Small Community Air Service Development (SCASD) Program Copyrighted
October 2, 2023
City of Dubuque Action Items # 01.
City Council Meeting
ITEM TITLE: Small CommunityAir Service Development (SCASD) Program
SUM MARY: Congressional representatives have notified Airport Director Todd
Dalsing that the Dubuque Regional Airport and its partners will receive a
$1.5 million grant through the federal government's Small Community Air
Service Development (SCASD) Program.
SUGGESTED Suggested Disposition: Receive and File
DISPOSITION:
ATTACHMENTS:
Description Type
MVM Memo City Manager Memo
Staff Memo Staff Memo
Press Release Supporting Documentation
Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Small Community Air Service Development (SCASD) Program
DATE: September 28, 2023
Congressional representatives have notified Airport Director Todd Dalsing that the
Dubuque Regional Airport and its partners will receive a $1.5 million grant through the
federal government's Small Community Air Service Development (SCASD) Program.
Todd is sharing information about the SCASD Program.
v
Mic ael C. Van Milligen
MCVM:sv
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Todd Dalsing, Airport Director
Q '/ Telephone: (563)589-4237
� Fax: (563)589-4108
e-mail: kspisak@cityofdubuque.org
DUSUQUE REGIONAI. ATRPOR'I'
Memorandum
To: Mike Van Milligen, City Manager
From: Todd Dalsing, Airport Director
Date: September 28, 2023
Subject: Small Community Air Service Development (SCASD) Program
INTRODUCTION
This will provide a Department of Transportation's Small Community Air Service
Development (SCASD) Program Update. This grant program is designed to help
small communities address air service issues. SCASDP can involve revenue
guarantees, financial assistance for marketing programs, start-up costs and
studies.
BACKGROUND
In 2019, the Dubuque Regional Airport provided three daily flights of scheduled
commercial service to Chicago O'Hare on American Airlines regional jets. Sun
Country Airlines also provided occasional destination leisure charters on 737
aircraft to Laughlin, Nevada and Biloxi, Mississippi.
In July 2019, DBQ applied for a SCASDP grant to provide nonstop westbound
service to Denver International Airport. We received notification in February 2020
from the Department of Transportation that our grant had been approved.
Strong Public-Private Partnerships were crucial in obtaining the grant award. A
consortium led by the Dubuque Area Chamber of Commerce and the Dubuque
Regional Airport, with partners from Greater Dubuque Development Corporation,
Travel Dubuque, Dubuque County Board of Supervisors, City of Dubuque, and
the lowa Department of Transportation worked together for a total grant
application of $1,310,195 ($775,000 federal). The strategic plan for the grant
was to provide nonstop service to Denver International Airport (DEN) and
improve connections to the West and Northwest regions where current access
was severely limited. This grant was available to provide funds to an airline for a
three-year period once new service began.
Early in 2020, Dubuque Regional Airport and Dubuque Chamber were in
negotiations with United Airlines/SkyWest Airlines to add service to DEN using
funds from the 2020 SCASDP grant. In March 2020, when COVID hit, all air
carriers reduced service and these negotiations ended.
During this time, Airports nationwide struggled to maintain operations. The Rally
for Air Service Organization recently released air service data showing
comparisons of October 2019 to October 2023. Overall, there have been 324
airports (76% of airports in the country) that have seen a reduction or total loss in
air service. DBQ's daily flights were reduced to two flights daily in April 2020 then
one flight daily in May of 2020. In October 2020, American Airlines suspended
daily scheduled service from DBQ. This service returned in January 2021 with
one flight daily until August 2021 when it was increased to two daily flights.
These flights continued until September 7, 2022, when American Airlines closed
their DBQ station and discontinued service.
On March 22, 2023, Avelo Airlines began 737-800 scheduled service out of DBQ
to Orlando, Florida utilizing a minimum revenue guarantee provided by funds
from the City of Dubuque and Dubuque County, and marketing funds from the
Dubuque Chamber and Dubuque Airport Commission. Soon, after the success of
these flights, Avelo announced additional 737-700 service to Las Vegas (LAS)
and began service on September 13tn
Due to strong competition of airports nationwide, Dubuque Regional Airport,
Dubuque Chamber and their partners reapplied for additional federal funds when
a new SCASD notice of funding opportunities was announced by the DOT in
April 2023. On September 27, 2023, DBQ and their community partners received
notification from our Federal Representatives that DBQ received the SCASDP
grant award with the increased total federal amount of $1.5 million.
The SCASD grant program is designed to help small communities address air
service issues. When positioning to return and retain daily scheduled air service,
the increased SCASDP federal share will position DBQ to be more competitive
with other national commercial airports. The strategic plan for the new grant is to
provide nonstop daily scheduled service to a hub and improve regional
connections to the nation and world for business and leisure travelers.
