reduced capacity in the region – namely at Kansas City

International – have caused the passenger decline.

FIGURE 2: Estimated O&D Passengers from the Topeka Catchment Area CY2002 – CY2010; Sources: US DOT Table OD1A, Sixel Consulting Group Analysis

557,297 550,836574,748 584,886

621,753643,839

606,891560,762 555,340

26,662 26,782

31,20334,300

37,249

38,552

39,184

36,012 38,480

799.9 791.3

830.1848.2

902.7

934.8

885.0

817.5 813.5

200,000

250,000

300,000

350,000

400,000

450,000

500,000

550,000

600,000

650,000

700,000

2002 2003 2004 2005 2006 2007 2008 2009 2010

PDEW International Domestic

$132 $132$138

$146

$153 $154

$167

$148

$168


Nonetheless, at 2010 passenger totals, the Topeka catchment area generates plenty of air travel

to support local air service – even when taking into account only the immediate, 30-minute

catchment area for Forbes Field Airport. The region’s average of 813 passengers per day each

way would be enough to support 17 50-seat regional jet departures per day from the Forbes

Field Airport at a load factor of 96%.

Passengers generated in the Topeka

catchment area travel to destinations in

both directions from the market. Of the

top 20 origin and destination passenger

markets from the Topeka area as of

calendar year 2010, eight are west of the

market while 12 are east of the market

(see figure 3). In 2010, it is estimated that

Chicago ranked as Topeka’s number one

origin and destination domestic

passenger market, generating more than

37,600 annual passengers or an average

of 51.6 passengers per day each way

(PDEW). Chicago was followed by

Denver, with an average of 37.4

passengers per day each way; Dallas/Ft.

Worth, with 37.1 passengers per day each

way; New York/Newark, with 32.7

passengers per day each way; Orlando,

with 28.5 passengers per day each way; Las Vegas, with 27.5 passengers per day each way;

and Atlanta, with 24.8 passengers per day each way.

As previously noted in this proposal, the average fare in the Topeka region is up 14% in just

the last year. The 2010 average one way fare was $168 each way – up from $148 each way

in 2009 (see figure 4). The reason for the regional fare increase is the loss of airline capacity

in the region surrounding the Topeka catchment area – with total available seats down 27%

since the summer of 2008.

FIGURE 3: Topeka’s Estimated Top 20 O&D Passenger Markets, CY2010; Sources: US DOT Table OD1A, Sixel Consulting Group Analysis

37,664

27,302

27,097

23,841

20,801

20,076

18,091

17,377

17,268

16,697

12,815

11,677

11,249

11,005

10,508

9,778

9,390

9,150

8,961

8,761

51.6

37.4

37.1

32.7

28.5

27.5

24.8

23.8

23.7

22.9

17.6

16.0

15.4

15.1

14.4

13.4

12.9

12.5

12.3

12.0

0 5000 10000 15000 20000 25000 30000 35000

Chicago, IL

Denver, CO

Dallas/Fort Worth, TX

New York/Newark, NY

Orlando/Sanford, FL

Las Vegas, NV

Atlanta, GA

Washington, DC

Los Angeles, CA

Phoenix/Mesa, AZ

Houston, TX

Baltimore, MD

Tampa, FL

Seattle/Tacoma, WA

San Diego, CA

Milwaukee, WI

Fort Lauderdale, FL

Nashville, TN

Philadelphia

Boston, MA

Annual Passengers PDEW


Average fares to most

markets west of Topeka

are well above $300

roundtrip, while eastern

markets generally have

lower fares (see figure

4). For example, the

average fare to

Orlando is $228

roundtrip as of 2010,

while the average fare

to Los Angeles is $314

roundtrip. It should be

noted that these fares

do not take into

account the cost of a

Topeka catchment

area passenger

accessing air service at

other airports in the

region. The cost of

driving from Topeka to Kansas City’s airport has increased by more than 50% in the last year,

as gas prices have gone up.

With rising fares and decreasing capacity in the region surrounding Topeka, access to air

service is more difficult than it has been at any time since the end of 2001. This fact gives

new emphasis to the goal of the Metropolitan Topeka Airport Authority in its effort to bring

local air service to Forbes Field.

FIGURE 4: Average One Way Fare at Topeka’s Top 20 O&D Passenger Markets, CY2010; Sources: US DOT Table OD1A, Sixel Consulting Group Analysis

$109

$95

$127

$176

$114

$138

$128

$167

$157

$153

$155

$134

$115

$158

$154

$89

$128

$100

$167

$149

$0 $20 $40 $60 $80 $100 $120 $140 $160 $180

Chicago, IL

Denver, CO

Dallas/Fort Worth, TX

New York/Newark, NY

Orlando/Sanford, FL

Las Vegas, NV

Atlanta, GA

Washington, DC

Los Angeles, CA

Phoenix/Mesa, AZ

Houston, TX

Baltimore, MD

Tampa, FL

Seattle/Tacoma, WA

San Diego, CA

Milwaukee, WI

Fort Lauderdale, FL

Nashville, TN

Philadelphia

Boston, MA

Average Fare: $168


AIR SERVICE DEVELOPMENT EFFORTS

The Metropolitan Topeka Airport Authority is dedicated to doing whatever it can to bring viable,

sustainable air service to Kansas’ capital. Since Allegiant Air left the market in 2007, the Airport

has begun a process to bring a network air carrier to the market, to offer connectivity to the

majority of cities Topeka-area business travelers need access to. The Airport has hired a

consulting firm to work on the recruitment of additional service.

The Airport Authority has also spent considerable time building a local coalition of support for

potential air service. This local coalition has pledged $15,000 in cash funding for this application

– new from previous applications for Small Community Air Service Development Grant funding.

The coalition will be of tremendous value in

marketing the new service at Forbes Field Airport

and in ensuring local businesses use the service.

So far in 2011, the Airport has been able to

secure one-on-one meetings with three airlines,

including SkyWest/United Express, Frontier and

SeaPort Airlines. In these conversations airlines did express interest in serving the Topeka market.

The primary target of discussion with these airlines was service to Denver, which is why Denver

has been made the target of this application for federal support.

“This local coalition has pledged

$15,000 in cash funding for this

application… of tremendous

value marketing the new service.”


AIR SERVICE NEEDS AND DEFICIENCIES IN TOPEKA

There are a number of challenges to the successful recruitment of a new airline to Forbes Field

Airport in Topeka, just as there are several challenges for Topeka catchment area passengers

accessing air service at other airports in the region. In regard to challenges with access to

service for area passengers, airlines have cut regional capacity by more than a quarter since

the fuel spike of 2008. This has resulted in rising fares – up 14% in just the last year. Moreover, it is

much more expensive now for Topeka catchment area passengers to drive to other airports in

the region due to the increased gas cost.

