Order 2011-12-12

Served: December 20, 2011 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 20th day of December, 2011 

Essential Air Service at

PORT ALEXANDER, ALASKA

Under 49 U.S.C. 41731 et seq.

DOCKET DOT-OST-1999-6244

ORDER REQUESTING PROPOSALS

Summary

By this Order, the Department is requesting proposals, by January 18, 2012, from carriers 

interested in providing Essential Air Service (EAS) at Port Alexander, Alaska, for a new twoyear period, with or without subsidy, beginning March 1, 2012. (See Appendix A for map.)

Background

By Order 2009-12-3, issued December 7, 2009, the Department selected Harris Aircraft 

Services, Inc. (“Harris Air”), to provide subsidized EAS at Port Alexander for the two-year 

period through February 29, 2012. That order established an annual subsidy rate of $60,083

for service consisting of two nonstop round trips each week to Sitka with three-seat 

Cessna 185 aircraft.

Request for Proposals

As the end of the current rate term approaches, in order to provide sufficient time to complete 

the carrier-selection process before the current contract expires, we are here requesting 

proposals from carriers interested in providing service at Port Alexander, with or without 

subsidy support, for the two-year period beginning March 1, 2012. Carriers should file their 

proposals no later than January 18, 2012. Shortly thereafter, our staff will docket the 

proposals, thereby making them public, and direct each carrier to serve a copy of its proposal 

on the civic parties and other applicants. We will then provide a summary of the proposals to 

the community and state and ask them to submit their final comments. We will give full 

consideration to all proposals filed in a timely manner.1

 

1 In cases where a carrier proposes to provide Essential Air Service without subsidy and we determine that 

service can be reliably provided without such compensation, we typically do not proceed with the carrier 

selection case. Instead, we simply rely on that carrier’s subsidy-free service as proposed.
2

Interested carriers should prepare their proposals with every expectation that their initial 

proposals will also be their final and only proposals. We retain the discretion to negotiate 

proposals with carriers when we deem it desirable; in such cases, of course, we will give all 

applicants the same opportunity. We also retain the discretion to reject outright all 

unreasonable or unrealistic proposals and solicit a new round of proposals. However, we 

anticipate that negotiation or rejection will remain only occasional exceptions to the rule.

We are here providing interested carriers with some basic information to serve as guidance 

when they prepare their proposals, but we will not prescribe a precise format for their 

proposals. We expect proposals to adequately describe the service being proposed and the 

annual amount of subsidy being requested. The applicants can make their own judgments as 

to the level of detail they wish to present; however, they might want to include proposed 

schedules as well as supporting data for their subsidy requests, such as projected block hours, 

revenues and expenses. We strongly encourage clear, well-documented proposals that will 

facilitate their evaluation by the affected communities and the Department.2

Proposals should provide sufficient capacity to accommodate historical levels. Specifically 

for Port Alexander, we request proposals for two nonstop round trips a week to Sitka with 

small aircraft (ten seats or less). In order to assist carriers in making their traffic and revenue 

forecasts, we have included historical traffic in Appendix B. Typically in Alaska, mail and 

freight flows are asymmetrical, with up to 90% of total mail and freight flowing outbound 

from the hub to the EAS communities. However, that is not the case with Port Alexander. 

Harris Air reports that it carries only minimal cargo and no mail, because those items are 

generally transported via barge. Historical traffic data (Appendix B) show that two round 

trips a week is sufficient to fulfill the EAS needs of the community.

We encourage proposals that meet these requirements in an efficient manner. Carriers are 

also welcome to propose more than one option, if they choose; they need not limit themselves 

to those requirements if they envision other, potentially more attractive service possibilities –

different hubs or longer-term contracts, for example – with subsidy requirements that remain 

competitive.

