Grant Aviation, Inc. 

P.O. Box 92200 

Anchorage, AK 99509 

Proposal to Provide Essential Air Service at Atka and Nikolski, Alaska 

Docket DOT -OST -1995-363 

May 13, 2014 

EAS & Domestic Analysis Division 

Office of Aviation Analysis 

U.S. Department of Transportation 

400 ih Street S.W., Room 6401 

Washington, D.C. 20590 

Dear Sirs, 

Enclosed, find Grant Aviation, Inc.'s proposal to provide Essential Air Service between Dutch Harbor, Alaska and 

the villages of Atka and Nikolski, Alaska for the period October 1, 2014 through September 30, 2016. 

In accord with the Department's request for proposals, Grant Aviation proposes to provide three direct, nonstop 

flights per week between Dutch Harbor and Atka, and two direct, nonstop flights per week between Dutch 

Harbor and Nikolski. 

The Aircraft to be utilized for this proposed service is a Beech Kingair B-200. This aircraft may carry nine 

passengers, is powered by twin turbine engines, is pressurized and fully equipped for IFR flight. 

At 100% performance of the schedules proposed above, Grant Aviation expects a total annual economic cost of 

$1,705,591.14. Estimated annual revenue derived from scheduled passenger fares, freight tariffs, and 

compensation for transporting U.S. Mail flown along the routes is expected to total $353,306.80, leaving 

$1,3S2,284.34 in costs not covered by revenues earned in service of these markets. 

To cover the difference between expected economic costs and expected revenues, Grant Aviation will require an 

annual subsidy of $1,3S2,284.34. 

Cost data and Certifications required by the Department follow. 

We look forward to working with you to provide this service. If you require further information, I may be 

contacted by phone at 907 529-6999, or by e-mail at bmcglasson@flygrant.com. 

~!! President 

Grant Aviation, Inc. 

~ 
Grant Aviation, Inc Mayl3, 2014 

Essential Air Service Atka, Nikolski, Alaska 

Atka 

Weekly Round Trips 3 

Annual RT Flights@ 100% completion 156 

Per RT flight Block Hours 3.00 

Annual Block Hours 468.0 

Distance OUT· AKB (stat miles} 339 

Annual OIW Passengers expected 300 

OW fare $ 350.00 

Annual maillbs expected 48,000 

Current mail rate I lb $ 2.9638 

Annual Freight lbs expected 20,000 

Current Freight rates I lb $ 2.50 

Nikolski 

Weekly Round Trips 2 

Annual RT Flights @ 100% completion 104 

Per RT flight Block Hours 1.4 

Annual Block Hours 145.6 

Distance OUT· IKO (stat miles} 116 

Annual 0/W Passengers expected 145 

OW fare $ 200.00 

Annual maillbs expected 12,000 

Current mail rate I lb $ 1.2912 

Annual Freight lbs expected 11,000 

Current Freight rates I lb $ 1.05 

Total Annual Block Hours 614.00 
Grant Aviation, Inc 

Essential Air Service Atka, Nikolski, Alaska 

Revenue 

Passenger Fares 

Mail Revenue 

Freight Revenue 

Total Annual Expected Revenue from Scheduled Operations 

Direct Expense 

Fuel/oil ($/gallon) 

Aircraft lease expense (monthly lease) 

Maintenance (engine&prop +labor+parts I block hr} 

Pilot labor, includes tax & beni I Daily rate 

Aviation Insurance annual hull and liability - Annually 

Total Direct Expense 

Indirect Expense 

Hanger lease I month 

Ticketing & ground service I per turn (One RT flight = 2 turns) 

Freight & mail Handling I lb Orig + Dest 

Pilot housing+utility I month 

Total Indirect Expense 

Sum of direct and indirect costs 

Add Burden 

subtotal 

Add Profit @ 5.0% 

Total Annual Economic cost 

Total Annual Expected Revenues from Scheduled Operations 

Annual Subsidy Required 

Base 

$ 6.453 

$ 17,300.00 

$ 634.00 

$ 440.80 

$ 4,000.00 

$ 200.00 

$ 0.12 

$ 2,100.00 

15.2% 

5.0% 

Units 

64,470 

12 

614 

365 

12 

520 

91,000 

12 

May 13, 2014 

Annual Revenue 

$ 134,000.00 

$ 

$ 

$ 

157,756.80 

61,550.00 

3S3,306.80 

Annual Expense 

$ 416,024.91 

$ 207,600.00 

$ 389,276.00 

$ 160,892.00 

$ 48,132.67 

$ 1,221,925.58 

$ 48,000.00 

$ 104,000.00 

$ 10,920.00 

$ 25,200.00 

$ 188,120.00 

$ 1,410,045.58 

$ 214,326.93 

$ 1,624,372.51 

$ 81,218.63 

$ 1,70S,591.14 

$ 353,306.80 

$ 1,352,284.34 
UNITED STATES OF AMERICA 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

