# SOUTHEAST ALASKA CONSORTIUM



# June 11, 2012 Sponsor: City of Pelican, Alaska USA Congressional Code: AK

– At Large
Dun & Bradstreet Number: 128

- 727

- 005 Tax Identification Number (EIN): 92

- 6000158 

### Application for Federal Support for Current Essential Air Service (EAS) via:

E

- Ticketing / Interlining Access
Global Distribution Access Inbound Advertising/Marketing Program 

# SOUTHEAST A LASKA CONSORTIUM: ANGOON
, PELICAN, ELFIN COVE & TENAKEE SPRINGS
Application Under the Small Community Air Service Development Program Docket DOT

- OST

- 201 2

- 0069 

## DOCKET DOT

- DOS

- OST

- 2012

- 0069

# SOUTHEAST ALASKA CONSORTIUM

Southeast Alaska Consortium • Small Community Air Service Development Grant Proposal • June 2012 

## 2 TABLE OF CONTENTS

Introductory Letter of Support 3 Summary Information

– Appendix C 4
Introduction 7
The Air Service Market 10
Air Service Needs and Deficiencies 1 2 Strategic Plan 1 4 Connecting the Consortium to Global Distribution Systems 1 4 Marketing the Consortium’s Newfound Connectivity 1 4 Program Costs & Funding 1 7
Public/ Private Partnership 20 Legal Sponsor 20
Conclusion 21 Appendix 22
Letters of Support 27



### Section Page

# SOUTHEAST ALASKA CONSORTIUM

Southeast Alaska Consortium • Small Community Air Service Development Grant Proposal • June 2012 

## 3 INTRODUCTORY LETTER OF SUPPORT

SUMMARY INFORMATION

– APPENDIX C

# SOUTHEAST ALASKA CONSORTIUM

Southeast Alaska Consortium • Small Community Air Service Development Grant Proposal • June 2012 

## 4 Small Community Air Service Development Program
Docket DOT

- OST

- 2012

- 0069



### A. Applicant Information
Not a Consortium Community now receives EAS subsidy
Interstate Consortium Intrastate Consortium Community previously received a Small Community Grant If previous recipient, Date of Grant: __________________

______________ Expiration date of G rant: _______________________ Federal Funds Requested: ______________________ Carrier(s) Service Obtained: ____________________ Destination(s) Served: __________________________



### B. Public/Private Partnership
Public: City of Angoon The unincorporated community of Elfin Cove City of Pelican City of Tenakee Springs

Private: Alaska Seaplane Service ($35,000) Juneau Empire newspaper ($1 5
, 000 ) Village Corporation

– Kootz n oowoo, Inc. (Tribal Corporation) Highliner Lodge & Charters Pelican Chamber of Commerce Tenakee Inn Tenakee Springs Business Association All Season Construction Cougar Productions Davis Rentals Fishing Bear Charters Party Time Bakery Ravenhill Rosie’s Blue Moon Café St. Francis Chapel

# SOUTHEAST ALASKA CONSORTIUM

Southeast Alaska Consortium • Small Community Air Service Development Grant Proposal • June 2012 

## 5 Snyder Mercantile Tenakee Advisory School Board Tenakee Eco Tours Tenakee Historical Society Tenakee Hot Springs Lodge Tenakee Wood West End Woodworks



### C. Project Proposal Marketing Upgrade Aircraft New Route
Travel Bank Service Restoration Subsidy Surface Transportation Regional Service Revenue Guarantee
Launch New Carrier Start

- Up Cost Offset First Service Study Secure Additional Service Other (GDS Visibility )



### D. Existing Landing Aids at Airport
Full ILS Outer/Middle Marker Published Instru ment Approach
Localizer Other:



### E. Project Cost

1. Federal amount requested: $ 495 ,000
2. State cash financial contribution: $ 0
Local cash financial contribution:
3a. Airport cash funds: $ 0
3b. Non

- Airport cash funds: $ 50 ,000
3. Total local cash funds: $ 50 ,000
4. TOTAL CASH FUNDING: $ 5 4 5,000
In

- Kind Contribution:

a. Airport In

- Kind contribution: $ Undetermined value
b. Other In

- Kind contribution: $ Undetermined value
5. TOTAL IN

- KIND CONTRIBUTION: $ Undetermined value
6. TOTAL PROJECT COST: $ 5 4 5,000 + In

- Kind

# SOUTHEAST ALASKA CONSORTIUM

Southeast Alaska Consortium • Small Community Air Service Development Grant Proposal • June 2012 

## 6 F. In

- Kind Contributions The Consortium’s private supporters will, whenever possible, promote air service and new ticketing capabilities to local contacts, employees and visitors through the addition of information in private websites and private marketing via brochures, tradeshows and reservation
information.

In addition, the Juneau Empire newspaper will offer a total of over $17, 331 in in

- kind support as part of and advertising package in that newspaper.



