40-311 LE AIR 

Since 1959 

P.O. BOX 539 

MILE 1313 ALASKA HIGHWAY 

TOK, ALASKA 99780 

907-883-5191 

FAX-907-883-5194 

Fairbanks Int'l Airport 

6450 Airport Way Suite 20 

Fairbanks, Alaska 99709 

907-474-0018 

FAX - 907-474-8954 

Proposai to Provide Essential Air Service 

At Chisana, Alaska Docket DOT-OST-1998-4574 

And Healy Lake, Alaska Docket DOT-GST-1998-3546 

February 6, 2014 

Route TKJ-CZN-TKJ 

Frequency: 2 Round Trips per Week 

Aircraft Type: Cessna 185(3 seats), 206 or 207(4 seats) 

Annual Block Hours 1 190.7 

Revenue Rate 2 Amt/lbs. Revenue 

Passenger $97.67 100 $ 9,767.00 

Cargo 

S .42 3,000 

$ 1,260.00 

Space Available Cargo S .21 26,000 

$ 5,460.00 

Mail S 1.001195 7,000 

$ 7.008.37 

Total Operating Revenue $23,495.37 

Direct Operating Expenses Unit cost Expense 

Pilot $103.00 per BH $19,642.10 

Fuel & Oil $102.00 perBH $19,451.40 

Maintenance $112.00 per BH $21,358.40 

Depreciation $22.85 per BH $ 4,357.49 

Insurance $47.25 per BH $ 9,010.58 

Agent fee $20.00 per CZN dept. $ 2,080.00 

Total Direct Operating Expenses $75,899.97 

Indirect Operating Expenses @ 40% of Direct Net of Depreciation $28,616.99 

Total Operating Expenses $104,516.96 

Operating Loss $81,021.59 

Profit Element @5% of Total Operating Expenses $ 5,225.85 

Subsidy Need m0O% $86,247.44 

IBIoc k hours = (TKJ - CZN -TKJ, 1.83 hours) x 2 flights/week x 52 = 190.7 hours 

2.Passenger and Cargo Rates Before Excise Tax 

AIR SCHEDULED, AIR CHARTER IN ALASKA & CANADA, WHEELS, SKIIS, FLOATS, 

PACKAGE HUNTS, FLY-IN FISHING, FLIGHTSEEING, BULK FUEL HAULING 
Route FAI-HKB-FAI 

Frequency: 2 Round Trips per Week 

Aircraft Type: Cessna 206 or 207(5 seats) 

Annual Block Hours 1 208 

Revenue Rate 2 Amt/lbs. Revenue 

Passenger $ 65.12 50 $ 3,256.00 

Cargo $ .47 5,000 $ 2,350.00 

Mail $ 1.13 1,200 $ 1,356.00 

Total Operating Revenue $ 6962.00 

Direct Operating Expenses Unit cost Expense 

Pilot $103.00 per BH $21,424.00 

Fuel & Oil $102.00 per BH $21,216.00 

Maintenance $112.00 per BH $23,296.00 

Depreciation $22.85 per BH $ 4,752.80 

Insurance $47.25 per BH $ 9,828.00 

Agent fee $20.00 per HKB dept. $ 2,080.00 

Total Direct Operating Expenses $82,596.80 

Indirect Operating Expenses @ 40% of Direct Net of Depreciation $31,137.60 

Total Operating Expenses $113,734.40 

Operating Loss $106,772.40 

Profit Element @5% of Total Operating Expenses $ 5,686.72 

Subsidv Need @100% $112,459.12 

l^Block hours = (FAI - HKB, 1 hour) x 4 flights/week x 52 = 208 hours 

2_Passenger and Cargo Rates before Excise Tax 
UNITED STATES OF AMERICA 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

OFFICE OF AVIATION ANAL\SIS 

TITLE VI ASSURANCE 

(Iitplementii^ Title VI of the Civil Rights Act of 1964, as amenled) 

ASSURANCE CONCERNING NONDISCRIMINATION ON THE 

BASIS OF DISABILITY IN FEDERALLY ASSISTED PROGRAMS 

AND ACTIVITIES RECEIVING OR BENEFITING FROM 

FEDERAL FINANCIAL ASSISTANCE 

(Implenienting the Rehabilitation Act of 1973, as amended, and tlw 

Air Carrier Access Act of 1986) 

