BEFORE THE

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

________________________________ )

Complaint of )

)

PACIFIC AIRWAYS, INC. ) Docket DOT

- OST

- 2013

- 0031

PM AIR, LLC )

)

Against Scott Aviation, LLC )

d/b/a Island Air Express )

________________________________)

COMPLAINT AGAINST SCOTT AVIATION, LLC

FOR ANTI

- COMPETITIVE, DECEPTIVE AND UNFAIR

BUSINESS PRACTICES WHILE ENGAGING IN

INTERSTATE AIR COMMERCE WITHOUT AUTHORITY

Communications with respect to this document should be addressed to:

Hank Myers

PO Box 7142

Bellevue, WA 98008

(425) 830

- 4265

February 1, 2013BEFORE THE

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

______________________________ __ )

Complaint of )

)

PACIFIC AIRWAYS, INC. ) Docket DOT

- OST

- 2012

- 0002

PM AIR, LLC )

)

Against Scott Aviation, LLC )

d/b/a Island Air Express )

________________________________)

COMPLAINT AGAINST SCOTT AVIATION, LLC

FOR ANTI

- COMPETITIVE, DECEPTIVE AND UNFAIR

BUSINESS PRACTICES WHILE ENGAGING IN

INTERSTATE AIR COMMERCE WITHOUT AUTHORITY



### On July 10, 2012, the undersigned carriers (Ketchikan Carriers) filed a complaint again st Scott

Air, LLC d/b/a Island A ir Express ( Scott/IAX ) alleging that Scott/IAX was engaging in scheduled

interstate air transportation without being found fit by the Department. In support of the

complaint, the Ketchikan Carriers submitted evidence that Scott/IAX advertised interstate air

connect ions with Alaska Airlines (including a schedule designed to connect conveniently with

Alaska’s interstate flights) , operated solely from Ketchikan International Airport which is on an

island off the coast of Ketchikan and did not serve the city of Ketchika n at all, held out a toll free

### reservations telephone number accessible to callers outside the State of Alaska, operated a

web site available without restriction on the world wide web, included an unrestricted

reservations form on its web site, did not men tion any restrictions on its authority to operate

commercial service, and in fact did accept an interstate reservation showing a connection from

an Alaska Airlines fli ght coming nonstop from Seattle and paid for using an out of state credit

card and includ ing an out of state address and telephone connection.

In Order 2012

- 12

- 16, the Department concluded that each of the charges were correct, and

under “Facts and Conclusions” listed the various specifications including the toll free number

888

- 387

- 8989, the unlimited web site, the online reservation form including spaces for interline

connections, the timing of Scott/IAX flights to connect to and from Alaska flights, and the

inclusion of Scott/IAX ’s services on third party web sites and advertising, among oth ers.

As mitigation, Scott/IAX alleged that it had amended its website to indicate that it is an

intrastat e operator and currently carries only intrastate traffic. The Department believed

enforcement action was none

- the

- less justified, and entered into a consent agreement with

Scott/IAX in which Scott/IAX agreed to the specifications and also agreed to cease and desist its

illegal activities. The Department imposed a modest fine, suspending half on the condition of

no further violations for one year

.

### CURRENT ACTIONS

The Ketchikan Carriers have monitored Scott/IAX ’s website, advertising and reservations

practice since the filing of the original complaint, and specifically after the issuance of the

Consent Order and the more recent Show Cause Order on its application for a certificate of

public convenience and neces sity. As shown on Appendix A, the home page of its universally

available web site still includes an interstate toll free tele phone number and interstate toll free

fax number, and offers online reservations without restriction. Upon entering initial data in the

reservations form, the customer is taken to the full reservations form (Appendix B) which

includes spaces to enter interline connecting flights with Alaska Airlines. The only mention of

instar

- state limitations is i n the small print in its service description where Island states:

Island Air Express operates its scheduled services within the State of Alaska. We have been granted

full FAA authorization as an intra

- state FAA certificate holder to operate our Caravans IFR (in or above

the clouds), day or night using the advanced Synthetic Flight Vision navigation system making our

modern aircraft the safest, most reliable fleet in Alaska.



### To the casual customer, this reference to “full FAA authorization as an intra

- state FAA

certificate holder” does n ot reflect any limitation on its operations, and is actually an indication

that is has all necessary authority. Worse yet, the web site makes no mention whatsoever of its

lack of inter

- state commercial authority. Simply put, rather than being a disclosure of its legal

inability to transport passengers engaged in interstate air commerce, or a disclaimer of

### interstate commercial authority, the language buries the lack of authority in arcane phrasing

refe rring only to its FAA certificate that is meaningless to the average consumer.

The crucial question is whether Scott/IAX continues to accept reservations from passengers

who clearly indicate that they are engaged in interstate air commerce, and the answer is yes.

Appendices C

- E are Scott/IAX Air reservation confirmations to passengers clearly making

interstate connections. All three reservations list a connection to or from Seattle, WA on the

closest timed flight of Alaska Airlines on the travel date in question. It should be noted that two

of the reservations were made using the credit card of the President of Pacific Airways, one of

the complainants, clearly showing a paid connecting reservation to an interstate Alaska Airlines

flight with the destinat ion of Seattle. T he third reservation was made by a Fairbanks resident

who clearly indicated that his true flight origin was Seattle, WA. There was no attempt to hide

or obfuscate the true itinerary of the reservation s

.

SCHEDULING AND ADVERTISING

The Consent Order specifically mentions, by way of proving interstate air commerce, that

Scott/IAX intentionally times its flights to connect conveniently to or from Alaska Airlines’

Seattle nonstop flights. This was a reference to data originally provide d by the Ketchikan

Carriers, and as was used in the Simmons case to prove interstate commerce. Appendix F lists

the Alaska Airlines schedules and the connecting Scott/IAX service. These schedules were

published after the issuance of the Consent Order and before the Show Cause Order in the

### certificate case. It is noteworthy that when Alaska increases its flight s , so does Scott/IAX

.

