p

po

tation 

400 71h Street S.W., Room 6401 

Washington, D.C. 20590 

May 1B, 2015 

Dear Sirs, 

Enclosed, find Grant Aviation, Inc.'s proposal to provide Essential Air Service between Cold Bay, Alaska and False Pass, 

Alaska for the period June 15, 2015 through June 14, 2017. 

While our currently filed scheduled service provides three direct non-stop flights weekly between False Pass and Cold 

Bay, the community has adamantly and persistently requested greater frequency of service, complaining that three trips 

weekly does not provide them with adequate access to health care facilities, pharmaceuticals, educational 

opportunities, perishable commodities, commercially available manufactured goods, and general commerce. 

In response to the need of the people of False Pass, Grant Aviation has, for over two years, been operating two flights 

daily, three days per week, so that travelers from False Pass may catch a connecting flight from Cold Bay to Anchorage, 

without overnighting in Cold Bay, where there is no commercially available temporary lodging. We have attempted to 

provide for their travel needs, but are unable to continue our provision of an adequate frequency of safe, reliable service 

without subsidy. 

Anchorage is the only fully developed population center in our state, to which the citizens of remote communities must 

travel to have access to state of the art medical treatment, higher education, and significant commercial opportunities. 

Further, organizations providing economic and political support for remote Native Alaskan villages are primarily 

headquartered in Anchorage. Without reasonable access to these organizations, the isolated communities have no 

voice in legislative action having dramatic impact upon their communities. 

In accord with the Department's request for proposals, Grant Aviation here proposes four alternate plans for providing 

Essential Air Service to False Pass. The first provides for a minimal level of service of three direct nonstop round trips 

weekly between False Pass and Cold Bay, with alternate plans providing either four, five, or, as we have been operating 

without subsidy, six direct, nonstop flights per week as required to provide this isolated community with adequate 

transportation service. 

The primary aircraft type to be utilized for the proposed service is a Piper PA31-350 Navajo Chieftain. This aircraft is a 

twin engine, IFR capable, non-pressurized aircraft. This aircraft type is able to safely operate over extended overwater 

routes in the hostile aviation environment experienced on the Alaskan Peninsula and Aleutian archipelago. 

This proposal provides for passenger transport as well as handling and interim storage of mail and freight between Cold 

Bay and the village of False Pass. 
$

,

4 $515,183.12 $13BA73.75 $376,709.37 

5 $640,712.51 $138A73.75 $502,238.76 

6 $766,241.89 $138,473.75 $627 t 768.14 

Detailed cost sheets follow for each of the above proposed frequencies 

We look forward to working with you in providing transportation service to the people of False Pass. 

If you require further information, I may be contacted by phone at 907 529-6999, or by e-mail at 

bmcglasson@flygrant.com. 

R. 

~j)~ 

Bruce McGlasson 

CEO 

Grant Aviation, Inc. 
Annual OIW Passengers expected 

OW fare 

Annual maillbs expected 

Current mall rate I lb 

Annual Freight lbs expected 

Current Freight rates I lb 

Expected Revenue Derived from Operations 

Passenger Fares 

Mall Revenue 

$ 

$ 

$ 

$ 

$ 

750 

132.09 

37,500 

0.7199 

18,250 

0.68 

Freight Revenue $ 

Annual Revenue 

99,067.50 

26,996.25 

12,410.00 

Total Annual Revenue from Scheduled Operations $ 138,473.75 

Expected Direct Expense of Operations 

Fuel- LUOO Aviation Gasoline 

Aircraft lease expense 

Maintenance (engine&prop +labor+parts) 

Pilot labor, inclusive of tax and benefits 

Aviation Insurance annual hull and liability 

Expected Indirect Expense of Operations 

Hanger lease & ramp ac services 

Ticketing & ground service 

Total Annual Direct Expense 

Freight & mail Handling COB, False Pass 

Pilot housing + utility 

Sum of Direct and Indirect Expense 

Add Burden @ 24.0% 

subtotal 

Add Profit @ S.O% 

Total Annual Indirect Expense 

Annual Direct Exp. 

$ 40,077.18 

$ 43,714.29 

$ 28,211.04 

$ 86,035.71 

$ 13,714.29 

$ 211,752.51 

Annual Indirect Exp. 

$ 30,857.14 

$ 31,200.00 

$ 10,035.00 

$ 15,428.57 

$ 

$ 

$ 

$ 

87,520.71 

299,273.22 

71,825.57 

371,098.79 

18,554.94 

Total Annual Economic Cost $ 389,653.73 

less Annual Revenue Derived from Scheduled Operations $ (138,473.75) 

Annual Subsidy Required $ 251,179.98 
Annual OIW Passengers expected 

OW fare 

Annual maillbs expected 

Current mail rate I lb 

Annual Freight lbs expected 

Current Freight rates I lb 

Expected Revenue Derived from Operations 

Passenger Fares 

Mail Revenue 

$ 

$ 

$ 

$ 

$ 

750 

132.09 

37,500 

0.7199 

18,250 

0.68 

Freight Revenue $ 

Annual Revenue 

99,067.50 

26,996.25 

12,410.00 

Total Annual Revenue from Scheduled Operations $ 138,473.75 

Expected Direct Expense of Operations 

Fuel - LL100 Aviation Gasoline 

Aircraft lease expense 

Maintenance (engine&prop +labor+parts) 