### G. Is Application Subject to Review by State Under Executive Order 12372 Process?

This application was made available to the s tate under the Executive Order 12372
Process for review on ______. Program is subject to E.O 12372, but has not been selected by the state for review

. Program is not covered by E.O 1237 2

.



### H. Is Applicant Delinquent on any Federal Debt?

No

# SOUTHEAST ALASKA CONSORTIUM

Southeast Alaska Consortium • Small Community Air Service Development Grant Proposal • June 2012 

## 7 INTRODUCTION

The Problem

Screenshot from KAYAK

Screenshot from Expedia

As far as global travelers are concerned, the communities of Angoon, Elfin Cove, Pelican and Tenakee Springs do not exist as destinations. As can be seen above either an error message is received when trying to book flights to Angoon from Seattle or the i nternet user is “re

- directed” to flights offered to Lugano, Switzerland (LUG

- Agno), as that most closely matches, in the computer’s programming, Angoon’s three letter identifier (AGN)

Without a presence in a global distribution system (GDS) visitors to

, and travelers from
, these communities must a)have pre

- knowledge that seaplane service is available to these destinations; or b)stumble across the existence of these communities and the flights they offer

, via the Essential Air Service Program
, and book ti ckets separately. In either case, the expense and utility of these options is prohibitive in having users frequent the air service provided.

# SOUTHEAST ALASKA CONSORTIUM

Southeast Alaska Consortium • Small Community Air Service Development Grant Proposal • June 2012 

## 8 The Solution The communities have formed a Consortium and, along with Alaska Seaplanes, are seeking federal gran t funds to put these communities on the map. Funds will be used primarily for a
three

- year period to form the framework of a marketing push to entice more people to visit, stay, invest and spend money in southeast Alaska. At the end of the three

- year per iod the goal is to have generated enough new passengers and cargo to pay for the continuation of the GDS connectivity by Alaska Seaplanes.

GDS, Travel Agents and Travel Sites

GDS refers to “Global Distribution System”. The GDS is essentially a network o f about five major travel agency / airline reservation systems. The main ones in the U.S. are Sabre, Apollo/Galileo, Worldspan, and Amadeus. By connecting to a GDS, Alaska Seaplanes schedules and fares would be available for travel agents subscribed to tha t GDS. Additionally, several of the GDS are actually the “back

- end” of the major travel sites. For example, Sabre hosts Travelocity, Expedia, and several of the smaller sites. Apollo hosts Orbitz and Priceline.

Background Alaska Seaplane Service connects the Essential Air Service communities of Angoon, Elfin Cove, Pelican, and Tenakee Springs (Consortium) in Southeast Alaska with Juneau. The communities,
all located within the Hoonah

- Angoon Census Area, have an area population of 2,150. Th e area is home to some of the best fishing grounds in Alaska and some of the most “untouched” Alaskan wilderness and landscape.

Angoon is the only permanent settlement on Admiralty Island, located on the southwest coast at
Kootzn oo w oo Inlet. Angoon is 55 miles southwest of
Juneau and 41 miles northeast of Sitka. Admiralty Island has long been the home of the Kootznoowoo ( "fortress of bears" ) Tlingit tribe. Many summer homes have developed on Killisnoo Island. Angoon is accessible only by float plane or boat. 

### Angoon

# SOUTHEAST ALASKA CONSORTIUM

Southeast Alaska Consortium • Small Community Air Service Development Grant Proposal • June 2012 

## 9 Elfin Cove lies on the northern shore of Chichagof Island, approximately 33 miles west of Hoonah and 70 miles by air and 85 miles by boat west of Juneau. The community is only accessible by small seaplane
or boat. El fin Cove is a fish

- buying and supply center for fishermen. Most residents participate in commercial fishing, sport fishing, and charter services, so the economy is highly seasonal. Summer lodges and local retail businesses also provide seasonal employment.

Pelican is located on the northwest coast of Chichagof Island on Lisianski Inlet. It lies 80 miles north
of Sitka and 70 miles west of Juneau. Most of the community is built on pilings over the tidelands. Commercial fishing is the mainstay of Pelican's economy. In 2010, more than 30% of residents held commercial fishing permits. The commercial fishing sector provides most employment opportunities.
Several businesses in Pelican cater to the visitor industry. Pelican is dependent on float planes and the Alaska Marine Highway System ferry for travel.

Tenakee Springs is located on the east side of Chichagof Island, on the north shore of Tenakee
Inlet. It lies 45 miles southwest of Juneau and 50 miles northeast of Sitka. The word Tenakee is from the Tlingit word "tinaghu," meaning "Coppery Shield Bay." This refers to three copper shields, highly prized by the Tlingits that were lost in a storm. Tenakee Springs has a year

- round population and
also serves as a summer retreat for residents of Juneau, Sitka, Washington, and Oregon. Tenakee Springs has long been considered a retirement and vacation community, though fishing is an important
source of income. Tenakee Springs is dependent on seaplanes and the Alaska Marine Highway for transport

. 

