Proposa l t o Provid e Essentia l Ai rServic e a t ' " FARTMEN T O F Gulkana , MayCreek , an d IVIcCarthy , Alask a "ANSPORTATION Docke t D0T=0ST-1995-49 2 ' i •:: ! OPERATION S RatePeriodFebl , 20HtoJan31 , 201 3

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Octobe r11 , 201 0 Tod d Homa n U S Departmen t o f Transportatio n Essentia l Ai rServic e & Domesti c Analysi s Div , X-5 3 120 0 Ne w Jerse yAvenue , S E 8" " Floo rRoo m W86-47 2 Washingto n D C 2059 0 Dea rMr

. Homa n Enclose d pleas e fin d ou rproposa l fo rcontinuatio n o f essentia l ai rservic e fo rGulkana , McCarthy , MayCreek , Alaska

. W e wis h t o continu e th e sam e historica l leve l o f servic e fo ra ne w two-yea rrat e term

. Servic e proposa l Februar y1 , 201 1 throug h Januar y31 , 201 3
Sincerely , Dav e Parmente r Directo ro f Operation s Elli s Ai rTaxi , Inc

. db a Coppe rValle yAi rServic eProposa l t o Provid e Essentia l Ai rServic e a t Gulkana , MayCreek , an d McCarthy , Alask a Docke t D0T=0ST-1995-49 2 Rate Perio d Fe b 1 , 201 1 t o Ja n 31 , 201 3

U.S

. Dept

. o f Transportatio n Offic e o f th e Secretar yWashingto n D.C

. Elli s Ai rTax i Inc

. db a Coppe rValle yAi rServic e Annua l Subsid yfo rAnchorage , Gulkana , McCarth yan d Ma yCree k Februar y1 , 201 1 t o Januar

y31 , 201 3 Fro m Anchorag e Internationa l Airport tw o (2 ) time s pe rwee k wit h ful l IF R Pipe rPA-3 1 Twi n engin e aircraf t wit h si x(6 ) passenge rseats

. Year-roun d service

. Coppe rValle yAi rServic e woul d reserv e th e optio n t o us e a Cessn a 44 1 Conques t twi n Prop-Je t nin e (9 ) passenge rseat s fo raircraf t backup , o rt o mee t greate rtha n si x passenge rsea t deman d i f neede d t o Gulkan a Alaska

. Fro m Gulkan a t o McCarth yan d MayCree k Alaska , tw o (2 ) time s pe rwee k schedule d servic e fo r5 2 weeks pe ryear
. Propose d servic e wit h Cessn a 18 5 whee l sk i equipped , thre e (3 ) passenge raircraft , winte rmonths , Cessn a 20 6 fou r(4 ) passenge raircraf t fo r summe rmonths

. Coppe rValle yAi rServic e woul d reserv e th e optio n t o us e a DHC- 2 Beave rsi x(6 ) passenge rseat s fo raircraf t backu p o rt o mee t greate rtha n fou rpassenge rseat s deman d i f neede d t o McCarth yan d Ma yCree k i n winte ro rsumme rmonths

. Routing : Wednesday s an d Friday s Depart-AN C 8:3 0 a m ARV-GK N 9:4 5 a m Depar t -GK N 10:0 0 a m AR V -MXY 10:5 5 a m Depar t -MXY 11:15a m ARV
- MY K11:2 5 a m Depart
- MY K11:3 0 a m ARV-GK N 12:3 0 p m Depar t -GK N 12:4 5 p m ARV
- AN C 2:0 0 p mProposa l t o Provid e Essentia l Ai rServic e at Gulkana , Ma

yCreek , an d McCarthy , Alask a Docke t D0T=0ST-1995-49 2 Rate Perio d Fe b 1 , 201 1 t o Ja n 31 , 201 3 Octobe r11 , 201 0 Unite d State s o f Americ a Departmen t o f Transportatio n Offic e o f Secretar

y Washington , D C

Elli s Ai rTaxi , Inc

. db a Coppe rValle yAi rServic e

Servic e Proposa l Februar y1 , 201 1 t o Januar

y31 , 201 3
Coppe rValle yAi rServic e woul d operat e ove ra GK N - MX Y - MY K- GKN , AN C - GK N routin g wit h a chang e o f guag e a t GKN

. Th e carrie rwoul d provid e tw o roun d trip s a wee k year-roun d betwee n GK N an d AN C wit h Pipe rPA-3 1 aircraf t fo ra n annua l subsid ynee d o f $262,21 9 an d tw o roun d trip s a wee k year-roun d fro m GK N - MX Y an d MY Kwit h eithe rCessn a 18 5 o r20 6 aircraf t fo r a n annua l subsid yo f $176,692

.

Elli s Ai rTax i Inc

. db a Coppe rValle yAi rServic e P.O

. Box23 4 Glennalle n A K9958 8 Phon e 907-822-420 0 e-mai l cvas(a)coppervallevak.ne t Fax : 907-822-420 4Proposa l t o Provid e Essentia l Ai rServic e a t Gulkana , MayCreek , an d McCarthy , Alask a Docke t D0T=0ST-1995-49 2 Rate Perio d Fe b 1 , 201 1 t o Ja n 31 , 201 3 Wor k Shee t Projectio n AN C t o GK N

Aircraf t Type : Pipe rPA-31-35 0 Bloc k Hours : N/

A Elli s Ai rTax i d.b. a Coppe rValle yAi rServic e we t lease s a Pipe rPA
31-35 0 fro m Securit yAviatio n a t a cos t o f $2,258.0 0 pe rtrip

