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Docket OST-2006-23671
CITY OF RUSSELLVILLE, ARKANSAS Proposal under the Small Community Air Service Development Program
Prepared For: U.S. Department of Transportation Office of Aviation Analysis, X-50 Room 6401 400 7th Street, SW Washington DC, 20590
Prepared By: The City of Russellville, ArkansasDUNS #: 005231464
April 7, 2006
SMALL COMMUNITY SOLUTIONS
Very Light Jet (VLJ) Enabled Air Taxi Services

Aviation Research Group/U.S., Inc
City of Russellville, AR Proposal Under The Small Community Air Service Development Program
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TABLE OF CONTENTS Executive Summary ...........................................................................................................................3
Current Air Services ...........................................................................................................................5
Air Service Development Efforts ........................................................................................................7
Development Efforts Critical to the Support of Charter Operations................................. 8 New Air Service Strategic Action Plan.............................................................................................10
Description of Subsidy Fares (First Year of the Program)............................................. 11 Example Trips and Fare Reductions............................................................................. 12 Program Self-Sufficiency .............................................................................................. 12 Administration of the Small Community Air Service Development Grant ...................... 13 Intentions of Replicating the Air Taxi Program Throughout the United States .............. 13
Public Private Partnership.............................................................................................................15 Sources and Uses of Project Funding .............................................................................................17
DOT Grant Funding Contributions ................................................................................ 17 Local Contributions ....................................................................................................... 18 Airport In-Kind Contributions......................................................................................... 19 Airport/City Hangar Use Arrangement .......................................................................... 20 Chamber of Commerce Advertising Assistance............................................................ 20
SCASDP Summary Information........................................................................................ Appendix B

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Executive SummaryIntroduction The City of Russellville, Arkansas and its public-private community based partner, Pilot Investors Group, Inc., hereby submit a proposal requesting federal grant monies under the Department of Transportation (DOT) Small Community Air Service Development Program. The City is not applying for an Air Service Development Zone Designation. The citys local airport, Russellville Regional Airport (RUE), is currently without public charter air service linking it to the National Air Transportation System. As such, any federal grant funds received will be utilized to create and support air service development efforts, specifically air taxi operations, at RUE. The effective catchment area for the Russellville Regional Airport is approximately 145,000 people. The purpose of the proposed air taxi operation is to enable low-fare ($700/hour, Year 1) air transportation service at the Russellville Regional Airport. This service will be based on the utilization of a new classification of aircraft, the Very Light Jet (VLJ). Such a program was not possible in the past due to high hourly operating costs of the aircraft involved. However, because of their affordable purchase price and low direct operating costs, VLJ aircraft are now a key enabler of this suggested program. This type of service, which generally focuses on short to mid-range regional travel typically involved with business/corporate operations, is fast becoming a more viable and popular alternative to flying commercially. In many instances, it is also the best air service option for many small, underutilized airports that could not otherwise support nor attract scheduled airline service. The benefits of implementing this type of operation include:
It fills a very relevant air service need.
It builds awareness of the airport within the regions business/consumer base.
Once implemented, such operations will give the City a competitive advantage over other small communities in regards to air transportation service offerings, and ultimately, in attracting new business and economic growth.
The City of Russellville and Pilot Investors Group are requesting a grant in the amount of $707,550 to establish and implement an on-demand charter operation at Russellville Regional Airport. The community and its public-private partner will match this with $391,344 (or more) in local funding. The City of Russellville is pleased to submit this proposal under the Small Community Air Service Development Program, as it offers the opportunity to combine the communitys local

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resources with the required federal funds necessary to establish new air travel service options within the Pope County region. The City believes that this proposal has great potential to succeed in meeting its stated goals and objectives. All correspondence regarding this document, and the project itself, should be directed to the programs designated legal sponsor, Russellville Mayor Raye Turner, at the following: Mrs. Raye Turner Mayor, City of Russellville, Arkansas 209 West 2nd Street Russellville, AR 72811 (479) 968-2098. [email protected]

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Current Air Services The City of Russellville is situated in the west central area of Arkansas along the banks of the Arkansas River between the beautiful Ozark and Ouachita Mountains. The area exhibits natural beauty and richness for many to enjoy, and provides ideal conditions for hunting, fishing, water sports, and camping. The Citys economy is growing, unemployment is low, and there are many commercial and industrial businesses that provide occupational opportunities for all skill levels. In addition, several Fortune 500 companies have facilities located in Russellville; including Firestone, Dow Chemical, International Paper, Entergy (Arkansas Nuclear One), and Tyson Foods. Russellville is also home to Arkansas Tech University, a thriving college with an enrollment of approximately 6,700 students per semester. It is important to note that enrollment at the university has been filled to capacity for the current year and the previous seven years running. Russellville Regional Airport (RUE) is located approximately two miles southeast of the City, and is currently without any form of public charter air service. Presently, the majority of flights at RUE involve general aviation operations which encompass approximately 80% of the traffic flow. While the airport is situated in Pope County, with a population of 56,580, its service area also extends to the neighboring counties of Conway, Johnson, Logan, and Yell. This is due to the layout of the areas road/national highway system and the proximity of said communities. Therefore, the effective catchment area for RUE is 145,000 people.
LIT
RUE Russellville

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Presently, there are not many convenient options regarding air travel service for the residents of Russellville. Since RUE does not yet offer public air service, travelers must drive to one of three distant airports to utilize such transportation. Little Rock National Airport (LIT) is nearest to Russellville at 81 miles southeast, and is a 1 hour drive by car. LIT is served by nine commercial airlines which provide direct flights to a number of major cities. The next closest airfield is Northwest Arkansas Regional Airport (XNA), located in the Fayetteville/Springdale area. This operation, situated approximately 140 miles from Russellville, is Arkansas second busiest airport, and houses six commercial airlines. The third and final air service option for Russellvilles traveling population involves Memphis International Airport (MEM), located 214 miles east in Memphis, Tennessee. The bottom line is that the Russellville and Pope County, Arkansas region is completely without local air service, thereby forcing its residents and work force to commute long distances for any form of air transportation connected to the national network. Such lengthy distances and drive times result in millions of additional ro

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