When Alaska changes the timing of its flights, so does Scott/IAX

. Scott/IAX times its flights

specifically to allow conveni ent connections both to and from Alaska’s interstate flights, and

timing the flights to allow a longer connection to Alaska than from Alaska due to the longer

check

- in lead times with Alaska, and need for TSA clearance. Scott/IAX continuously claims that

it is transporting strictly local traffic. If that were true, it would not be changing the number

and timing of its flights to coincide exactly with Alaska Airlines connecting interstate schedule

changes.

Appendix G is an advertisement Scott/IAX placed in the Ketchikan Daily News in December,

2012. This ad, placed after the terms of the Consent Order had been agreed to. The ad

prominently features its convenient connections to and from Alaska Airlines’ flights. One would

wonder why Scott/IAX wo uld tout its convenient connecting flights at Ketchikan in a Ketchikan

area newspaper. The Daily News, however, is a regional newspaper. According to its Publisher,

Lew Williams III, the Ketchikan Daily News has paid subscribers on Prince of Wales Island , and

has sales outlets in Craig, Klawock and Thorne Bay where individual copies of the newspaper

can be purchased. This ad is directly aimed at residents of Craig and Klawock who wish to make

interstate flights connecting with Alaska Airlines at Ketchika n International Airport.

In the Simmons case cited in the Consent Order, the Department had found that one proof of

interstate commerce is that the carrier only served Baltimore

- Washington International Airport

where interstate connections were readily av ailable, and did not serve other local airports in

### the Baltimore area. Ketchikan International Airport is an even better example of a strictly

connecting market. The airport is located on Gravina Island, about a mile offshore from the

Ketchikan waterfron t. There is no residential housing in the airport area, and the only way to

get to or from the City of Ketchikan is via a ferry that operates in accordance with the Alaska

Airlines schedule. The three DOT certificated carriers, Pacific Airways, PM Air an d Taquan, and

several locally based air taxis provide service directly at downtown Ketchikan as well as at the

airport. Scott/IAX provides only service at Ketchikan International Airport.

To get from the Klawock Airport, which is several miles by road fr om either Klawock or Craig,

on e flies to Ketchikan International Airport, carries luggage 500 yards to the ferry terminal, pays

a $5.00 (cash only) fare for the ferry, and then transfers at the Ketchikan dock to a cab which

charges about $10.00 one way to downtown Ketchikan . The total cost including the internet

only fare of $125 on Scott/IAX is at least $140 and involves three vehicles and lots of baggage

hauling. If one takes Pacific Airways from the Craig or Klawock village terminals , the internet

fare in $113 and places the passenger in downtown Ketchikan without any need to making

transfer or hauling baggage. Why would any passenger pay 20% to fly Scott/IAX , have to

connect first to a ferry and then to a taxicab, transporting luggage all the way?

Sc ott/IAX argues that its IFR equipped aircraft are more reliable, but for the 12 months ended

October 31, 2012 Pacific Airways and Taquan Air completed 2,708 flights between the

Ketchikan waterfront (WFB) and Craig, for example. These flights transported 4 ,039 local

passengers, or 1.5 passengers per flight . This level of traffic is significantly less than the amount

### apparently projected by Scott in its pro forma income statement attached to its application for

a certificate of public convenience and necess ity.

As noted above, Scott/IAX is a regular display advertiser in the Ketchikan Daily News, touting its

convenient connections to and from Alaska Airlines Seattle flights. There is also a local

Southeast Island News publication based in Craig that covers local Prince of Wales news. Page

1 of Appendix H is a copy of the November 21, 2011 Island News showing the display ad of

Island Air. In addition to addressing the advantages of IFR service, the ad notes: “All scheduled

flights coincide with Alaska Airlines arrivals and departures, so making flight connections is now

fast and convenient”. Page 2 shows the ad placed by Scott/IAX on November 21, 2012. This ad

was placed after the terms of the Consent Order were agreed to and the application for a

cer tificate of public convenience and necessity had been filed. The ad is identical to the

previous ad, and does not mention any operational or commercial limitation on its authority to

carrier interstate connecting passengers.

INTERSTATE TRAVEL ACCEPTED

A ppendices C

- E show clear proof that Scott/IAX accepts reservations involving interstate

passengers connecting to or from Seattle at Ketchikan International Airport. Scott/IAX has

made one change in its reservation practices that result in a change in the way some interstate

passengers make their reservations on Scott/IAX and use its services. Previously Scott/IAX

accepted all reservations for interstate travel regardless of where the reservation was made.

### Subsequent to the Consent Order, Scott/IAX review s its reservations requests and may cancel a

reservation based on the address of the credit card holder. In refunding a paid reservation

made by a Washington state resident, Scott/IAX noted, “ We are sorry to inform you that we are

unable transport you on the flight you booked with us today because you reside in the State of

Washington. Your credit card has been fully refunded as shown below in the “payments” section. We

truly hope this doesn't inconvenience your travel plans to Alaska this summer. 

### ” There is no

explanation as to why living in the State of Washington disqualified a passenger from making a

direct reservation, and there was no mention of its lack of authority to transport passengers in

interstate commerce.

The primary source of passengers for Scott/IAX is sport fishermen staying at the numerous

lodges on the west coast of Prince of Wales Island that can be connected to the Klawock

airport. Nearly all fishing lodges provide shuttle service to and from Scott/ IAX flights at

Klawock. Lodges also routinely handle reservations and connections at Ketchikan International

Airport for their guests if requested. A survey of local lodges found that the majority of lodges

readily agreed to make travel arrangements betw een Ketchikan International Airport and

Klawock, charging the airfare as part of the package price.

In Order 2012

- 12

- 16, the Department specifically noted websites on the Prince of Wales Island

Chamber of Commerce that listed Scott/IAX as a carrier provid ing connecting service to and

f rom Alas ka Airlines. Appendix I is the current home page for the Prince of Wales Chamber of

Commerce which shows only one air carrier picture, Scott/IAX ’s Caravan. Scott/IAX is also listed

first among the four carriers, and there is no differentiation or notation relating to Scott/IAX ’s

### lack of scheduled or any interstate authority. In short, Scott/IAX has made no attempt to

correct the web site during the six months this case has been in progress.

Appendix J is the curren t web site for Sea Otter Sound Lodge on Prince of Wales Island . Sea

Otter Lodge lists only travel using Scott/IAX , and offers Scott/IAX connections to and from

Alaska Airlines with no break in interstate journey.

