Before the

Department of Transportation

Washington, DC

Office of the Secretary

_______________________________________

In the Matter of )

 )

ESSENTIAL AIR SERVICE AT ) Docket DOT-OST-1997-2649

CRESCENT CITY, CALIFORNIA )

_______________________________________)

Service Proposal of Air Excursions LLC d/b/a

Alaska Seaplanes & Redwood Airlines

Communications with respect to this document should be addressed to:

Kent Craford

Air Excursions LLC d/b/a Redwood Airlines

1873 Shell Simmons Dr. Ste. 110

Juneau, Alaska 99801

kent@flyalaskaseaplanes.com

February 17, 2015
Serving the Oregon/California Border Coast

DOT-OST-1997-2649 • Page 2 

REDWOODAIRLINES

REDWOODAIRLINES

I.

Proposal Overview

II.

About Alaska Seaplanes

III.

Details of Service Plan

IV.

Sample Flight Schedule

V.

Letters of Support
I. Proposal Overview: 

 Non-stop flights to Oakland and Portland

 Three times the previous flight frequency--

with up to six departures per weekday

 Modern and reliable aircraft, which are still

in production

 Superior schedule for better connectivity

and shorter layovers

 Convenient private terminals with no TSA,

making day trips quick and hassle-free

 Proven commitment to marketing, tourism

development and community partnerships

 Oregon-based owner and management

team

 A locally

relevant brand

DOT-OST-1997-2649
II. About Alaska Seaplanes:

Alaska Seaplanes (“Seaplanes”) is the premier commuter airline of Southeast 

Alaska. Operating from a hub in Juneau, Seaplanes operates scheduled wheel plane and 

float plane flights to 11 communities, six of which are served under the USDOT Essential 

Air Service Program.

The company was founded in 1997 and since 

2011 has been owned by Mike Stedman and 

Kent Craford. Stedman has been in the Part 

135 aviation business for 35 years and has 

over 20,000 hours as pilot-in-command. He is 

the former President of the Alaska Air Carriers 

Association, and an adviser to the Governor on 

aviation matters. He is also an owner of 

Juneau-based Wings Airways.

Kent Craford is the former CEO of SeaPort 

Airlines and Wings of Alaska, and was the first 

American aviation entrepreneur to pioneer 

operating Pilatus PC-12s in business 

commuter service, a model that is now being 

widely adopted across the United States. 

Craford grew up in the San Francisco Bay 

Area and has lived in Portland since 2001.

In 2012, Stedman and Craford acquired the 

commuter airline Air Excursions and united its

operations under the Alaska Seaplanes

brand. Today, Alaska Seaplanes launches up to 150 flights per day and carries 

passengers, freight and US mail. It also offers charter flights throughout Southeast Alaska.

Seaplanes is headquartered in Juneau, employs up to 85 people and operates year-round. 

Alaska Seaplanes prides itself on having the best people and equipment among scheduled 

Juneau operators, hence the tagline, “Flying at a Higher Standard.” Seaplanes is the only 

IFR-capable commuter airline in its market with newly refurbished aircraft that are ADS-B 

equipped. The company also recently built a new aircraft maintenance hangar in Juneau, 

demonstrating its commitment to reinvestment in its operations.

Alaska Seaplanes has seen its market share grow substantially where it competes directly 

with established competitors. The company’s commitment to customer service, quality 

equipment and marketing sets it apart. 

DOT-OST-1997-2649
Seaplanes also works to forge long term partnerships in the communities it serves. The 

company developed a joint-venture tourism business with Kootznoowoo, Inc., the Alaska 

Native Corporation for the village of Angoon. Since its founding four years ago, the joint 

venture business has grown over 50% per year and is realizing substantial gains in tourism 

development on Admiralty Island, and investment returns for its native shareholders. 

Alaska Seaplanes understands tourism-focused economies, and is committed to developing 

partnerships on the Border Coast to attract more tourists, by air, to the region.

Success with Essential Air Service

Alaska Seaplanes/Air Excursions has been operating wheel plane service to Kake, AK 

under an EAS contract since late 2010. Under the company’s stewardship, traffic increased 

from roughly 2,500 passengers in 2009, to nearly 4,000 passengers in 2013, the last full 

year for which statistics are available.

2009 to 2013 Enplanements Kake, Alaska 

0

1000

2000

3000

4000

2009 2010 2011 2012 2013

Alaska Seaplanes

DOT-OST-1997-2649
III. Details of Service Plan:

Redwood Airlines

Redwood Airlines will be an independent division 

of Alaska Seaplanes, set up to serve Crescent 

City with three non-stop roundtrip flights per 

weekday to Portland, and three non-stop 

roundtrips per weekday to Oakland.1 

Redwood Airlines is headed by an experienced

team that has something unique to offer—a 

superior air service model, tourism experience, 

knowledge of coastal economies, and roots in 

Portland and the Bay Area. The company will be 

headquartered in Portland and overseen by 

owner and President Kent Craford, who worked 

in the West Coast seafood industry for several

years. 

