Dated: March 15, 2015 

# .:**·-~.:~(:;~ -\liBe~ve**  

### AirAlaska, LLC 

## i511 LabradorCircle 1 ] 

### 7:;

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## 8 \ Anchorage, Alaska 99502 

## (9di) 250-4766 mreeve@reevecorp.com

Reeve AirAlaska, LLC Proposal to Provide Essential Air Service at Tatitlek, Alaska DOCKET DOT-OST-2013-0030

Forthe rate period ofthis docket beginning in October 01, 2015 and lasting 2 years from the date ofcommencement, Reeve AirAlaska, 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 aircraftwith upto 7 passenger seats. For consideration by the Department ofTransportation, Reeve AirAlaska offers this service for review.

ABOUT REEVE AIRALASKA 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. Forthe pastyear, Reeve Air has provided twice weekly scheduled flights between Anchorage and Tatitlek underthis existing Essential Air Service contract. Our customers are able to departdirectly from our_facility at 5700 de Havilland Avenue or, be picked up/dropped offat Gate L2 at the lower level ofthe 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 ofTatitlek with a 94% success rate in flight completion underthis 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 ofthe service we provide to the community and we strive to continue the same exemplary service for all ourcustomers.



## 1PROPOSED 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 AirAlaska is eligible to carry USPS mail. PROPOSED SUBSIDY Annual subsidy at 2flights perweek (100% completion) 

### $93,600 Equivalentto $900 per completed round trip flight. Thank you foryour consideration. Sincerely,


### Mwl1aeL L 

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



## 2Reeve AirAlaska, 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/galANC) 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 (104 flights) REVENUES**Pass~nger** fare (Avg. $130) 350 passengers peryear Freight 11,000 pounds per year Total Projected Revenue

Revenue per flight Cost per flight Net income (loss) perflight PROPOSED SUBSIDY

Proposed EAS subsidy at 75% of Net Income Annually subsidy at 2 flights perweek (100% completion) 1.65flight hours

Per Flight $342 $300 $290 $932 Per Flight $ 125 

### $ 40 

### $ 34 $400 $599 $1531 per flight $ 153 perflight $1684 per flight $175,136 per year

$45,480 $ 6,160 $51,640 per year $ 496 perflight
$ 496 $-1684 ($1188) $900 perflight $93,600**----~**



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