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Dennis Devany [ ; •, 01/11/2010 

Chief, Essential Air Service Division 

Office of Aviation Analysis . M . 

U.S. Department of Transportation 

1200New Jersey Avenue;-SE - - —.• 

Washington, D.C. 20590 

Dear Mr. Devany: 

Kodiak is the bypass mail hub for 16 widely dispersed bush villages. Flying conditions 

are challenging, with a significant amount of over-water routing. Despite the number of 

villages served and difficult flying conditions, Kodiak is the only hub of its size where no 

turbo-prop aircraft are currently used. Aircraft such as the Cessna Caravan provide 

highly reliable service, instrument capability and lower unit operating costs over time. 

Designated Essential Air Service, by definition enforced single-carrier service, provides 

the opportunity of modernizing operations and equipment to the remote villages. The last 

turbo-prop service at Kodiak was Caravan service provided by the existing Essential Air 

Service carrier. With hopes of restoring this high quality service, Servant Air has 

proposed service to Akhiok with the Caravan. At the same time, Servant did not propose 

service to Karluk, which is currently served with subsidy by Island Air Service, so that 

that carrier could pursue its own plans. Servant Air does not currently serve Karluk. 

Servant Air is well established at Akhiok by virtue of its reliable and flexible service. 

Servant has invested in the facilities and equipment to service this market, and that 

significant investment will be lost if it does not continue to be the designated Essential 

Air Service provider at Akhiok. The proposed Island Air service to Akhiok is a step 

backward. Rather than fleet and service improvement. Island Air simply proposes to 

extend the utilization of its existing fleet and facilities by adding Akhiok. 

Obviously the same economies of scale would occur if Servant would be designated the 

Essential Air Service carrier at Akhiok and Karluk. Given that it is unlikely that 

Servant's bid for Caravan service will be accepted at Akhiok, and that additional aircraft 

and facility utilization will reduce Servant's operating costs. Servant withdraws its 

proposal for service to Akhiok. Instead, Servant proposes to provide the required 

Essential Air Service to Akhiok and Karluk for $0 as the designated carrier for a period 

of two years. 

Servant's fleet has more different aircraft types, and it can accommodate the variable 

demand more efficiently. The additional service generated by serving Karluk should 

provide greater utilization of existing facilities and aircraft. Specifically, Servant Air 

proposes to provide three round trips on a year around basis to Karluk with small aircraft, 

and also three round trips per week in the peak season and two round trips per week in 

the off-peak season with small aircraft to Akhiok as the designated Essential Air Service 

carrier for the two markets. 
Servant is willing to begin this service on April 1, 2010, at the expiration of the existing 

rate agreements. While this bid represents some risk for Servant Air, it is less risky than 

losing its market at Akhiok. 

Servant Air requests that it be designated the Essential Service Carrier for Akhiok and 

Karluk. This proposal saves the Federal government subsidy expense and guarantees the 

current level of community service. Servant Air retains its right to reduce service on 90-

days notice if the service situation at Akhiok and Karluk changes. 

Respectfully submitted. 

Terry R Cratty 

D.O. 

Servant Air Inc. 

1619 Airport way 

Kodiak, AK. 99615