Alaska Seaplanes d/b/a Redwood Airlines is not 

an Essential Air Service “chaser,” bidding on 

contracts from Hawaii to New York. Crescent 

City is the first contract Alaska Seaplanes has 

bid on in the Lower 48, and only after careful 

analysis of the potential benefit to both the 

company and community. The mission is to offer 

the Border Coast both northbound and 

southbound flight options, without the hassle of 

TSA and SFO, at prices lower than what is 

currently being offered, and to build a durable 

brand on the back of old fashioned on-theground sales, marketing and advertising. 

Dual Hub Advantage

The management team at Alaska Seaplanes/Redwood Airlines understands the value of a 

two hub proposition. The concept is simple—give people more options, and more people 

will fly.

1 Weekend frequency will be 50% of the weekday schedule

DOT-OST-1997-2649

 
Consider this chart as an example of the dual-hub attraction.

Source: BTS Transtats

As you can see, there is small, natural year-over-year growth in the El Dorado (ELD) and 

Hot Springs (HOT) markets. Now compare that to the Harrison (HRO) and Jonesboro (JBR) 

markets, where a second hub was added after the initial time period. The difference is 

substantial.

Oakland

Oakland is a natural alternative to the current service at SFO, and offers connectivity in all 

directions. 

0

500

1000

1500

2000

2500

3000

ELD HOT HRO JBR

Enplanements

First full six months of service, compared to the same six months the following year 

after a second hub is added for HRO and JBR

Single Hub vs Dual Hub Growth

DOT-OST-1997-2649
As Del Norte county residents know, SFO has significant reliability issues. It is clear from 

the data below that service to Oakland is considerably more reliable.

Source: BTS Transtats

With three flights daily between Oakland and Crescent City, Redwood Airlines will make day 

trips quick and convenient. Whether you’re renting a car, hopping on BART, or using your 

favorite ride-share service; getting from our private terminal to where you need to be is 

simple and easy.

Portland

Portland is an excellent complimentary hub to OAK, offering multiple non-stops, including 

many East Coast destinations. In addition, PDX has a very low cancellation rate – less than 

a third of SFO’s, as shown on the following page.

0%

5%

10%

15%

20%

25%

30%

Delayed

Departures

Delayed

Arrivals

Percentage of 

Flights Delayed

OAK

SFO

0

10

20

30

40

50

60

70

Length of

Departure

Delays

Length of

Arrival

Delays

Average Length 

of Delay (min)

OAK

SFO

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

Cancellations

Percentage 

of Flights 

Canceled

OAK

SFO

DOT-OST-1997-2649
PDX is more than a good place to connect. For those just going to the Portland metro area, 

three flights daily will allow you to make a day trip out of what would normally be a multi-day 

affair. And with tax-free shopping, important medical facilities, and Salem just down the 

road, Redwood Airlines knows PDX will offer the Border Coast more than just a hub – it will 

be a destination, as well as a source of weekend tourists.

Fare Comparison

Another benefit of both OAK and PDX is the large presence of low cost carriers, including 

Southwest and Spirit, which pushes down fares on all flights. The chart below demonstrates 

the savings to the average CEC passenger by flying through these hubs (including the 

forecasted Redwood Airlines fare), as opposed to the current fares from CEC through SFO.

0%

5%

10%

15%

20%

25%

30%

Delayed

Departures

Delayed

Arrivals

Percentage of 

Flights Delayed

PDX

SFO

0

10

20

30

40

50

60

70

Length of

Departure

Delays

Length of

Arrival

Delays

Average Length 

of Delay (min)

PDX

SFO

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

Cancellations

Percentage 

of Flights 

Canceled

PDX

SFO

 $-

 $100

 $200

 $300

 $400

 $500

 $600

 $700

ATL LAX ORD JFK DFW LAS SEA BOS DEN

Comparison is based on lowest fares with no advance purchase restrictions. Redwood 

Airlines proposed average fare of $129 (after taxes) included in all OAK and PDX fares.

CEC Current Fares vs. Fares Over OAK and PDX

CEC

OAK

PDX

DOT-OST-1997-2649
Hassle-free

One of the huge advantages of Redwood Airlines is the convenience of TSA-free travel. 

Going to the Bay Area or Portland? 2 You’ll be able to fly without the hassles of taking your 

shoes off, throwing away your water, and walking through a body scanner. As for 

connecting passengers, they’ll only have to go through that rigmarole once. After all, why go 

through that in both Crescent City and the hub?

By eliminating TSA from the equation, you can show up for your flights just 20 minutes 

before departure time. On-site rental cars at both hubs will keep you moving, eliminating 

unnecessary waiting periods or parking shuttles.