OFFICE OF AVIATION ANALYSIS 

CERTIFICATION REGARDING INFLUENCING ACTIVITIES 

Certification for Contracts, Grants, Loans, 

and Cooperative Agreements 

The undersigned certifies, to the best of his or her knowledge and belief, that: 

(I) No Federal appropriated funds have been paid or will be paid, by or on behalf of the 

undersigned, to any person for influencing or attempting to influence an officer or employee 

of any agency, a Member of Congress, an officer or employee ofCongress, or an employee 

of a Member of Congress in connection with the awarding of any Federal contract, the 

making of any Federal grant, the making of any Federal loan, the entering into of any 

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

modification of any Federal contract, grant, loan, or cooperative agreement. 

(2) If any funds other than Federal appropriated funds have been paid or will be paid to any 

person for influencing or attempting to influence an officer or employee of any agency, a 

Member of Congress, an officer or employee of Congress, or an employee of a Member of 

Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the 

undersigned shall complete and submit Standard Fonn-LLL, "Disclosure Fonn to Report 

Influencing Activities," in accordance with its instructions. 

(3) The undersigned shall require that the language of this certification be included in the 

award documents for all subawards at all tiers (including subcontracts, subgrants, and 

contracts under grants, loans and cooperative agreements) and that all subrecipients shall 

certify and disclose accordingly. 

This certification is a material representation of fact upon which reliance was placed when 

this transaction was made or entered into. Submission of this certification is a prerequisite 

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

Any person who fails to file the required certification shall be subject to a civil penalty of not 

less than $10,000 and not more than $100,000 for each such failure. 

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r.tie Air Carrier 1 

A+ka )~ska 1 M'k<>/d.t' Alaia_ 

Essentia!Xir Service Poi~t(s) To Which Certification Applies 
UNITED STATES OF AMERICA 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

OFFICE OF AVIATION ANALYSIS 

TITLE VI ASSURANCE 

(Implementing Title VI of the Civil Rights Act of 1964, as amended) 

ASSURANCE CONCERNING NONDISCRIMINATION ON THE 

BASIS OF DISABILITY IN FEDERALLY-ASSISTED PROGRAMS 

AND ACTIVITIES RECEIVING OR BENEFITING FROM 

FEDERAL FINANCIAL ASSISTANCE 

(Implementing the Rehabilitation Act of 1973, as amended, and the 

Air Carrier Access Act of 1986) 

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

~'-~nz..=.;..d,.__~i ...... o~q/j~<..:.......<-=-~-'-'1'7~<-1~'--'-n......_'- ___ (the Recipient) HEREBY AGREES THAT, 

(Name of Recipi;fu) 

I. As a condition to receiving any Federal financial assistance from the 

Department of Transportation, it will comply: with Title VI of the Civil Rights Act of 1964, 

as amended, 42 U.S.C. 2000d--42 U.S.C. 2000d-4; all requirements imposed by or pursuant 

to: Title 49, Code of Federal Regulations, Part 21, Nondiscrimination in Federally-Assisted 

Programs ofthe Department of Transportation--Effectuation ofTitle VI ofthe Civil Rights 

Act oft 964; and other pertinent directives so that no person in the United States shall, on the 

grounds of race, color, or national origin, be excluded from participation in, be denied the 

benefits of, or be otherwise subjected to discrimination under any program or activity for 

which the Recipient receives Federal financial assistance from the Department of 

Transportation. This assurance is required by Title 49, Code of Federal Regulations, section 

21.7(a) and Title 14, Code ofFederal Regulations, section 27t.9(c). 

II. As a condition to receiving any Federal financial assistance from the 

Department ofTransportation, it will comply with: section 504 of the Rehabilitation Act of 

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

and all requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Part 

27, Nondiscrimination on the Basis of Handicap in Programs and Activities Receiving or 

Benefitting from Federal Financial Assistance, Title 14, Code of Federal Regulations, Part 

382, Nondiscrimination on the Basis of Handicap in Air Travel; and other pertinent directives 
so that no otherwise qualified person with a disability, be excluded from participation in, be 

denied the benefits of, be discriminated against by reason of such handicap in the provision 

of air transportation, or otherwise be subjected to discrimination under any program for 

which the Recipient receives Federal financial assistance from the Department of 

Transportation. This assurance is required by Title 49, Code of Federal Regulations, section 

27.9 and Title 14, Code of Federal Regulations, sections 271.9(c) and 382.9. 