 

2 In selecting a carrier to provide subsidized Essential Air Service to an Alaskan community, 

49 U.S.C. 41733(c)(1) directs us to consider five factors: (1) service reliability; (2) contractual and marketing 

arrangements with a larger carrier at the hub; (3) interline arrangements with a larger carrier at the hub; 

(4) community views, giving substantial weight to the views of the elected officials representing the users; and 

(5) the experience of the applicant in providing, in Alaska, scheduled air service or significant non-scheduled 

service. In addition, the Consolidated Appropriations Act, 2008, Public Law 110-161, provides that when 

selecting a carrier to provide EAS, the Department may consider the relative subsidy requirements, thus 

codifying a factor that we have considered since the inception of the program. Appendix C contains the general 

provisions governing essential air service; as in the past, these provisions will be included in the selection order 

as part of the Department’s authorization of subsidy for the selected service.
3

New Filing Procedures

Carrier proposals should be submitted to the Department with all materials merged into a 

single document. In addition, because the document will be published on 

www.regulations.gov, each page should be formatted to be viewed online.

Other Carrier Requirements

The Department is responsible for implementing various Federal statutes governing lobbying 

activities, drug-free workplaces and nondiscrimination.3 Consequently, all carriers receiving 

Federal subsidy to support essential air service must certify that they are in compliance with 

Department regulations regarding drug-free workplaces and nondiscrimination, and those 

carriers whose subsidies exceed $100,000 over the life of the rate term must also certify that 

they are in compliance with the regulations governing lobbying activities. All carriers that 

plan to submit proposals involving subsidy should submit the required certifications along 

with their proposals. Interested carriers requiring more detailed information regarding these 

requirements, as well as copies of the certifications, should contact the Office of Aviation 

Analysis at (202) 366-5903. The Department is prohibited from paying subsidy to carriers 

that do not submit these documents.4

Community Comments

Civic officials and the State are welcome to submit comments at any time. We encourage 

prospective applicants to contact the community before they submit their proposals so that 

they can tailor them to the community’s needs, as they will not be able to amend them after 

the due date. As noted earlier, we will provide a copy of the proposals to the civic parties and 

ask them to submit their final comments shortly after January 18, 2012, the due date for 

carrier proposals.

This Order is issued under authority delegated in 49 CFR 1.56a(f) and re-delegated to the 

Director, Office of Aviation Analysis.

ACCORDINGLY,

1. We request that carriers interested in providing Essential Air Service at Port Alexander, 

Alaska, submit their proposals, with or without subsidy requests, no later January 18, 2012. The 

proposals should be emailed to: EAS@dot.gov with the title “Proposal to Provide Essential Air 

Service at Port Alexander, Alaska (Docket DOT-OST-1999-6244)”;

5

2. Docket DOT-OST-1999-6244 will remain open until further order of the Department; and

 

3 The regulations applicable to these areas are: (1) 49 CFR Part 20 – New restrictions on lobbying; (2) 49 CFR 

Part 21 – Nondiscrimination in federally-assisted programs of the Department of Transportation – Effectuation 

of title VI of the Civil Rights Act of 1964; 49 CFR Part 27 – Nondiscrimination on the basis of disability in 

programs and activities receiving or benefiting from Federal financial assistance; and 14 CFR Part 382 –

Nondiscrimination on the basis of disability in air travel; and (3) 49 CFR Part 29 – Government-wide debarment 

and suspension (non-procurement) and government-wide requirements for drug-free workplace (grants).

4 The certifications are also available on the web at http://ostpxweb.dot.gov/aviation/index.html.

5 Questions regarding filings in response to this order should be directed to Scott Faulk at scott.faulk@dot.gov.
4

3. The Department will serve a copy of this Order on the civic officials of Port Alexander, the 

Alaska Department of Transportation and Public Facilities, and the parties listed in 

Appendix D.

Persons entitled to petition the Department for review of this Order under the Department’s 

Regulations, 14 CFR 385.50, must file such petitions within ten (10) days after the date of 

service of this Order.

This Order will be effective immediately, and the filing of a petition for review shall not 

preclude its effectiveness.

