### To: United States ofAmerica Department ofTransportation Office ofthe 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 !'erviceairlr<1nsporlntion atAlitak, Amook Bay. l<itoi Bay, Moser 13ay. Olga Bay, Port Bailey, Port Williams, Seal Bay. Uganik. West Poinl: and Zachar BayAlaska. 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 quaI ified, conscientious, and well-eslablisheel in Alaskan avialion.
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 orthis stale. Primary orticcs arl· lm:ated at the Kodi:1k Stale Airport. and**S~-rvanl** 

### i\irhas**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 ofthe coastal region. Therefore. it is Scrvam Air's intent 10 

### bid this essential air service outlined above. Page 1 of4 

# ••

# -----------------------------

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 ofAlaska 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 TheExhihit "A",attached,is<1 limuJciaIspremlshcct:"howingthecaku1:11ions forScrv<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 ofany 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 orlhese cnmmtlllities. These f"inal schedules will he published in the Of"ficial 1\irlin(· Guide (0:\GJ. 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 of4Operation!' 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. 

### Compensation 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 beeligihk li:>r compensalion.

Page 3 of4

## 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

DepreciationAircraft Hull Passenger Liability Third Party Liability

Indirect Operating Expenses Dispatch 

### Legal IAccounting 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.

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