Proposal to Provide Essential Air Service at Gulkana , May Creek, and McCarthy, Alaska Docket DOT=OST-1995-492 Rate Period Feb 1, 2013 to Jan 31, 2015
August 10 , 2012 Todd Homan US Department of Transportation Essential Air Service & Domestic Analysis Div, X-53 1200 New Jersey Avenue , SE gth Floor Room W86-472 Washington DC 20590 Dear Mr
. Homan Enclosed please find our proposal for continuation of essential air service for Gulkana, McCarthy, May Creek, Alaska. Our attached bid is for the standard two year contract. Service proposal February 1 , 2013 through January 31 , 2015 We would like to propose the same historical level of service for a four-year rate term if possible, with provisions for a rate change for fuel , oil and insurance after two years. Sincerely,

# JJ.~KL~-4--- Dave Parmenter Director of Operations Copper Valley Air Service

1Proposal to Provide Essential Air Service at Gulkana , May Creek, and McCarthy, Alaska Docket DOT=OST- 1995-492 Rate Period Feb 1, 2013 to Jan 31, 2015 U.S
. Dept. of Transportation Office of the Secretary Washington D
.C
. Copper Valley Air Service Annual Subsidy for Anchorage , Gulkana, McCarthy and May Creek February 1 , 2013 to January 31 , 2015 From Anchorage International Airport two (2) times per week with fuiiiFR Piper PA-31 Twin engine aircraft with six (6) passenger seats. Year-round service
. Copper Valley Air Service would reserve the option to use a Cessna 441 Conquest twin Prop-Jet nine (9) passenger seats for aircraft backup , or to meet greater than six passenger seat demand if needed to Gulkana Alaska
. From Gulkana to McCarthy and May Creek Alaska , two (2) times per week scheduled service for 52 weeks per year. Proposed service with Cessna 185 wheel ski equipped, three (3) passenger aircraft, winter months , Cessna 206 four (4) passenger aircraft for summer months
. Copper Valley Air Service would reserve the option to use a DHC-2 Beaver six (6) passenger seats for aircraft backup or to meet greater than four passenger seats demand if needed to McCarthy and May Creek in winter or summer months. Routing : Monday and Thursdays Depart -ANC 8:30am Depart -GKN 10:00 am Depart -MXY 11 :15 am Depart- MYK 11:30 am Depart -GKN 12 :45 pm ARV- GKN 9 :45 am ARV -MXY 10:55 am ARV- MYK 11 :25 am ARV-GKN 12:30 pm ARV- ANC 2 :00pm

2Proposal to Provide Essential Air Service at Gulkana , May Creek, and McCarthy, Alaska Docket DOT=OST-1995-492 Rate Period Feb 1, 2013 to Jan 31, 2015 August 10, 2012 United States of America Department of Transportation Office of Secretary Washington, DC Copper Valley Air Service Service Proposal February 1 , 2013 to January 31 , 2015 Copper Valley Air Service would operate over a GKN- MXY- MYK- GKN, ANC- GKN routing with a change of guage at GKN
. The carrier would provide two round trips a week year-round between GKN and ANC with Piper PA-31 aircraft for an annual subsidy need of $269,189 and two round trips a week year-round from GKN - MXY and MYK with either Cessna 185 or 206 aircraft for an annual subsidy of $206,198
.
Copper Valley Air Service P.O
. Box 234 Glennallen AK 99588 Phone 907-822-4200 e-mail cvas@coppervalleyak. net Fax: 907-822-4204

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### Proposal to Provide Essential Air Service at Gulkana , May Creek, and McCarthy, Alaska Docket DOT=OST- 1995-492 Rate Period Feb 1, 2013 to Jan 31, 2015 Work Sheet Projection ANC to GKN 

### Aircraft Type : Piper PA-31 -350 Block Hours: 

### Copper Valley Air Service wet leases a Piper PA-31 -350 from Security Aviation at a cost of $2,500 per trip
. Direct Expense Indirect Expense $260,000 $ 45,917 Lease of Hanger Space five winter months@ $4 ,900 per month with 

