Proposal to Provide Essential Air Service at '" FARTMENT OF 

Gulkana, May Creek, and IVIcCarthy, Alaska "ANSPORTATION 

Docket D0T=0ST-1995-492 ' i •::! OPERATIONS 

RatePeriodFebl, 20HtoJan31, 2013 .: V"^ '^^'T 9!^ P 3: | 5 

October 11, 2010 

Todd Homan 

US Department of Transportation 

Essential Air Service & Domestic Analysis Div, X-53 

1200 New Jersey Avenue, SE 8"" Floor Room W86-472 

Washington DC 20590 

Dear Mr. Homan 

Enclosed please find our proposal for continuation of essential air service for Gulkana, 

McCarthy, May Creek, Alaska. We wish to continue the same historical level of service 

for a new two-year rate term. 

Service proposal February 1, 2011 through January 31, 2013 

Sincerely, 

Dave Parmenter 

Director of Operations 

Ellis Air Taxi, Inc. dba Copper Valley Air Service 
Proposal to Provide Essential Air Service at 

Gulkana, May Creek, and McCarthy, Alaska 

Docket D0T=0ST-1995-492 

Rate Period Feb 1, 2011 to Jan 31, 2013 

U.S. Dept. of Transportation Office of the Secretary Washington D.C. 

Ellis Air Taxi Inc. dba Copper Valley Air Service 

Annual Subsidy for Anchorage, Gulkana, McCarthy and May Creek 

February 1, 2011 to January 31, 2013 

From Anchorage International Airport two (2) times per week with full IFR Piper PA-31 

Twin engine aircraft with six (6) passenger seats. Year-round service. 

Copper Valley Air Service would reserve the option to use a Cessna 441 Conquest twin 

Prop-Jet nine (9) passenger seats for aircraft backup, or to meet greater than six 

passenger seat demand if needed to Gulkana Alaska. 

From Gulkana to McCarthy and May Creek Alaska, two (2) times per week scheduled 

service for 52 weeks per year. Proposed service with Cessna 185 wheel ski equipped, 

three (3) passenger aircraft, winter months, Cessna 206 four (4) passenger aircraft for 

summer months. 

Copper Valley Air Service would reserve the option to use a DHC-2 Beaver six (6) 

passenger seats for aircraft backup or to meet greater than four passenger seats 

demand if needed to McCarthy and May Creek in winter or summer months. 

Routing: Wednesdays and Fridays 

Depart-ANC 8:30 am ARV-GKN 9:45 am 

Depart -GKN 10:00 am ARV -MXY 10:55 am 

Depart -MXY 11:15am ARV- MYK 11:25 am 

Depart- MYK 11:30 am ARV-GKN 12:30 pm 

Depart -GKN 12:45 pm ARV- ANC 2:00 pm 
Proposal to Provide Essential Air Service at 

Gulkana, May Creek, and McCarthy, Alaska 

Docket D0T=0ST-1995-492 

Rate Period Feb 1, 2011 to Jan 31, 2013 

October 11, 2010 

United States of America 

Department of Transportation 

Office of Secretary 

Washington, DC 

Ellis Air Taxi, Inc. dba Copper Valley Air Service 

Service Proposal February 1, 2011 to January 31, 2013 

Copper Valley Air Service would operate over a GKN - MXY - MYK - GKN, 

ANC - GKN routing with a change of guage at GKN. 

The carrier would provide two round trips a week year-round between GKN and ANC 

with Piper PA-31 aircraft for an annual subsidy need of $262,219 and two round trips a 

week year-round from GKN - MXY and MYK with either Cessna 185 or 206 aircraft for 

an annual subsidy of $176,692. 

Ellis Air Taxi Inc. 

dba Copper Valley Air Service 

P.O. Box 234 

Glennallen AK 99588 

Phone 907-822-4200 

e-mail cvas(a)coppervallevak.net 

Fax: 907-822-4204 
Proposal to Provide Essential Air Service at 

Gulkana, May Creek, and McCarthy, Alaska 

Docket D0T=0ST-1995-492 

Rate Period Feb 1, 2011 to Jan 31, 2013 

Work Sheet 

Projection 

ANC to GKN 

Aircraft Type: Piper PA-31-350 

Block Hours: N/A Ellis Air Taxi d.b.a Copper Valley Air Service wet leases a Piper PA31-350 from Security Aviation at a cost of $2,258.00 per trip. 

