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U.s.Departmentof Transportation OfficeoftheSecretary ofTransportation

Rebecca J. Cronkhite StatewideAviation Planner May 27, 2010

Department ofTransportation and PublicFacilities 4111 Aviation Avenue P.O. Box 196900 Anchorage, AK 99519 DearMs. Cronkhite, 1200 NewJersey Avenue, SE Washington, DC 20590

I would like to update you on the essential air service (EAS) situation at Excursion Inlet and Kake, and give you anopportunity to offer any comments on the record before we submit a recommendation to the Assistant Secretary for Aviation and International Affairs. As you know, AlaskaJuneau Aeronautics, Inc., d/b/a Wings ofAlaska, Inc. (Wings), is the current EAS provider at those communities, receiving subsidies of $34,659 for Excursion Inlet and $314,659 for Kake, and their contract expires August 31, 2010. In anticipationofthat, we issued Order2010-4-6, April 9, 2010, soliciting proposals from carriers interested in providing subsidizedEAS for a new, twoyearperiod, beginning September 1,2010. In response to our request, two carriers responded: AirExcursions LLC (AirExcursions) submitted a proposal to serve Kake only, and Wings submitted a proposal to maintain status-quo service at Excursion Inlet and Kake. You should have received a copy ofthe proposals from each carrier, and they can be accessed at www.regulations.gov by entering the numbers DOT-OST-2002-12014 for Excursion Inlet and DOT-OST

-2008-0217 for Kake in the search block. As a result, we will onlybriefly summarize them here. Air Excursions has proposed one service option using 9-seat Piper PA-31 Navajo aircraft operating two round trips each day (14 a week) during the 21-weekpeak summerperiod and oneround trip each day (7 a week) over a Kake-Juneau routing for an annual subsidy of$213,405 for the first year, and $229,939 for the second year. Wings has proposed one service option each for Excursion Inlet and Kake. The service to Excursion Inlet would provide three weekly nonstop round trips during the 16-week peak season and one weekly nonstop round trip during the remaining 36-week off-peak season to Juneau using Cessna 207 aircraft for an annual subsidy of$33,919. The service to Kake would be two daily round trips (14 a week) during the 21-week peak season (April-September) and one daily round trip (7 a week) during the 31-week off-peak season to Juneau using Cessna 208 aircraft for an annual subsidy of$438,627. In

### - 2 - addition, Wings has proposed to substitute Cessna 207 aircraft on the Kake-Juneau route, when weather and loads allow, which would result in a reduction ofsubsidy by45 percent for each Cessna 207 flight. (During 2009, Wings operated approximately 53 percent ofthe Kake flights with the Cessna 207 aircraft.) Nevertheless, the mmual subsidy request is based on Wings operatingthe Cessna 208 aircraft, and will use this aircraft whenever weather or loads require it. The schedules that the carriers have proposed are illustrative only and they may make schedule changes to reflect changing conditions, e.g., to better meet shifting connecting bank times at thehub. However, the Department does expect a subsidized air can'ier to maintain well-timed and well-spaced flights inorder to ensure full compensation. We request that you review the proposals and submit any comments you mayhave as soon as possible, but no laterthan June 30. We will carefully consider your comments before we submit a recommendation to the Assistant Secretaryfor a decision. Please send your comments via e-mail to EAS@dot.gov orby fax to 202-366-7638. If you have any questions, pleasefeel free to contact Michael Martin ofmy staffat michael.f.martin@doLgov or202-366-6494. Sincerely,

cc: Haines Borough elected officials City ofKake elected officials 

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