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Makani Kai Helicopters – Makani Kai Air Charters – Ko Olina Helicopters – Pacific Air Express – Hawaii Aviation 

Services

 Schuman Aviation Company Ltd dba

 Air Carrier Certificate MKHA108K

 

130 Iolana Place

Honolulu Hawaii 96819

808-834-5813

Email richard@makanikai.com
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Makani Kai Helicopters – Makani Kai Air Charters – Ko Olina Helicopters – Pacific Air Express – Hawaii Aviation 

Services

Schuman Aviation Company, Ltd

130 Iolana Place, Honolulu, HI 96819

808-834-5813 Fax 808-837-7867 

richard@MakaniKai.com

October 30. 2013

Scott Faulk

Transportation Industry Analyst

U.S. Department of Transportation

Office of Aviation Analysis

1200 New Jersey Ave., SE

Washington, DC 20590

RE: Proposal to Provide Essential Air Service at Kalaupapa, Hawaii 

(Docket DOT-OST-2000-6773)

Dear Mr. Faulk,

In response to the above-referenced orders, Schuman Aviation Company Ltd, dba Makani Kai Air 

Charters (FAA Air Carrier Certificate MKHA108K), respectfully submits its bid for provision of 

Essential Air Service at Kalaupapa, Hawaii. The proposal is for a two year and four year service 

agreements. This proposal is for 12 nonstop round trips between Honolulu and Kalaupapa and 18 

nonstop round trips between Kalaupapa and Molokai Airport, servicing the community seven 

days a week. The profile and pricing details are as follows:

Two Year Proposal

Service Profile Details / Frequency Annual Subsidy

YEAR ONE

Honolulu, HI to Kalaupapa, HI See Appendex B

Kalaupapa, HI to Molokai, HI See Appendex B $787,386.00

YEAR TWO

Honolulu, HI to Kalaupapa, HI See Appendex B

Kalaupapa, HI to Molokai, HI See Appendex B $771,232.00
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Proposal to Provide Essential Air Service at Kalaupapa (Continued)

Four Year Proposal

Service Profile Details / Frequency Annual Subsidy

YEAR ONE

Honolulu, HI & Kalaupapa, HI See Appendix B

Kalaupapa, HI & Molokai, HI See Appendix B $751,040.00

YEAR TWO

Honolulu, HI & Kalaupapa, HI See Appendix B

Kalaupapa, HI & Molokai, HI See Appendix B $730,848.00

YEAR THREE

Honolulu, HI & Kalaupapa, HI See Appendix B

Kalaupapa, HI & Molokai, HI See Appendix B $710,656.00

YEAR FOUR

Honolulu, HI & Kalaupapa, HI See Appendix B

Kalaupapa, HI & Molokai, HI See Appendix B $690,463.00

For Revenue and Expense Details, See Appendix A. 
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Proposal to Provide Essential Air Service at Kalaupapa (Continued)

Background –

As has been pointed out previously, Kalaupapa is one of the most isolated communities in the 

country. There is no road access to the area: the Kalaupapa peninsula sits at the bottom of 2,000-

foot vertical cliffs. To get to Kalaupapa, one can hike down the cliff trail, ride a mule, or fly. 

Peninsula residents today rely on an annual barge to deliver food, equipment and fuel.

EAS support is essential for the livelihood and daily survival for patients and residents of isolated 

communities. Since receiving the EAS contract in 2011, Makani Kai Air has continuously 

interviewed residents, workers and daily passengers to determine what we can do to improve our 

service. The answers, not surprisingly, are much the same as they were when we polled people in 

2011: along with the usual requirements of safety, reliability and timeliness, those we spoke with 

reiterated their desire for a convenient flight schedule to facilitate being able to come to Honolulu 

for medical appointments and return to Kalaupapa the same day. If selected to continue the EAS to 

Kalaupapa, our daily schedule will remain as it is today as it appears to be serving the community 

well.

In fact, Makani Kai Air has enjoyed a great deal of support from the community. Our fares have 

given Kalaupapa residents the freedom to once again travel to and from the settlement for medical 

appointments, shopping excursions and visits with family and friends. Enplanement records 

indicate that the total number of Kalaupapa residents flying into and out of the community 

increased by a significant margin after Makani Kai Air began service to the area. This trend is all 

the more impressive when you consider that many of the trips taken prior to the EAS were 

done so by State and Federal workers upon whom the ticket price had no bearing. 

Being part of the lifeline of a community and being able to service the community of Kaluapapa 

has been an honor. The patients of Kaluapapa endureed many generations of hardship since being 

banished to that peninsula. For Makani Kai Air, the EAS contact means more than simply moving 

people to and from the peninsula: we are part and parcel of the community, a responsible and 

caring organization that prides itself on being reliable, on time and serving with heart. 

