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Makani Kai Helicopters - Magnum Helicopters - Ko Olina Helicopters - Makani Kai Air - 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 - Magnum Helicopters - Ko Olina Helicopters - Makani Kai Air - Hawaii Aviation Services

Schuman Aviation Company, Ltd

130 Iolana Place, Honolulu, HI 96819

808-834-5813 Fax 808-837-7867 

richard@MakaniKai.com

May 6, 2013

Susan L. Kurland

Assistant Secretary for

Aviation and International Affairs

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

Dear Ms. Kurland,

I am responding to the notice Issued by the Department of Transportation on the 25th of April, 

2013, related to providing Essential Air Service to Kamuela, Hawaii. 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 Kamuela, Hawaii. The proposed two year service 

profile and pricing details are:

Service Profile Details / Frequency Annual Subsidy

YEAR ONE

Honolulu, HI and Kamuela, HI Two (2), nonstop round trips

Between Honolulu International 

Airport (PHNL) and Kamuela Airport,

(PHMU) Monday through Saturday $998,950.00

YEAR TWO

Honolulu, HI to Kamuela, HI Two (2), nonstop round trips

Between Honolulu International 

Airport (PHNL) and Kamuela Airport,

(PHMU) Monday through Saturday $948,925.00
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Makani Kai Helicopters - Magnum Helicopters - Ko Olina Helicopters - Makani Kai Air - Hawaii Aviation Services

Proposal to Provide Essential Air Service at Kamuela (Continued)

For Revenue and Expense Details, See Appendix A. 

Background –

Kamuela is one of the most isolated communities on the island of Hawaii. Pacific Wings, currently 

the only scheduled commercial airline serving Kamuela for the past decade, did so under an EAS 

subsidy agreement until it canceled the agreement. The company provided subsidy-free service but 

evidently determined that such service was not profitable. Pacific Wings has petitioned the DOT to 

suspend its service to Kamuela in order to re-submit a proposal to provide EAS to Kamuela. They 

employed a similar tactic with the community of Kaluapapa on the island of Molokai.

In order to determine what the community of Kamuela wants and needs for air service, we 

interviewed residents and workers to find out what they are looking for in an air service provider. 

Along with the usual requirements of safety, reliability and timeliness, those we spoke with made 

it clear that they would like to be able to come to Honolulu direct from Kamuela for business or 

personal appointments and return to Kamuela the same day.

About Schuman Aviation Company Ltd –

Schuman Aviation Company Ltd. is a locally owned business that has operated 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.

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.

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

Oahu’s oldest, largest and most experienced helicopter tour company. In 25 the years since its 

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

or accident. The company employs two Eurocopter A-Stars, an MD500 and uses a Robinson R-44

for special jobs and photo charters. 

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

the prestigious Platinum Safety Award from the Helicopters Association International, and is a 

member of TOPS, The Tour Operators Program of Safety. The company received further 

recognition of its commitment to safety in 2012 when it became accredited by the International 

Standard for Business Aircraft Operations (IS-BAO), the first such aircraft operator in the country 

so distinguished. 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 for Hawaii Five-0.
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Makani Kai Helicopters - Magnum Helicopters - Ko Olina Helicopters - Makani Kai Air - Hawaii Aviation Services

Proposal to Provide Essential Air Service at Kamuela (Continued)

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, 172s 

and 208 Caravans, Piper Chieftains, Eurocopter A-Stars, MD500’s and Robinson helicopters, as 

well as Lycoming, Turbomeca, Allison, and Pratt & Whitney engines. All aircraft maintained 

under an FAA Repair Station Certificate are accountable to a higher level of maintenance tracking,

reliability and accountability.

In 2009, the company expanded its operations with the addition of two Piper Chieftains, two 

Cessna Grand Caravans, and established Makani Kai Air Charters. The Grand Caravans make 

regular scheduled flights to Kaluapapa, Molokai, carrying residents and physicians as well as 

tourists and others wishing to take the Father Damien Tour. Makani Kai Air Charters has built its 

reputation as a safe, reliable and accommodating air carrier sensitive to the needs of the Molokai 

community.

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 Charters proposes to provide scheduled air service to Kamuela using nine-seat 

Cessna 208B Grand Caravans, the same aircraft currently used by the incumbent carrier. The 

Caravan has proven to be an exceptionally reliable aircraft for Makani Kai and has enjoyed a 

99.9%+ reliability record in conducting our current EAS commitment to Kalaupapa on the island 

of Molokai.

As you may be aware, FAA regulations stipulate that a single-engine aircraft such as the Caravan 

must remain within gliding distance to shore whenever carrying passengers over water. 