### Elfin Cove

Pelican

Tenakee Springs

# SOUTHEAST ALASKA CONSORTIUM

Southeast Alaska Consortium • Small Community Air Service Development Grant Proposal • June 2012 

## 10 THE AIR SERVICE MARKET

The Southeast Alaska Consortium is a collection of communities in the Alaskan Panhandle that are related by their Essential Air Service provider, Alaska Seaplane Service. Service is provided three times daily on weekdays from Juneau to Angoon and Tenakee Springs, and the state’s capital is connected once daily to the smaller communities of Pelican and Elfin Cove.

Each of the communities’ air service is provided via a local seaplane base and to Juneau International Airport. In the summer, service is provided to the float pond adjacent to the runway at Juneau. In the winter, the pond is
frozen

– and Alaska Seaplanes uses the runways. This necessitates the use
of strait floats in the summer and amphibious aircraft in the winter.

Air service to these communities is absolutely essential: the only scheduled
access to or from Elfin Cove is by Alaska Seaplane Service; Angoon, Pelican, and Tenakee Springs have scheduled service only by the Alaska Marine Highway System and Alaska Seaplane Service. Marine Highway service from each of these communities is only once weekly (twice weekly at Tenakee Springs), however

– leaving Alaska Seaplanes as the only travel means of any



### Alaska Seaplane Services from Juneau

Origin Destination Departure Arrival Frequency
Juneau Angoon 8:30 a.m. 9:10 a.m. Monday-Saturday Juneau Angoon 10:00 a.m. 10:40 a.m. Sunday Only Juneau Angoon 1:00 p.m. 1:40 p.m. Daily Juneau Angoon 4:30 p.m. 5:10 p.m. Daily Angoon Juneau 9:20 a.m. 10:00 a.m. Monday-Saturday Angoon Juneau 10:50 a.m. 11:30 a.m. Sunday Only Angoon Juneau 1:50 p.m. 2:30 p.m. Daily Angoon Juneau 5:20 p.m. 6:20 p.m. Daily Juneau Tenakee Springs 8:30 a.m. 9:10 a.m. Monday-Saturday Juneau Tenakee Springs 10:00 a.m. 10:40 a.m. Sunday Only Juneau Tenakee Springs 1:00 p.m. 1:40 p.m. Daily Juneau Tenakee Springs 4:30 p.m. 5:10 p.m. Daily Tenakee Springs Juneau 9:20 a.m. 10:00 a.m. Monday-Saturday Tenakee Springs Juneau 10:50 a.m. 11:30 a.m. Sunday Only Tenakee Springs Juneau 1:50 p.m. 2:30 p.m. Daily Tenakee Springs Juneau 5:20 p.m. 6:20 p.m. Daily Juneau Pelican 8:00 a.m. 9:35 a.m. Monday-Saturday Juneau Pelican 11:00 a.m. 11:45 a.m. Daily Juneau Pelican 4:00 p.m. 4:45 p.m. Daily Pelican Juneau 8:55 a.m. 10:05 a.m. Monday-Saturday Pelican Juneau 11:55 a.m. 1:05 p.m. Daily Pelican Juneau 4:55 p.m. 6:05 p.m. Daily Juneau Elfin Cove 8:00 a.m. 9:15 a.m. Monday-Saturday Juneau Elfin Cove 11:00 a.m. 12:15 p.m. Daily Juneau Elfin Cove 4:00 p.m. 5:15 p.m. Daily Elfin Cove Juneau 9:25 a.m. 10:05 a.m. Monday-Saturday Elfin Cove Juneau 12:25 p.m. 1:05 p.m. Daily Elfin Cove Juneau 5:25 p.m. 6:05 p.m. Daily 

### Alaska Seaplane Peak Service Schedule

# SOUTHEAST ALASKA CONSORTIUM

Southeast Alaska Consortium • Small Community Air Service Development Grant Proposal • June 2012 

## 11 scheduled frequency to or from these communities.

Passenger traffic increased in each of the communities in 2011 relative to 2009, with an overall growth rate of 17%. Pelican has experienced growth of nearly 40% in the same period. Service is provided to Juneau’s main terminal where separately

- pieced

- together itineraries can re

- check

in and connect to other air services across the state , to the lower 48 and across the globe

.

# SOUTHEAST ALASKA CONSORTIUM

Southeast Alaska Consortium • Small Community Air Service Development Grant Proposal • June 2012 

## 12 AIR SERVICE NEEDS & DEFICIENCIES

As each of these communities is provided service under the Essential Air Service program, their air service needs are found in EAS determinations: each may have no more than two stops to Juneau. Alaska Seaplanes has provided this service for more than fift een years, since the founding of the company.