49 CFR Parts 21 and 27 and 14 CFR Parts 271, and 382 

(the Recipient) HEREBY AGREES THAT, 

I. As a ccxidition to receivirg any Federal firancial ^sistance ffcm the 

Departnmt ofTrarBportaticii, it willconpfy: wiftiTitk VI ofthe Civi Rgtts Act of 1964, 

as airended, 42 U.S.C. 2000d--42 U.S.C. 2000d-4; allrequiren^nts inposed by or pursuant 

to: Title 49, Code cfFederal ReguMions, Part 21, Nondiscrinination in Federal^-Assisted 

Programs ofthe Department ofTransportationr-Eflfectuation of Tile VI ofthe Civi R^hts 

Act of1964; and other pertinent directives so that no person in the United States shal, on the 

grounds of race, cobr, or national origin, be excluded ffom partic ^Htion ii, be denied the 

benefits of or be otherwise subjected to discrrrrination under ary program cr adivil^' fer 

which the Recipient receives Federalfirancial assistance fiomtiK Department cf 

Transportation This assurance B required by Title 49, Code ofFeder^ R^ulations, section 

21.7(a) and Title 14, Code ofFederal Regulations, section 271.9(c). 

II. As a condition to receivir^ary'Federal financial assistance ffom the 

Departrrcnt ofTransporCation it wi l compty' with: section 504 of the RehabilitatKn Act of 

1973, as attended (29 U.S.C. 794); the .^r Carrier Access Act of 1986 (49 U.S.C. 1374(c)); 

and al requiremenls irposed by or pursuant to Title 49, Code ofFederal Regidaticais, Part 

27, Ncoiiscrirnination onthe Basis of Handicap in Programs and Activities Receivir^ or 

Benefittirg ffom Federal Financial Assistance, Title 14, Code of Federal Regulations, Part 

382, Nondiscrimination on the Basis of Hardicap in Air Travel; and other pertinent drectives 
so Ihatno olherwise quaifiedperson wifti a disability, be excluded ffom paittpatkm in, be 

denied ttie benefits of be discriminated ^ins t by reason of such handicap in the provision 

of air transportation, or olherwise be subjected to discrirnination under ary program fcs" 

which the Recpient receives Federal friancial assistance ffom the Departmert of 

Transportation This assurance is required by Title 49, Code ofFederal Regubtions, section 

27.9 and Title 14, Code of Federal Ri^ubtions, sections 271.9(c) and 382.9. 

III. It wiU pronptty take any meaures necessary to effectuate this agreement. The 

Rec5)Knt fiirther ^ee s that it shall take reasonable actions to guarantee that it, its 

contractors and subcontractors subject to the Departrrtent ofTransportation regulations cited 

above, transferees, and successors in interest will compfy with all requirements imposed or 

pursuant to the statutes and Department ofTransportation regulations cited above, other 

pertinent directives, and the above assurances. 

IV. These assurances obligate tite Rec pient fir the period durirg vibkh Federal 

financial assistance is extended. The Recpient agrees that the United States has a r%ht to 

seek judicial enforcement with regard to ary matter arising mder the statutes and Department 

ofTransportation regulatictis cited above, other pertinent directiv'es, and the above 

assurances. 

V. These assurances are given fcr the purpose of obtainirg Federal stibsidy 

under the Essential Air Service Program and are bindi^ on the Recpient, contractors, 

subcontractors, transferees, successors in interest, and all other participants receivir^ Federal 

subsidy' in the Essential Air Service Program The person or persons whose s%natures 

appear below are autiiorizEd to s%n this agreement on behalf of the Recpient. 

VI. In addition to these assurances, the Recpient agrees to file: a snmiary of all 

conplaints filed agaiist it within ftie p ^ year that allege violation(s) by the Recpient of 

TJtfe VI of Ihe Civil Rights Act of 1964, as amended, section 504 of Ihe Rehabiliation Act cf 

1973, as amended, or the Air Carrier Access Act of 1986; or a statement that there have been 

no ccaiplaints filed against it. The summary should include Ihe date the conplaint was filed, 

the nature ofthe corrplaint, the status or outccme ofthe complaint (i.e., whether it is stiH 

pendirg or how it was resolved). 