If awarded a subsequent EAS contract, we will not raise fares to the residents of Kaluapapa from 

our current price.

About Schuman Aviation Company Ltd –

Schuman Aviation Company Ltd. is the only locally owned business and operated Air Carrier in 

the State of Hawaii. We have owned Makani Kai Helicopters since 1996. The Schuman name is 

well known in Hawaii: Gustav A. Schuman, my great grandfather, immigrated to Hawaii from 

Germany in 1893 and established one of Hawaii’s first automobile dealerships. Schuman Carriage 

Company Ltd, which eventually carried the Cadillac, GMC, Hummer and Subaru brands, was in 

business for over a century.
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Proposal to Provide Essential Air Service at Kalaupapa (Continued)

In 1996, I established Schuman Aviation Company Ltd. to provide, “the best customer service of 

any aviation company in Hawaii, bar none.” My local upbringing has given me a firm 

understanding and appreciation of the culture of the people of Hawaii. My family’s relationships 

with members of the Molokai community in some cases go back generations. My grandmother was 

raised on the island of Molokai.

Makani Kai Helicopters, established in 1988 and based at the Honolulu International Airport, is 

Oahu’s oldest, largest and most experienced helicopter tour company. In the quarter century since, 

the company has provided aerial tours for over 14,000 persons annually without incident or 

accident. The company owns two Eurocopter A-Stars, one MD-500, and two Piper Chieftains. The 

company leases two Cessna Grand Caravans.

Makani Kai Helicopters is the recipient of the FAA’s Diamond Award for maintenance excellence 

as well as the prestigious Platinum Safety Award from the Helicopters Association International. 

Schuman Aviation Company is the only company of its kind in the U.S. to have been awarded ISBAO certification. IS-BAO is a code of best practices designed to help flight departments 

worldwide achieve the highest level of safety and professionalism. IS-BAO safety certification is 

awarded to flight departments that have successfully met the rigorous IS-BAO standards as 

verified by an accredited IS-BAO auditor. More topically, Makani Kai Helicopters provides the 

helicopters and piloting services for the CBS show, Hawaii Five-0.

Schuman Aviation Company Ltd., dba Hawaii Aviation Services, is an FAA Part 141 Repair 

Station (Certificate # MKHR108K) and is authorized by the FAA to perform work on Cessna 150s 

to 172s and the Caravans, Piper Chieftains, Eurocopter A-Stars, MD helicopters as well as 

Lycoming, Turbomeca and Pratt & Whitney engines. All aircraft maintained under an FAA Repair 

Station Certificate must adhere to a higher level of maintenance tracking, reliability and 

accountability. Makani Kai Air has a reputation as a safe, reliable and accommodating air carrier, 

sensitive to the needs of the communities it serves.

In 2010, Schuman Aviation Company Ltd. was granted Initial FAA Part 135 Scheduled Commuter 

status by the Department of Transportation.

Reliability & Dependability –

Makani Kai Air currently provides the Kalaupapa and Molokai communities with unprecedented 

convenience, flight availability and reliability. In providing EAS service to Kalaupapa, we have 

had not one cancellation for aircraft mechanical issues. In two years’ of service, the longest delay 

for a flight was 45 minutes, and there were just three days when flights had to be rescheduled due 

to inclement weather.

The chief reason for our enviable record is the availability of a back-up aircraft. If ever a 

maintenance issue should arise, we can always press into service our twin-engine Piper Chieftain. 

The back-up aircraft has another useful role: occasionally, inclement weather prohibits our Cessna
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Proposal to Provide Essential Air Service at Kalaupapa (Continued)

from making the flight. Regulations require single-engine aircraft to remain within gliding distance 

to shore. This means that our Cessna Caravans must climb to 7,500 feet over the channel, an 

altitude that sometimes is obscured by clouds. Our Chieftain can safely and legally fly beneath the 

weather and still make the trip. The Chieftain and crew are on call 24/7, so there is always an 

alternative available. With the FAA Commuter Authorized Piper Chieftain on hand, we can service 

the community of Kalaupapa with an exceptional degree of reliability.

Makani Kai Air Charters proposes to continue providing scheduled services to Kalaupapa using 

the same nine-seat Cessna 208B Grand Caravans as the regular aircraft that we have used thus far. 

Reservations and booking Arrangements –

. 

Although it is quick and easy to book reservations online at our website, MakaniKaiAir.com, we 

have staff on hand to handle phone reservation requests and answer questions. This is to 

accommodate the large percentage of Kalaupapa residents without Internet access. Our phones are 

answered by a real live person 24 hours a day, seven days a week, and usually on the first ring. No 

automated tellers, no distractions or diversions.