In addition to operating reliable service, the goal of any Essential Air Service carrier, per 49 U.S.C. §41733(c) , is to secure “ contractual and marketing arrangements with a larger carrier to ensure service beyond a hub airport ” and also “ interline agreements with a larger carrier .” Alaska Seaplanes, like so many small regional airlines in Alaska, is not financially equipped to upgrade its ticketing ability to meet these statutory goals of the Essential Air Service program. Currently, the nearly 9,000 annual passengers that use Alaska Seaplanes to
travel to and from the state Capital must book a second
ticket to connect elsewhere in the
state or to the mainl and. Even more disturbing, the economy of
each of these communities has a substantial tourism component, and it is currently impossible to
book an airline ticket from anywhere but Juneau to these
communities. To the rest of the world, these communities ar e “off of the map.”

The quality of service that the Consortium communities receive (and return on taxpayer investment), while typical of small Alaskan communities, stands to be greatly increased should its provider have the ability to allow single

- itinera ry e

- ticketing, interlining, and appearing in online travel searches. Further, the only way to fully realize such abilities would be through an extensive



### Alaska Airlines non

- stop services from Juneau

# SOUTHEAST ALASKA CONSORTIUM

Southeast Alaska Consortium • Small Community Air Service Development Grant Proposal • June 2012 

## 13 marketing campaign throughout the communities and in key markets likely to take tourism
interest in th e four communities.

Juneau serves as the perfect hub for these communities, allowing them access to the facilities and services of the large city and also allowing them possible access into the National Air Transportation System. Access to the National A ir Transportation System, however, is currently hindered as Alaska Seaplane Service is unable to interline with other airlines or have its flights appear in options available for traditional and on

- line travel agents. For passengers originating in
Southeas t Alaska, this is a familiar situation rectified by the purchase of two tickets

– from outside
of the region; however, these communities are totally off of the air service map.

# SOUTHEAST ALASKA CONSORTIUM

Southeast Alaska Consortium • Small Community Air Service Development Grant Proposal • June 2012 

## 14 STRATEGIC PLAN Connecting the Consortium to Global Distribution Systems
A grant enabling Alaska Seaplane Service to connect to the Global Distribution Systems would expand connectivity in each of the Consortium’s communities from singly Juneau currently, to the entire world. Such an arrangement would also allow for a p ossible interline agreement with Alaska Airlines, which provides what would be one

- stop service to eight destinations from the
Consortium communities including Seattle, which would enable two

- stop connections to dozens
more destinations in the United State s and abroad, via Alaska Airlines and its partners.


## Marketing the Consortium’s Newfound Connectivity
In order to fully capitalize on the Department’s investment in enabling the
Consortium’s Essential Air Service provider to be listed in global distribution systems
, and thus allow interlining and e

- ticketing, it is absolutely necessary that a local marketing campaign communicate the new ly
established access to the world within each of the communities, while key mar kets (such as Juneau, Anchorage, and Seattle) must
learn of the existence of these communities as destinations. As such, a comprehensive marketing campaign is essential.

Annual c onvention and t rade s how s are key in promoting tourism and push ing visitor traffic to the region. Alaska Seaplanes representatives, as well as members of the Consortium
communities
, will participate in these trade shows. Direct contact with potential visitors and the ability to promote the newly available interline cap ability with tour operators, travel agents and others is the primary way to connect with those that have a direct ability to book passengers to Consortium communities. These trade shows primarily occur in the winter months, between peak operating seasons in Alaska.

During the winter of 2012

- 2013
, the Consortium will concentrate on t rade s hows in the
northwestern U.S.
, especially the Seattle, Portland, Spokane, Vancouver and Anchorage 

### Non

- stop / One

- stop Flights from JNU

# SOUTHEAST ALASKA CONSORTIUM

Southeast Alaska Consortium • Small Community Air Service Development Grant Proposal • June 2012 

## 15 markets. Those markets are most likely to generate near

- term trips to A laska and
, by generating
traffic to Juneau via Alaska Airlines flights , the Consortium is more likely to attract the attention of Alaska Airlines executives when a codeshare relationship is explored in 2015.

An example of a t argeted trade show during the 2012

- 2013 winter season is t he 2012 ATIA (Alaska Travel Industry Association) Convention & Trade Show that will be held in Anchorage
October 9

- 11

. The ATIA convention is the premier gathering for Alaska’s tourism industry leaders. This annual event is exp ected to attract over 600 delegates from tour operators, wholesalers, Alaska vendors, destination marketing organizations and elected officials.

The second winter, 2013

- 2014
, the Consortium will attend trade shows in the Northwest
, but will
add t rade s hows in California, Arizona , Idaho, Utah, Nevada
, and Spokane, Washington
, expanding the level of contact to the rest of the western U.S.

During the final year of the grant, the winter of 2014

- 2015
, the Consortium plans to attend t ravel
t rade s hows farther afield, concentrating on areas of the country where 1)Alaska Airlines provides service and 2)areas that are already delivering some visitors to Consortium
communities.

