### BEFOR ETH E DEPARTMEN T O FTRANSPORTATIO N OFFIC EO FTH ESECRETAR Y WASHINGTON , D.C . Regardin g Essential Air

Servic e at : EXCURSIO NINLET , ALASKA KAKE , ALASKA Under49lJ.S.C . 4173 1 el . seq . Docke t OS T 2002-1201 4 Docke t OS T 2008-021 7

SERVIC EPROPOSA LB Y ALASKAJUNEA U AERONAUTICS , INC .

d/b/ a WING S O FALASK

A SEAPOR T AIRLINE S I n respons e t o Th e Department' s orde r2010-4- 6 date d Apri l 9 , 2010 , Alask a Junea u Aeronautics , Inc . (Wing s o fAlaksa) , offer s th e followin g servic e proposa l t o provid e essentia l ai rservic e wit h subsid ya t Excursio n Inlet , Alask

a an d Kake , Alaska . Wing s ha s provide d Essentia l Ai rServic e a t bot h point s previously . Wing s wa s happ yt o provid e ad-ho cai rservic e t o Excursio n Inle t an d Kak e fo rpassengers , freigh t an d have accommodate d th e Unite d State s Posta l Servic e wit h mai l deliveryafte rth e emergency revocatio n o fLA

B Flyin g Service' s (LAB) , operatin g authorit yo n Jul y24,2008 . EXCURSIO N INLE T- Docke t OS T- 2002-1201 4 Wing' s propose s t o continu e t o provid e th e sam e leve l o fservic e an d frequenc ya t Excursio n Inle t fro m Junea u a s w e di d ove rth e previou s tw o yea rperiod . That servic e is ; durin g th e 1 6 wee k pea k season , offerin g thre e roundtri p flight s pe rwee k wit h Cessn a 20 7 aircraf t an d durin g th e 3 6 wee k off-pea k season , offerin g on e roundtri p fligh t pe rwee k wit h Cessn a 20 7 aircraft . Whe n th e landin g surfac e at Excursio n Inle t i s unusabl e an d Wing s canno t provid e servic e i n a saf e manner , Wing s reserve s th e righ t t o wor k wit h anothe rcarrie rsuc h a s Alask a Seaplan e Servic e o rWar d Ai rt o accommodat e th e leve l o f servic e required . Wing s wil l compensat e an ysub-contracto rfo rth e servic e the yprovide . Wing' s commit s t o wor k

wit h th e Communit yRepresentative s at Excursio n Inle t t o coordinat e mutuall y agreeabl e arriva l time s fo rth e flight s offere d an d require d unde rthi s proposal . See Appendi xAfo rth e annua l compensatio n require d fo rWing s t o provid e Essentia l Ai rService a t Excursio n Inlet , Alaska .KAK E - OST- 2008-021 7 Kake i s locate d approximatel y10 0 mile s sout h o fJuneau . Th e norma l rout e o ffligh t i s alon g Stephen s Passag e o rSeymou rCana l an d ove rth e extende d water s o fFrederic k Sound . Th e Frederic k Soun d wate r crossin g i s mor e tha n 1 0 miles . Th e weathe ralon g th e rout e i s frequentl ymargina l VFR . Ther e ar e area s alon g th e rout e wher e radi o communication s ar e poo ro rno t available . Ther e ar e n o landin g strip s alon g th e route , no rar e ther e saf e area s t o ditc h shoul d a n emergenc yarise . Wit h th e implementatio n o fCapston e Phas e Tw o i n Southeas t Alaska , o fwhic h Wing s i s a participant , safe ran d mor e reliabl e ai rtransportatio n i s attainable , especiall yfo rKake . Wing s i s als o participatin g i n th e Alask a Ai rCarrie rAssociation' s Medallio n Foundation . I n fact , Wing s i s th e firs t an d onl yPar t 13 5 ai r carrie ri n Junea u t o hav e attaine d 'Shiel d Status ' fro m th e Medallio n Foundation . I t i s wit h safet yi n min d an d o fparamoun t importanc e fo rth e passenger s an d cre wtha t Wing s offer s thi s proposa l t o serv e Kake , Alaska . Wing' s propose s t o provid e Essentia l Ai rServic e a t Kake fro m th e hu b o fJunea u utilizin g nin e sea t turbin e powered , Cessn a 20 8 Caravans . Additionally , durin g th e las t bi d period , w e adde d th e authorit yt o fl yunde rInstrumen t Fligh t Rules . Thi s greatl yincrease d ou rdispatc h reliability . W e ar e currentl yacquirin g a full yanti-ice d Carava n tha t wil l giv e Wing' s a tremendou s margi n o fsafet yan d reliabilit yove rtha t o fou rneares t competitor . As w e di d las t period , whe n weathe ran d load s allow . Wing s wil l substitut e Cessn a 20 7 aircraf t o n th e route , thereb yreducin g th e subsid yrequire d b yapproximatel y45 % pe rdeparture , however , th e annua l subsid yceilin g i s base d o n th e Carava n aircraf t an d i t i s th e Carava n aircraf t tha t Wing s intend s t o us e o n thi s rout e wheneve rweathe ro rload s requir e it . I n orde rt o mee t th e historica l servic e leve l whil e utilizin g large raircraf t tha n ha s traditionall ybee n use d i n th e Junea u t o Kak e market . Wing s propose s a 2 1 wee k pea k seaso n whereb ytw o roundtri p flight s eac h day , seve n day s pe rwee k woul d b e offered . Durin g th e 3 1 wee k off-pea k