Unlike any other EAS destination in the country, Kalaupapa does not allow free access, and 

requires persons wishing to visit to first gain sponsorship or to register for the Damien Tour. The 

State of Hawaii Department of Health also restricts persons from under the age of 16 from visiting 

the settlement. No person can come to Kalaupapa without first gaining a sponsor. Therefore it has 

become our responsibility to vet would-be passengers prior to permitting them a ticket to fly to the 

peninsula. This passenger screening is conducted without charge; it’s just another service we 

provide to protect the community from unauthorized visitors.

Each resident of Kalaupapa has a personal account with Makani Kai Air, allowing them to email or 

call in reservations at any time that is convenient. 

Flight Schedule

Makani Kai Air’s current flight schedule was developed by the residents of Kalaupapa. This 

followed a period of gathering comments in community meetings and took into account all parties 

residing in Kalaupapa, including State of Hawaii workers and Federal Department of National 

Parks employees. 

Makani Kai Air adjusted its fight schedule to better accommodate Kalaupapa’s annual barge day. 

Additional flights were added to bring in personal to load and unload the barge. And our return 

schedule was likewise modified in order to meet the needs workers when they had completed their

tasks.

Flight schedules also are changed when requested to meet the needs of the community for 

occasional celebrations or special gatherings. We feel that it is a matter of understanding and 

appreciating the situation and using common sense to support a small, isolated community.
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Proposal to Provide Essential Air Service at Kalaupapa (Continued)

Ease of Use –

Makani Kai Air Charters brings travelers ease and convenience: our million-dollar passenger 

terminal in Honolulu obviates the need for TSA security screening. This: 

• Allows lower fares because there are no gate fees

• Increased on-time performance in arrival and departure times

• Allows faster turn-around of aircraft and easier loading and unloading of passengers

• Vastly improves the experience by eliminating lines and security delays

In addition, we offer benefits to Kaluapapa travelers unavailable from conventional air carriers. 

These benefits include:

• Free overnight parking

• Free shuttle service in and around the airport area, downtown and Waikiki

• No bags fees

• No overweight bag fees

• No fees for pets

• No restrictions on individual body weight*

• No rescheduling fees

• No cancellation fees

• No charge to transport unaccompanied packages to and from Kalaupapa

• Clean rest rooms fully ADA compliant. Air-conditioned waiting area.

Passengers simply arrive 15 to 20 minutes in advance of departure, board the aircraft and fly. 

Also, because there are non-ambulatory residents at Kalaupapa, we engineered the ability to 

transport wheelchair-bound passengers. We have the equipment at Kalaupapa and in Honolulu to 

assist passengers into and out of the aircraft, safely and with dignity. This is an important 

distinction as some competitors simply do not accept wheelchair bound individuals.

* An important consideration for at least two of Kalaupapa’s patients who weigh in excess of 300 

pounds and thus may be restricted from flying with our other competitors.
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Proposal to Provide Essential Air Service at Kalaupapa (Continued)

In Summary –

Makani Kai Air Charters is a home grown company, one with deep roots in the community, one 

with Hawaii and its people in its heart. We are a professional organization with accolades from 

countless customers over two decades of sterling service, with the solid endorsement of the FAA 

and the communities of Molokai and Kalaupapa. We submit this proposal respectfully and based 

upon a genuine desire to provide good service to people who deserve such service.

It is our fervent hope that the DOT makes the right choice once again for the people and the 

community of Kalaupapa. 

Sincerely,

G. Richard Schuman

President
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APPENDEX A

Estimated Annual Revenue: Kaluapapa Resident Prices

Between HNL & LUP $90,480 $ 72.50* Kaluapapa residents price for term of contract 

Between MKK & LUP $79,560 $ 42.50* Kaluapapa residents price for term of contract

* plus FET Tax and Segment Fees.

Total Revenue $170,040

Averaged Estimated Expenses over the course of the contract:

Aircraft $180,000.00

Insurance $96,000.00 

Pilots $162,240.00

Fuel $228,150.00

Maintenance $117,000.00

Engine & Prop Reserve $97,500.00

State Landing Fees $15,974.40

Administration $85,000.00

Total Expenses $981,864.40

Operational Loss $(811,824.00)

Departures per year: 2616

Flight Hours per year: 936

TWO YEAR SERVICE PLAN

Subsidy requested 1st year $787,386.60

Estimated passengers 2800

Subsidy requested 2nd year $771,232.80

Estimated passengers 3000

FOUR YEAR SERVICE PLAN

Subsidy requested 1st year $751,040.00

Estimated passengers 2800

Subsidy requested 2nd year $730,848.00

Estimated passengers 3000

Subsidy requested 3rd year $710,656.00

Estimated passengers 3200

Subsidy requested 4th year $690,463.00

Estimated passengers 3400
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APPENDIX B