Appendix K is the current web site of El Capitan Lodge on Prince of Wales Island. El Capitan

mentions only Scott/IAX on its website, and provides connections to and from Alaska Airlines

using Scott/IAX with no break in interstate i tinerary.

Appendix L is the curre nt website of Desert Splash, the winter operation of Scott/IAX in Arizona.

On the “Partners” page, Desert Splash lists El Capitan Lodge on Prince of Wales Island. The

listing includes an internet link to the El Capitan Lodge web site which features only Scott/IAX

as the connecting carrier between Ketchikan International Airport and Prince of Wales Island.

The Desert Splash operation in Arizona links to the El Capitan Lodge website on Prince of Wales

Island in Alaska which links to the Scott/IAX /Island Ai r Express website. Here again Scott/IAX is

advertising interstate destinations on its own website.

The Ketchikan Carriers also surveyed local hotels and bed and breakfast establishments on

Prince of Wales on January 31, 2013. Three establishments were c alled, Ruth Ann’s Hotel in

Craig, Dream Catcher Bed and Breakfast in Craig, and the Inn of the Little Blue Heron on

### Bucarelli Bay. Each was asked for information on how to get from Ketchikan airport to their

location. All three recommended using Island A ir Express, one noting its IFR capability, one

noting that is was the only carrier serving the Klawock airport and offered shuttle service to

their location, and the third noting that it was the fastest way to get to Prince of Wales, and

described their ai rcraft as a “little jet”. Clearly these establishments were not trying to

circumvent Federal law by making these recommendations, and were simply repeating what

they had been told by Scott/IAX. These recommendations do show how effective and

unrestricted its efforts to generate passenger traffic has been, and also the lack of effort to

advise the various hoteliers that Scott/IAX could only transport local traffic and not passenger

using interstate connections.

Finally, there is the clear circular relationship between Scott/IAX and El Capitan Lodge, which is

commonly owned. Desert Splash Adventures, the winter season Arizona operation of Scott/IAX

clearly lists El Capitan Lodge on Prince of Wales as a “Partner” operation along with several

Arizona lodges, and provides a direct link to the El Capitan web site (Appendix J ). The El Capitan

web site references Island Air Express as its method of transportation between Ketchikan and

Prince of Wales Island. When Scott/IAX is called on their inter

- state toll free telephone number

about flight reservations for El Capitan, callers are referred back to El Capitan’s direct

reservations line, which is a Bremerton, WA phone number (360

- 473

- 5311). Scott/IAX and El

Capitan are holding out services including air transportation in three states using internet and

inter

- state toll free phone numbers to share business. The goal is to provide plausible

deniability for Scott/IAX while it continues to benefit from its interstate service.

### S UMMARY

Scott/IAX Air, LLC d/b/ a Island Air Express, having agreed to cease and desist the numerous

violations of Federal law cited by the Department in Order 2012

- 12

- 16, continues its illegal

practices unabated. Scott/IAX continues to advertise its scheduled services on an unrestricte d

website that can be viewed from outside the State of Alaska. It continues to operate the same

unrestricted, interstate toll

- free reservations telephone line, 888

- 387

- 8989. The calls are

answered at its home base in Craig, and the recorded message greet ing callers makes no

mention of its intra

- state only authority. It continues to accept interstate connecting

reservations from its website, and continues to list connecting schedules with Alaska Airlines

interstate service on its website. It clearly adve rtises its convenient connecting service to and

from Alaska Airlines interstate flights in the regional newspaper circulated on Prince of Wales

Island. That ad contains no disclaimer or limitation on its commercial authority. While claiming

to be serving only the needs of local O&D passengers, Scott/IAX continues to alter its schedules,

varying the number and timing of its flights to coincide exactly with the change in interstate

flights by Alaska Airlines at Ketchikan International Airport. Despite clai ming to serve only local

Prince of Wales to Ketchikan passenger, Scott/IAX operate only at Ketchikan International

Airport and provides no service directly to the City and Borough of Ketchikan. As the

Department found in the Simmons case, service only to an interstate airport is a clear indication

of intent to offer interstate service. Finally, Scott/IAX has made no materials change in its

operations or website to reflect its complete lack of Federal commercial authority. Its web site

continues to allow entry of connecting interstate Alaska Airlines flights.

### Throughout this process, Scott/IAX has obfusc ated, deceived and covered up its true intent,

while continuously delaying settlement of this matter to maximize its revenue diversion from

properly certificated competitors. It delayed and opposed settlement of the enforcement

matter until it had time to apply for a certificate of public convenience and necessity and had

satisfied all of the Air Carrier Fitness information requests. The only change made to its web

site was inclusion of an obscure and abstruse phrase relating to full FAA authority for IFR

operations without any mention of commer cial authority. Since the issu ance of the Consent

Order it has made no changes whatever.

The violations noted in Order 2012

- 12

- 16 were clearly unfair and deceptive business practices

and anti

- competitive behavior. The continued violations are not only violations of the terms of

the Consent Order, but a new violations and evidence of fraudulent intent by Scott/IAX when in

agreed to cease and desist its unlawful practices and when it filed it s application for a cert ificate

of public convenience and necessity.

WHEREFORE , the undersigned Ketchikan Carriers formally complain that Scott/IAX Air, LLC

d/b/a Island Air Express has violated the terms of Order 2012

- 12

- 16, and continues to engage in

unfair and deceptive busin ess practices and anti

- competitive behavior to the detriment of

properly certificated scheduled and D.O.T. registered on

- demand air carriers. These new

violations are not only separate from the original violations, they clearly contradict Scott/IAX ’s

### appl ication for a certificate of public convenience and necessity, as well as the certification

statement included therein.

The Ketchikan Carriers request that the Department find Scott/IAX in violation of the terms of

the Consent Order, and immediately impose the remaining $10,000 fine unpaid on the

condition of no further violation. The Department must also direct Scott/IAX to cease and

desist all scheduled service at Ketchikan International Airport, and to cease all commercial

service at Ketchikan Int ernational Airport by virtue of its inherently interstate nature.