In addition to trade shows, partner companies will be assisted in promot ing the new interline and GDS connection capabilities on private websites and in promotional materials prepared for potential visitors
, and will provide information about how to book direct airline tickets from worldwide destinations directly to and throug h Juneau onto Alaska Seaplanes flights.

Grant funds will be made available for the Consortium communities to join and participate in the Juneau Convention and Visitors Bureau, a membership that
, up to now
, has been too expensive. The registration fee is only part of the expense, as to truly participate, members need to be present at regular meetings where Juneau businesses and government discuss and plan strategies regarding marketing and tourism development. Funds will be made available for
each communi ty to send a representative to Juneau to participate in these planning sessions so that Consortium opportunities are included in Juneau CVB marketing materials.

Grant funds will also be used to invite regional and national travel writers to visit Consorti um communities to experience the cultures and the activities directly
, and to write about those experiences in ne w spapers and magazines across the country, further developing interest in the

# SOUTHEAST ALASKA CONSORTIUM

Southeast Alaska Consortium • Small Community Air Service Development Grant Proposal • June 2012 

## 16 region. One travel article in the New York Times or the San Francisco Chronicle is worth many times the expense of travel and accommodations for the writer.

The Consortium further proposes to use some grant funds to provide trips for community children to participate in events related to travel, tourism and region al growth. For example, Pelican has produced a championship caliber 12

- year

- old skier who needs to train in Juneau or Anchorage to find suitable terrain and adequate coaching in order to fully realize her potential. The
Consortium also has identified som e local students who want to work in the travel industry
, who
will serve as interns on this project
, and will accompany officials to in

- state and lower

- 48 tradeshows, visiting colleges that offer degrees in transportation or travel as part of the trip.

Th e Consortium will budget funds to produce ads in newspapers in Juneau and Anchorage to
inform potential visitors
, and those in the tourism business in those markets
, of the new interline / GDS capability of Alaska Seaplanes. The purpose is to provide top

- of

- mind awareness to travel and tour providers
, who receive inquiries from visitors to the region
, that the new capability exists

or

, in the case of Anchorage residents, to make them aware that flights into Consortium
communities via Juneau can be booked t hrough instead of using separate itineraries, easing the travel experience for in

- state visitors on leisure or business itineraries.

Another component of marketing will be to produce a new website promoting the Consortium communities, with a primary empha sis on the air service available and how to book flights,
which airlines to interline with
, and how to take advantage of through

- ticke t ing . The
communities will also provide material and links to other regional information websites that will
be made available.

Product / Dates Nov. ’12 to Mar. ‘13 Nov. ’1 3 to Mar. ‘1 4 Nov. ’1 4 to Mar. ‘1 5

Trade Shows Northwest Pacific National

Print Ads Juneau Juneau / Anchorage Jun. / Anc. / Fairbanks

Website Development completed spring 2013 with constant updates

Juneau CVB Join fall 2012 with participation in development meetings, etc.

Travel Writers Northwest Pacific National

# SOUTHEAST ALASKA CONSORTIUM

Southeast Alaska Consortium • Small Community Air Service Development Grant Proposal • June 2012 

## 17 Program Implementation and Timeline
With an anticipated reward beginning October 1 st , the Consortium expects to have limited e

ticketing / interline capability in place by spring 2013 in order to be prepared for the peak travel season that begins in May and ends in September. The initial GDS access requires additional
software to be writ ten for Alaska Seaplanes in

- house reservation system, followed by testing. It is anticipated that the initial GDS connection can be made by May 2013. Once the initial GDS connection is made, subsequent connections will be more easily implemented and will be timed to maximize traveler exposure for the following summer. By the end of fall 2014 the Consortium, along with the service provider, expect s to have produced large enough results to propose a codeshare agreement with various airlines

– beginning wit h Alaska Airlines in time for summer
2015.

Product / Dates Oct

. ’ 12 to Mar . ‘13 Ma y ‘13 Jan. ‘1 4 Jan. ‘1 5

e

- ticketing / interline First Step: access continues throughout grant period

Limited GDS Target date: continues for rest of grant period

Full GDS Target date: continues

Codeshare Request Date



## Program Costs & Funding
Connectivity in GDS will be managed and coordinated by a firm on behalf of the Consortium to work with Alaska Seaplane Service and the various vendors involved in securing a GDS connection and active listings. The marketing of local area and out

- of

- market marketing programs will also be managed by a firm familiar with air service marketing.

Global distribution system visibility has the potential to more than double the current traffic at the four communities. Traffic only needs to increase by as little as 12%, however, for the ongoing cost of the reservation system to be worthwhile; making th is an incredibly sustainable proposal.

# SOUTHEAST ALASKA CONSORTIUM

Southeast Alaska Consortium • Small Community Air Service Development Grant Proposal • June 2012 

## 18 Further, any new or incremental expense related to GDS visibility becomes a reasonable expense in the scheme of the essential air service program.