. Direct Expens e Indirect Expens e $234,832.0 0 $ 42,687.0 0 Leas e o f Hange rSpac e fiv e winte rmonth s @ $4,90 0 pe rmont h wit h V ^ us e = $12,25 0 Groun d handling , Aircraf t an d Passenger s % = payrol l on e perso n = Commission s Counte d i n MXY-MY KProjectio n Advertisin g Counte d i n MXY-MY KProjectio n Managemen t /

Securit y= Offic e an d Reservation s 1 2 month s $37,04 3 1/ 3 tota l = Anchorag e an d Gulkan a Tota l Indirect s Tota l Direct s Tota l Operatin g Cos t Retur n (5 % o f oper
. Exp ) Tota l Economi c Cos t Operatin g Revenue s Passenge rRevenue s 12 5 Passenger s @ $222.0 0 Mai l Revenue s U.S

. Pos t Offic e wil l no t tende rmai l t o thi s Marke t $ 9,25 0
$ 8,84 0 $ 12,34 7 $ 42,68 7 $234,83 2 $277,51 9 $13,875.9 5 $291,394.9 5 $27,75 0 $00 0 Freigh t 1,90 0 lb s @ .7 5 Tota l Revenue s Economi c Cos t Tota l Revenue s $291,394.9 5 $29,17 5 Tota l Subsid yNee d @ 100 % $262,219.9 5 $1,42 5 $29,17 5Proposa l t o Provid e Essentia l Ai rServic e a t Gulkana , MayCreek , an d McCarthy , Alask a Docke t D0T=0ST-1995-49 2 Rat e Perio d Fe b 1 , 201 1 t o Ja n 31 , 201 3 Wor k Shee t Projectio n IVIX Y an d IVIY

KCos t Projectio n Aircraf t Type : Cessn a 18 5 & Cessn a 20 6 Bloc k Hour s 24 0
Pilo t @ $136.2 3 /

h r$32,69 5 $95.0 0 Pilo t $28.5 0 Workman' s Com p $6.6 0 Unemploymen t $6.1 3 Socia l Securit y
Fue l & Oi l @ $154.3 3 $37,03 9 17Gal/h r $5.6 7 bas e pric e $0.0 2 Stat e Airport Tax $1.9 8 Storage , Handling , Spil l an d Liabilit yInsuranc e $0.8 8 Projecte d rat e increas e 2011-201 3 $8.5 5 pe rGa l + $8.9 8 pe rhou roi l Tota l = $ pe rGallo n fue l an d Oi l X 17. 0 Gallo n pe rhou r Insuranc e @ $113.8 7 $27,32 8 $165,00 0 Hul l X .13/40 0 = $53.6 2 pe rhou r $5,70 0 3'* ^ party+ 4 seat s X 4,600/40 0 = $60.2 5 Tota l o f $113.8 7Proposa l t o Provid e Essentia l Ai rServic e a t Gulkana , Ma

yCreek , an d McCarthy , Alask a Docke t DOT=OST-1995-49 2 Rat e Perio d Fe b 1 , 201 1 t o Ja n 31 , 201 3

l\/laintenanc e @ $135.9 3 / h r$32,62 3 Tw o (2.4 ) on e hundre d hou rinspection s = 24 0 hour s 28. 0 hours fla t rat e @ $130.0 0 pe rhou rsho p rat e = $3,64 0 X 2. 4 = $8,73 6 Annua l Inspectio n 3 5 hour s @ $130.0 0 pe rhou rsho p rat e = $4,55 0 Tota l fo rinspection s onl y= $13,28 6 Inspections/

24 0 hour s $55.3 6 Engin e $41,000/150 0 hr

. $27.3 3 Propelle r$ 14,200/150 0 hr

. $9.4 6 Instrument s an d radio s $4.9 4 Routin e maintenanc e & unschedule d $38.8 4 Tota l $135.9 3 pe rhou r
Depreciatio n @ $26.6 6 / h r$6,39 8 Hourl yrat e $26.6 6 @ 160,000/600 0 Tota l Direct s $136,08 3

Indirect s $86,75 4 Hange rLeas e Yea rRoun d @ $4,90 0 pe rmont h x1 2 = $58,80 0 7 2 us e = $29,40 0 Groun d Handlin g Aircraf t an d Passenger s $15,50 0 Advertisin g $9,94 9 Commissions , include s GKN-ANC-GK N $27,75 0 x10 % $2,77 5 Managemen t /

Securit y$22,98 0 Offic e an d Phon e Reservation s $6,15 0 Tota l indirect $86,75 4 Tota l Direct $136,08 3 Tota l Indirect $86,75 4 Tota l Operatin g Expense s $222,83 7 Retur n (5 % o f opr
. Exp ) $11,14 1Proposa l t o Provid e Essentia l Ai rServic e at Gulkana , Ma

yCreek , an d McCarthy , Alask a Docke t D0T=0ST-1995-49 2 Rate Perio d Fe b 1 , 201 1 t o Ja n 31 , 201 3
Operatin g Revenue s Passenge rRevenue s 12 9 passenger s MX

Y @ 118.0 0 $15,22 2 Tota l Passenge rrevenu e 2011-201 3 av g MX Y 4 passenger s MY K@ 125.0 0 $50 0 mai l revenu e tota l 45,39 5 lb s @ .8 2 $37,22 4 Freigh t revenu e 6,20 0 lb s @ .7 0 $4,34 0 Tota l Revenu e $57,28 6
Tota l Economi c Cost s $233,97 8 Tota l Revenu e $57,28 6 Tota l subsid ynee d @ 100 % = $176,69 2