The Ketchikan Carrier s request that the Department institute a formal complaint proceeding to

include examination of the impact of Scott/IAX ’s violations from the time it was first contacte d

by the Department in July, 2012, including reservations records for all passengers with contact,

connection and payment information from the institution of the previous investigation through

the issuance of the Consent Order, as well as all correspondenc e between Scott/IAX and the

Prince of Wales Chamber of Commerce and all fishing lodges using its service relative to its lack

of interstate authority, as well as all advertising Scott/IAX placed in any medium to promote it

services. Scott/IAX must also pr ovide a chronology of all of its changes to its website to comply

with the terms and intent of the Consent Order.

The Ketchikan Carrier request the ability to provide evidence of the damage caused to properly

certificated carriers by Scott/IAX ’s illegal activities, and to be able to document continuing

violations since the issuance of the Consent Order. The Ketchikan Carriers request that this

### proceeding include a hearing before an Administration Law Judge to determine the val idity and

appropriate penalt y for these charge s, including the fraudulent and deceptive assertions made

by Scott/IAX in agreeing to the Consent Order and in filing its application for a federal

certificate.

Respectfully submitted,

Pacific Airways, Inc.

PM Air, LLC

_______________ ______ By Hank Myers

Its authorized representative

February 1, 2013

CERTIFICATE OF SERVICE

I hereby certify that I have this day served a copy of the preceding complaint upon Scott Air, LLC

and its attorney of record Pierre Murphy by mailing a printed copy of the complaint by certified

Priority U.S. Mail, return receipt req u ested

.

_____________________ Hank Myers

February 1, 2013INDEX OF APPENDICES

A. Current Home Page of Scott Air, LLC d/b/a/ Island Air Express

B. Scott Air Reservations Form Including Entry Box for Alaska Airlines Connecting Flights

C. Interstate Reservations Record of

D. Interstate Reservations Record of

E. Interstate Reservations Record of Dale Erickson

F. Connecting Schedules of Scott Air and Alaska Airlines

G. December, 2012 Scott A ir Ad in the Ketchikan Daily News

H. Most Current Scott Air Ad in the Southeast Island News

I. Current Website of Prince of Wales Chamber of Commerce

J. Current Website of Sea Otter Sound Lodge

K. Current Website of El Capitan Lodge

L. “Partner” Page of Desert Splash Adventures Website

### Appendix A Page 1 of 3

**Safely operating since 1998**

Island Air Express operates Cessna 208 and Cessna 206 aircraft throughout Southeast Alaska

–

Providing the only scheduled IFR service between Craig/ Klawock and Ketchikan we deliver the most

reliable, on time service available. Exclusive amphib and wheel plane charter service is also available

throughout Southeast Alaska at a moment’s notice.

Our Cessna 208 Caravans with the trustworthy Honeywell 850 & 950 hp Jet

- Prop engine conversions are

the fastest turbine aircraft available in their class. With speeds topping 200 MPH these aircraft get

anywhere FAST.

Island Air Express operates its scheduled services within the State of Alaska. We have been granted full

FAA au thorization as an intra

- state FAA certificate holder to operate our Caravans IFR (in or above the

### Appendix A

Page 2 of 3

clouds), day or night using the advanced Synthetic Flight Vision navigation system making our modern

aircraft the safest, most reliable fleet in Alaska.

READ MORE

Go flying with **Desert Splash!** Take a Seaplane Adventure up the Salt River Canyon “Apache Air Trail”.

Operated by Island Air Express out of Scottsdale Airport, Ar izona.

READ MORE



### Leaving From:

Where are you leaving from?



### Arriving Destination:

Departing:

Returning:

Round Trip One

- Way

Frequent Flyer # Password

Charge Account User ID

Total

Passen

gers? 1

### Appendix A Page 3 of 3

•

Island Air Express operates Cessna 208 and Cessna 206 aircraft throughout Southeast Alaska

-

primarily operating from Craig, Klawock, and Ketchikan area.

LOCATIONS:

• Ketchikan Airport Terminal

• Klawock Airport

Address: PO Box 1174 Craig, AK 99921

Phone: 888

- 387

- 8989

FAX: 888

- 529

- 8837

Reservations: ( email me )

Genera l info: ( email me )

Ops Director: ( email me )

Accounting: ( email me )

© Copyright Island Air Express and Scott Air LLC

.

### Appendix B Page 1 of 1



# PASSENGER INFORMATIO N

Fields marked with a red asterisk * are required for ALL PASSENGERS.



### First Name * Second

Name * Last Name * Pax Type *

Passenger

1 Web ADULT Passenger



### Gender * 

### Weight *

0 

### Passenger FF

number Passenger FF password



### Passenger contact

information
(in case of weather or
flight issues) Passenger Phone

Passenger E

- mail



### Alaska Airlines Connecting Flight Info

Arriving Ketchikan

International Flight Date Flight Number



### Departing Ketchikan

International Flight Date Flight Number



### Special Needs Comment

Continue, Re s ervation Review

HOME SCHEDULE DESTINATIONS CHARTERS AIRCRAFT POLICIES FREQUENT FLYER WEB SPECIALS CONTACT US

### Appendix C

Page 1 of 3



## RESERVATION CONFIRMATION

Island Air Express Reservations 888.387.8989 Desert Splash Arizona Reservations 877.588.8819

For faster service, please present this letter when you check in. Point of Contact Confirmation number:

LUCAS, KIANA 120842

P.O. BOX 5158
KETCHIKAN, AK 99901 USA smont3780@gmail.com Passengers

Total Passengers: 1

KIANA D LUCAS Itinerary

Flight
Date Day Flight# Dep Time Dep Location Arr Time Arr Location 17Mar13 Sun 500 7:00 am KLAWOCK, ALASKA (KLW) 7:30 am KETCHIKAN INTERNATIONAL (KTN) Fare and Charge Summary (all amounts in US$

- * per person)

Fare Type

*Pre

- Tax

Fare *Taxes *Discounts *Subtotal Qty Total
WEBADULT $125.58 $9.42 $135.00 1 $13 5.00 Total Fares & Charges: $135.00 Tax Summary Details (all Taxes in US $)

Tax Type Rate Flight Segments Pax Segments Total
Excise Tax 7.50% 1 1 $9.42
Total Taxes Due: $9.42 Payments