The costs here are approximate. Some of the fees are negotiated per a irline, and labor and consulting costs also vary

. Based on the grant award and final negotiations between parties
, some elements of the GDS implementation may be postponed or replaced with more cost effective features. As an alternate, any excess funds no t needed for GDS implementation will
be re cycled and used to support an expanded marketing program

. T he implementation and management of the total prog r am will require abou t 15% of the budget

.



## Details of GDS Connectivity
GDS Connectivity allows travel agents to sell the airlines ’ inventory. This requires that inventory be synchronized, live, with a central computer system that many airlines use. The system has been in place for many years, and is based on one of the very f irst computer systems ever built. As such, it has several layers and companies involved, and the connection is far more complex than such connections created recently. Nevertheless, once up and running, the system works very well.

Interlining / GDS
After connecting with a GDS, Alaska Seaplanes flights can be sold by themselves, but they cannot be sold as part of an itinerary with another carrier unless Alaska Seaplanes ha s an interline ticketing agreement. Interlining refers to the ability to sell two sep arate carriers flights together on a single itinerary. The advantage of this from a customer’s perspective is that they
now can have a “one

- stop” shopping experience. So
, on a travel site, if a customer is searching
for one of Alaska Seaplanes ’ regular routes, the flights would be visible, but if they search from
one of Alaska Seaplanes ’ regular airports to Juneau , flights would not be displayed unless Alaska Seaplanes ha s a ticketing agreement with Alaska Air lines . Interline agreements rarely in volve any compensation paid to the major carrier, instead
, a nominal service fee may be charged for
certain reservations. Setting up e

- Ticketing in order to allow for interlining is expected to cost $ 1 00,000 over three years. Accessing the various GDS sit es is expected to cost $175,000 over three years.

# SOUTHEAST ALASKA CONSORTIUM

Southeast Alaska Consortium • Small Community Air Service Development Grant Proposal • June 2012 

## 19 Summary of Marketing plans and budget The only way to fully capitalize on the Department’s investment in the new ly found access afforded to these communities is when all possible users of the service are aware of its availability. The remaining $ 20 0,000 in the program will be used to promote the service, in
addition to the in

- kind personal and print marketing that tourism companies and organizations have committed to provid e toward the same effort.

Dates Fiscal Year 1 Fiscal Year 2 Fiscal Year 3 TOTAL

Marketing / Shows $50,000 $75,000 $75,000 $200,000

Interline / e

- Ticketing $50,000 $25,000 $25,000 $100,000

GDS Subscriptions $0 $100,000 $75,000 $175,000

Implementation / Mgt. $15,000 $30,000 $25.000 $70,000

TOTAL $115,000 $230,000 $200,000 $545,000

# SOUTHEAST ALASKA CONSORTIUM

Southeast Alaska Consortium • Small Community Air Service Development Grant Proposal • June 2012 

## 20 LEGAL SPONSOR

PUBLIC/PRIVATE PARTNERSHIP
In addition to the four airports comprising the Consortium, Alaska Seaplane Service, operator of service to the region for more than 30 years, is a supporter of this application. Alaska Seaplane Service has expressed their support for this service and their intent to implement steps necessary for GDS connectivity upon the communities receiving this grant. The community service providers that have expressed thei r support for this proposal and partnership with the air service operator

.

The City of Pelican is the legal sponsor responsible for administering the program. The city is a government entity.

City of Pelican , Alaska Mayor Clint Bean
P.O. Box 737
Pelican , AK 998 32
Phone 907

- 735

- 2202
Fax 907

- 7 35

- 2258
E

- mail mayor @pelicancity.org

# SOUTHEAST ALASKA CONSORTIUM

Southeast Alaska Consortium • Small Community Air Service Development Grant Proposal • June 2012 

## 21 CONCLUSIO N

The Southeast Alaska communities of Angoon, Elfin Cove, Pelican and Tenakee Springs have come together to ask the Department to h elp them invest in their air service, and allow true connectivity from their communities to the National Air Transportation System. While these communities are small, this represents a unique opportunity for the Department to make the greatest difference f or a group of communities. The Department stands to upgrade, on what is paramount to a permanent basis, the status of these cities from typical Essential Air Service to the real air service map. This will have the most profound effect on the viability of t hese communities in general
, and greatly enhance their current slate of tourism related economic activity.

While directly only providing these
communities with access to the Global Distribution System, the Department would be in effect, allowing these communities their first access to an airline network, and to the National Air Transportation System.

Awarding this proposal would enable the Department the unique opportunity to simultaneously support the goals of the Essential Air Service program and the Small Community Air Service Grant Program, in a creative way. Further, additional enplanements resulting from increased access and exposure will make the Essential
Air Service in these communities more sustainable and add to the economies in each of these
Southeast Alaska towns. 