Detailing, perhaps, the most significant air service deficiency in the region, in just the last three

years Kansas City International Airport has seen its most significant seat cuts in more than a

decade. These seat cuts have the impact of making air service more difficult to access for

those in the Topeka catchment area. Since the summer of 2008, Kansas City has lost an

average of 72 daily departures – a loss of 31% of that Airport’s daily flights (see figure 5). During

that same time period, Kansas City has lost an average of 6,146 daily outbound available seats,

or 27% of all the market’s available airline capacity.

FIGURE 5: Available Seats, Flights, and Passengers per Day at MCI June 2008 – February 2011; Source: US DOT T100 Data

22,653

21,923

21,113

19,968 19,818

18,906 18,810

18,122 18,125 18,209

18,78419,127

20,349 20,317

19,575

18,84119,205

18,942

18,274

17,369 17,261

18,332 18,36418,735

19,55319,272 19,239

18,678 18,65819,039

18,475

16,98316,507

18,542

17,783

16,211

14,271

15,152

13,231

13,916

11,534

12,198

13,925 13,802

14,874

16,71117,027

15,034

13,915

14,882

14,01213,541

11,59111,860

14,05913,802

14,877

16,70216,399

14,951

14,280

14,934

14,397

13,859

11,778 11,813

8,000

10,000

12,000

14,000

16,000

18,000

20,000

22,000

24,000

Available SDEW Onboard PDEW Flights DEW

232.4

213.9

206.3

187.2 186.4183.4 181.6

177.5181.4 183.6

191.1 190.3

199.9 198.3

190.3

181.0 182.5 182.8

175.4

166.6 167.5

179.0 178.0 180.7

189.4186.5 187.5

180.4 180.6 181.2175.9

162.7 160.0


Cuts in available seats in Kansas City had begun to level off, until November of 2010 (see figure

5). Since then, airlines have cut an additional 2,532 seats per day each way on average – or

13% of total capacity at Kansas City. Since summer 2008, airlines have cut the equivalent of 123

50-seat regional jet departures per day from Kansas City International Airport.

These air carrier flight and seat losses not only hurt the immediate Kansas City catchment area,

but also Topeka. Topeka catchment area travelers have had to rely more on service provided

at Kansas City for access to the national air transportation system. This access is becoming more

difficult as the region, as a whole, sees cuts in airline service.

It has been established in this proposal that the Forbes Field Airport in Topeka has a sufficient

passenger base in its local catchment area to support commercial air service. Despite this,

airlines have found the region unattractive due to the relative proximity of Kansas City

International Airport (MCI). While this, in and of itself, represents a hardship for the Airport and

the community it serves, there are additional extenuating circumstances regarding seat loss and

flight declines to consider in the larger region.

To gauge the general

strength of the Topeka

metropolitan statistical

area (MSA), and its ability

to support commercial

flights, the Airport

produced an analysis of

the market’s position in

the region, and an

estimated determination

of the number of local

Topeka MSA passengers

using other airports in the

region. This analysis also

included a projection of

regional travel based on

the economies of the

area’s main airport-

FOE

MCI

ICT

Regional Population

Kansas City (MCI) 2,070,544 70.5%

Wichita (ICT) 637,781 21.7%

Topeka (FOE) 229,619 7.8%

Population Share

FIGURE 6: Regional Population Distribution Source: US Census Estimates


served metropolitan areas. This analysis helps to validate the projected numbers for new service.

At the same time, the analysis also points out just how underserved the Topeka market is.

The Topeka metropolitan statistical area (MSA) had a population of 229,619 as of the latest US

Census estimates (see Figure 6). The larger region comprised of the metro areas of Kansas City

and Wichita has a current population of 2,937,944. Topeka’s share of that population is 7.8%.

In many markets, an Airport draws a number of

passengers proportional to its overall population in the

region. If that were to be the case in the Topeka

market, one could reasonably expect the Airport to

retain about 8% of the total passengers using all three

airports in the larger region. While the Topeka metro

area is home to almost 8% of the region’s total

residents, without current service, its Airport retains

none of the region’s passengers (see figures 7 and 8).

If the Airport had been able to retain the number of

regional passengers proportional to its share of

population in the region, it would have been used by

805,653 origin and destination passengers as of

calendar year 2010.

The largest beneficiary of Topeka’s passenger

leakage is Kansas City – which is more than an hour

away, on a drive of 74 highway miles by the most

direct route. Kansas City had “reverse leakage” as of

calendar year 2010, when it drew 24% more passengers than its proportion of the regional

population. While Kansas City makes up 70.5% of the region’s population, it boards more than

87% of the region’s total origin and destination passengers (see figures 7 and 8). If Kansas City

retained a number of origin and destination passengers proportional to its regional population

share, it would be expected to generate 7.3 million passengers annually. In 2010, Kansas City

saw a total of 9,010,920 O&D passengers – again, almost a quarter above its regional share.

Many of those “extra” passengers came from the Topeka catchment area.

FIGURE 7: Regional Population Share Source: US Census Estimates

FIGURE 8: Regional O&D Passenger Share Source: US DOT Table OD1A, CY2010

Kansas City 70.50%

Wichita 21.70%

Topeka 7.80%

Kansas City 87.24%

Wichita 12.76%

Topeka 0.00%


Another way of determining passenger leakage from the Topeka catchment area is by

comparing the economy of Topeka to the economies of the nearest cities with commercially-

served airports. The easiest way to gauge each catchment area’s contribution to the economy

of the region is to compare the gross metropolitan products (GMP) of each. A GMP is much like

a gross national product – an overall gauge of economic activity in an area in dollars earned.

The United States Council of Mayors reports the Topeka metro area produced a GMP of $8.7

billion, which represented 6.4% of the total gross regional product (GRP) of the area including

Kansas City and Wichita

(see figure 9). Kansas City

generated the largest

portion of the GRP, with

$101.2 billion, or 74.6%,

while Wichita produced a

GMP of $25.7 billion – good

for 19.0% of the GRP.

Despite producing 6.4% of

the total gross regional

product (GRP), the Topeka

area doesn’t retain its

share of passengers due to

the fact the Airport has no

current airline service (see

figures 10 and 11). If the

Airport had been able to

retain the number of regional passengers proportional to its share of the GRP, it would have

been used by 661,048 passengers as of calendar year 2010.