### Y:z use= $12,250 Ground handling , Aircraft and Passengers%= payroll one person = $ 12,480 Commissions Counted in MXY-MYK Projection Advertising Counted in MXY-MYK Projection Management I Security = Office and Reservations 12 months $37 ,043 1/3 total = Anchorage and Gulkana Totallndirects Total Directs Total Operating Cost Return (5% of oper. Exp) Total Economic Cost Operating Revenues Passenger Revenues 258 Passengers@ $195
.00 Mail Revenues U.S. Post Office will not tender mail to this Market Freight 2,285 lbs@
.75 Total Revenues Economic Cost Total Revenues $321 ,212 $ 52 ,023 Total Subsidy Need @ 100% $269 , 189 $ 8,840 $ 12,347 $45,917 $260,000 $305,917 $15,295 $321 ,212 $50 ,310 $000 $1,713 $52 ,023

4Proposal to Provide Essential Air Service at Gulkana, May Creek, and McCarthy, Alaska Docket DOT=OST-1995-492 Rate Period Feb 1, 2013 to Jan 31, 2015 Work Sheet Projection MXY and MYK Cost Projection Aircraft Type : Cessna 185 & Cessna 206 Block Hours 240 Pilot@ $133.00 

### I hr $115
.00 Pilot $5
.75 Workman 's Comp $3.45 Unemployment $7.13 Social Security $1.67 Medicare Fuel & Oil @ $183.43 17 Gal 

### I hr $5.82 base price $0.02 State Airport Tax $31,920

$44,023
$1
.98 Storage , Handling , Sp ill and Liability Insurance $0.88 Projected rate increase 2011-2013 $8
.70 per Gal+ $2.09 per hour oil Total=$ per Gallon fuel and Oil X 17.0 Gallon per hour Insurance @ $113.87 $27,328 $165 ,000 Hull x . 13/400 = $53.62 per hour $5 ,700 3rd party + 4 seats X 4 ,600/400 = $60
.25 Total of $113
.87

5Proposal to Provide Essential Air Service at Gulkana , May Creek, and McCarthy, Alaska Docket DOT=OST- 1995-492 Rate Period Feb 1, 2013 to Jan 31, 2015 

### Maintenance@ $143.15/ hr $34,356 Two (2.4) one hundred hour inspections= 240 hours 28.0 hours flat rate@ $130
.00 per hour shop rate= $3 ,640 X 2.4 = $8,736 Annual Inspection 35 hours@ $130.00 per hour shop rate = $4 ,550 Total for inspections only= $13 ,286 lnspections/240 hours $55
.36 Engine $56 ,000/1500 hr
. $37.34 Propeller $10,000/1500 hr. $6.67 Instruments and radios $4
.94 Routine maintenance & unscheduled $38
.84 Total $143.15 per hour 

### Depreciation @ $26.66 

### I hr $6,398 Hourly rate $26
.66@ 160 ,000/6000 

### Total Directs 

### $ 144,025
lndirects $86,754 Hanger Lease Year Round@ $4 ,900 per month x 12 = $58 ,800% use= $29,400 Ground Handling Aircraft and Passengers $15,500 Advertising $9 ,949 Commissions, includes GKN-ANC-GKN $27,750 x 10% $2,775 Management I Security $22 ,980 Office and Phone Reservations $6 , 150 Total indirect $86,754 

### Total Direct $144,025 Total Indirect $86,754 Total Operating Expenses $230,779 Return (5% of opr. Exp) $11,539

6Proposal to Provide Essential Air Service at Gulkana , May Creek, and McCarthy, Alaska Docket DOT=OST-1995-492 Rate Period Feb 1, 2013 to Jan 31, 2015
Operating Revenues Passenger Revenues 103 passengers MXY@ 95
.00 27 passengers MYK @ 115.00 $9 ,785 Mail revenue total 25 ,777 lbs @ .82 Freight revenue 2,791 lbs@
.75 Total Revenue Total Economic Costs $242 ,318 Total Revenue $36,120, Total subsidy need @ 100% = $206,198 $3 , 105 $21 , 137 $2 ,093 $36,120

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