Dated: March 15, 2015 

. : ·-~.:~(:;~ -\liBe~ve Air Alaska, LLC 

i511 Labrador Circle 

1

] 7:; .. 8 \ Anchorage, Alaska 99502 

(9di) 250-4766 

mreeve@reevecorp.com 

Reeve Air Alaska, LLC 

Proposal to Provide Essential Air Service at 

Tatitlek, Alaska 

DOCKET DOT-OST-2013-0030 

For the rate period of this docket beginning in October 01, 2015 and lasting 2 

years from the date of commencement, Reeve Air Alaska, LLC proposes to 

provide passenger and freight service between Tatitlek (PAKA) and Anchorage 

International Airport (PANC) using an IFR equipped Piper Navajo PA-31 twin 

engine aircraft with up to 7 passenger seats. For consideration by the 

Department of Transportation, Reeve Air Alaska offers this service for review. 

ABOUT REEVE AIR ALASKA 

Reeve Air has provided safe and reliable flights throughout Alaska for State and 

Federal agencies, construction and communication companies, professional 

services and health care providers. We also work closely with many regional and 

village owned native organizations. For the past year, Reeve Air has provided 

twice weekly scheduled flights between Anchorage and Tatitlek under this 

existing Essential Air Service contract. Our customers are able to depart directly 

from our_ facility at 5700 de Havilland Avenue or, be picked up/dropped off at 

Gate L2 at the lower level of the Anchorage International Terminal. Passengers 

regularly express their appreciation for Reeve Air's flexibility to meet their 

connecting flights. 

Reeve Air has proven its dedication to serving the community of Tatitlek with a 

94% success rate in flight completion under this EAS contract. With the constant 

hazardous weather conditions hammering Prince William Sound, Reeve works 

closely with passengers to provide safe and reliable flight services. We are proud 

of the service we provide to the community and we strive to continue the same 

exemplary service for all our customers. 

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PROPOSED SERVICE 

Year-round, weekly service, with two non-stop flights between Anchorage and 

Tatitlek. Proposed flight schedule will continue as the current Tuesday and Friday 

flights. 

For further consideration: 

• Reeve's flights to Tatitlek will be non-stop flights to and from Anchorage. 

• Seat Fares and Freight rates will continue at current levels 

• Reeve Air Alaska is eligible to carry USPS mail. 

PROPOSED SUBSIDY 

Annual subsidy at 2 flights per week (100% completion) $ 93,600 

Equivalent to $900 per completed round trip flight. 

Thank you for your consideration. 

Sincerely, 

Mwl1aeL L Reeve 

Owl/\-tr/Mali\,(;!gey 

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Reeve Air Alaska, LLC 

Proposal to Provide Essential Air Service at 

Tatitlek, Alaska 

DOCKET DOT-OST-2013-0030 

Appendix A 

Equipment: Piper Navajo PA-31 

Avg. Flight Time: Anchorage- Tatitlek- Anchorage 

Direct Operating Costs 

Fuel (currently $4.60/gal ANC) 

Maintenance 

Pilot 

Per Hour 

$207 

$ 182 

$ 175 

Indirect Operating Costs based on 400 hr/yr 

Insurance $ 76 

Facility $ 24 

Aircraft Ownership $ 22 

General and Admin. $ 242 

Total Operating .Costs 

Return on Investment @10% 

TOTAL ECONOMIC COST 

At 2 flights per week (1 04 flights) 

REVENUES 

Pass~nger fare (Avg. $130) 350 passengers per year 

Freight 11,000 pounds per year 

Total Projected Revenue 

Revenue per flight 

Cost per flight 

Net income (loss) per flight 

PROPOSED SUBSIDY 

Proposed EAS subsidy at 75% of Net Income 

Annually subsidy at 2 flights per week (1 00% completion) 

1.65 flight hours 

Per Flight 

$342 

$300 

$290 

$932 

Per Flight 

$ 125 

$ 40 

$ 34 

$400 

$599 

$1531 per flight 

$ 153 per flight 

$1684 per flight 

$175,136 per year 

$45,480 

$ 6,160 

$51,640 per year 

$ 496 per flight 

$ 496 

$-1684 

($1188) 

$900 per flight 

$93,600 

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