April 11, 2015

A.J. Muldoon Office of Aviation Analysis U.S. Department of Transportation 1200 New Jersey Avenue, S.E. Washington, D.C. 20590

Dear Mr. Muldoon
,

E rickson Helicopters, Inc (EHI) is very pleased to submit its proposal to provide air service at Diomede,
Alaska i n response to the Department of Transportation’s request for proposal (RFP)

. EHI’ s proposal is to provide direct service to Diomede perf orming the following route t wice monthly (24 trips) with an additional 12 trips at the customer’s discretion : Nome (OME) to Diomede (DIO) to Wales (WAA) to Diomede (DIO) to Nome (OME) , a two

- blade, twin

- engine Bell 212 medium helicopter with up to 8

- 12 seats, depending on cargo requi rements . This service will be offered for a one

- year period from July 1, 2015, through June 30, 2016 for the price of $380,952

.

EHI welcomes the opportunity to continue service s to the Diomede, Alaska community. Through acquisition of Evergreen Helicopters, Inc., EHI has a nearly 30 year history working with the United
States Postal Service (USPS) to deliver mail for the Diomede commun ity, while also providing space available service to passengers. Our combination of safe and reliable aircraft, effective route schedul ing
, and extensive knowledge about operating in this rugged and challenging environment ensure s a quality
air service that will meet Diomede’s passenger transportation requirement s and actually exceed the capacity requested in the Request for Proposal

.
Frequency and Schedule

As allowed in the RFP, we propose an alternative schedule of two scheduled trips monthly (24 trips) with an additional 12 trips at the customer’s discretion

. The 25% reduction in th e number of trips from 44 to 36 allows EHI to offer a safer, more reliable aircraft while maintaining a large bench stock of spare parts to mitigate the likelihood of delays caused by inability to obtain parts in a timely manner.

We recommend the schedul ed trips be offered every other week, but with 48 hours’ notice, we can adjust the schedule to meet emergent requirements or account for severe weather. We also recommend we continue the practice of traveling on Fridays so as to put space between our weekl y Wednesday trips for USPS. Our proposal also offers a unique routing structure that will serve to maximize value and create the most effective solution for passenger and cargo transportation services for the community of Diomede.Erickson Helicopters, Inc. Proposal to Provide Air Service to Diomede Alaska. Reference: Docket DOT

- OST

- 2009

- 0260

EHI recommen ds the follo wing routing :

Leg 1: Fly Passengers/Cargo from Nome to Diomede Leg 2: Fly Passengers/Cargo from Diomede to Wales (Refueling Stop) Leg 3: Fly Passengers/Cargo from Wales to Diomede Leg 4: Fly Passengers/Cargo from Diomede back to Nome.

The above proposed air service routing is advantageous because it optimizes transportation to and from Diomede, giving passengers flight options into Wales and Nome. When coupled wit h the increased seating capacity offered by the Bell 212, our proposal more than doubles the space capacity for passengers seeking air service from Diomede to an airport with regional air service capability, which both Wales and Nome currently provide even with the loss of what equates to one trip monthly

.

Safe and Reliable Twin P ack PT6T Engine Aircraft with Enhanced Capability

Historically, we have met this requirement using the BO

- 105. There are three major differences between
the Bell 212 and the BO

- 105 that are worth noting. The first is payload and passenger capacity. The BO

105 is capable of 4

- 5 passengers or approximately 1700 lbs with a fuel load for a round trip from Nome to Diomede and back. In contrast, the Bell 212 is capable of up to 12 pass engers or approximately 4650 lbs of cargo with fuel for the same trip. This increased capability would enable us to deliver more passengers and cargo per trip and thus reducing the amount of backload carried over between scheduled trips. And since poor w eather is often a factor, the increased capacity would also allow vital cargo to be resupplied faster once the weather clears.

The second discriminating factor is the engines. The Allison C250 of the BO

- 105 has a direct flow air inlet system without a bar rier filter. This allows debris, dust, or water to be ingested into the engine compressor system. This is not a safety concern as the engine was designed to handle this matter, but it does result in an increased erosion rate of the compressor blades and a concomitant decrease in engine performance over time. This results in higher maintenance downtime, increased costs and degrades the level of services provided to the people of Diomede. The Bell 212 incorporates a reverse flow engine, meaning the inlet air must reverse direction before it enters the engine. Inside the intake is a directional flow valve, which redirects the inlet air once again. This process, combined with the reverse flow inlet,
clears the inlet air of most of the contaminants before i t enters the engine compressor and combustion chambers. The level of erosion is significantly lower than the Allison C250 engine of the BO

- 105, resulting in higher reliability, durability and performance over the duration of the contract.

