### 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 ofAviation Analysis U.S. Department ofTransportation 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 ofAtka 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 ofthe 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 ofthese 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. Ifyou 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 614.00Grant 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 OFTRANSPORTATION OFFICE OF THE SECRETARY OFFICE OFAVIATION ANALYSIS CERTIFICATION REGARDING INFLUENCING ACTIVITIES Certification for Contracts, Grants, Loans, and Cooperative Agreements The undersigned certifies, to the best ofhis or her knowledge and belief, that: (I) No Federal appropriated funds have been paid or will be paid, by or on behalfofthe undersigned, to any person for influencing or attempting to influence an officer or employee ofany agency, a Member ofCongress, an officer or employee ofCongress, or an employee ofa Member ofCongress in connection with the awarding ofany Federal contract, the making ofany Federal grant, the making ofany Federal loan, the entering into ofany cooperative agreement, and the extension, continuation, renewal, amendment, or modification ofany Federal contract, grant, loan, or cooperative agreement. (2) Ifany 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 ofany agency, a Member ofCongress, an officer or employee ofCongress, or an employee ofa 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 ofthis 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 di sclose accordingly. This certification is a material representation offact upon which reliance was placed when this transaction was made or entered into. Submission ofthis 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 ofnot less than $10,000 and not more than $100,000 for each such failure.

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# Alaia_ Essentia!Xir Service

## Poi~t(s) To Which Certification AppliesUNITED 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 ofRecipi;fu) I. As a condition to receiving any Federal financial assistance from the Department ofTransportation, i t will comply: wi th Title VI ofthe 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 ofFederal Regulations, Part 21, Nondi scrimination in Federally-Assisted Programs ofthe Department ofTransportati on--Effectuation ofTitle VI ofthe Ci vil Rights Act oft964; and other pertinent directives so that no person in the United States shall, on the grounds ofrace, 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 ofFederal 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 ofthe 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 ofFederal Regulations, Part 27, Nondiscrimination on the Basis ofHandi cap in Programs and Activities Receiving or Benefitting from Federal Financial Assistance, Title 14, Code ofFederal Regulations, Part 382,Nondiscrimination on the Basis ofHandicap i n Air Travel; and other pertinent di rectivesso that no otherwise qualified person with a disability, be excluded from participation in, be denied the benefits of, be discriminated against by reason ofsuch handicap in the provision ofair 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 ofFederal Regulations, section 27.9 and Title 14, Code ofFederal 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 ofTransportation regulations cited above, transferees, and successors in interest 

### will comply 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 the Recipient for the period during which Federal financial assistance is extended. The Recipient agrees that the United States has a right to seekjudicial enforcement with regard to any matter arising under the statutes and Department ofTransportation regulations cited above, other pertinent directives, and the above assurances. V

. These assurances are given for the purpose ofobtaining 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 behalfofthe Recipient. VI. In addition to these assurances, the Recipient agrees to file: a summary ofall complaints filed against it within the past year that allege violation(s) by the Recipient of Title VI ofthe Civil Rights Act of 1964, as amended, section 504 ofthe 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 ofthe complaint, the status or outcome ofthe complaint (i.e., whether it is still pending or how it was resolved). 

## tTra.rzf

# ~4-fton,/n~ Legal Name ofRecipient I 

### By:

# ~~ Signature ofAuthorized Official

### UMTED STATES OFAMERICA DEPARTMENT OFTRANSPORTATION OFFICE OF THE SECRETARY OFFICE OFAVIATION 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 ofa controlled substance is prohibited in the carrier's workplace, and specifYing the actions that will be taken against employees for violation ofsuch prohibition; (b) Establishing an ongoing drug-free awareness program to inform employees about-- (I) The dangers ofdrug abuse in the workplace; (2) The grantee's policy ofmaintaining 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 ofwork supported by the subsidy be given a copy ofthe 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 ofthe statement; and (2) NotifY the employer in writing ofhis or her conviction for a violation ofa 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 ofconviction. Employers ofconvicted employees must provide notice, including position title, to the Office ofAviation Analysis. Notice shall include the order number ofeach affected subsidized service; (f) Taking one ofthe following actions, within 30 days ofreceiving 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 ofthe 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 ofparagraphs (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 ofwork done in connection with the specific grant.

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