### “This proposal would enable the Department the unique opportunity to simultaneous ly support the goals of the Essential Air Service program and the Small Community Air Service Grant Program, in a creative way. ”

# SOUTHEAST ALASKA CONSORTIUM

Southeast Alaska Consortium • Small Community Air Service Development Grant Proposal • June 2012 

## 22 APPENDIX: ADDITIONAL COMMUNITY INFORMATION Angoon Admiralty Island has long been the home of the Kootznoowoo Tlingit tribe. Kootznoowoo means
"fortress of bears." From the 1700s to the mid

- 1800s, fur trading was the major money

- making activity in the area. In 1878, the Northwest Trading Company establishe d a trading post and whaling station on nearby Killisnoo Island, and villagers were employed to hunt whales. Whaling, a BIA school, and a Russian Orthodox Church attracted many Tlingits to Killisnoo. In 1882, a whaling vessel's harpoon charge accidentally misfired and exploded, killing a Native
crewmember

- a Tlingit shaman. Villagers demanded payment of 200 blankets to the man's family, as was customary. The Northwest Trading Co. felt threatened and sought assistance from the U.S. Navy at Sitka. The villag e and a summer camp were subsequently shelled and destroyed by the Navy Cutter U.S.S. Corwin. Native accounts of the attack claim six children died by smoke inhalation. In 1973, Angoon won a $90,000 out

- of

- court settlement from the federal government
for t he 1882 bombardment. Whaling did not last long, and the company switched to herring processing. During this time, many Tlingits moved to Killisnoo for employment at the plant. In 1928, Killisnoo was destroyed by fire, and many Tlingits returned to Angoon. A post office was established in 1928. The city was formed in 1963. Many summer homes have developed on
Killisnoo Island.

A federally

- recognized tribe is located in the community

-- the Angoon Community Association. Angoon is a Tlingit village with a co mmercial fishing and subsistence lifestyle. Possession of alcohol is banned in the community.

The Tillinghast Lake reservoir provides water, which is treated and piped throughout the community. Angoon has had a piped system since 1977, and over 95% of ho mes have complete plumbing. Piped sewage is processed at a secondary treatment plant that directs flow to an ocean outfall. A 500,000

- gallon water tank has been constructed at the plant. The city collects refuse and hauls it to the landfill, located approx imately two miles from Angoon. The Tlingit

- Haida Regional Electric Authority, a non

- profit subdivision of the state, operates three
diesel

- fueled generators in Angoon. Electricity is provided by Inside Passage Electric Cooperative. There are 2 schools loca ted in the community, attended by 79 students. Local hospitals or health clinics include Jessie Jim Health Center (Angoon). Jessie Jim Health Center provides Primary Health Care Prevention Services Dental Care and Behavioral Health. Angoon is
an isolated location ; it is part of the Southeast EMS Region. Emergency Services have limited highway marine floatplane and helicopter access. Emergency service is provided by 911

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## 23 Telephone Service volunteers and a health aide. Auxiliary health care is provided by An goon Emergency Medical Services

.

According to Census 2010, there were 256 housing units in the community and 167 were occupied. Its population was 75.8 percent American Indian or Alaska Native; 10.5 percent white; 0.9 percent black; 12.4 percent of the local residents had multi

- racial backgrounds. Additionally, 7.8 percent of the population was of Hispanic de s cent.

Elfin Cove This protected, flask

- shaped harbor was originally called "Gunkhole" by fishermen anchoring
here. Its safe anchorage and proximit y to the Fairweather fishing grounds made this a natural spot for fish buyers and supplies. Ernie Swanson built a store, restaurant, and dock here in the 1920s. His wife Ruth applied for a post office in 1935 and gave it the new name of Elfin Cove.
John Lo well, another fish buyer, arrived in the 1940s and built a second dock, warehouse, store, and restaurant. According to locals, the Tlingits who visited the harbor would not stay over winter because of the "evil spirits" there.

Elfin Cove is a fishing co mmunity. Due to declining enrollment, the school was closed in the 1998

- 99 school year, and students must be home

- schooled.

Most of the homes are fully plumbed using individual surface water collection systems and septic
tanks with leach fields or beach outfall. A tank holds captured spring water. Due to the geography of the area, a landfill does not exist and is not feasible. Residents currently use an unregulated refuse burn area on tidelands. Electricity is provided by Elfin Cove Utility
Commission. Th ere are no public schools located in the community , Auxiliary health care is provided by Elfin Cove EMS

.

According to Census 2010, there were 28 housing units in the community and 13 were occupied. Its population was 5 percent American Indian or Alaska Native; 70 percent white; 25 percent of
the local residents had multi

- racial backgrounds.

Pelican A cold storage plant was the first development at this site in 1938. Kalle (Charley) Raataikainen bought fish in this area, which he transported to Sitka. He chose this protected inlet as an ideal cold storage site and named the place after his fish

- packing vessel "The Pelican." Two of his fish

-

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## 24 buying scows were used as a cookhouse, mess hall, bunkhouse, and warehouse, and the community of Pelican grew around this operation. A store, office, sawmill, post office, and sauna had been erected by 1939. A school and cannery were developed in the 1940s, and a city was formed in 1943. A boardwalk serves as the town's main thoroughfare, due to the lack of flat land.

