INYOKERN AIRPORT AIRLINE SERVICE STRATEGY:

DEPARTMENT OF TRANSPORTATION (DOT) GRANT
AND COMMUNITY MATCHING FUNDS

OVERVIEW:   With numerous cities having lost air service during the past two years, there is tremendous competition among these cities to attract small/start-up airlines. One incentive is for a small airport district to obtain a DOT grant to temporarily subsidize airline costs and then partially match that grant with locally donated funds to indicate community support. In order to obtain such a competitive grant, we are asking local non-airport entities to contribute some cash funding to partially match the DOT grant.

PRIOR YEAR HISTORY:   We did not win a DOT grant last year. Part of the reason was our inability to secure enough matching funds relative to other cities competing for the same grant money. Our local non-airport fund was $96,000; our grant request was $400,000. If we had received the grant, the DOT contract would have recognized total funding of $496,000, divided between 81% DOT and 19% local ratio. In this scenario, if an airline submitted a bill for a $100K subsidy IAW its contract, DOT would have paid $81K and the local fund would pay $19K. The rule regarding airline subsidy eligibility is based on achieved load factor (number of seats sold) and would be spelled out in detail in the contract with the airline.

DISBURSEMENT PROCEDURES:   Initial discussions with our potential airline indicate they will charge a very reasonable rate for flights between Inyokern and LAX. However, their business case for covering their start-up costs depends on achieving a certain load factor. If that is not initially achieved, the airline will be subsidized on a percentage basis as described above with funds from the DOT Grant/Local Fund pool. All contributions to the Local Fund will be maintained in a separate airport account and tracked individually as a percentage of total contributions as funds are expended. For example if Contractor A's contribution ended up being 5% of the total matching fund, Contractor A would then be charged 5% of each local fund disbursement to the airline. No actual funds are required until the DOT grant money is received. Period of performance will be one to three years.

THE PATH FORWARD:   We need your help to achieve this matching funds goal, win the DOT grant, and finally bring airline service back to Inyokern. With your help, we can eliminate the frustration of having to drive to LAX. You are receiving this because you have been identified as a potential matching funds donor. We plan to request a grant of $450K. We hope to achieve a matching funds pool of at least $200K. Can your company pledge $5K? If not, any amount would be greatly appreciated.

As with any project, funding is just one of the many details being worked in parallel. We will be working with the airline, the FAA, DOT and TSA to systematically resolve outstanding issues.

If you have questions contact:

    Paul Valovich, President
    Indian Wells Valley Airport District
    pvalovich@dcscorp.com 661-400-3640


Donate to the airport by email, mail or fax:

    Nicole@InyokernAirport.com
    P.O. Box 634, Inyokern, CA 93527
    FAX to 760-377-4194

FOR IMMEDIATE RELEASE
Thursday, April 07, 2016

Inyokern Airport Contact:
Scott Seymour
Inyokern Airport
Phone: 760.377.5844

Inyokern Airport to Apply for 2016 Small Community Air Service Development Grant
 

INYOKERN, CA - Last week, the US Department of Transportation (DOT) released the request for proposals for airports seeking 2016 Small Community Air Service Development (SCASD) Grant Program. Grant applications are currently due to the DOT on May 3. Indian Wells Valley Airport District is currently working to develop a 2016 grant proposal aimed at returning airline service to the Inyokern Airport.

There are a number of items that go into the development of a Small Community Air Service Development Grant Application. The Inyokern Airport believes that with Grant funding an airline can be recruited and local air service could be reestablished before year end 2016. The airport's plan of action for the use of grant funds has been established, and a letter of interest from a viable airline has been obtained. In order to make the airport's application competitive, the airport needs to show that the local community is committed to matching at least 10% of the total funds requested and that travelers will support the potential new service.

A successful grant award is needed to help restore air service at Inyokern Airport. Following the departure of United Airlines in 2013, the airport was left without commercial air service option. That has left the community with a void to fill, the void being viable air service to a strong connecting hub airport. Continued community support is vital for the Airport to succeed in attracting new success.

"The Small Community Air Service Development Program is a major source of support for airports that are looking to attract airline service to/from new destinations," said Scott Seymour, General Manger for Inyokern Airport. "The program can allow the airport to offer incentives and guarantees that will help to offset some of the risk and cost to the airlines. As we have learned in the past, the application process is quite competitive, and we have identified ways to improve our 2016 application. This year's application includes a letter of interest from a viable air carrier. In addition to that letter, we are also seeking support letters from residents, businesses and community partners. Airport communities with strong community interest and financial support are those with the winning applications."

The airport will be applying for a grant aimed at attracting service on a carrier to operate to/from IYK and Los Angeles. A winning grant will help to make the area a more competitive place for people to visit and to do business. It will also allow the airport to better serve the public in the capacity of a transportation asset to the region.

Support from the community is requested. "Indian Valley Airport District wholehearted supports the supports the Navy's initiative for air service development," states Seymour. "We ask that the community continue to support our effort by writing and submitting letters of support for our 2016 grant application."

If you or your business is interested in supporting this grant application, you can pledge your support in one of two ways:
      · Financial support through corporate matching funds, and or
      · Letter of support stating that you and company will use the service.


Sample support letters:

PUBLIC: BUSINESS:
 

Send your letters of support to
Nicole@InyokernAirport.com
P.O. Box 634, Inyokern, CA 93527
or send a FAX to 760-377-4194


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