Monday, August 30, 2004

Airport Receives Small Community Air Service Development Program Grant

SIOUX CITY, IA – Glenn Januska, Director of Sioux Gateway Airport/Col. Bud Day Field announced today that the Department of Transportation has awarded Sioux Gateway Airport/Col. Bud Day Field a $609,800 Small Community Air Service Development Program Grant.

Program Background - The Small Community Air Service Development Program was established under the Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (AIR-21), as a three-year “pilot” program designed to provide financial assistance to small communities to help them enhance their air service.  The DOT provides this assistance in the form of financial grants.  The program was not funded in its first year, fiscal year 2001, but was funded and implemented in fiscal years 2002 and 2003.  The Vision 100-Century of Aviation Reauthorization Act (Vision 100) reauthorized the program for an additional five years through fiscal year 2008, and eliminated the “pilot” status of the program.  Sioux Gateway Airport/Col. Bud Day Field submitted two prior grant applications under this program which were not funded, and submitted a new grant application on May 12th of this year.

Under the statute, the Secretary may award a maximum of 40 grants each year that the program is funded, although no more than four grants each year may be to the same state.  Communities that are eligible to participate in the grant program are those who have insufficient air service or unreasonably high airfares.  The statute directs the Secretary to give priority to those communities where average air fares are higher than the air fares for all communities.  The DOT received 108 grant proposals involving communities in 39 states and awarded 40 grant proposals this year.

Grant Request - The Airport’s grant focus this year was, as in the past, to attract an additional carrier that will bring about needed competition and a better alignment of business fares.  The grant application proposes to accomplish this by reducing to the greatest extent a new carrier’s risk of entering into the Siouxland market.  Specifically, it involves abatement of airport fees for a specified period of time, purchase of ground support equipment, a revenue guarantee, and marketing funds.  Additionally, it includes elements to solidify the existing air service market by providing funding for “partnering” programs with Northwest Airlines.  The Airport feels that Northwest has been a good carrier, and Northwest has served the Airport for quite a while.  The business community, however, has been particularly concerned by the higher than average business fares, a concentration of flights into one hub city, and lack of carrier choice.

“We’re ecstatic about the grant award,” said Januska.  “While many parts of the air service industry continue to struggle, we feel that the grant will provide us with significant, substantial, and effective tools to address the air service needs of the Siouxland community.”