RECOMMENDATION
The Dubuque Airport Commission and Staff will continue working with
Commercial Service Air Service Team (CAST), Chamber Lead Air Service Task
Force, Federal and State Representatives, and local private/public partnerships to
restore and retain scheduled commercial air service.
BUDGET IMPACT
2023 SCASDP grant replaces the 2020 grant DBQ previously received and
increases the Federal funds by $725,000 to $1,500,000.
2020 SCASD Grant Breakdown:
Federal DOT $775,000
City of Dubuque $150,000
Dubuque Chamber $100,000
Dubuque County $ 50,000
GDDC $ 50,000
Travel Dubuque $ 50,000
DBQ Airport $ 41,000 (Waiving rates and charges)
DBQ Airport $ 40,000 (Marketing)
Marketing In Kind $ 29,195
IDOT Aviation $ 25,000 (Marketing)
Total Federal + Public/Private Partnerships = $1,310,195
2023 SCASDP Grant Breakdown:
Federal DOT $725,000 (Add to 2020 grant funds)
(Local match remains the same)
Total Federal + Public/Private Partnerships = $2,035,195
ACTION TO BE TAKEN
Update City Council on SCASDP Grant Award.
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Dubuque Expected to Recei�e $1.5 Million Grant to
Help Restore Commercial Air Service
SEPT. 27, 2023
The City of Dubuque has been notified by its Congressional representatives that the
Qubuque Regional Airport and its partners will receive a $1.5 million grant through tne
federal go�ernment's Small Community Ai�-Service De�elopment Program. This will be
added to approximately $535,00 in publiclprivate partnership funding aimed at helping
irnprove and enhance lacal air service at the Dubuque Regional Airport.
The Small Community Air Service Development Program is designed to help small
communi#ies address air service issues. Grant funding can be used on efforts inclucfing
i
revenue guarantees, financial assistance for marketing programs, studies, and start-up
costs.
The grant funding is especially vital as airports nationwide have experienced a robust loss
in air service over the past four years. Approximately three-quarters of 4he airports across
the United States have seen a reduction or total loss of service in that time. Within the
state of lowa, airports have seen a 26% reduction in service.
Civic and business leaders in Dubuque have been aggressively seeking new service
opportunities since losing daily flights to Chicago last fall. In December, the Dubuque
Regional Airport announced that low-cost carrier Avelo Airlines would begin offering
twice-weekly flights to Orlando. Avelo has since added flights to Las Vegas from
Dubuque.
The Dubuque Commercial Air Service Team (CAST), which includes City and County ,
o�cials as well as business and community leaders, continues to pursue a daily carrier to
offer connections from Dubuque to larger markets. CAST will continue to work with the
Dubuque Regional Airport Commission to restore, sustain, and enhance commercial air
service in Dubuque.
"As we continue our tireless work to return daily commercial air service to the Dubuque
Regional Airport, we are truly thankful to the Department of Transportation, the Biden
Administration, and our Congressional delegation for their partnership and assistance,'
says Dubuque Mayor Brad Cavanagh. "This grant is a major step forward in our quest to
reconnect Dubuque to the rest of the United States by air as soon as possible."
"Without our partners' support, this grant wouldn't have happened," added Mike Philips,
Chair of the Dubuque Regional Airport Commission. "These federal funds will position
Dubuque to be more competitive with other national airports when positioning to reinstate
and retain daily scheduled air service."
"We are thriiled to receive this grant award," noted Molly Grover, President and CEO of
the Dubuque Area Chamber of Commerce. "Restoring and enhancing air service has
been and continues to be amongst the Chamber's top priorities. Our members have been
emphatically clear in the need for additional air service for the growth and success of the
business community. In today's economy iYs simply a business imperative."
"Dubuque will be well-served by this Small Community Air Service Development Grant,'
said US Senator Charles Grassley in a statement. "These funds will help the community
restore daily commercial air service that is vital for continued economic growth. Since
American Airlines pulled its air service from Dubuque, I have been hard at work to help
the community regain daily scheduled commercial air service. Dubuque's situation is
exactly what these funds were intended to help address, and I know that Dubuque will
utilize this award to the greatest extent."
"Ever since daily commercial air service was pulled from Dubuque last September, I have
worked diligently with local stakeholders and leaders to restore daily commercial air
service and protect Dubuque's economic vitality, including by successfully advocating for
this Small Community Air Service Development Program grant," added US
Representative Ashley Hinson. "This grant will help Dubuque restore daily carrier service,
reinvigorating the local economy at the heart of America's supply chain along the
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Mississippi River. I will keep fighting with everything I've got for Dubuque and for the
continued growth and prosperity of lowa."
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MEDIA CONTACTS
Todd Dalsing, Dubuque Regional Airport Director
TDafsinq{c�citYofdubugue.or�c , (563) 5$9-4233
Molly Grover, Du�uque Area Chamber of Commerce Presid�nt & CEO
MGroverCc�dubuquechamber.cam, (563} 589-4233
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