Ill. It will promptly take any meaures necessary to effectuate this agreement. The 

Recipient further agrees that it shall take reasonable actions to guarantee that it, its 

contractors and subcontractors subject to the Department of Transportation regulations cited 

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

pursuant to the statutes and Department of Transportation regulations cited above, other 

pertinent directives, and the above assurances. 

IV. These assurances obligate the Recipient for the period during which Federal 

financial assistance is extended. The Recipient agrees that the United States has a right to 

seek judicial enforcement with regard to any matter arising under the statutes and Department 

of Transportation regulations cited above, other pertinent directives, and the above 

assurances. 

V. These assurances are given for the purpose of obtaining Federal subsidy 

under the Essential Air Service Program and are binding on the Recipient, contractors, 

subcontractors, transferees, successors in interest, and all other participants receiving Federal 

subsidy in the Essential Air Service Program. The person or persons whose signatures 

appear below are authorized to sign this agreement on behalf of the Recipient. 

VI. In addition to these assurances, the Recipient agrees to file: a summary of all 

complaints filed against it within the past year that allege violation(s) by the Recipient of 

Title VI of the Civil Rights Act of 1964, as amended, section 504 of the Rehabilitation Act of 

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

no complaints filed against it. The summary should include the date the complaint was filed, 

the nature of the complaint, the status or outcome of the complaint (i.e., whether it is still 

pending or how it was resolved). 

tTra.rzf ~4-fton,/n~ Legal Name of Recipient I 

By: ~~ Signature of Authorized Official 
UMTED STATES OF AMERICA 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

OFFICE OF AVIATION ANALYSIS 

CERTIFICATION REGARDING DRUG-FREE WORKPLACE REQUIREMENTS 

IN THE PERFORMANCE OF SUBSIDIZED ESSENTIAL AIR SERVICE 

A. The subsidized essential air service carrier certifies that it will, or will continue, to provide a drugfree workplace by: 

(a) Publishing a statement notifYing employees that the unlawful manufacture, distribution, 

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

specifYing the actions that will be taken against employees for violation of such prohibition; 

(b) Establishing an ongoing drug-free awareness program to inform employees about--

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

(2) The grantee's policy of maintaining a drug-free workplace; 

{3) Any available drug counseling, rehabilitation, and employee assistance programs; and 

(4) The penalties that may be imposed upon employees for drug abuse violations 

occurring in the workplace; 

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

supported by the subsidy be given a copy of the statement required by paragraph (a); 

(d) NotifYing the employee in the statement required by paragraph (a) that, as a condition of 

employment supported by the subsidy, the employee will--

(1) Abide by the terms of the statement; and 

(2) NotifY the employer in writing of his or her conviction for a violation of a criminal 

drug statute occurring in the workplace no later than five calendar days after such 

conviction; 

(e) NotifYing the agency in writing, within ten calendar days after receiving notice under 

paragraph (d)(2) from an employee or otherwise receiving actual notice of conviction. 

Employers of convicted employees must provide notice, including position title, to the 

Office of Aviation Analysis. Notice shall include the order number of each affected 

subsidized service; 

(f) Taking one of the following actions, within 30 days of receiving notice under paragraph 

{d)(2), with respect to any employee who is so convicted--

( I) Taking appropriate personnel action against such an employee, up to and including 

termination, consistent with the requirements of the Rehabilitation Act of 1973, as 

amended, or 

(2) Requiring such employee to participate satisfactorily in a drug abuse assistance or 

rehabilitation program approved for such purposes by a Federal, State or local 

health, Jaw enforcement, or other appropriate agency; 
(g) Making a good faith effort to continue to maintain a drug-free workplace through 

implementation of paragraphs (a), (b), (c), (d), (e) and (t). 

B. The subsidized essential air service carrier may, but is not required to, insert in the space provided 

below the site for the perfonnance of work done in connection with the specific grant. 

Places ofPerfonnance (street address, city, county, state, zip code). For the provision of essential air 

service, workplaces include outstations, maintenance sites, headquarters office locations, training sites 

and any other worksites where work is perfonned that is supported by the subsidy. 

Check.(>-'] ifthere are workplaces on file that are not identified here. 

Signature