Direct Expense 

Indirect Expense 

$234,832.00 

$ 42,687.00 

Lease of Hanger Space five winter months @ $4,900 per month with V^ use = $12,250 

Ground handling, Aircraft and Passengers % = payroll one person = 

Commissions Counted in MXY-MYK Projection 

Advertising Counted in MXY-MYK Projection 

Management / Security = 

Office and Reservations 12 months $37,043 1/3 total = 

Anchorage and Gulkana 

Total Indirects 

Total Directs 

Total Operating Cost 

Return (5% of oper. Exp) 

Total Economic Cost 

Operating Revenues 

Passenger Revenues 125 Passengers @ $222.00 

Mail Revenues U.S. Post Office will not tender mail to this Market 

$ 9,250 

$ 8,840 

$ 12,347 

$ 42,687 

$234,832 

$277,519 

$13,875.95 

$291,394.95 

$27,750 

$000 

Freight 1,900 lbs @ .75 

Total Revenues 

Economic Cost 

Total Revenues 

$291,394.95 

$29,175 

Total Subsidy Need @ 100% $262,219.95 

$1,425 

$29,175 
Proposal to Provide Essential Air Service at 

Gulkana, May Creek, and McCarthy, Alaska 

Docket D0T=0ST-1995-492 

Rate Period Feb 1, 2011 to Jan 31, 2013 

Work Sheet 

Projection 

IVIXY and IVIYK Cost Projection 

Aircraft Type: Cessna 185 & Cessna 206 

Block Hours 240 

Pilot @ $136.23 / hr $32,695 

$95.00 Pilot 

$28.50 Workman's Comp 

$6.60 Unemployment 

$6.13 Social Security 

Fuel & Oil @ $154.33 $37,039 

17Gal/hr 

$5.67 base price 

$0.02 State Airport Tax 

$1.98 Storage, Handling, Spill and Liability Insurance 

$0.88 Projected rate increase 2011-2013 

$8.55 per Gal + $8.98 per hour oil 

Total = $ per Gallon fuel and Oil X 17.0 Gallon per hour 

Insurance @ $113.87 $27,328 

$165,000 Hull X .13/400 = $53.62 per hour 

$5,700 3'*^ party + 4 seats X 4,600/400 = $60.25 

Total of $113.87 
Proposal to Provide Essential Air Service at 

Gulkana, May Creek, and McCarthy, Alaska 

Docket DOT=OST-1995-492 

Rate Period Feb 1, 2011 to Jan 31, 2013 

l\/laintenance @ $135.93 / hr $32,623 

Two (2.4) one hundred hour inspections = 240 hours 

28.0 hours flat rate @ $130.00 per hour shop rate = $3,640 X 2.4 = $8,736 

Annual Inspection 35 hours @ $130.00 per hour shop rate = $4,550 

Total for inspections only = $13,286 

Inspections/ 240 hours $55.36 

Engine $41,000/1500 hr. $27.33 

Propeller $ 14,200/1500 hr. $9.46 

Instruments and radios $4.94 

Routine maintenance & unscheduled $38.84 

Total $135.93 per hour 

Depreciation @ $26.66 / hr $6,398 

Hourly rate $26.66 @ 160,000/6000 

Total Directs $136,083 

Indirects $86,754 

Hanger Lease Year Round @ $4,900 per month x 12 = $58,800 72 use = $29,400 

Ground Handling Aircraft and Passengers $15,500 

Advertising $9,949 

Commissions, includes GKN-ANC-GKN $27,750 x 10% $2,775 

Management / Security $22,980 

Office and Phone Reservations $6,150 

Total indirect $86,754 

Total Direct $136,083 

Total Indirect $86,754 

Total Operating Expenses $222,837 

Return (5% of opr. Exp) $11,141 
Proposal to Provide Essential Air Service at 

Gulkana, May Creek, and McCarthy, Alaska 

Docket D0T=0ST-1995-492 

Rate Period Feb 1, 2011 to Jan 31, 2013 

Operating Revenues 

Passenger Revenues 

129 passengers MXY @ 118.00 $15,222 

Total Passenger revenue 2011-2013 avg MXY 

4 passengers MYK @ 125.00 $500 

mail revenue total 45,395 lbs @ .82 $37,224 

Freight revenue 6,200 lbs @ .70 $4,340 

Total Revenue $57,286 

Total Economic Costs $233,978 

Total Revenue $57,286 

Total subsidy need @ 100% = $176,692