By:

TODD M. HOMAN

Director

Office of Aviation Analysis

(SEAL)

An electronic version of this document is available on the World Wide Web at

http://www.regulations.gov
Appendix A

AREA MAP
Appendix B

Historical Origin-Destination Passenger Traffic from Port Alexander, Alaska to Sitka, Alaska1

2008

2008 

Total

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

9 4 11 20 20 19 18 19 4 6 18 16 164

2009

2009 

Total

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

11 3 13 12 17 27 22 18 20 6 10 6 165

2010

2010 

Total

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

4 8 15 13 21 2 33 15 9 7 11 4 142

2011

2011 

Total

Jan Feb Mar Apr May Jun Jul Aug Sep

8 1 8 12 20 17 14 23 16 119

 

1 Source: Bureau of Transportation Statistics; Schedule T-100
Appendix C

Example of General Terms and Conditions for Essential Air Service

The carrier understands that it may forfeit its compensation for any flights that it does not 

operate in conformance with the terms and stipulations of the rate order, including the 

service plans outlined in the order and any other significant elements of the required 

service, without prior approval. The carrier understands that an aircraft take-off and 

landing at its scheduled destination constitutes a completed flight; absent an explanation 

supporting subsidy eligibility for a flight that has not been completed, such as certain 

weather cancellations, only completed flights are considered eligible for subsidy. In 

addition, if the carrier does not schedule or operate its flights in full conformance with the 

order for a significant period, it may jeopardize its entire subsidy claim for the period in 

question. If the carrier contemplates any such changes beyond the scope of the order 

during the applicable period of these rates, it must first notify the Office of Aviation 

Analysis in writing and receive written approval from the Department to be ensured of 

full compensation. Should circumstances warrant, the Department may locate and select 

a replacement carrier to provide service on these routes. The carrier must complete all 

flights that can be safely operated; flights that overfly points for lack of traffic will not be 

compensated. In determining whether subsidy payment for a deviating flight should be 

adjusted or disallowed, the Department will consider the extent to which the goals of the 

program are met and the extent of access to the national air transportation system 

provided to the community.

If the Department unilaterally, either partially or completely, terminates or reduces 

payments for service or changes service requirements at a specific location provided for 

under this order, then, at the end of the period for which the Department does make 

payments in the stipulated amounts or at the stipulated service levels, the carrier may 

cease to provide service to that specific location without regard to any requirement for 

notice of such cessation. Those adjustments in the levels of subsidy and/or service that 

are mutually agreed to in writing by the Department and carrier do not constitute a total 

or partial reduction or cessation of payment.

Subsidy contracts are subject to, and incorporate by reference, relevant statutes and 

Department regulations, as they may be amended from time to time. However, any such 

statutes, regulations, or amendments thereto shall not operate to controvert the foregoing 

paragraph.

Funds are not currently available for performance under this order beyond

March 1, 2014. The Department's obligation for performance under this order beyond

March 1, 2014, is subject to the availability of appropriated funds from which payment 

for services can be made. No legal liability on the part of the Government for any

payment may arise for performance under this order beyond March 1, 2014, until funds 

are made available to the Department for performance. If funds are not made available 

for performance beyond March 1, 2014, the Department will provide notice in writing to 

the carrier.

All claims for payment must be submitted within 60 days of the last day of service 

provided under this order.
Appendix D

Page 1 of 2

SERVICE LIST FOR THE STATE OF ALASKA 

Aaron Air Golden Plover Air

Aero Tech Flight Service, Inc. Grant Aviation, Inc.

Air Excursions Great Northern Air Guides

Air Lift Alaska Gulf Air Taxi, Inc.

Air Madura Gulf Aviation, Inc.

Alaska Air Carriers Association Gulkana Air Service, Inc.

Alaska Airlines, Inc. Hageland Aviation Services, Inc.

Alaska Bush Carrier, Inc. Haines Airways, Inc.

Alaska Central Express, Inc. Heli-Lift, Inc.

Alaska Coastal Airlines, Inc. Homer Air

Alaska Fly’N Fish Charters Hudson Air Service, Inc.