season , on e roundtri p fligh t eac h da ywoul d b e offered . Th e propose d pea k seaso n woul d ru n fro m aroun d th e thir d wee k o f Apri l throug h aroun d th e 10t h o fSeptember . Wing s wil l endeavo rt o schedul e th e peak-seaso n tw o roundtri p flight s eac h da ya t opposit e end s o fth e da yt o allo wcommuter s fro m eithe rKak e o rJunea u t o retur n t o thei rpoin t o forigi n o n th e sam e day . Wing s wil l solici t Communit yfeedbac k o n th e schedulin g o foff-pea k

flights . Th e servic e level s provide d b yAJ Adurin g th e pas t perio d prove d t o b e th e mos t efficien t fo rth e Departmen t whil e ye t allowin g fo rth e maximu m traffi ct o thes e communities . W e additionall yfle w man ynon-subsidize d flight s whe n traffi cdictate d tha t extr a capacit ywa s warranted . Althoug h AJ Awa s recentl ycriticize d b ya ne wentran t int o thi s marke t fo refficientl ymanagin g capacity , w e fee l tha t w e hav e bee n excellen t steward s o fth e Department' s resources . Durin g th e pas t year , althoug h w e bi d $314,30 2 w e onl ycharge d th e departmen t $241,531 . Thes e sam e savin g shoul d b e anticipate d shoul d th e departmen t selec t u s fo ra n additiona l tw o yea rperiod . Additionally , Wing' s acquisitio n b ySeaPor t Airline s ha s give n th e compan yeconom yo fscal e tha t i s unrivale d b you rcompetitors . Wing' s inventor yi s no wdistribute d i n fiv e majo rgloba l distributio n sytem s (GDS's) . Wing' s ha s joine d th e Airlin e Clearin g Hous e tha t wil l enabl e interlin e agreement s wit h majo rcarriers . Wing's/Se a Por t i s currentl yE-ticketabl e an d i s full ydistribute d i n Expedia.co m (se e appendi xC) . Man ymor e Onlin e Trave l Agencie s ar e soo n t o come . Thes e distributio n outlet s combine d wit h futur e interlin e agreement s make s Wing' s servic e fa rsuperio rt o ou rcompetition .

### Appendi xA& B ar e self-explanatory . Revenues , direct , an d indirec t expense s ar e derive d fro m th e pas t

tw o yea rperiod . Respectfully , 

# /€A^r/ ^

^ Rob McKinne y Presiden t Alask a Junea u Aeronautics , Inc . d/b/ a Wing s o fAlaska/SeaPor t Airline s

### Appendi xA 

## Annua l Compensatio n Requiremen t fo rEssentia l Ai rServic e a t

Excursio n Inlet , Alask a Betwee n JN U an d EXI Assume d Tota l Revenue * $ 10,700.0 0 Direct Expense s C-207 8 4 bloc k

hours @ $289.0 8 $ 24,282.7 2 Indirec t Expense s C-207 75 % o fdirec t $ 18,212.0 4 Subtota l $ 42,494.7 6 Retur n an d Ta

xAllowanc e $ 2,124.7 4 Tota l Operatin g Expens e $ 44,619.5 0 Annua l Subsid yRequiremen t $ 33,919.5 0 Subsid ype rDeparture/Arriva l $ 201.9 0 Weekl yCeilin g $ 1,211.4 1 (peak) $ 403.8 0 (off-peak ) •*Base d o n historica l traffic .Appendi xB 

## Alaska Junea u Aeronautics , Inc .

d/b/ a Wing s o f Alask a Annua l Compensatio n Requiremen t fo rEssentia l Ai rServic e a t Kake , Alask a Betwee n JN U an d KA

E Passenger s (400 0 @ $134.88 ) $ Freigh t (81,50 0 @ $0.65 ) Mai l (120,00 0 @ $0.89711 ) Tota l Revenu e * Direc t Expense s C-20 8 Caravan919. 8 bloc k hour s @$573.9 8 Indirec t Expense s C-20 8 Carava n 79 % o f direc t Subtota l Retur n an d Ta xAllowanc e Tota l Operatin g Expens e Annua l Subsid yRequiremen t Subsid ype rDeparture/Arriva l Weekl yCeilin g (peak )

(off-peak ) $332,865,-0 0 $71,171.0 0 $98,631.0 0 $508,649,-0 0 $527,946.8 0 $417,078.0 0 $945,024.8 0 $47,251.2 4 $992,276.0 0 $438,627.0 0 $473.2 2 $6,625,0 3 $3,312.5 1 •^Tota l Revenu e base d o n two-yea rhistorica l averag e o f passengers , freigh t an d mai l volume s at curren t rates .Appendi xC Buildyour

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