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APPENDIX C Annotated Bibliography Air Transport Association, "Commercial Aviation: The Brakes Are On," November 3, 2008. Provides a significant amount of data on changes in fuel prices over time and the effect those prices have on airline operating costs. Airports Council International, Airport Benchmarking to Maximize Efficiency, July 2006. Provides an overview of benchmarking generally, including reasons for undertaking bench- marking exercises. Indicates areas that airports can benchmark themselves against. Also includes a summary of key ACI benchmarking initiatives and information concerning ongoing benchmarking studies. American Association of Airport Executives, Promoting Air Service Development through Innovative Financial & Marketing Partnerships, September 2003. Gives advice on targeting airlines and incentives to add to travel bank programs for small and medium airports seeking to increase their flight offering. Provides five airport exam- ples of travel banks and three unsuccessful travel banks. Cautions against financing services with incentives that cannot become self-supporting after the incentive period. Randy Bennett, Patrick Murphy, and Jack Schmidt, A Competitive Analysis of an Industry in Transition: The U.S. Scheduled Passenger Airline Industry, Gerchick-Murphy Associates, Washington, D.C., July 2007. Former senior U.S.DOT officials' study of the competitiveness of the U.S. domestic airline industry. They report that the industry is more competitive than at any time since 1995. The key to this increased competition is the emergence and evolution since airline deregulation 30 years ago of two distinct business models--network carriers and low-cost carriers. The report reviews the key changes in competitiveness that date to 2000 and the emergence of the resilient LCC sector. The study documents the fundamental cost differences between the two categories of carriers and the growing market penetration of the LCCs. Dave Conklin, Susan Kittle, Danni Varlan, "Airline Incentives for Dummies," ACI Marketing & Communications Conference, Tucson, Arizona, June 16, 2007. Explains the purpose of airline incentives, lists five different types of incentive programs, and provides advice on what information to present to target airlines when making an air service pitch. Also provides common cautions for incentive programs, such as incumbent airline reactions and appropriateness of incentives. 157

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158 Passenger Air Service Development Techniques Robert A. Hazel, Eclat Consulting, "Small Airports & Air Service Development," ACI-NA Marketing & Communications Conference, June 2005. Observed that the smallest airports experienced the largest traffic declines between 1994 and 2003, and did not see the same growth in 2004 as did larger airports. Presents basic ASD tools and the ASD downgrade/upgrade cycles. David Jarach, "Aviation Related Airport Marketing in an Overlapping Metropolitan Catchment Area," Journal of Air Transport, Vol. 10, No. 2, 2005, Milan, Italy. This report looked at the Milan airport system and the problems of competition between airports (rather than between airlines at one airport). Gives examples of airport positioning types and attributes of successful airports. The author suggests that by differentiating the product at each of Milan's three airports (via regulation at Linate, the downtown airport) all three could operate without cannibalizing each other. Sypher Mueller, Air Service Development and Airport Management: A Strategy of Eau Claire, May 1990. Sypher Mueller reviewed air services at Chippewa Valley Regional Airport in Eau Claire, Wisconsin, and recommended that it attempt to purchase slots at Chicago O'Hare for a proposed Eau ClaireChicago service. The firm also recommended that Eau Claire seek state or federal support in order to do so, then offer the slots to a regional airline having the correct, smaller-sized aircraft for the Eau ClaireChicago market. The firm also advised the airport to make changes to its management structure and organization, and reviewed the airport's facilities. Owen R. Phillips, Larry R. Weatherford, Charles F. Mason, Mitch Kunce, "Passenger Leaks and the Fate of Small Community Air Service," Economic Enquiry, Vol. 43, No. 4, October 2005. Reviewed the GAO 2002 report and observed distinct characteristics of airports with 10 or fewer, or 10 or more daily flights; Eastern U.S. versus Western U.S. airports; and Wyoming airport leakage. Special Report 263: Future Flight: A Review of the Small Aircraft Transportation System Concept, Transportation Research Board, National Research Council, Washington, DC, 2002. Within the National Aeronautics and Space Administration (NASA), the Small Aircraft Transportation System (SATS) program has been examining the potential use of small aircraft being flown between small airports in currently lightly used airspace to provide an increasingly larger share of the nation's intercity personal and business travel. This report reflects the collective views of a committee assembled by the Transportation Research Board to examine the concept. Wilbur Smith Associates, Montana Air Service: Opportunities & Challenges, FHWA/MT-06-013/ 8185, February 2007. Discusses small community air service economic realities and the impact of federal initiatives and factors affecting passenger leakage at 10 Montana airports. Includes socioeconomics, historic enplanements, travel patterns, current service, and historic air service trends at these airports. U.S. Department of Transportation, Office of the Inspector General, The Small Community Air Service Development Program, Report CR-2008-051, May 13, 2008. The Inspector General's report on the Small Community Air Service Development Program and the ability of communities to sustain improved air service. The report offers good evi-

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Annotated Bibliography 159 dence of the effectiveness of different ASD efforts, particularly in sustaining air service improvements over time. U.S. Government Accountability Office, Commercial Aviation: Air Service Trends at Small Communities since October 2000, GAO-02-432, March 29, 2002. Observations of factors contributing to air service decline in small communities since October 2000. The report documented the change in air service in small communities that began with the "dot.com" collapse in 2000 and accelerated after the events of September 11, 2001. The report also highlighted the significant differences in air service between non-hub and small hub airports, the variation in airport management's views of the sizes of their catchment areas, and the proximity of many small airports to larger airports served by low-cost carriers. U.S. Government Accountability Office, Commercial Aviation: Factors Affecting Efforts to Improve Air Service at Small Communities, GAO-03-330, January 17, 2003. The report provides an overview of the economics of air service in small communities and explains the principles of how various incentives can contribute to affecting that service. GAO provides case studies of some communities' ASD efforts as the industry struggled to recover from the downturn following September 11, 2001. U.S. Government Accountability Office, Commercial Aviation: Initial Small Community Air Service Development Projects Have Produced Mixed Results, GAO-06-21, November 30, 2005. Focused on the outcome achieved at communities where the SCASDP awards had been completed. Because most SCASDP grants were ongoing, GAO's conclusions were tentative. Marketing strategies were common, but GAO noted that projects that provide direct benefits to an airline, such as revenue guarantees and financial subsidies, have the greatest chance of success. Only about half of the airports contacted reported that their air service improvements were self-sustaining after the grant was complete. United States Senate, Subcommittee on Aviation Operations, Safety & Security; Committee on Commerce, Science and Transportation; Improving Air Service to Small & Rural Communities, July 17, 2007. Written record of the Senate Aviation Subcommittee's hearing on air service at smaller communities. Witnesses discussed the challenges faced by small airports in a post-9/11 environment, including larger neighboring airports receiving LCC service, airlines becom- ing more selective on routes they add to their networks due to the rising cost of fuel, and the shrinking national turboprop fleet. Recognized some fundamental problems with the Essential Air Service (EAS) program, and whether that program helps communities attract self-sustaining air services. Suggested changes to the EAS program.