RFD gets $500,000 Grant to Attract more Passengers

Rockford Register Star
February 12, 2010

By Thomas V. Bona

ROCKFORD — Chicago Rockford International Airport has another weapon in its quest for more passenger destinations — a $500,000 federal grant.

The U.S. Department of Transportation awarded the grant Friday, according to U.S. Sen. Dick Durbin, D-Ill. It's from the department's Small Community Air Service Development Program.

The airport can use the funds for a number of things to persuade an airline to start a new route here — a revenue guarantee, a marketing campaign, fee waivers or other aid. Officials plan to meet with Allegiant Air — the largest carrier here — to talk about service possibilities, and are meeting with others as well.

"We have a lot of conversations going on right now," said Amy Ott, the airport's deputy director of administration and finance. "Now it'll be a little bit easier because we'll have the grant in hand."

According to its application, the airport will chip in $350,000 of its own funds for marketing and staffing, waive $50,000 in fees and add $150,000 in monetary and in-kind community donations.

In the application, airport officials listed New York, Los Angeles, Washington, D.C., and Dallas as target cities because they were the most popular destinations from the Chicago region not already served by Rockford. But Ott said the airport will work with whatever destination would make sense for a carrier.

The last time the airport won one of these grants, it lured United Airlines to fly to Denver in 2006. But the airline left two years later after inconsistent passenger totals and the expiration of its revenue guarantee.

Ott said United used 50-seat regional jets that weren't economically efficient on the route, and the airline eventually moved the small planes to more profitable routes.

Airport officials will keep that in mind this time, making sure they get not only a good destination, but also the right-sized planes, Ott said.

While the focus will be on starting one route, the grant could lead to several routes.

"The hope is you bring it to one and it's so successful (the money is) not needed. ... Then you can use it to go to the next one and make it successful," Ott said.

Airport Executive Director Bob O'Brien said he'll introduce a campaign soon to gauge community interest in a new destination, build public support for a route and woo an airline to serve it.

Durbin sent a letter in October in support of the airport's grant application.

"Rockford airport has proven to be a viable commercial airport since restarting commercial passenger air service over six years ago," Durbin said in a press release. "Using today's grant to expand air service will provide the growing population in northern Illinois with a viable local alternative."

Durbin said Friday's grant is part of $6.4 million awarded this year in the Small Community Air Service Development Program, which was designed to help small communities improve their air service.

Ott said smaller airports need to use out-of-the-box enticements like marketing commitments, revenue guarantees and waived fees to get airlines to try them out. She believes airlines can make money here, they just need to be convinced.

"Sometimes these secondary marketplaces get overlooked," Ott said. "Secondary airports need to get out in front of (airlines), show them our numbers, show them what's possible. It's a risk-free trial."