Date Type Number Name Amount Island Air Express

- Reservation Confirmation 120842 https://islandair.trekres.com:4003/cgi

bin/mgrqcgi015

1 of 3 1/27/2013 11:46 AM

27Jan13 AMERICAN EXPRESS IAIR #### ###### #2002 STEPHEN S. MONTANUS $135.00 Total Payments: $135.00 Summary

Total Fare + Charges $125.58
Total Tax $9.42

Sub total $135.00 Total Payments $135.00
Balance Due $0.00 Comments

Date Note

01/27/13 ARRIVAL CONNECTING FLIGHT: 05/17/2013 60; LUCAS, KIANA For questions about your reservation, please call 888.387.8989

ISLAND AIR EXPRESS

- ALASKA PASSENGER POLICIES

Check

- in for all flights is 30 minutes prior to departure time

Please visit our website to view all of our passenger policies www. IslandAirX.com/policies.html

Please reconfirm travel at least 24 hours in advance; passengers not checked in 20 minutes prior to schedu led departure may be denied boarding without compensation by Island Air Express. All flights are subject to change without notice. Tickets are non

- refundable but ARE transferable. Tickets are valid for one year from date of purchase.
Tickets

General: No pe rson shall be entitled to transportation except upon presentation of a valid ticket. Such ticket shall entitle the passenger to transportation only between points of origin and destination and via the routing designated thereon.

A ticket that has been alte red, mutilated or improperly issued, shall not be valid.

Tickets are transferable and are valid for one year from date of purchase on the original ticket. Tickets may be purchased with a credit card or cash.
Reservations

Confirmation of Reserved Space: A r eservation for space on a given flight is valid when the availability and allocation of such space is confirmed by an Island Air Express agent or confirmed online through our online reservations system. Standbys and Waitlists: Standby is permitted for any scheduled flight. Unless otherwise noted wait listing of all passengers will be permitted

and listed in the order in which the request is received.

### Appendix C

Page 2 of 3

Reservation Changes: Cancellations or changes may be made up to 12 hours prior to your departure time without any service fee. If a change request is not made at least 12 hours prior to departure a $25 fee will be charged for any changes. If a passenger fails to check

- in for their confirmed flight and did not notify Island Air Express t o remove their reservation from the scheduled flight at least 4 hrs prior to the departure time the ticket will no longer be valid for any flight. Please note that

failure to check

- in for, or cancel, a confirmed reservation will also result in the cancella tion of any remaining flights. This is based on the logic that if you did not fly on one leg of your trip, you can't be in the departure city of your next leg. If you decide to change your travel plans, please let us know so we

can protect your

reservation

. Cancellation of Reservations: Island Air Express may cancel reservations of any passenger when necessary to comply with any governmental regulations or request for emergency transportation, or when necessary or advisable by reason of weather or other con ditions beyond Island Air Express' control.
Refunds

All tickets are non

- refundable and may be used for travel for up to one year from date of purchase. Roundtrip fares may be subject to additional fees if partial itinerary is cancelled. Capacity Limitation s Island Air Express

- Reservation Confirmation 120842 https://islandair.trekres.com:4003/cgi

bin/mgrqcgi015

2 of 3 1/27/2013 11:46 AM

Island Air Express may limit the number of passengers carried on any one flight. The number of seats available on a given flight will be determined by Island Air Express' best judgment as to the anticipated total passenger load. Baggage

For reasons of safety each passenger is limited to 45 lbs of baggage. Excess baggage is subject to a charge of $0.65 per lb p er flight (roun dtrips = 2 flights). Excess baggage is on a space available basis and may travel on a later flight. Identification is required on all items of bag gage. Island Air Express will not be liable for damage to perishable items or fragile articles in checked bagg age. Carry

- on baggage is not permitted aboard any Island Air Express'

aircraft. Hazardous

materials must be declared. Flight Delays

Arrival and departure times are not guaranteed. We strive to be on time, but due to varied routings and weather, there are occasional delays. All Island Air Express flights are conducted weather permitting. If your flight is cancelled due to weather, you will have the choice of obtaining r eserved seating on

the next available scheduled flight to the same destination or obtaini ng a full refund for that flight. Island Air Express Reservations 888.387.8989

Located at the Klawock & Ketchikan Airports, AK DESERT SPLASH ADVENTURES ARIZONA

- CANCELLATION POLICY

All Desert Splash Seaplane Adventures are non

- refundable after the time of booking. Desert Splash Seaplane Adventures reserves the right to cancel any flight due
to bad weather or aircraft maintenance issues. In the event of a weather or maintenance caused cancelation, a full refund wil l be provided. Desert Splash Reservations 87 7.588.8819

Located at Landmark Aviation North Complex 15115 N. Airport Drive Scottsdale, AZ 85260 Island Air Express

- Reservations 888.387.8989 © Copyright 2012 Island Air Express and Scott Air LLC, & Cabrita Software, All rights reserved. Island Air Expr ess

- Reservation Confirmation 120842 https://islandair.trekres.com:4003/cgi

bin/mgrqcgi015

3 of 3 1/27/2013 11:46 AM

Confirmation Code

K Q C S L L MVP® Gold Guest Upgrade

Link Reservations How to contact me during travel

Traveler Seats ** Services Requested Traveler Documentation

Name: Kiana Lucas

MP#: Enter mileage program

E

- Ticket0: 2 72120551406

24F Change Seats

### Appendix C

Page 3 of 3

Request Services (Wheelchair, etc)

Enter Known

Traveler/Redress number Flights Flight Confirmation Code: KQCSLL

Flight Departs Arrives

Alaska Airlines 60 Coach | Nonstop | Details Ketchikan (KTN)

9:00 am Sun, Mar 17
Seattle, WA (SEA)

11:49 am Sun, Mar 17 Total: 678 mi | 1 h 49 m $478.60 including taxes & fees

Low Price Guarantee

Total Price for 1 Traveler

Fare Taxes & Fees Charges
Airfare for Kiana Lucas : $463.00 $15.60 $478.60 Amount Charged: $478.60

Traveler Information ** Seat assignments are subject to change.