Alaska Flyers Iliamna Air Taxi, Inc.

Alaska Helicopters, Inc. Island Air Service

Alaska Island Air, Inc. Island Wings Air Service

Alaska Seair Adventures Jim Air, Inc.

Alaska West Air, Inc. K2 Aviation

Aleutian Air, Ltd. Kachemak Air Service, Inc.

Aleutian Specialty Aviation Kachemak Bay Flying Service, Inc.

Amerijet International, Inc. Katmai Air

Arctic Air Alaska, Inc. Kenai Air Alaska, Inc.

Arctic Circle Air Service, Inc. Kenai Aviation

Baker Aviation, Inc. Kenai Fjords Outfitters, Inc.

Bellair, Inc. Kenair

Beluga Lake Float Plane Service Ketchikan Air Service, Inc.

Bering Air, Inc. Ketchum Air Service, Inc.

Bran-Air & Branham Adventures Kodiak Air Service

Camai Air Koyukon Air, Inc.

Canning Air Service Kupreanof Flying Service

Cape Smythe Air Service, Inc. Kusko Aviation, Inc.

Cassaron Turbo Helicopters L.A.B. Flying Service, Inc.

Chugiak Aviation Larry’s Flying Service

Clearwater Air, Inc. Loken Aviation, Inc.

Coastal Helocopters, Inc. Lone Star Airlines, Inc.

Cordova Air Service, Inc. Lone Wolf Aero Services, Inc.

CPA Air Service Maritime Helicopters, Inc.

Customized Alaskan Adventures MarkAir Express, Inc.

Delta Connection MarkAir, Inc.

Denali Air Metroflight, Inc.

Egli Air Haul, Inc. Midway Airlines, Inc.

Ellis Air Taxi, Inc. Midwest Express Airlines, Inc.

Ellison Air, Inc. Misty Fjords Air & Outfitting

ERA Aviation, Inc. Mountain Aviation

F.S. Air Service, Inc. Mountain Helicopters

Fishing and Flying Nash West Aviation, Ltd.

Fiskehauk Aero Services Natron Air

Forty (40) Mile Air, Ltd. Nordic Air
Appendix D

Page 2 of 2

SERVICE LIST FOR THE STATE OF ALASKA 

Frontier Flying Service, Inc. North Star Air Cargo, Inc.

Northern Air Cargo, Inc. Umiat Enterprises, Inc.

Northwest Airlink Umiat Enterprises, Inc.

Olson Air Service, Inc. Uyak Air Service, Inc.

Pacific Wing, Inc. Vernair

Peninsula Airways, Inc. Warbelow's Air Ventures, Inc.

Promech, Inc. Ward Air

Ram Air, Inc. Wings of Alaska

Ray Atkins Registered Guide Woods Air Service, Inc.

Rediske Air, Inc. Wrangell Mountain Air, Inc.

Reeve Aleutian Airways, Inc. Wright Air Service, Inc. 

Regal Air Yukon Helicopters

Reid Air Yutana Airlines, Inc.

Rust's Flying Service, Inc. Yute Air Alaska, Inc.

Ryan Air Service, Inc.

Scenic Mountain Air, Inc. Alaska Juneau Aeronautics, Inc.

Seaside Air Service Ken Bannon

Security Aviation, Inc. E.B. Freeman

Seward Flying Service, Inc. A. Edward Jenner

Silver Bay Logging, Inc. John McFarlane

Skagway Air Service, Inc. Kevin Thomas

Soloy Helicopters, Inc. Pat Dempsey

Southcentral Air, Inc.

Specialized Air Service

Spernak Airways, Inc.

Sunrise Aviation, Inc.

Tamarack Air, Ltd.

Tanana Air Service

Taquan Air Service, Inc.

Tatonduk Outfitters, Ltd.

Temsco Helicopters, Inc.

Totem Air

Trans-Alaska Helicopters, Inc.

Trans-Porter Alaska, Inc.

Tundra Copters, Inc.