Date Legal Name of Rec5)ient 

S^nature of Authorized Official 
UNITED STATES OF AMERICA 

DEPARTMENT OFTRANSPORTATION 

OFFICE OF THE SECRETARY 

OFFICE OF AVIATION ANAL\SIS 

CERTIFICATION REGARDING INFLUENCING ACTIVITIES 

Certification for Contracts, Grants, Loans, 

and Cooperative Agreements 

Hie imders^ned certifies, to the best ofhis or her knowledge and belie:£ that: 

(1) No Federal appropriated funds have been paid or wiUbe paid, by or on behalf oftiie 

unders^ned, to ary pers«i fcr influencirg or atterrpting to inflrence an oflScer or errptoyee 

of an^' agency, a Merrber of Cot^ess, an officer or emptoyee of Cor^ess, or an ertplpyee 

of a Mennber of Congress in connection with the awardir^ of ary Federal contract, tl i 

making of any Federal grant, the making of an^^ Federal loan, the entering into cf ary 

cooperative agreement, and the extension, continuation, renewal, amendment, or 

modificatiDn cf ar^ Federal contract, grant, ban, or cooperative agreement. 

(2) If any fimds other than Federal q)propriated finds have been paid or will be paid to ary 

person fcr influencing or atterrptirg to rfLience an oflBcer or emplo>'ee cf ary ^enc>', a 

Member of Corgress, an officer or emptoyee of Corgress, or an emptoyee of a Merhber of 

Ccrgress i i cormectton wilh this Federal contract grant, toan, or cooperati/e agreement, the 

undersgned shall coiplete and submit Standard Fonn-LLL, 'Disctosure Form to Repeat 

InfLiencing Activities," in accordance with its instructions. 

(3) The underfilled shall require that tine lar^u^e of this certificatton be included in the 

award documents fcr all subawards at all tiers (includirg subcontracts, subgranls, and 

contracts under grants, bans and cooperative agreements) and that aU subrecpients shall 

certify and disctose according^. 

Tbk certificattonB aniaterialrepresentatton affect iponwtehreliancew'as placed when 

this transaction was made cr entered into. Submisston of this certificatton is a prerequisite 

fcr making or enterig into this transaction imposed by section 1352, title 31, U. S. Code. 

Ary person who fiils to file the required certificatiai shall be subject to a civil jKrahy of not 

less than $ 10,000 and rtcA rrcre than $100,000 fi^r each such feilre. 

Essential A^ervice Poiit(s) To Wba^ Certification Apples 

CIA 
UNITED STATES OF AMERICA 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

OFFICE OF AVIATION ANAL\^IS 

CERTIFICATION REGARDING DRUG-FREE WORKPLACE REQUIREMENTS 

IN THE PERFORMANCE OF SUBSIDIZED ESSENTIAL AIR SERVICE 

A. The subsidized essential air service carrier certifies that i will or will continue, to provide a dn% 

ffee workplace by: 

(a) Publishirg a statemert notifyir^ emplcyees that the unlawful manufecture, distribution, 

dispensirg, possession or use of a controlled substance is prcHbied in the carrier's workplace, and 

specifying ftie actions lhat will be taken agaiist enpbyees fcr violation of such proMbftion; 

(b) Establishing an ongoig dng-fiee awareness program to kifcam enplcyees about-

(1) The dangers of drug abuse in the workplace; 

(2) The grantee's policy of maiitaiiing a drug-ftee workplace; j 

(3) Ary available drug, counseBr^ rehabiliatksi, and employee assBtance programs; and 

(4) The penalties that may be imposed upon enployees fcr drug abuse violatians 

occurring in the workplace; 

(c) Making it a requirement that each employee to be engaged in the performance of work 

sipported by Ihe subsiiy be given a copy ofthe statement reqviired by par^^ h (a); 

(d) Notifyirg the empbyee in the statement required by paragraph (a) that, as a conditisi of 

empbyment sipported by ttie subsify, the empb^-ee wilt-

(1) Abide by the terms ofthe statement; and 

(2) Notify the empbyer in writing ofhis or her convictixifor a violatbn of a crimtial 

d ng statute occurriig in the workplace no later than five calendar days after such 

conviction; 

(e) Notifying the agency in writiig withii ten calendar days after rece iing notice under 

paragraph (d)(2) ffom an errpb^'ee or olherwise receivkig actual notice of conviction 

Errpbyers of convicted employees must provide notice, iicludiig postksi title, to the 

Office of Aviation Anafysis. Notice shall include the order number of each afficted 

subsidized servre; 

(f) Taking me cfthe folbwirg actbrs, within30 d ^ ofreceivir^notice vmder paragraph 

(dX2), wilh respect to ary empbyee who is so ccxwicted--

(1) Taking ^jprqjriate personnel action ^ins t such an enpbyee, ip to and iic Lding 

termination consistent wihthe requirements ofthe Rehabifitation Act of 1973, as 

amended, or 

(2) Requirirg such enplcyee to participate satisfectori^' in a drug abuse assistance or 

rehabiEtatiai program approved for such prrrposes by a Federal State or bcal 

health law enforcement, or other ^)propriate agerKy, 
(g) Makirg a good faith eflfoit to continue to maintain a dng-fiee workpface throigh 

inplementatian of paragraphs (a), (b), (c), (d), (e) and (f). 

