To: United States of America 

Department of Transportation 

Office of the Secretary 

\Vashington D.C. 

From: Servant Air Inc. 

1633 Airport Way 

Kodiak Alaska 99615 

Proposal to provide: 

Essential Air Service at: 

ALITAK, ALASKA 

AMOOK BAY, ALASKA 

KltOI BAY, ALASKA 

MOSER BAY, ALASKA 

OLGA BAY, ALASKA 

PORT BAILEY, ALASKA 

PORT WILLIAMS, ALASKA 

SEAL BAY, ALASKA 

UGANIK, ALASKA 

\VEST POINT, ALASKA 

ZACHAR BAY, ALASKA 

UNDER 49 U.S.C. 41731, et seq. 

Summary 

Order 20 15-3-8 

DOCKEt OST- 2000-6945 

un~kr Order 20 15-3-o. Th~ Dep<11"(111Cill ni"Tran~pnrlation has r~:qucstcd propt">!.mls for cSSCilli;il 

!'ervice air lr<1nsporlntion at Alitak, Amook Bay. l<itoi Bay, Moser 13ay. Olga Bay, Port Bailey, 

Port Williams, Seal Bay. Uganik. West Poinl: and Zachar Bay Alaska. Please accept this 

proposal as submitted by Servant Air lnc.ofKodiak.Aiaska ln provide such service. 

Hi~ tory 

Snv:111L Air. Inc., is an air carrier with interstate transportation authority :1ncl 401 cenilicatirn1. 

This entity has been UJX'rationally based in Kodiak Alaska sinct· 2004. Servant Air's pilots an: all 

qua I i fied, conscientious, and well-eslabl is heel in Alaskan a vial ion. 

Mission 

ll is the mission nf Servant Air. Inc. In provide s:lli:, reliahk, :~!"lclrd:thk transpt.lrlalion around the 

entire Stale tll" Alaska. with emphasis on the coastal rl·gion or this stale. Primary orticcs arl· 

lm:ated at the Kodi:1k Stale Airport. and S~-rvanl i\ir has rcl·~ntly opened a satellite oflice in 

Anchorage. Servant Air. Inc. takes pride in the service it currently provides to the Kodiak Island 

District. However. we wish to expand our optTalions to encompass more of the coastal region. 

Therefore. it is Scrvam Air's intent 10 bid this essential air service outlined above. 

Page 1 of 4 

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Aircraft 

TP accomplish this goal. Servant Air. Inc. has secured a lease for a Cessna 206 aircran on lloats. 

This aircrall is capable ofcarryint:; a pilot and a maximum of 5 passcn~crs. It cruises at liS 

knots and perf{mns exceptionally Wl..'ll in our Kodiak environn1en1. Serv:mr Air's noat pl<llh.' !light 

~-rews consist high ti111~~ pilots (Over 3000 hours of Alaska f'light time) witht:xtensive training and 

cxpericnc(· in co;1stal/\laskan aviation. and the challenging wc:11hcr cncounlcrt:d in this region. 

Proposed Scheduling 

The Ex hi hit "A ",attached, is <1 li muJcia I spremlshcct :"howi ng the caku 1:11 ions for Scrv<lnt Air's 

proposed subsidy request to provide the f(,llowing service tn thl· ··Kodiak I I'' waterstops. 

r·:stimated revenues arc derived fnll11 the l:lSt SC<1S0ll P:lSSl'llgCr E:quivalcnt ligures lllllltipliecl 

by projected scat fare pricing. This ligurc is then discounted by 15'Yi, as reflected in tht~ 

movement trends in most of" these markets: 

Flight 1200 

Flight 1300 

Summer Schedule- Peak Period (18 Weeks) 

Winger Schedule- Off .. Peak (34 Weeks) 

Total flight time per rolllc = 1.5 (hotrrs) 

Kodiak- Kitoi hay- Se:ll 13ay- P<.11·t Williams- K11cliak 

Sumn11.:r Schcduk- 1\:londay. Thursday 

Winter Schedule- Tuesday 

Total flight tillle per rl'n1tc = 1.5 (hours) 