PRICE SUMMARY Flight The Alaska Airlines Commercial Account ending with *******3846 has been charged a total of USD $478.60. For

additional assistance with your reservation call Alaska Airlines Reservations at 1

- 800

- ALASKAAIR (1

- 800

- 252

- 7522).

TRAVEL REMINDERS

RULES & RESTRICTIONS Flight
This fare is fully refundable. Your itinerary may be changed without a service fee. Changes to your current itinerary may result in a higher fare and an additional collection of funds.
Promotional discounts cannot be applied to already purchased reservations.

View all fare rules Baggage Carry

- on Baggage: Each traveler is limited to one carry

- on bag that measures up to 10 x 17 x 24 inches, plus one personal item. See our Carry

- on Baggage page for more information. Checked Baggage: Alaska Airlines rules and fees apply for this itinerary. The first and second checked bag fees
are $20 each. See our Checked Baggage page for details and exceptions.

FormName: Reservation

Thank You: Your Reservation is Confirmed

- Alaska Airlines https://www.alaskaair.com/booking/payment

1 of 1 1/27/2013 11:56 AM

### Appendix D

Page 1 of 3

HOME SCHEDULE DESTINATIONS CHARTERS AIRCRAFT POLICIES FREQUENT FLYER WEB SPECIALS CONTACT US 

## RESERVATION CONFIRMATION

Island Air Express Reservations 888.387.8989 Desert Splash Arizona Reservations 877.588.8819

For faster service, please present this letter when you check in. Point of Contact Confirmation number:

LUCAS, TRINA 120843

P.O. BOX 5158
KETCHIKAN, AK 99901 USA smont3780@gmail.com Passengers

Total Passengers: 1

TRINA L LUCAS Itinerary

Flight
Date Day Flight# Dep Time Dep Location Arr Time Arr Location 17Mar13 Sun 500 7:00 am KLAWOCK, ALASKA (KLW) 7:30 am KETCHIKAN INTERNATIONAL (KTN) Fare and Charge Summary (all amounts in US$

- * per person)

Fare Type

*Pre

- Tax

Fare *Taxes *Discounts *Subtotal Qty Total
WEBADULT $125.58 $9.42 $135.00 1 $135.00 Total Fares & Charges: $135.00 Tax Summary Details (all Taxes in US $)

Tax Type Rate Flight Segments Pax Segments Total
Excise Tax 7.50% 1 1 $9.42
Total Taxes Due: $9.42 Payments

Date Type Number Name Amount Island Air Express

- Reservation Confirmation 12 0843 https://islandair.trekres.com:4003/cgi

bin/mgrqcgi015

1 of 3 1/27/2013 12:08 PM

27Jan13 AMERICAN EXPRESS IAIR #### ###### #2002 STEPHEN S. MONTANUS $135.00 Total Payments: $135.00 Summary

Total Fare + Charges $125.58
Total Tax $9.42
Subtotal $135.00

T otal Payments $135.00
Balance Due $0.00 Comments

Date Note

01/27/13 ARRIVAL CONNECTING FLIGHT: 05/17/2013 60; LUCAS, TRINA For questions about your reservation, please call 888.387.8989

ISLAND AIR EXPRESS

- ALASKA PASSENGER POLICIES

Check

- in for all flights is 30 minutes prior to departure time

Please visit our website to view all of our passenger policies www. IslandAirX.com/policies.html

Please reconfirm travel at least 24 hours in advance; passengers not checked in 20 minutes prior to scheduled departure m ay be denied boarding without compensation by Island Air Express. All flights are subject to change without notice. Tickets are non

- refundable but ARE transferable. Tickets are valid for one year from date of purchase.
Tickets

General: No person shall be entitled to transportation except upon presentation of a valid ticket. Such ticket shall entitle the passenger to transportation only between points of origin and destination and via the routing designated thereon. A ticket that has been altered, mutilated or improperly issued, shall not be valid.

Tickets are transferable and are valid for one year from date of purchase on the original ticket. Tickets may be purchased with a credit card or cash.
Reservations

Confirmation of Reserved Space: A reservation for space on a given flight is valid when the availability and allocation of such space is confirmed by an Island Air Express agent or confirmed online through our online reservations system.

### Appendix D

Page 2 of 3

Standbys and Waitlists: Standby is permitted for any scheduled flight. Unless otherwise noted wait listing of all passengers will be permitted

and listed in the order in which the request is received. Reservation Changes: Cancellations or changes may be made up to 12 hours prior to your dep arture time without any service fee. If a change request is not made at least 12 hours prior to departure a $25 fee will be charged for any changes. If a passenger fails to check

- in for their confirmed flight and did not notify Island Air
Express to remove their reservation from the scheduled flight at least 4 hrs prior to the departure time the ticket will no longer be valid for any flight. Please note that

failure to check

- in for, or cancel, a confirmed reservation will also result in the cancellation of any remaining flights. This is based on the logic that if you did not fly on one leg of your trip, you can't be in the departure city of your next leg. If you decide to change your travel plans, please let us know so we

can protect your

reservation.

Cancel lation of Reservations: Island Air Express may cancel reservations of any passenger when necessary to comply with any governmental regulations or request for emergency transportation, or when necessary or advisable by reason of weather or other conditions beyond Island Air Express' control.
Refunds

All tickets are non

- refundable and may be used for travel for up to one year from date of purchase. Roundtrip fares may be subject to additional fees if partial itinerary is cancelled. Capacity Limitations

Island Air Express

- Reservation Confirmation 120843 https://islandair.trekres.com:4003/cgi

bin/mgrqcgi015

2 of 3 1/27/2013 12:08 PM

Island Air Express may limit the number of passengers carried on any one flight. The number of seats available on a given fli ght will be determined by Island Air Express' best judgment as to the anticipated total passenger load. Baggage

For reasons of safety each passenger is limited to 45 lbs of baggage. Excess baggage is subject to a charge of $0.65 per lb p er flight (roundtrips = 2 flights). Excess baggage is on a space available basis and may travel on a later flight. Identification is required on all items of bag gage. Island Air Express will not be liable for damage to perishable items or fragile articles in checked baggage. Car ry

