Guidelines and Eligibility Criteria

Air Access Development Program

AIRLINE ROUTE PROMOTION AND ADVERTISING REBATE

PURPOSE AND OBJECTIVES

The Airline Route Promotion and Advertising Rebate (Airline Rebate) is intended to support an airlines efforts to stimulate demand for newly introduced routes to, from and between Newfoundland and Labrador destinations. This rebate is available to incumbent airlines, as well as to airlines currently not operating in the Province, and applies to qualifying intra-provincial, inter-provincial, trans-border and international routes. The Airline Rebate will provide financial assistance to qualifying airlines to comarket and build initial traffic demand. This rebate will assist in offsetting the initial in-market advertising costs to create an awareness of the newly launched air service, and promote the new route to the travelling public.

be a duly registered company, or commit to taking the necessary steps to become a registered company under the Newfoundland and Labrador Corporations Act and/or the Canada Business Corporations Act and legally entitled to conduct business in the Province; and be in good standing with the Province. The proposed route should operate a minimum of 1 day per week and on a yearround basis. However special consideration may be given, at the Departments discretion, to seasonal routes where the business case supports the service, and there is an intention to be an annual, long term seasonal route.

AMOUNT OF FUNDING
Funding will be provided to successful applicants as follows: Year 1 100% of eligible expenses to a maximum of $250,000 per route Year 2 75% of eligible expenses to a maximum of $250,000 per route Year 3 50% of eligible expenses to a maximum of $250,000 per route The total amount of funding to be allocated to any one route will vary based on the nature of the route and the negotiated terms and conditions. Assistance under the Program is available on a one-time basis to each airline for each specific route to a combined maximum of $750,000 per route over a

ELIGIBILITY
To be eligible for funding, the applicant must: be a provincial, domestic or international airline carrier with appropriate legal documentation and licenses, as required, to operate both in Canada and in the proposed new destination market; be an air passenger and/or freight service carrier licensed to operate in Canada and in the proposed new destination market;

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3-year period. One application for funding will be required to apply for assistance for the 3-year period. All funding offers are subject to the availability of program funds.

be communicated to the public and all successful applicants under the Program must agree to a public release of details of the level of funding received and the nature of the route supported. Once an application is approved, the applicant must prepare and sign a Project Claim Form and submit it to the Department of Business for processing. All claims for reimbursement of approved eligible costs must be supported by original invoices for purchased goods and services, or other appropriate documentation, to support the project cost incurred to the satisfaction of the Department. Approval for disbursements under the Program will be subject to a contract being duly executed and compliance by the applicant with the underlying terms and conditions. Timing for disbursement of funds will be in accordance with the terms of the contract negotiated with the applicant.

Marketing and promotional plan Financial plan (historical and proforma) Supporting documents Requests for funding will be assessed on a case-by-case basis, through application of sound business methodologies, and in accordance with the Guiding Principles as defined in Taking Flight: An Air Access Strategy for Newfoundland and Labrador. The Department reserves the right to request additional information required during the assessment process in order to fully evaluate the new service.

USE OF FUNDS
Funding will be provided in the form of a rebate to be directed towards promoting and advertising the newly introduced route in the market. Eligible costs include placement of newspaper and other print media, radio, and internet-based advertising campaigns (i.e. media buying), as well as travel and trade promotions. Consideration will also be given to other promotion and advertising initiatives and expenses in accordance with the spirit and intent of the Air Access Strategy.

HOW TO APPLY
Airlines wishing to access funding should consult with the Department of Business to determine eligibility for assistance under the Airline Rebate component of the Air Access Development Program. Proposals must be submitted to the Department for review and evaluation. Proposals and supporting documentation supplied by the applicant will be assessed against the program objectives and eligibility criteria. Proposals for assistance under this Program will be subject to assessment by the Department of Business and will not necessarily be accepted or approved.

INELIGIBLE ACTIVITIES
Costs associated with creative ad development are ineligible for reimbursement under the Airline Rebate, as are any in-house costs.

INFORMATION REQUIREMENTS
Applications for funding must include a detailed business plan demonstrating the proposed route is viable and self-sustaining within 3 years of introducing the new service. This plan will generally include the following information: Introduction Business overview and history Proposed route description and background Demonstrated viability and long term sustainability of proposed route Competitive impact on existing airlines and routes

DISBURSEMENT OF FUNDS
Successful applicants will be required to enter into a Contribution Agreement with the Department of Business prior to the disbursement of funds. The Contribution Agreement will outline details of the applicants commitment and the terms and conditions which the applicant must meet in order to be reimbursed for approved eligible expenses, including the timeframe for performance. All contributions under the Airline Rebate component of the AADP will

Inquiries may be directed to: Business Analysis Division

Department of Business Government of Newfoundland and Labrador t 1.709.729.3064 f 1.709.729.3306 e business@gov.nl.ca

nlbusiness.ca

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