Kodiak- Port naily- w~·st Point- Uganik- Kodiak 

Summer S<.:IH:dule- Tuesday. Thursday 

Winter Schedule- Tuesday 

Total flight time per route= 1.3 (hums) 

Kodiak- Z;1char Bay- i\mntlk Bay- Kodiak 

Summer Scheduk- Tuesday. Thursday 

Winter Schedule -Tuesday 

Flight 1500 Total flight time per rouk· = 2.0 (hours) 

Kodiak- Olg:1 Hay- i'dnser nay- t\ litak - Kodiak 

Summer Sch~:·dulc- Monday. Friday 

Winter Schedule- Monday 

Upon aw:ml of any subsidy contract, Sen•ant Air will work with the destination commwl itit·s to 

rurthLT refine the above scheduk to hcst mt•d the needs or lhese cnmmtlll it ies. These f"inal 

schedules will he published in the Of"ficial 1\ irlin(· Guide (0:\G J. Servant!\ ir will also offer flag 

stop scrvin·. on all Atka l'lig.hts as may he necessary to serve th~.·sc co1nmunitics in the best 

m:~nncr possible. 

Page 2 of 4 
Operation!' Logistics 

Opcrntio'ns oversight will be conducted from Servant:\ ir's !'light coordination orlict· at Kodi:tk. 

The aircraf"l will begin and terminate these !light Opl·r;Jtions at the Kodiak Floatplane Basin. with 

curtesy van service provided between the lloat basin and the Kodiak Stale Airport. /\II flights 

will be monitored VIA GPS tracking system curn.:ntly in place. 

Com pen sa tion 

Contract compensation is expected as outline in E·:xhihit "A":md posted :II $15X, 1':>8.30 :mn11ally 

ror thi~ 2 year contract. [3iJSCd 011 :Jllllllal dcpanures nl' I 0511, lll(>lllhly t'Olllj)CllSation is C.'>l)l'Ctcd 

:11 S 151Ui7 p~::r depanurl'. It is alstlundersrood tlwt nnly c<11npktc:d flighrs "•ill be eligihk li:>r 

com pe nsa lion. 

Page 3 of 4 
Exibit "A" 

Total estimated flight time (Hours) 

Flight 1200 · 

Flight 1300 

Flight 1400 

Flight 1500 

KKB I SYB I KPW 

KPR I UGI I KWP 

KZBIAOS 

KMY I KOY I ALZ 

Summer 

(18 Weeks' 

54 

54 

46.8 

72 

Plus 10% route weather deviation factor 

Estimated flight time per year 

Winter 

(34 Weeks) 

51 

51 

44.2 

68 

44.1 

' 485.1 

Revenues $ 

Estimated from DOT figures 

Total PEQ's X Seat Fare Charges- 15% for projected decline 

April 24, 2015 

104,160.28 

Direct Operating Expenses 

Pilot 

Per Fit Hr 

$ 100.00 

Annually 

$ 48,510.00 

61 '122.60 

19,404.00 

16,478.85 

Fuel 

Maintenance 

Reserves (Prop and Engine) 

Insurance 

Depreciation 

Aircraft Hull 

Passenger Liability 

Third Party Liability 

Indirect Operating Expenses 

Dispatch 

Legal I Accounting 

Capacity related 

Total Operating Expenses 

Net Operating Loss 

$ 126.00 $ 

$ 40.00 $ 

$ 33.97 $ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

30.62 $ 

14.81 $ 

7.40 $ 

74.22 $ 

32.55 $ 

13.91 $ 

41.60 $ 

515.08 $ 

$ 

Target profit margin (5% of operating expenses) $ 

Subsidy Requested $ 

Notes: 

14,853.76 

7,184.33 

3,589.74 

36,004.12 

15,790.01 

6,747.74 

20,180.16 

249,865.31 

(145,705.03) 

12,493.27 

158,198.29 

1) Flag stops are authorized; however, revenue generated from said stops will offset additional 

costs associated with these stops. This revenue I expense is not reflected above. 

2) All flights will be timed to ensure highest level of community satisfaction. 

Page 4 of 4