- on baggage is not permitted aboard any Island Air Express'

aircraft. Hazardous

materials must be declared. Flight Delays

Arrival and departure times are not guaranteed. We strive to be on time, but due to varied routings and weather, there are occasional delays. All Island Air Express flights are conducted weather permitting. If your flight is cancelled due to weather, you will have the choice of obtaining r eserved seating on

the next available scheduled flight to the same destination or obtaini ng a full refund for that flight. Island Air Express Reservations 888.387.8989

Located at the Klawock & Ketchikan Airports, AK DESERT SPLASH ADVENTURES ARIZONA

- CANCELLATION POLICY

All Desert Splash Seaplane Adventures are non

- refundable after the time of booking. Desert Splash Seaplane Adventures reserves the right to cancel any flight due
to bad weather or aircraft maintenance issues. In the event of a weather or maintenance caused cancelation, a full refund wil l be provided. Desert Splash Reservations 87 7.588.8819

Located at Landmark Aviation North Complex 15115 N. Airport Drive Scottsdale, AZ 85260 Island Air Express

- Reservations 888.387.8989 © Copyright 2012 Island Air Express and Scott Air LLC, & Cabrita Software, All rights reserved.
Island Air Express

- Reservation Confirmation 120843 https://islandair.trekres.com:4003/cgi

bin/mgrqcgi015

3 of 3 1/27/2013 12:08 PM

Confirmation Code

E P U L N P MVP® Gold Guest Upgrade

Link Reservations How to contact me during travel Traveler Seats ** Services Req uested Traveler Documentation

Name: Trina Lucas

MP#: Enter mileage program

### Appendix D

Page 3 of 3

E

- Ticket0: 2 72120552217

24E Change Seats Request Services (Wheelchair, etc)

Enter Known

Traveler/Redress number

Flights Flight Confirmation Code: EPULNP Flight Departs Arrives

Alaska Airlines 60 Coach | Nonstop | Details Ketchikan (KTN)

9:00 am Sun, Mar 17
Seattle, WA (SEA)

11:49 am Sun, Mar 17 Total: 678 mi | 1 h 49 m $478.60 including taxes & fees

Low Price Guarantee

Total Price for 1 Traveler

Fare Taxes & Fees Charges
Airfare for Trina Lucas : $463.00 $15.60 $478.60 Amount Charged: $478.60

Traveler Information ** Seat assignments are subject to change.

PRICE SUMMARY Flight The Alaska Airlines Commercial Account ending with *******3846 has been charged a total of USD $478.60. For

additional assistance with
your reservation call Alaska Airlines Reservations at 1

- 800

- ALASKAAIR (1

- 800

- 252

- 7522).

TRAVEL REMINDERS

RULES & RESTRICTIONS Flight
This fare is fully refundable. Your itinerary may be changed without a service fee. Changes to your current itinerary may result in a higher fare and an additional collection of funds.
Promotional discounts cannot be applied to already purchased reservations.

View all fare rules Baggage Carry

- on Baggage: Each traveler is lim ited to one carry

- on bag that measures up to 10 x 17 x 24 inches, plus one personal item. See our Carry

- on Baggage page for more information. Checked Baggage: Alaska Airlines rules and fees apply for this itinerary. The first and second checked bag fees

ar e $20 each. See our Checked Baggage page for details and exceptions.

FormName: Reservation

Thank You: Your Reservation is Confirmed

- Alaska Airlines https://www.alaskaair.com/booking/payment

1 of 1 1/27/2013 12:11 PM

### Appendix E

Page 1 of 5



# RESERVATION CONFIRMATION

Island Air Express Reservations 888.387.8989

Desert Splash Arizona Reservations 877.588.8819

For faster service, please present this letter when you check in.



### Point of Contact Confirmation number:

ERICKSON, DALE 

# 120875

P.O BOX 60204

FAIRBANKS, AK 99706 USA

tanakon42s@gmail.com



### Passengers

Total Passengers: 1

DALE ERICKSON



### Itinerary

Flight

Date Day Flight# Dep Time Dep Location Arr Time Arr Location

07Feb13 Thu 501 9:15 am KETCHIKAN INTERNATIONAL (KTN) 9:45 am KLAWOCK, ALASKA (KLW)

### Appendix E

Page 2 of 5



### Fare and Charge Summary (all amounts in US$

- * per person)

Fare Type *Pre

- Tax

Fare *Taxes *Discounts *Subtotal Qty Total

WEBADULT $116.28 $8.72 $125.00 1 $125.00

Total Fares & Charges: $125.00



### Tax Summary Details (all Taxes in US $)

Tax Type Rate Flight Segments Pax Segments Total

Excise Tax 7.50% 1 1 $8.72

Total Taxes Due: $8.72



### Payments

Date Type Number Name Amount

28Jan13 VISA IAIR #### #### #### 4764 DALE ERICKSON $125.00

Total Payments: $125.00

### Summary

Appendix E

Page 3 of 5

Total Fare + Charges $116.28

Total Tax $8.72

Subtotal $125.00

Total Payments $125.00

Balance Due $0.00



### Comments

Date Note

01/28/13 ARRIVAL CONNECTING FLIGHT: 2/7 65; ERICKSON, DALE



### For questions about your reservation, please call 888.387.8989



### ISLAND AIR EXPRESS

- ALASKA PASSENGER POLICIES



# Check

- in for all flights is 30 minutes prior to departure time

Please visit our website to view all o f our passenger policies

www.IslandAirX.com/policies.html

Please reconfirm travel at least 24 hours in advance; passengers not checked in 20
minutes prior to scheduled departure may be denied boarding without compensation by Island Air Express. All flights are subject to change without notice. Tickets are non

refundable but ARE transferable. Tickets are valid for one year from date of purchase.



# Tickets

### Appendix E

Page 4 of 5

General: No person shall be entitled to transportation except upon presentation of a valid ticket.
Such ticket shall entitle the passenger to transportation only between points of origin and
destination and via the routing designated thereon.



### A ticket that has be en altered, mutilated or improperly issued, shall not be valid.

Tickets are transferable and are valid for one year from date of purchase on the original

ticket.

Tickets may be purchased with a credit card or cash.



# Reservations

Confirmation of Reserved Space: A reservation for space on a given flight is valid when the
availability and allocation of such space is confirmed by an Island Air Express agent or
confirmed online through our online reservations system.