FOE

MCI

ICT

Kansas City (MCI) $101.2 Billion 74.6%

Wichita (ICT) $25.7 Billion 19.0%

Topeka (FOE) $8.7 Billion 6.4%

Gross Metropolitan Product (GMP)

GMP Share

FIGURE 9: Regional Gross Metro Product (GMP) Distribution Source: US Council of Mayors


The major beneficiary of Topeka’s passenger leakage

is, again, Kansas City. Kansas City experienced

“reverse leakage” as of the year ended first quarter

2010, when it drew 16% more passengers than its

proportion of the gross regional product (GRP). While

Kansas City generates 74.6% of the GRP, it boards

more than 87% of the region’s total origin and

destination passengers (see figures 10 and 11). If

Kansas City retained a number of origin and

destination passengers proportional to its GRP share, it

would be expected to generate 7.7 million

passengers annually. In 2010, Kansas City saw a total

of more than nine million O&D passengers.

These statistics illustrate that the Topeka market is

strong enough in both population, and in its economic

health, to generate at least 660,000 annual origin and

destination passengers. If none of Topeka’s

passengers “leaked” to other airports in the region, it

would generate enough local passengers to fill 19 50-

seat regional jet departures per day at a 95% load factor.

While these estimates illustrate the relative strength of the Topeka catchment area, challenges

remain in the successful recruitment of a new airline to Forbes Field Airport. Foremost, in its

meetings with various airlines in 2011, Airport leadership has learned that many airlines are

worried about breaking passenger habits in the catchment area, and convincing those

passengers to use their local airport instead of driving to Kansas City to access service. This

Grant application is a key to funding an adequate marketing program to accomplish the goal

of retaining passengers, and to convincing airlines the proper amount of funding is available to

achieve this goal.

FIGURE 10: Regional GMP Share Source: US Council of Mayors

FIGURE 11: Regional O&D Passenger Share Source: US DOT Table OD1A, CY2010

Kansas City 74.60%

Wichita 19.00%

Topeka 6.40%

Kansas City 87.24%

Wichita 12.76%

Topeka 0.00%


STRATEGIC PLAN FOR NEW AIR SERVICE

In order to address the challenges to air service in the region surrounding the Topeka catchment

area, the Metropolitan Topeka Airport Authority has developed this plan for local service

provided at Forbes Field Airport. The strategic plan aims to correct deficiencies in service that

include the lack of access to the air transportation system within 70 miles of the Topeka area, the

decline in available airline seats and capacity in the region, and the increased cost of flying to

and from Topeka through other airports.

Under this plan, the Metropolitan Topeka Airport Authority proposes to use a combination of

$65,000 in locally raised funding in conjunction with federal Small Community Air Service

Development Grant money in support of the addition of scheduled network airline service to the

market. The proposed route

is between Topeka and

Denver, based on direct

airline feedback from one-

on-one meetings in 2011 (see

map 3). It is believed this

route will have the best

chance of success due to

the fact it is not duplicated

at the nearest regional

airport, in Manhattan,

Kansas. It is proposed the

route be operated by a

United Express carrier, to

access the widest potential

array of one-stop

destinations beyond Denver.

The Airport proposes two daily flights on the route in each direction. The route between Topeka

and Denver would cover 486 miles in a block time of one hour and 40 minutes, on average,

assuming an average groundspeed of 400 knots on a Canadair CRJ200 regional jet aircraft

seating 50 passengers in an all-economy layout.

MAP 3: Proposed Route: Topeka – Denver


The proposed schedule would allow for the overnight of an aircraft at the Forbes Field Airport,

which positions the aircraft for an early morning departure to Denver to connect to the first

departing block of flights of the day on the United Airlines network (see figure 12). This schedule

connects into the main midday and evening banks at Denver, as well, with a late evening

arrival. The schedule is designed for the Topeka area business traveler to be able to make a two

day trip to most Intermountain and West Coast markets – providing the best possible

competition with the schedule at Kansas City.

Origin Destination Departs Arrives Block Time Equipment

FOE DEN 6:30am 7:10am 1:40 CRJ

DEN FOE 10:15am 12:55pm 1:40 CRJ

FOE DEN 1:55pm 2:35pm 1:40 CRJ

DEN FOE 8:10pm 10:50pm 1:40 CRJ

The Metropolitan Topeka Airport Authority seeks a Small Community Air Service Development

Grant, in the amount of $550,000, to help mitigate the initial monetary risk in serving the Topeka –

Denver route, primarily for a United Express carrier. In addition to the federal portion, the Airport

Authority has developed local cash commitments of $65,000 in support of this project. The total

project cost is projected to be $615,000

The Metropolitan Topeka Airport Authority projects that the bulk of the grant money be available

to provide insurance in case the new carrier incurs a loss during the first year of operations. With

demonstrated demand for service in the Topeka market, and demand for connectivity over the

Denver hub, the Airport projects the new flights will be profitable within one year. A total of

$550,000 will be available for this revenue guarantee. The additional $65,000 in funding will be

used in support of marketing and advertising programs. Start-up expenses will be provided to

the new carrier outside of this proposal, with additional airport cash.

If, for some unforeseen reason, service is not commenced in a timely manner by a carrier serving

the United Airlines hub at Denver, the Metropolitan Topeka Airport Authority proposes to use

federal grant money awarded under the Small Community Air Service Development Program for

FIGURE 12: Proposed Schedule: Topeka – Denver


service to another hub with wide-ranging connectivity. Among the options the Airport will

consider would be service to Denver on Frontier or another affiliated carrier; service to Memphis

on Delta or one of its affiliated carriers; service to Dallas/Ft. Worth on American or one of its

affiliated carriers; service to Minneapolis/St. Paul on Delta or one of its affiliated carriers; service

to Chicago on a United Express or American Connection carrier, or service to Detroit on Delta or

one of its affiliated carriers.

Should these options, for an unforeseen reason, not be available for new service at the Forbes

Field Airport, the Airport will continue its discussions with all other carriers that can provide

service. Since the community has never before received a Small Community Air Service

Development Grant, it will have no limitations on which new hub the DOT could fund.

Route Specific Data: Topeka – Denver

The United Airlines Denver hub would provide Topeka area travelers the most wide-ranging

collection of one-stop destinations of any hub to the west of the market. There is no current

service from

central Kansas to

Denver on any

airline. The

Metropolitan

Topeka Airport

Authority has had

recent discussions,

in the spring of

2011, with SkyWest,

about serving the

Topeka – Denver

market under the

United code. It

was made clear in

these discussions

that a risk

mitigation program

MAP 4: One-Stop Connections over Denver on United August 2011; Source: Sixel Consulting Group Hub Builder


would be a key to new service.

United Express service from Topeka to Denver on the United code would connect to 66 one-stop

cities throughout the western US, Mexico, Canada, Hawaii and Alaska (see map 4). Denver

provides the best possible connectivity to destinations on the West Coast – which rank as some

of the region’s largest origin and destination passenger markets.

