Seventy-seven applicants are competing for $20 million in federal funds to improve their air service.

Now in its fourth year, the U.S. Department of Transportation's (DOT) Small Community Air Service Development program is not as popular as it once was. As the application deadline drew to a close last month, communities from 35 states submitted project ideas seeking $45.4 million in federal funds. A year ago, 108 groups from 39 states submitted proposals to spend more than $61 million. The pool has remained constant at $20 million since the program began. Last fall, 40 communities won grants ranging from $1.5 million to $50,000 (CRAN, Sept. 13, 2004).

The 2005 applicant pool does include a number of repeat applicants and at least two communities that won funding in earlier rounds.

This year's class of applicants includes four multi-airport consortiums seeking to establish or improve commercial air service at 47 airports in Wyoming, Washington, Oregon, California and North Carolina. Most of the consortiums, which are state sponsored, are seeking the funds to study their markets and air service options and then, perhaps, begin marketing the airports.

Three airports - Savannah/Hilton Head International Airport (SAV), Mobile Regional Airport (MOB) in Mobile, Ala., and Abraham Lincoln Capital Airport (SPI) in Springfield, Ill. - are seeking funds for a novel air service recruiting approach. Each airport wants funding to hire airport personnel who will handle all the ground chores for a carrier. The carriers would be freed of the initial investment in station crews until passenger enplanements merit a dedicated airline staff. None of the three airports have lined up a carrier to take advantage of the proposed service.

When the DOT evaluates each application it will be looking at creative approaches to reduce air fares and to begin new service, said Bill Mosley, a DOT spokesman. DOT will also be looking at a community's timeline to implement a program and its level of financial commitment.

The application process did not spell out a ratio for a local match. Some communities are putting forth a 10 percent cash match while others propose a 50-50 match. Two communities are willing to kick-in four times the size of their request for federal funds. A number of communities are allocating a larger amount of in-kind services than actual cash. The bulk of the in-kind contributions include waivers on landing fees and free advertising in the local media.

Mosley said the agency will make its announcement before the end of the fiscal year on Sept. 30. Last year, the awards were made on Aug. 30.

>>Docket: OST-2005-20127. Contact: Bill Mosley, DOT, (202) 366-5582<<