Tourism

Unlike many EAS communities where the traffic nearly exclusively originates in the 

community, Crescent City has a thriving tourism market as the “Redwood Gate to the 

Golden State”. Redwood Airlines is best positioned to capitalize on this, both because of its 

locally branded service, and Alaska Seaplanes’ experience in tourism marketing.

The company knows how to create successful tourism packages, as was evidenced by our 

recent profile on the TODAY Show. Redwood Airlines will create similar tourism packages 

with local attractions, guides and lodging establishments. In fact, Redwood Airlines’ 

reservation system will allow the company to add tours, attraction tickets, and other 

activities directly into the booking process.

2 According to data provided by Sixel, the Bay Area has over four times the demand of any other destination.

DOT-OST-1997-2649

 
Aircraft 

Due to Crescent City’s longer-than-average distance to a hub, Redwood Airlines firmly 

believes that the Swiss-built Pilatus PC-12 is the best aircraft for the job. While it is faster 

than other Part 135 offerings, its main benefit is the comfortable pressurized cabin.

Though the PC-12 has only been used in US commuter markets for several years, it is 

becoming more widely adopted due to its operational reliability and customer appeal. With 

a private-jet style cabin, individual seats, and the lowest cabin noise and vibration among 

airplanes in its class, the PC-12 is the right airplane for the Border Coast. 

Proposal

Redwood Airlines is proposing three non-stop, round trip flights each week day from 

Crescent City to both Oakland and Portland, totaling six round trips daily, and six total 

roundtrips on the weekend. The company anticipates an average fare of $129, including 

taxes. The company will operate on a legacy airline reservation platform with full GDS 

connectivity and interline capability, and visibility on the major Online Travel Agencies.

YEAR 1 YEAR 2

Operations Operations

Scheduled Flights 3,744 Scheduled Flights 3,744 

Completed Flights @ 98% 3,669 Completed Flights @ 98% 3,669 

Scheduled Block Hours 5,304 Scheduled Block Hours 5,304 

Scheduled Seats 33,696 Scheduled Seats 33,696 

Scheduled ASMs 9,721,296 Scheduled ASMs 9,721,296 

Revenue Revenue

Passengers 23,232 Passengers 23,760

Average Fare $120.00 Average Fare $120.00

Fare Revenue $2,787,840 Fare Revenue $2,851,200

Total Revenue $2,787,840 Total Revenue $2,851,200

Expenses Expenses

Aircraft $1,008,000 Aircraft $1,008,000

Employees $1,172,560 Employees $1,172,560

Fuel and Oil $1,854,666 Fuel and Oil $1,854,666 

Maintenance and 

Reserves $1,432,080

Maintenance and 

Reserves $1,432,080

Marketing and Distribution $354,288 Marketing and Distribution $261,360

Insurance $93,200 Insurance $93,200 

Other Indirect Expenses $547,595 Other Indirect Expenses $547,595

Total Expenses $6,462,389 Total Expenses $6,369,461

Profit $323,119 Profit $318,473

Margin 5.00% Margin 5.00%

Total Subsidy Required $3,997,668 Total Subsidy Required $3,836,734

DOT-OST-1997-2649
IV. Sample Schedule:

Crescent City to Oakland Oakland to Crescent City

Departure Arrival Departure Arrival

5:30 am 7:00 am 7:30 am 9:00 am

9:25 am 10:55 am 4:25 pm 5:55 pm

6:20 pm 7:50 pm 8:20 pm 9:50 pm

Crescent City to Portland Portland to Crescent City

Departure Arrival Departure Arrival

5:30 am 6:50 am 7:30 am 8:50 am

9:25 am 10:45 am 4:25 pm 5:45 pm

6:20 pm 7:40 pm 8:20 pm 9:40 pm

These schedules were developed with both the connecting and local passenger in mind. 

They are tentative and will be refined with feedback from the community and passengers.

DOT-OST-1997-2649
V. Letters of Support

DOT-OST-1997-2649





From: WFOA [mailto:wfoa@charter.net] 

Sent: Thursday, January 22, 2015 8:23 AM

To: jylansing@aol.com

Subject: WFOA Support for Air Service

John:

Please forward this 

Western Fishboat Owners Association (WFOA) representing about 400 west coast 

U.S. albacore fishermen and support businesses strongly encourages the 

development of air service from Crescent City, CA to Portland, OR and 

Oakland, CA. Over the past 10 years the access to flights from the 

Northern California area both north and south have been steadily 

declining. This region is important to our members who may want to 

utilize the service and save long drives. WFOA encourages this project 

to move forward.

Thanks

Wayne Heikkila

Executive Director

Western Fishboat Owners Association

American Fishermen's Research Foundation

P.O. Box 992723

Redding, CA 96099

Website: http://www.wfoa-tuna.org

Phone 530.229.1097

Fax 530.232-0107

E-Mail <wfoa@charter.net>