It’s important to understand the dynamics of current Denver service from other airports in the

region surrounding Topeka. In the last two years, the Kansas City – Denver route has seen major

flight and seat reductions, outpacing national averages. As of June of 2009, airlines offered an

average of 2,209 seats per day each way between Kansas City and Denver (see figure 13). By

February of 2011, the average number of seats per day each way between Kansas City and

Denver dropped to just 1,502 – a loss of 707 seats per day each way, or 32% of all airline seat

capacity in the market.

FIGURE 13: Available Seats, Flights, and Passengers per Day between MCI and DEN June 2009 – February 2011; Source: US DOT T100 Data

2,2092,185

2,086

2,015 1,994 1,994 1,9821,938

1,967 1,972

1,9001,856

1,892 1,8681,922 1,936

1,894 1,898

1,825

1,494 1,502

1,739

1,867

1,641

1,509 1,509

1,3251,381

1,2101,258

1,437

1,319

1,400

1,664 1,681

1,578

1,500 1,4851,437

1,384

1,075

1,154

500

700

900

1,100

1,300

1,500

1,700

1,900

2,100

2,300

2,500

2009-06 2009-07 2009-08 2009-09 2009-10 2009-11 2009-12 2010-01 2010-02 2010-03 2010-04 2010-05 2010-06 2010-07 2010-08 2010-09 2010-10 2010-11 2010-12 2011-01 2011-02

Available SDEW Onboard PDEW Flights DEW

16.5 16.3

15.6

15.014.6

15.0 15.2 15.015.3 15.4 15.4

15.0

15.8 15.6 15.9 15.715.4

15.1 15.1

12.4

13.9


At the same time, airlines have cut Denver flights from the region surrounding Topeka. Between

June of 2009 and February of 2011, airlines have cut an average of 2.6 flights per day each way

between Kansas City and Denver, or 16% of all flights in the market (see figure 13). The impact

of these flight and seat cuts has been increased difficulty for local travelers heading to

destination west of the market. It should also be noted, the number of daily average seats

between Topeka and Denver, as noted in this proposal, is just 100. In the last two years, 707 seats

have been cut from the Kansas City – Topeka market. The seats proposed in this application will

replace only a small proportion of those already cut from the local region.

As regional fares have stabilized over the last five years, the number of passengers traveling

between Topeka and Denver, itself, has grown by more than 50%. In 2010, the local Topeka –

Denver market generated an average of 37.4 passengers per day each way, on average, at an

average one way fare of $95 (see figure 14).

Since 2005, the local Topeka – Denver market has grown by an average of 12.4 passengers per

day each way, or 50% (see figure 14). In that time, the average fare paid in the Topeka

FIGURE 14: Estimated O&D Passengers from the Topeka Catchment Area to/from Denver CY2001 – CY2010; Sources: US DOT Table OD1A, Sixel Consulting Group Analysis

23,086

20,145

16,69418,200 18,267

25,619

31,121

28,47226,759 27,295

31.6

27.6

22.9

24.9 25.0

35.1

42.6

39.0

36.737.4

10,000

15,000

20,000

25,000

30,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Estimated DEN PDEW Estimated DEN Pax

$124

$113

$126 $125

$137

$99

$87

$97$91 $95


catchment area for local travel to Denver has gone down by 30%. In 2010, the local Topeka –

Denver market is large enough to support one regional jet flight per day in each direction with a

75% load factor – not taking into account any connecting traffic or any traffic stimulation with

new non-stop service.

The Topeka catchment area currently generates an estimated average of 211 origin and

destination passengers per day each way to destinations that naturally connect over the United

Airlines Denver hub. As of calendar year 2010, Topeka is estimated to have generated 154,253

total origin and destination passengers that would flow over Denver on United and the Star

Alliance (see figure 15). In all, the Topeka – Denver route has the potential to capture 26% of the

passengers currently estimated to be flying to and from the Topeka catchment area through

other airports, without taking into account any passenger stimulation through the addition of

local non-stop service.

At the same time, the United Airlines Denver hub could capture 23% of the current estimated

revenue generated in Topeka catchment area (see figure 15). It is estimated that markets from

Topeka that flow over the United Denver hub generate more than $22.8 million in annual airline

revenue, or $31,240 in revenue per day each way (RDEW).

FIGURE 15: Estimated Topeka O&D Passengers and Revenue Flowing over Denver on United CY2010; Sources: US DOT Table OD1A, Sixel Consulting Group Analysis

Denver 26%

Other Hubs 74%

Denver 23%

Other Hubs 77%

Estimated Topeka O&D Revenue $99,807,439 100%

Revenue Flowing Over Denver $22,804,881 23%

Estimated Topeka O&D Passengers 593,820 100%

Passengers Flowing Over Denver 154,253 26%


The United/Star Alliance hub at

Denver has potential to capture

large portions of traffic in many of

Topeka’s largest estimated origin

and destination markets. The

Denver hub is especially well

positioned to capture traffic

traveling to the West Coast and the

Intermountain West, along with

many destinations in Mexico and

Canada. Among the large markets

that would be served over Denver

on United is Denver, itself, which is

estimated to have produced 37.4

passengers per day each way

(PDEW) to and from Topeka in 2010;

Los Angeles, which produces 29.8

PDEW; Las Vegas, which produces 27.5

PDEW; Phoenix, which produces 22.9 PDEW;

Seattle/Tacoma, which produces 15.1

PDEW; and San Diego, which produces 14.4

PDEW as of calendar year 2010 (see figure

16).

Should it launch service between Topeka

and Denver, United, or one of its affiliated

carriers, would be adding service in markets

that have current fares averaging $148

each way at Kansas City International

Airport (see figure 17). United Express would

provide another alternative in many

markets where fares are above the Midwest

regional average. Examples include Los

FIGURE 16: Topeka’s Top 20 Passenger Markets over DEN on United CY2010; Sources: US DOT Table OD1A, Sixel Consulting Group Analysis

FIGURE 17: Average One Way Fare at Top 20 Passenger Markets Over DEN on UA, CY2010; Sources: US DOT Table OD1A

27,302

21,785

20,076

16,697

11,005

10,508

8,069

6,316

5,731

5,096

4,720

4,040

2,735

1,681

1,448

1,277

1,130

980

819

532

37.4

29.8

27.5

22.9

15.1

14.4

11.1

8.7

7.9

7.0

6.5

5.5

3.7

2.3

2.0

1.7

1.5

1.3

1.1

0.7

0 5,000 10,000 15,000 20,000 25,000

Denver

Los Angeles Basin

Las Vegas

Phoenix

Seattle/Tacoma

San Diego

San Francisco Bay Area

Portland, OR

Salt Lake City

Cancun

Sacramento

Albuquerque

Tucson

Spokane

Boise

Puerto Vallarta

Anchorage

Los Cabos

Colorado Springs

Billings

PDEW

$95

$156

$138

$153

$158

$154

$172

$171

$153

$202

$157

$138

$142

$147

$162

$223

$283

$253

$155

$182

$0 $50 $100 $150 $200 $250

DenverLos Angeles Basin

Las VegasPhoenix

Seattle/TacomaSan Diego

San Francisco Bay AreaPortland, OR

Salt Lake CityCancun

SacramentoAlbuquerque

TucsonSpokane

BoisePuerto Vallarta

AnchorageLos Cabos

Colorado SpringsBillings

Average Over DEN: $148


Angeles, where the average roundtrip fare was $312 in 2010; Phoenix, where the average

roundtrip fare was $306; Seattle/Tacoma, where the average roundtrip fare was $316 in 2010;

San Francisco, where the average fare was $344 roundtrip; and Portland, Oregon, where the

average roundtrip fare was $342 in 2010.