B. The subsidized essertfial air service carrier may, tut E not required to, iisert ii the space provided 

below the site fer the perGamance of work dene in ccgmection with the specific grant. 

Places cf Performance (street address, city, county, state, zip code). For the provBion of essential air 

senice, workplaces include outstatians, maiitenance sites, headquarters oflSce locations, training sites 

and any other worksites where work is performed that B supported by the subsitfy. 

Check [ ] if there are workplaces on file that are not identified here. 

Signature^( Date 
INSTRUCTIONS FOR CERTIFICATION 

1. By signing and/or submkdr^ tiis applicatkm or grant agreement ihe subsidized essental air service 

carrier is providing ihe certi&ation 

2. The certffication B a materml representatioi affect ipon which reliance is placed when the agency 

awards ttie subsidy. If it is later determined lhat the subsidized carrier knowitg^ rendered a filse 

certification, or otherwise violated the requirements cfthe Drug-Free Wor]q)lace Act, the agency, in 

addition to ar^' other remedies available to the Federal Government may take actrn authorized under 

the Drug-Free Worlq)lace Act 

3. Workplaces under grants, for grantees other than indiviluals, need not be identified en the 

certificatin Ifknown, they may be iderttfied iithe subsify applicatixL If the subsilized carrier does 

not identify the wor]q)laces at the time of applicatico, or vpon award if there is no ^Scatjon, ftie 

carrier rrust keep the identity ofthe workplaces on file in its oflSce and make Ihe irformation available 

for Federal inspection Faiure to identify aU known workplaces constitutes a violation cfthe 

subsidized carrier's dng-ffee workplace requirements. 

4. Workplace identifications must ixlude tte actualaddress ofbiildirgs (or parts ofbuiMings) or 

other sites where work under the grant takes place. Categorical descrptions may be used (e.g., al 

counters at the airports served by the carrier). 

5. If the wor]q)bce identified to the agency chaises during the performance ofthe subsidi2Ed servre, 

the subsidned carrier shall itiformthe agency^ of flie change, if it previous V identified Ihe workplace in 

question 

6. Definitions of terms in ttie Ncnprocurement Si^pensian and Debarment common rule (49 CFR Part 

29) and Drug-Free Woriq)lace common rule (49 CFR Part 29, Subpart F) appty to this certification 

Carriers' attention is called, in particular, to the folowirg definitiais ffan these rules: 

Controlled sutstance means a controlled substance ii Sche dules I throtgh V of tiie Controlled 

Substances Act (21 USC 812) and as fiirther defined by regulation (21 CFR 1308.11 throijgh 1308.15); 

Conviction means a finding cf guilt (incliding a plea of nolo contendere) irrposition of sentence, or 

both by any judicial bocty charged with Ihe responsibility to determine violations cfthe Federal or 

State criminal drug statutes; 

Criminal drug statute means a Federal or non-Federal criminal statue invol,TM:^the manufecture, 

distribution, dispensiig i^e, or possession of ary controlled substance; 

Employee rreans flie enpbyee of a subsidized carrier direct^ et^aged in the performance of work 

supported by the subsiiy, incliding: (i) AH direct charge enpkyees; (i^ AU indirect charge 

enrpbyees unless Ihei: irrpact or involvement is insignificant to the performance of siabsidized senTce; 

and (ii^ Tercporaiy personnel and consultants who are direct^ eng^ed in ttie performance of work 

supported by the subsidy and who are on the subsidized carrier's payroE ThK defribn does not 

include workers not on ftie payroll ofthe subsidi^d carrier (e.g., volunteers, even if used to meet a 

matchirg requirement; consultanls or independent contractors not on the subsidized carrier's p^oU; or 

errpbyees cf subrecpients or subcontractoTs in covered workplaces).