THE STATE 

OJALASKA 

GOVERNOR SEAl'\ P ARNELL 

April16, 2015 

Mr. Kevin Schlemmer 

Chief, EAS and Domestic Analysis Division 

U.S. Department of Transportation 

1200 New Jersey A venue SE 

Washington DC 20590 

Department of Transportation and 

Public Facilities 

OFFICE OF THE COMMISSIONER 

P.O. Box 196900 

Anchorage. Alaska 99519-6900 

Main: 907.269.0730 

Fax: 907.269.0489 

Re: Air Transportation to Non-Eligible Places, Diomede, Alaska (DM2) 

Docket DOT -OST -2009-0260 

Dear Mr. Schlemmer, 

This letter is to express our support for the continuation of the Essential Air Service (EAS) and Air 

Transportation to Non-Eligible Places (A TNEP) programs in Alaska and the crucial connection 

they bring to our remote communities. 

Diomede is one of the most remote communities in the USA, located in the Bering Strait about two 

miles from the Russian boarder and 25 miles from the Alaska coast. While the Essential Air 

Service (EAS) program guarantees an eligible community basic access to the national transportation 

system, Diomede is NOT eligible for EAS support because it did not have scheduled air service 

when the EAS program was created because it did not even have a heliport at that time. Thus the 

cun·ent scheduled air service is partially subsidized under the 49 U.S.C § 41736, Air Transportation 

to Non-eligible Places (A TNEP) program, which matches a subsidy amount provided by any nonfederal entity on a dollar-for-dollar basis. 

By a letter dated June 20,2012, the Alaska Department of Commerce, Community, and Economic 

Development, on behalf of Diomede, proposed to the Secretary of Transportation that compensation be 

provided to an air carrier as part of ATNEP. By Order 2012-9-25, the Department selected Evergreen 

Helicopters, Inc. (later acquired by Erickson Helicopters Inc.) to provide A TNEP at Diomede, Alaska 

through June 30,2013. Since then, Erickson has been selected each year to provide ATNEP at 

Diomede. Currently Diomede's service and subsidy under ATNEP is set by Order 2014-7-4, which 

selected Erickson Helicopters Inc. to provide the service through June 30,2015 when the current 

selection expires. 

"Keep Alaska Moving through service and infrastructure. " 
Order 2014-7-4 subsidizes one trip routing per week between Nome-Diomede-Wales-Diomede and 

Nome for 44 weeks per year, which assumed that at least eight weeks during the winter an ice 

runway would form that could accommodate fixed wing air service. However for the last couple 

years the ice runway did not form making the A TNEP subsidized helicopter service even more 

important. The Alaska Department of Commerce, Community, and Economic Development 

provided a grant of$190,476 via Kawerak Inc., to support air service to Diomede. The U.S. DOT 

provides a matching amount to the air service provider for each completed routing. This combined 

subsidy allows the air carrier to operate financially at least at a break-even level. The State of 

Alaska understands this payment arrangement will continue depending upon funding availability. 

Neither the A TNEP program nor State of Alaska has conditions or requirements which specify the 

ticket price that Erickson Helicopters Inc. may charge the flying public. After all, the air service 

company is a private business that needs to make a profit. However we also understand that due to 

the isolated location of Little Diomede Island and the complete lack of any road system connection, 

the subsidized air service is the community's only form of scheduled transportation to access the 

outside world. The community depends on scheduled air service for passengers and freight for 

basic necessities, routine medical and health services, and their general economic well-being. 

Therefore the ticket price is a particularly sensitive issue for members of this isolated subsistence 

based community. Last year Erickson Helicopters Inc. doubled the seat fare charged for a roundtrip fare from Diomede to Nome to $800, and to $400 for a round-trip fare from Diomede to Wales. 

We have heard that the community members consider these fares to be very expensive. 

While the State of Alaska provides a 50% matching grant through Kawerak Inc., the State continues 

to assert that the local residents are generally best positioned to comment on particular schedules 

and air carrier selection, and therefore we think the community and Kawerak Inc. should provide 

comments to you on those specific issues. 

I respectfully urge U.S. DOT to continue the ATNEP program service at Diomede, Alaska. 

Sincerely, 

,/~ ~1/C_ {fohn R. Binder, C.M. 

Deputy Commissioner of Aviation 

cc: 

Robert Soolook Jr., President, Native Village of Diomede 

Mayor Andrew Milligrok, City of Diomede 

Melanie Bahnke, Executive Director, Kawerak Inc. 

Katherine Eldemar, Director, Division of Community and Regional Affairs, Alaska 

Department of Commerce, Community, and Economic Development