The Metropolitan Topeka Airport Authority believes there is sufficient passenger traffic and

revenue that would flow over United’s Denver hub to make the service profitable. United would

not be forced to offer rock-bottom fares in Topeka to be competitive – even fares slightly higher

than those found in other regional markets, such as Kansas City, would be low enough to

capture local traffic and end some of the leakage the market experiences today. The Airport

Authority believes this is the best plan for local, network air service, moving forward.


IMPLEMENTATION TIMELINE

The proposed implementation timeline for the project assumes the Department of Transportation

will award Small Community Grant Funding in September of 2011. Once the award is

announced, the Metropolitan Topeka Airport Authority will conduct additional airline meetings

to secure new service. Based on airline planning lead times and the need for advance

bookings, we assume the new carrier would not be able to begin service until at least June of

2012.

The first three milestones on the Airport's timeline are to execute the grant agreement with the

Department of Transportation, meet with prospective airlines to negotiate for service, and sign

the minimum revenue guarantee agreement with the appropriate airline partner. Once service

is announced and schedules are published, the Airport would begin marketing the new route

and working with the new carrier to monitor advance bookings. The Airport will continue its

marketing program and continue to work with the new carrier to monitor the route once service

begins. The Airport would submit grant status reports on a quarterly basis to the Department

throughout the proposed two year term of the minimum revenue guarantee.

While the estimated dates are targets, it is possible service could be secured and launched on a

more aggressive timeline once Grant funding is awarded. It is also possible that new service

could slip to 2013 should an airline require additional risk mitigation, beyond that included in this

proposal, from the community.

Activity/Project Milestone Estimated DateSCASD Grant Award Announcement September 2011Executive Grant Agreement with DOT October 2011Meet With Prospective Airlines Oct/Nov 2011Negotiate Minimum Revenue Guarantee (MRG) With Airline Jan - Mar 2012Announce Service March 2012Publish Schedule March 2012Begin Marketing of New Route March 2012Monitor Advance Bookings March - June 2012Service Launch June 2012MRG Available for Service June 2012 - October 2014Monitor Route Performance June 2012 - October 2014Submit Grant Status Reports to DOT Quarterly Q4 2011 - Q4 2014Close Grant October 2014


ALTERNATE PLAN

If, for some unforeseen reason, service is not commenced in a timely manner by a carrier serving

the United Airlines hub at Denver, the Metropolitan Topeka Airport Authority proposes to use

federal grant money awarded under the Small Community Air Service Development Program for

service to another hub with wide-ranging connectivity. Among the options the Airport will

consider would be service to Denver on Frontier or another affiliated carrier; service to Memphis

on Delta or one of its affiliated carriers; service to Dallas/Ft. Worth on American or one of its

affiliated carriers; service to Minneapolis/St. Paul on Delta or one of its affiliated carriers; service

to Chicago on a United Express or American Connection carrier, or service to Detroit on Delta or

one of its affiliated carriers.

Should these options, for an unforeseen reason, not be available for new service at the Forbes

Field Airport, the Airport will continue its discussions with all other carriers that can provide

service. Since the community has never before received a Small Community Air Service

Development Grant, it will have no limitations on which new hub the DOT could fund.


PUBLIC/PRIVATE PARTNERSHIP

A number of local partners will be working with the Airport to promote participation in this air

service development project. The Airport has already generated $15,000 in non-Airport cash

matching funding for this proposal. Additionally, contacts will be made to all Topeka members

of chambers of commerce and similar organizations, and those with an interest in growing the

economic base of the community through local business growth, attraction of new businesses

and the promotion of tourism and visitor traffic via the Airport.

Metropolitan Topeka Airport Authority The Metropolitan Topeka Airport Authority owns and operates Forbes Field Airport in Topeka. The

Authority has long been advocating for increased commercial air service at the Airport, and this

application is just part of that advocacy. The Airport Authority has already approved the money

to be spent to match this Grant, recognizing how important the addition of viable air service is to

the region.

Greater Topeka Area Chamber of Commerce 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 the Forbes Field Airport in Topeka.

City of Topeka As the State’s second largest city, and Kansas’ capital, the City of Topeka is glad to have the

opportunity to partner with Forbes Field Airport to bring competitive air service to the City.

Community leaders have long been working to recruit additional air service to the region.


Shawnee County Commission This three person board oversees the operation of Shawnee County, the home of the City of

Topeka and Forbes Field Airport. The Commission is publically 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 to Forbes Field.

Coalition of Topeka Area Businesses Dozens of local businesses will work together to support the push to bring air service to eastern

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

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


FUNDING PLAN

Revenue Guarantee The Metropolitan Topeka Airport Authority proposes to make available $550,000 in funds for a

revenue guarantee to the new carrier, to cover start-up losses that may occur during the first

twelve months of service. Subject to negotiation, payments will be made to the new carrier

quarterly when income derived from passengers and cargo is less than agreed expenses on the

route. Revenue generated that exceeds expenses will be carried forward and tapped before

any grant funds are used.

Marketing and Advertising The Metropolitan Topeka Airport Authority proposes to spend at least $65,000 in funds on

marketing and advertising promotions in support of new service introductions. The goal is to

increase ridership and usage of new local service through targeted regional campaigns.

In-Kind Services The following organizations will help promote the new service through their various membership

groups. There is no estimated value to these services.

• Greater Topeka Chamber of Commerce

• City of Topeka

• State of Kansas

• Metropolitan Topeka Airport Authority

• Coalition of Topeka Area Businesses

Startup Cost Offsets The Metropolitan Topeka Airport Authority proposes to spend only existing airport funds and

matching funds to pay for start-up costs in support of new service introductions. The Airport, and

its partners, will provide essential terminal space and equipment to handle the new service.