Pelican, Alaska, is a fishing community. The economy is highly dependent on commercial salmon fishing and longline halibut and sablefish. Most people in Pelican rely on subsistence resources as an important part of their lifestyle. The community has incre ased activity in the visitor industry and from recreational boaters. There is a seasonal population influx of commercial
fishermen and seasonal residents.

Hydro Project: With the pending acquisition of the Utility by the City, the completion of the Hydro upgrade is all important. As of now, the hydro is expected to be back on line as soon as the weather moderates allowing welding of the new high density plastic penstock. Once on line, the hydro is expected to produce 600 Kilowatts of electricity. The comm unity presently consumes about 120 Kilowatts; there is room for growth.

Commercial Ice Machine Grant: With the City becoming the owner of the fish house, the $800,000 federal grant can now move forward to replace the old ice machines. The City is now taking steps to proceed with implementation of the grant and to get the new machines installed and producing ice. Wyatt Refrigeration personnel from Seattle will travel to Pelican this spring to begin the installation.

The City of Pelican operates the pip ed water system. Water is derived from a dam and reservoir on Pelican Creek and then treated. The city provides garbage collection services, recycling, and a burnbox at the unpermitted landfill. The city maintains four 10,000

- gallon septic tanks. The city owns the following facilities: library, city hall and apartment, community center, health clinic, fire department building and apartment, public safety building and apartment, recycling building, and city warehouse and shop. There are two small boat grids located with in the harbor. Pelican City School District provides K

- 12 education. The City of Pelican also owns the bulk fuel facility and leases the facility to Kake Tribal Corporation DBA Pelican Utility District to operate and maintain. Electricity is pr ovided by Pelican Utility Company. There is one school located in the community, attended by 12 students. Local hospitals or health clinics include SEARHC Community Family Services

- Pelican. The clinic is a qualified Emergency Care Center.

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## 25 Emergency Serv ices have marine floatplane and helicopter access. Emergency service is provided by volunteers. Auxiliary health care is provided by Pelican Volunteer Fire & EMS

.

According to Census 2010, there were 77 housing units in the community and 41 were occupied

. Its population was 34.1 percent American Indian or Alaska Native; 59.1 percent white; 6.8 percent of the local residents had multi

- racial backgrounds. Additionally, 1.1 percent of the population was of Hispanic descent

.

Tenakee Springs The word Tenakee is from the Tlingit word "tinaghu," meaning "Coppery Shield Bay." This refers to three copper shields, highly prized by the Tlingits, which were lost in a storm. Early prospectors
and fishermen came to the site to wait out the winters and enjoy the natural hot springs in Tenakee. Around 1895, a large tub and building were constructed to provide a warm bathing place for the increasing number of visitors. In 1899 Ed Snyder established Snyder's Mercantile, which still operates today. A post of fice opened in 1903. Originally called Tenakee, the name was altered to Tenakee Springs in 1928. Improvements to the hot springs facilities were made in 1915 and 1929; the existing bathhouse was constructed in 1940. Three canneries operated in the
area bet ween 1916 and 1974. A logging camp operated for a time at Corner Bay. The city incorporated in 1971.

Tenakee Springs has a year

- round population and also serves as a summer retreat for residents of Juneau, Sitka, Washington, and Oregon. Many residents p ractice a subsistence lifestyle and actively exchange resources with their neighbors. The 104 °F sulfur hot springs is the social focus of the community. Bathing times are posted for men and women.

Tenakee Springs is dependent on seaplanes and the Alaska Marine Highway for transport. The
state owns a seaplane dock and heliport. Scheduled or chartered float planes are dispatched from Juneau and Sitka. The state ferry provides passenger transportation only, since there is no
vehicle landing facilities or lo cal roads in Tenakee. Barges deliver fuel and goods four to six times a year. The marine facilities include a small boat harbor and ferry terminal. The City of Tenakee
owns a fuel dock. There is a 3

- mile long main street. Local transportation is primarily by bicycle or
ATV.

There is no community water, sewer, or refuse service. Residents haul water from local streams or use individual wells. Most homes are fully plumbed. The city owns and operates diesel

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## 26 generators, and the city owns the electrical and fue l distribution systems. Electricity is provided by City of Tenakee Springs. There is one school located in the community , attended by 8 students. Local hospitals or health clinics include Tenakee Springs Health Clinic. Emergency
Services have marine float plane and helicopter access. Emergency service is provided by volunteers. Auxiliary health care is provided by Tenakee Springs Volunteer Fire/EMS

According to Census 2010, there were 180 housing units in the community and 72 were occupied. Its population was 0.8 percent American Indian or Alaska Native; 94.7 percent white; 0.8 percent black; 0.8 percent Asian; 3.1 percent of the local residents had multi

- racial backgrounds. Additionally, 1.5 percent of the population was of Hispanic de s cent.

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