Pilot labor, inclusive of tax and benefits 

Aviation Insurance annual hull and liability 

Expected Indirect Expense of Operations 

Hanger lease & ramp ac services 

Ticketing & ground service 

Total Annual Direct Expense 

Freight & mail Handling CDS, False Pass 

Pilot housing + utility 

Sum of Direct and Indirect Expense 

Add Burden @ 24.0% 

subtotal 

Add Profit @ 5.0% 

Total Annual Indirect Expense 

Annual Direct Exp. 

$ 53,436.24 

$ 58,285.71 

$ 37,614.72 

$ 114,714.29 

$ 18,285.71 

$ 282,336.67 

Annual Indirect Exp. 

$ 41,142.86 

$ 41,600.00 

$ 10,035.00 

$ 20,571.43 

$ 

$ 

$ 

$ 

113,349.29 

395,685.96 

94,964.63 

490,650.59 

24,S32.53 

Total Annual Economic Cost $ 515,183.12 

less Annual Revenue Derived from Scheduled Operations $ (138,473.75) 

Annual Subsidy Required $ 376,709.37 
Annual OIW Passengers expected 

OW fare 

Annual maillbs expected 

Current mail rate I lb 

Annual Freight lbs expected 

Current Freight rates I lb 

Expected Revenue Derived from Operations 

Passenger Fares 

Mail Revenue 

$ 

$ 

$ 

$ 

$ 

750 

132.09 

37,500 

0.7199 

18,250 

0.68 

Freight Revenue $ 

Annual Revenue 

99,067.50 

26,996.25 

12,410.00 

Total Annual Revenue from Scheduled Operations $ 138,473.75 

Expected Direct Expense of Operations 

Fuel - ll100 Aviation Gasoline 

Aircraft lease expense 

Maintenance (engine&prop +labor+parts) 

Pilot labor, inclusive of tax and benefits 

Aviation Insurance annual hull and liability 

Expected Indirect Expense of Operations 

Hanger lease & ramp ac services 

Ticketing & ground service 

Total Annual Direct Expense 

Freight & mail Handling COB, False Pass 

Pilot housing + utility 

Sum of Direct and Indirect Expense 

Add Burden @ 24.0% 

subtotal 

Add Profit @ 5.0% 

Total Annual Indirect Expense 

Annual Direct Exp. 

$ 66,795.30 

$ 72,857.14 

$ 47,018.40 

$ 143,392.86 

$ 22,857.14 

$ 352,920.84 

Annual Indirect Exp. 

$ 51,428.57 

$ 52,000.00 

$ 10,035.00 

$ 25,714.29 

$ 

$ 

$ 

$ 

139,177.86 

492,098.70 

118,103.69 

610,202.39 

30,510.12 

Total Annual Economic Cost $ 640,712.51 

less Annual Revenue Derived from Scheduled Operations $ (138,473.75) 

Annual Subsidy Required $ 502,238.76 
Annual 0/W Passengers expected 

OW fare 

Annual malllbs expected 

Current mail rate I lb 

Annual Freight lbs expected 

Current Freight rates I lb 

Expected Revenue Derived from Operations 

$ 

$ 

$ 

750 

132.09 

37,500 

0.7199 

18,250 

0.68 

Passenger Fares $ 

Annual Revenue 

99,067.50 

26,996.25 

12,410.00 

Mail Revenue $ 

Freight Revenue $ 

Total Annual Revenue from Scheduled Operations $ 138,473.75 

Expected Direct Expense of Operations 

Fuel- LL100 Aviation Gasoline 

Aircraft lease expense 

Maintenance (engine&prop +labor+parts) 

Pilot labor, inclusive of tax and benefits 

Aviation Insurance annual hull and liability 

Expected Indirect Expense of Operations 

Hanger lease & ramp ac services 

Ticketing & ground service 

Total Annual Direct Expense 

Freight & mail Handling CDS, False Pass 

Pilot housing + utility 

Sum of Direct and Indirect Expense 

Add Burden @ 24.0% 

subtotal 

Add Profit @ 5.0% 

Total Annual Indirect Expense 

Annual Direct Exp. 

$ 80,154.36 

$ 87,428.57 

$ 56,422.08 

$ 172,071.43 

$ 27,428.57 

$ 423,505.01 

Annual Indirect Exp. 

$ 61,714.29 

$ 62,400.00 

$ 10,03S.OO 

$ 30,857.14 

$ 

$ 

$ 

$ 

165,006.43 

588,511.44 

141,242.75 

729,754.19 

36,487.71 

Total Annual Economic Cost $ 766,241.89 

less Annual Revenue Derived from Scheduled Operations $ (138,473.75) 

Annual Subsidy Required $ 627,768.14