Additional Costs As part of this program, the Metropolitan Topeka Airport Authority understands that additional

expenses will be incurred, such as monitoring the results of the program and reporting those

results back to the US DOT. In addition, the Airport Authority expects to incur some expenses in

the recruitment of a new airline to serve the region. The Airport will not use DOT funding in these

efforts – but instead, will use its own internal funding.


PERFORMANCE MEASURES AND FINANCIAL CONTROLS

The success of new service in the Topeka market will be based on three measurable variables:

the increase in available seats in the market, the number of enplanements on the route, and the

average airfares charged in the affected city pairs. The first two measurements will include a

monthly comparison once the program begins to post numbers. The second measurement will

be derived from US DOT OD1A reports.

The sponsor, the Metropolitan Topeka Airport Authority will be the responsible party for all fiscal

matters and DOT reporting requirements. As a public entity the DOT can be assured that proper

financial controls are in place to guarantee that the DOT’s grant will be used in accordance

with any subsequent agreement. The Metropolitan Topeka Airport Authority understands that

the grant is a reimbursable grant, meaning the Airport is responsible for program expenditures

and will submit invoices to the DOT for reimbursement, based on a percentage of the total grant

request.

The Airport has developed this proposal as a one-time grant. The advertising and marketing

program will commence a few months before service starts and last for at least twelve months.

The revenue guarantee program will also be in place for twelve months, with two additional

twelve-month periods available for negotiation. It is projected that the service on the new route

will be financially self-sustaining within the second twelve months of service.


LEGAL SPONSOR

The Metropolitan Topeka Airport Authority is the legal sponsor responsible for administering the

program. The Metropolitan Topeka Airport Authority is a government entity.

Metropolitan Topeka Airport Authority Forbes Field Airport PO Box 19053 Topeka, Kansas 66619 Eric Johnson, President/Director of Airports 785.862.2362 [email protected]


AVAILABILITY OF ALTERNATE AIRPORTS

Currently, the Topeka catchment area is only served by its alternate airports, as Forbes Field

Airport has no scheduled air service. The primary alternate for Topeka travelers is Kansas City

International, which lies 71 miles from downtown Topeka (see figure 18). The drive to Kansas

City’s Airport can take as long as two hours in normal traffic.

A smaller percentage of

Topeka catchment area

travelers use Wichita’s

Mid-Continent Airport as

an alternate (see figure

18). Mid-Continent isn’t

as popular as Kansas

City, due to the fact it lies

a two and a half hour

drive from most of

Topeka. Other alternates

include Salina and

Manhattan, but neither

airport offers truly

competitive service, so

neither draws significantly

from the Topeka market.

FIGURE 18: Alternate Airports in the Topeka Area As of August 2011


AIRPORT INFORMATION

Forbes Field Airport in Topeka was built as a military outpost, located in the heart of America,

and has remained so for many years. In 1976, commercial air services moved from Topeka’s

“other” airport, Billard Municipal, to Forbes Field, largely due to its available infrastructure,

including a 12,000-foot runway and an 8,000-foot runway. Work to build Forbes Field began

weeks after the Japanese

bombing of Pearl Harbor,

in 1941, when the military

sought an air base in

middle America. It

operated solely in a

military role, hosting the

Strategic Air Command,

until 1976. The military left

behind an outstanding

physical plant, capable

of becoming an air-hub

for all of eastern Kansas

and western Missouri.

FIGURE 19: Aerial Photo of Forbes Field Airport, Topeka, Kansas


COMMUNITY PROFILE

Topeka is the capital of the State of Kansas, the economic and cultural center of all of east

central Kansas, and one of Money Magazine’s “Best Places to Live.” The City of Topeka has a

population of roughly 125,000 people, according to statistics from the US Census Bureau.

Topeka’s Metropolitan Statistical Area (MSA), as defined by the Census Bureau, includes the

counties of Shawnee (where Topeka is the County Seat), Jackson, Jefferson, Osage, and

Wabaunsee. Roughly, 230,000 people live within the Topeka MSA.

Government and related services jobs comprise more than half of the Topeka job base.

Additionally, a number of Fortune 500 companies have major offices or facilities in the Topeka

MSA, including Goodyear, Frito-Lay, Hallmark Cards, Payless ShoeSource (headquarters), Westar

Energy

(headquarters),

and Burlington

Northern Santa Fe.

The cities

surrounding Topeka

are home to some

of the world’s truly

great universities,

including the University of Kansas at Lawrence, Kansas State University at Manhattan, Washburn

University, and Emporia State University. Together these schools enroll more than 65,000 full-time

students, and employ more than 15,000 highly educated, and nationally regarded faculty and

staff members.

Topeka is increasingly becoming a regional tourist destination. In addition to high profile, and

highly attended Division I collegiate athletics at the University of Kansas and Kansas State, the

region offers new and original historical and cultural destinations that can’t be found anywhere

else. The National Park Service has opened a museum commemorating the Brown vs. the Board

of Education decision, desegregating schools in Kansas. In addition, Topeka’s rose gardens and

botanical parks draw visitors from around the country.


What’s New in Topeka

Topeka isn’t the largest City in the State of Kansas, but new developments have made it the

fastest growing economy in the State. With a total of 1,575 retained jobs, 463 new jobs with an

average wage of $50,000 and corporate investment of $352.25 million the Topeka area

economy continues its stability from 2010 to 2011.

• The announced projects include a new Home Depot rapid deployment center, the

purchase of the former Payless ShoeSource distribution center by PTMW, Inc. and

expansions at the existing U.S. Foodservice, Goodyear Tire & Rubber Company and Frito-

Lay plants.

• The benefits will continue to grow over the next ten years, with 3,770 direct and indirect

jobs added, resulting in 762 new residents in Shawnee County.

• The salaries to be paid to direct and indirect workers over the next ten years exceeds $2

billion, with nearly $777 million worth of taxable sales and purchases expected in the

county over that decade.

The following companies have made major new investments in the Topeka economy:

The Home Depot Jobs: 300 Investment: $25 million Frito-Lay Investment: $60 million U.S. Foodservice Retained Jobs: 175 New Jobs: 24 Investment: $13 million The Goodyear Tire & Rubber Company Retained Jobs: 1,400 Investment: $250 million PTMW, Inc. New jobs: 138 Investment: $4.25 million


Topeka Economic Overview

As the capital of Kansas, Topeka also serves as the economic capital of the region. Almost half

of the Topeka-area workforce has jobs in state and federal government. Almost all of the State

of Kansas’ service offices are located in Topeka. Additionally, the federal government has more

than a thousand employees based in Topeka, in administration-related jobs. Topeka is also

home to high finance companies, major manufacturing facilities, and distribution centers.