Standbys and Waitlists: Standby is permit ted for any scheduled flight. Unless otherwise noted
wait listing of all passengers will be permitted and listed in the order in which the request is

received.

Reservation Changes: Cancellations or changes may be made up to 12 hours prior to your

departur e time without any service fee. If a change request is not made at least 12 hours prior to
departure a $25 fee will be charged for any changes. If a passenger fails to check

- in for their

confirmed flight and did not notify Island Air Express to remove thei r reservation from the

scheduled flight at least 4 hrs prior to the departure time the ticket will no longer be valid for any

flight. Please note that failure to check

- in for, or cancel, a confirmed reservation will also result

in the cancellation of any r emaining flights. This is based on the logic that if you did not fly on

one leg of your trip, you can’t be in the departure city of your next leg. If you decide to change

your travel plans, please let us know so we can protect your reservation.



### Cancellati on of Reservations: Island Air Express may cancel reservations of any passenger when necessary to comply with any governmental regulations or request for emergency transportation, or when necessary or advisable by reason of weather or
other conditions beyo nd Island Air Express’ control.



# Refunds

### Appendix E

Page 5 of 5

All tickets are non

- refundable and may be used for travel for up to one year from date of purchase. Roundtrip fares may be subject to additional fees if partial itinerary is

cancelled.



# Capacity Limitations

Island Air Express may limit the number of passengers carried on any one flight. The number of seats available on a given flight will be determined by Island Air Express’ best judgment as to the anticipated total passenger load.



# Bagg age

For reasons of safety each passenger is limited to 45 lbs of baggage. Excess baggage is subject to a charge of $0.65 per lb per flight (roundtrips = 2 flights). Excess baggage is on a space available basis and may travel on a later flight. Identificat ion is required on all items of baggage. Island Air Express will not be liable for damage to perishable items or fragile articles in checked baggage. Carry

- on baggage is not permitted aboard any Island Air Express’ aircraft. Hazardous materials must be dec lared.



# Flight Delays

Arrival and departure times are not guaranteed. We strive to be on time, but due to varied routings and weather, there are occasional delays. All Island Air Express flights are conducted weather permitting. If your flight is cancelle d due to weather, you will have the choice of obtaining reserved seating on the next available scheduled flight to the same destination or obtaining a full refund for that flight.



# Island Air Express Reservations 888.387.8989

Located at the Klawock & Ketchikan Airports, AK



### DESERT SPLASH ADVENTURES ARIZONA

- CANCELLATION POLICY

All Desert Splash Seaplane Adventures are non

- refundable after the time of booking. Desert
Splas h Seaplane Adventures reserves the right to cancel any flight due to bad weather or aircraft

maintenance issues. In the event of a weather or maintenance caused cancelation, a full refund
will be provided.

Desert Splash Reservations 877.588.8819
Located at Landmark Aviation North Complex 15115 N. Airport Drive Scottsdale, AZ 85260

Island Air Express

– Reservations 888.387.8989
© Copyright 2012 Island Air Express and Scott Air LLC, & Cabrita Software , All rights reserved.

### Appendix F

Page 1 of 3

CURRENT INTERSTATE CONNECTIONS BETWEEN

SCOTT AIR, LLC AND AL ASKA AIRLINES AT KETCHIKAN

Alaska Island Air

Flight # Depart

SEA Arrive

KTN Flight # Depart

KTN Arrive

KLW

65 0655 0803 501 0915 0945

67 1505 1608 505 1700 1730

Island Air Alaska

Flight # Depart

KLW Arrive

KTN Flight # Depart

KTN Arrive

SEA

500 0700 0730 60 0912 1205

502 1130 1200 62 1332 1622

504 1500 1530 64 1755 2044

### Appendix F

Page 2 of 3

SPRING, 2013 INTERSTATE CONNECTIONS BETWEEN

SCOTT AIR, LLC AND ALASKA AIRLINES AT KETCHIKAN

Alaska Island Air

Flight

# Depart

SEA Arrive

KTN Flight

# Depart

KTN Arrive

KLW

65 0645 0749 501 0845 0915

179 1025 1117 503 1315 1345

67 1505 1557 505 1700 1730

Island Air Alaska

Flight

# Depart

KLW Arrive

KTN Flight

# Depart

KTN Arrive

SEA

500 0700 0730 60 0900 1150

502 1000 1030 178 1208 1456

504 1500 1530 64 1745 2035

### Appendix F

Page 3 of 3

SUMMER, 2013 INTERSTATE CONNECTIONS BETWEEN

SCOTT AIR, LLC AND ALASKA AIRLINES AT KETCHIKAN

Alaska Island Air

Flight

# Depart

SEA Arrive

KTN Flight

# Depart

KTN Arrive

KLW

65 0705 0816 501 0915 0945

179 1035 1137 503 1315 1345

173 1410 1510 505 1600 1630

67 1535 1640 507 1800 1830

Island Air Alaska

Flight

# Depart

KLW Arrive

KTN Flight

# Depart

KTN Arrive

SEA

500 0700 0730 60 0900 1155

502 1000 1030 178 1228 1520

504 1420 1450 174 1602 1855

506 1700 1730 64 1905 2155

### Appendix G

Page 1 of 1

KETCHIKAN DAILY NEWS AD

DECEMBER, 2012

### Appendix H

Page 1 of 2

NOVEMBER, 2011 SCOTT AIR AD

IN SOUTHEAST ISLAND NEWS

### Appendix H

Page 2 of 2

CURRENT SCOTT AIR AD

IN SOUTHEAST ISLAND NEWS

### Appendix I

Page 1 of 2

### Appendix I

Page 2 of 2

### Appendix J

Page 1 of 2

Sea Otter Sound Lodge Include Transportation

On Island Air Express as Part of its Fishing Package

### Appendix J

Page 2 of 2

### Appendix K

Page 1 of 3

El Capitan Lodge Features Only

Island Air Express on its Travel Page

### Appendix K

Page 2 of 3

### Appendix K

Page 3 of 3

### Appendix L

Page 1 of 1

Scott Air’s “Desert Splash” Operation

Specifically Features El Capitan Fishing Lodge

in Craig as a “Partner”