The third fact or is increased safety. The BO

- 105 has been a very safe aircraft for us and we have not had any safety issues while performing this contract. However, in switching to the Bell 212, we are able to provide an even higher level of safety. This is achieved by the enhanced single engine performance of the Bell 212 and the addition of an Autopilot system. The design of the twin pack PT6T allows one engine to automatically increase in power output should the other engine lose power, enabling a trueErickson Helicopters, Inc. Proposal to Provide Air Service to Diomede Alaska. Reference: Docket DOT

- OST

- 2009

- 0260

dual engine backup system. The Autopilot system provides an additional layer of helicopter control and is beneficial in reducing crew fatigue. It also enables the crew to increase their situational awareness by allowing them to more time to focus their attention ou tside the cockpit and scanning for any upcoming hazards during times of difficult visibility such as poor weather and snow covered terrain.

Erickson also has a medevac litter kit that is available for the Bell 212. This litter kit has previously been

u sed at Ft Wainright to support the US Army and it would be available for use on this contract as well. The kit can be stored until needed, and can be installed into an empty aircraft within a half hour. This would be a useful capability as we would be ab le to provide medical transport for stabilized patients from Diomede Island if an emergency situation existed. A medical attendant from Diomede would need to accompany the patie nt if such a transfer did occur or, circumstances permitting, we could transpo rt an attendant or physician from the General Hospital at Nome.

We have used both aircraft on this contract and have had the opportunity to compare them side by side. This unique comparison has allowed us to add factual data to support our proposal to ass ign a Bell 212 to provide service to Diomede. We feel we can provide more reliable, safer service and increased payload capability with the Bell 212, all of which will be a direct benefit to our customer.

Summary

EHI’s proposed service for the routing listed above requires a subsidy in the amount of $ 380,952 . In order to execute the proposed air transportation service for the community of Diomede for a period of

one year, EHI respectfully requests this aforementioned subsidy. EHI’s detailed proposal inc luding our routing solution, flight hours, fuel breakdown, and pricing information that ne cessitates a government subsidy can be found in subsequent pages.

We believe this proposal offers a Best Value solution to provide air service to/from Diomede while

o ptimizing passenger travel options for the community . Diomede’s citizens will benefit from having our far more capable and reliable aircraft.

Please feel free to contact us if you have any questions or concerns regarding this proposal.

Sincerely,

Chri s Bassett Vice President and General Manager cbassett@ericksonaviation.com 503.434.4003 ext. 4338Erickson Helicopters, Inc. Proposal to Provide Air Service to Diomede Alaska. Reference: Docket DOT

- OST

- 2009

- 0260

EHI’s Proposed Air Service to Diomede for one year from July 1, 2015, through June 30, 2016

The below information pertinent to providing Air Service at Diomede, which includes flight time, f l ights per year, fuel requirements, fuel pricing pegged rates for each location that requires fueling, flight routing, assumptions and subsidy requirements.

The Below information is based on EHI ’s proposed weekly scheduled air service based on the following flight routing:

Leg 1: Fly Passengers/Cargo from Nome to Diomede Leg 2: Fly Passengers/Cargo from Diomede to Wales ( Refueling Stop) Leg 3: Fly Passengers/Cargo from Wales to Diomede Leg 4: Fly Passengers/Cargo from Diomede back to Nome.

EHI ’s Proposed Air Service Information:

Flights Per Month : Two scheduled plus additional at cu stomer discretion up to total 36 trips for period of performance Weeks of Service per Year: 44 Trips per year 36 Total Flight Time for Routing: 2.5 Hours Total Fuel Required Per Routing: 225 Gallons Fuel Required at Nome (Departure): 135 Gallons Nome Fuel Pricing (Pegged): $7.00/Gallon Wales Fuel Prici ng (Pegged): $14 .00/Gallon Yearly Total Subsidy Requested: $380,952 .00 Flight Price for Complete Routing: $10,582.00 Hourly Rate Including Fuel: $4,232.80

Assumptions:

 EHI offers passenger and/or cargo air service on each of the above legs once a week

 Infrastructure such as helipads continues to accommodate chosen aircraft

 EHI requested subsidy pricing of $ 380,952 has fuel included in the price* * Fuel is pegged the following rates per location: Nome is $7/Gallon; Wales is $1 4 /Gallon * If fuel price increases beyond pegged pricing per gallon at the above locations, EHI reserves the right
to bill at actual rate

 EHI ’s proposal is for 44 weeks of flying a year, due to th e Ice Runway in place for an average of eight weeks per year

 EHI shall be paid the full amount listed for completed flight routes or flight hours