While Money Magazine reports the annual average family purchasing power for a family in

Topeka was $65,000, just below the national average of $68,000, Topeka offers a much lower

cost of living than most other

cities of equal or greater size. In

the same report, Money reports

the national average cost of a

home was $260,000, while the

average home in Topeka sold for

just $95,000. Thus, the annual

“family income” of $65,000 in

Topeka goes much further in east

central Kansas than it would in

most other comparable cities.

The US Census Bureau reports the

median income for a Topeka

household is $36,000, while the

median family income is $46,000.

The per capita income for Topeka was $20,000, as reported in current US Census Bureau

estimates.

The City’s location, near the geographic center of the US, makes it the perfect location for

almost any industry. Flour mills, printing and publishing companies, medical providers, iron

foundries, food processing plants, and rail and highway transportation companies have all

realized the value of Topeka’s location, opening major operations, employing tens of thousands

of highly skilled workers.


STATE OF KANSAS 8,074 GOODYEAR TIRE & RUBBER COMPANY 1,600 TOPEKA CITY GOVERNMENT 1,500 BLUE CROSS AND BLUE SHIELD 1,362 U.S. GOVERNMENT 1,192 DILLON STORES DIVISION 1,170 BNSF RAILWAY COMPANY 1,100 HILLS PET NUTRITION, INC. 919 WESTAR ENERGY 881 FRITO-LAY, INC. 840 PAYLESS SHOES 810 JOSTENS PRINTING & PUBLISHING 703 RESER’ S FINE FOODS 700 HALLMARK CARDS, INC. 680 ALORICA, INC. 600 SECURITY BENEFIT 600 TARGET DISTRIBUTION CENTER 600 JOINT FORCE HEADQUARTERS & NATIONAL GUARD 556 MIDWEST HEALTH MANAGEMENT 550 VETERANS HEALTH RESOURCE CENTER 468 AT & T KANSAS 460 COREFIRST BANK & TRUST COMPANY 408 190th AIR REFUELING WING KANSAS AIR GUARD 361 Bold indicates headquarters location

Select Company Profiles

Payless ShoeSource

The nationally recognized provider of designer shoes at discount prices, Payless ShoeSource was

founded in Topeka in 1956, and it still has its corporate headquarters in the City. In 2005, Payless

sold more than 182 million pairs of shoes, at a value of $2.7 billion,

at retail stores in all 50 states and in a number of foreign

companies. Payless currently employs more than 1,730 people in

its corporate administration and distribution offices in Topeka,

and, as such, is one of the City’s most important private

employers.

FIGURE 20: Top Employers in Topeka Source: Greater Topeka Chamber of Commerce


Burlington Northern Santa Fe (BNSF)

Created by a merger of six major railways, Burlington Northern Santa Fe railroad is the nation’s

second largest, in terms of the number of track miles. BNSF is one of just four true national

transcontinental railways in the US. The company is

based in Fort Worth, Texas, but it operates one of its

largest rail yards in Topeka, where it has a major

transcontinental transfer hub. BNSF also has major rail

yards in Los Angeles, Kansas City, and Alliance,

Nebraska.

Jostens Printing and Publishing

Jostens is the country’s leading provider of school portraits, class rings,

and yearbooks, along with graduation caps, gowns, and diplomas.

The company is headquartered in Minneapolis, but it has its major

printing and publishing division headquarters in Topeka. Jostens’ Topeka facility not only prints

school photos, but also diplomas and yearbooks, with more than 1,000 employees in east

central Kansas.

Frito-Lay

Frito-Lay is a wholly owned subsidiary of Pepsi-Co, best known for its snack foods. Frito-Lay had

2008 revenue of $43 billion, while the company employed more than

198,000 people nationally, including more than 800 in Topeka. Frito-Lay’s

Topeka plant currently produces a number of its brands of chips, along

with cookies, and some of Pepsi-Co’s soft drinks.

Hallmark Cards

Hallmark is one of the best known companies, with one of the most

recognized service marks in corporate America. The company was

founded in 1910, in Kansas City, and has grown to become with

world’s foremost designer, printer, and seller of greeting cards. Hallmark currently has more than

43,000 retail outlets around the world. Hallmark’s Topeka plant currently produces about 46% of

the company’s greeting cards. It also includes Hallmark’s largest export center. Together, those

two Topeka operations employ 750 people in east central Kansas.


Goodyear Tire and Rubber

One of the most admired companies in the world,

according to Fortune Magazine, Goodyear employs more

than 1,700 people at its rubber manufacturing plant in Topeka. Headquartered in Akron, Ohio,

Goodyear has major facilities in North Carolina, Virginia, California, Alabama, Arizona, New York,

Florida, and Texas – not to mention overseas facilities in Canada, Belgium, France, Germany,

Turkey, South Africa, Brazil, Chile, China, India, Taiwan, Japan, Indonesia, and Australia.

Goodyear is one of the largest users of the national and international air transportation system.

Westar Energy

Westar ranks 936 on the Fortune 1000 list, as of the year ended 2007. The

company has its corporate headquarters in Topeka. Westar is the largest

energy provider in Kansas, and one of the largest in the Midwest, with more than 675,000

customers. Westar employs more than 2,200 people in the region.

Higher Education in the Topeka Area

The region surrounding Topeka is a center for higher education that is

recognized around the world. Two of the best universities in the United

States are located just miles from Topeka: the University of Kansas (KU) and

Kansas State University (KSU). The region is also home to the smaller, and well

regarded Washburn University, which is located in Topeka itself, and Emporia

State University, which lies less than 50 miles from the State Capitol.

Together, these four universities employ more than 15,000 people, and enroll

more than 65,000 full-time students. Moreover, KU and KSU draw hundreds of

thousands of alumni and fans every year to their outstanding Division I

athletic programs, as the “Jayhawks” and the “Wildcats” fight for Big XII Conference

championships.


The University of Kansas

The University of Kansas at Lawrence sits less than 40 miles to the east of Topeka. The University is

widely regarded as one of the nation’s preeminent teaching and research universities, currently

enrolling almost 30,000 full-time students. KU is the State’s flagship liberal arts institution. KU’s

mission is to serve as a “center for learning, research, scholarship, and creative endeavor” for

the State of Kansas, the country, and the world. Kansas offers what students and alumni call an

“ideal campus,” historic, yet wireless at the same time, close to the State’s capital, yet bordering

the prairie, with high-tech labs, interactive classrooms, and world-class performing arts venues.

The University of Kansas is best known as a “basketball school,” with its Jayhawks continually

battling for championships in the Big XII Conference and in the NCAA’s Division I. The University

offers outstanding athletic facilities, and its sports programs draw several hundred thousand fans

each year, from all over the country.

Kansas State University

Kansas State (KSU) is the State’s flagship engineering and technology institution. Its main

campus is located in Manhattan, which lies less than 50 miles to the northwest of Topeka. KSU

currently enrolls more than 23,000 full-time students from all 50 states

and more than 90 foreign countries. KSU is known as one of the “best

buys” in a college education. Princeton Review ranks Kansas State as

the fifth best buy in the country, while Consumers’ Digest ranks it 16th.

KSU offers more than 250 different undergraduate programs, and it

grants doctoral degrees in 45 areas of study. Each year the University

grants more than $150 million in scholarships and grants.

Like the University of Kansas, Kansas State is a member of the Big XII athletic conference. The

Wildcats compete in more than two dozen sports, and draw a few hundred thousand fans to

on-campus sporting events each year.

Washburn University

While no match for the University of Kansas or Kansas State, in terms of the size of the student

body, Washburn University in Topeka is considered one of the Midwest’s best master’s level

institutions. US News and World Report ranks Washburn the sixth best Midwest liberal arts college.

Washburn currently enrolls more than 7,000 full-time students. Washburn provides a broad-based

liberal arts education, with special emphasis on professional skills. The University offers small class

sizes, accomplished faculty, one-on-one instruction, and state-of-the-art technology.


Emporia State University

The University is located just 50 miles from Topeka, in the town

of Emporia, which lies in heart of northeastern Kansas’

Bluestem region of the Flint Hills, Emporia State University enrolls

6,400 full-time students, who study in more than 100 different majors. Emporia State provides the

community with not only an outstanding institution for higher learning, but with a pair of libraries,

a museum, recreational facilities, and other cultural offerings.

Topeka Tourism

As a quintessential piece of America’s heartland, Topeka offers the very best of Midwest culture.

As the capital of Kansas, Topeka offers a number of government-related attractions, as the City

provides families the best, hands-on opportunities to learn about how government really works.

Topeka also has a number of regionally recognized attractions that draw hundreds of thousands

of visitors each year, including a national park dedicated to the Brown vs. the Board of

Education decision desegregating public schools. Topeka is home to a dozen art galleries, five

performing arts centers, two botanical gardens, a zoo, a number of nationally known museums,

dozens of unique restaurants, and some of the best shopping in the Midwest.

Brown vs. Board of Education National Historic Site

Opened in May of 2004, on the 50th anniversary of the Brown vs. Board of Education

decision to desegregate public schools in Kansas, this National Historic Site offers a

unique look back at what led up to the decision, and insight into how the decision

was made. It’s a story of hope and courage, and the plaintiffs in the case never

knew the impact they would have on the history, not just of Kansas, but of the country. This

museum tells the story of these “ordinary people” who stood up for what was right, and

changed history.

Kansas Museum of History

The Kansas Museum of History offers a true “look back” at how the State was settled,

and what life was really like when Kansas was the western frontier of the United States.

The museum has award-winning exhibits about the colorful characters, and the

everyday folks, who helped to turn the prairies of the region into the most fertile

agricultural area in the world. The museum has restored a full-scale wagon from the

Oregon Trail, along with a full-size Cheyenne tipi, as a tribute to those who called the

land home long before any European settlers arrived. The museum is home to one of


the few remaining 1880 locomotives, displayed in an exhibit that explains the Topeka, Atchison,

and Santa Fe railroad.

Reinisch Rose Garden and Doran Rock Garden

The Reinisch garden features more than 400 varieties of roses, amidst more than 6,500 species of

plants. The garden is one of 23 test plots in the country for “hybridizers,” or cross-bred roses. The

garden was conceptualized in 1926, and it opened in 1930, at a cost of $30,000. The garden

typically blooms from late-May through mid-September.

Ward-Meade Park Botanical Gardens

The Ward-Meade gardens compliment the Reinisch Rose Garden,

offering more than 500 varieties of flowers, shrubs, and trees on a

2.5 acre area of land. Each individual plant is labeled, making the

garden a perfect place to learn botany and horticulture. Ward-

Meade Park is also home to Topeka’s only “water garden.”

Topeka Zoo

The Topeka Zoo is the passport to discovering hundreds of species of

exotic animals, without ever leaving east central Kansas. The zoo

offers innovative animal exhibits such as “Discovering Apes,” the

tropical rain forest, “Lion’s Pride,” the children’s zoo, and the “Black

Bear Woods.” The zoo also offers exhibits featuring animals commonly

found in the region surrounding Topeka.

Combat Air Museum

Much more than a mere collection of aircraft, the

Combat Air Museum, located at Forbes Field, houses

a wide variety of aviation artifacts dating back to the

First World War. The museum offers one of the world’s

best collections of aircraft engines, with descriptions

and explanations as to how they were developed

and how they work. The museum also offers

battlefield dioramas, which are full-scale mock-ups of

World War One and World War Two battlefield installations.


CONCLUSIONS

In its meetings with airlines in 2011, the Metropolitan Topeka Airport Authority has learned that

one of the biggest challenges it faces in recruiting local air service is the fact that many airlines

are worried about breaking passenger habits in the catchment area. Passengers in the Topeka

catchment area are conditioned to drive to Kansas City to access air service. This Grant

application is a key to funding an adequate marketing program to accomplish the goal of

retaining passengers, and to provide an airline with a revenue guarantee to cover potential

losses during the start-up phase of service.

This application takes on new importance in 2011, as airlines have cut regional capacity by

more than a quarter since the fuel spike of 2008. This has resulted in rising fares – up 14% in just

the last year, or $20 each way. Moreover, it is

much more expensive now for Topeka

catchment area passengers to drive to other

airports in the region due to the increased gas

cost.

Denver has the potential to serve as an excellent

hub for service for much of central Kansas. There

is no other Denver service offered in either the Topeka or Manhattan catchment areas.

Moreover, the number of daily average seats between Kansas City and Denver has been cut by

32% in the last two years. The Kansas City – Denver market has seen a loss of 707 available seats

per day each way. The 100 available seats per day each way proposed in this application will

replace only a small portion of those already cut from the region.

The Metropolitan Topeka Airport Authority has spent considerable time building a local coalition

of support for the air service proposed in this application. This local coalition has pledged

$15,000 in cash funding for this application – new from previous applications for Small

Community Air Service Development Grant funding. Additionally, the Airport will contribute

$50,000 in cash funding as part of this project. With this funding in place, the DOT can be

assured it has a committed partner in Topeka.

“This application takes on new

importance in 2011, as airlines

have cut regional capacity by

more than a quarter since the fuel

spike of 2008.”

Documents

FORBES FIELD AIRPORT, TOPEKA, KANSAS - AirlineInfoairlineinfo.com/ostpdf82/100.pdf · Eric Johnson, President/Director ... FORBES FIELD AIRPORT, TOPEKA, KANSAS. ... Regional air service