Occasionally, weather will preclude climbing to such high altitudes and safely descend into 

Kamuela, which means possibly delaying or cancelling flights. Caravans must also submit to 

regular schedule maintenance that will take the aircraft out of service for a period of hours up to a 

few days. In either event, our back up plan to continue the reliable service is to launch into service 

one of our back up aircraft, the nine seat Piper Chieftain. Because the Piper is a twin-engine 

aircraft it has no such altitude restriction. We can fly below the weather on our way to service 

Kamuela thus increasing reliability and dependability. Having a backup aircraft available and a 

pilot on standby, every day, has made our Air Carrier reliability and dependability unmatched in 

the State of Hawaii. Just ask the residents of Kalaupapa.

Makani Kai’s convenient location at the Honolulu International Airport means Kamuela 

passengers will have easy access to the national transportation network and every large domestic 

FAA Part 121 air carrier.

Although it will be quick and easy to book reservations online through our website, we plan to 

fully staff a phone bank to handle reservation requests and answer questions. This is primarily to 

accommodate those Kamuela residents who lack Internet access. Our phones are answered by a 

live person 15 hours a day, seven days a week.
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Makani Kai Helicopters - Magnum Helicopters - Ko Olina Helicopters - Makani Kai Air - Hawaii Aviation Services

Proposal to Provide Essential Air Service at Kamuela (Continued)

Community Views –

We interviewed several Kamuela residents to determine what they are looking for in scheduled air 

service to the community. Besides the obvious plea for lower air fares and reliable service, there 

was consensus that the company chosen to provide EAS to Kamuela should be accommodating to 

the community’s specific needs, such as ensuring that the aircraft is accessible by disabled persons, 

that the flight schedule would allow transit to Honolulu and back to Kamuela the same day, and 

that the air carrier have a proven track record of safety and on-time service. It was also noted that 

the chosen carrier should be financially stable and able to provide air service for years to come.

In addressing that last concern, I’d like to point out that Schuman Aviation is a responsible 

corporate citizen, held in high regard within the Hawaii business community, and is recognized by 

Hawaii Business magazine for excellence in small business. The company is well run and 

financially strong.

Ease of Use –

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

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

• Allow lower fares because there are no gate fees

• Increase consistency in arrival and departure times

• Allow faster turn-around of aircraft and ease the loading and unloading of passengers

• Vastly improve the air transport experience by eliminating lines and security delays 

The comfortable and spacious air-conditioned passenger terminal offers other advantages:

• Plenty of free parking

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

• Clean, ADA-compliant rest rooms

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

Also, in recognition of the fact that there are persons in Kamuela who are not ambulatory, we are 

prepared to accommodate wheelchair-bound individuals with the Caravan. Several years ago, I 

made a commitment to disabled persons by fabricating an electric lift to transport wheelchairbound passengers into the helicopter. It was then and remains now my conviction that disabled 

persons should have every opportunity to enjoy what other visitors enjoy, if at all possible.

The lift provides easy and convenient access to our aerial tours and helps disabled persons

maintain dignity while getting into and out of the aircraft. 
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Makani Kai Helicopters - Magnum Helicopters - Ko Olina Helicopters - Makani Kai Air - Hawaii Aviation Services

Proposal to Provide Essential Air Service at Kamuela (Continued)

In Summary –

Makani Kai Air Charters is a home grown company, one deeply rooted in the community, one with 

Hawaii and its people in its heart. Here is a professional organization with accolades from 

countless customers over a quarter century of sterling service, with the solid endorsement of the 

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

not on the prospect of boosting the bottom line for stockholders, but rather from a genuine desire 

to provide good service to people who deserve such service. It is my personal belief that should we 

provide Kamuela with the same on time dependable service which we have been providing the 

residents of Kalaupapa, the ridership will increase with the hopes that the increase in passengers 

would be enough to someday go subsidy free without having to raise the prices to the ridiculous 

level Pacific Wings employed.

It is our fervent hope that the DOT takes a long look at the capabilities and commitment to 

unmatched levels of service offered by Makani Kai and make the right choice for a community in 

need. 

Sincerely,

G. Richard Schuman

President

Diane Schuman

CFO
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Makani Kai Helicopters - Magnum Helicopters - Ko Olina Helicopters - Makani Kai Air - Hawaii Aviation Services

APPENDEX A

Estimated Annual Revenue:

HNL – MUE - HNL $93,600.00 $150.00*per passenger one way

* plus FET Tax and Segment Fees. 

Total Revenue $93,600.00

Estimated Expenses:

Aircraft $180,000.00 – Aircraft Lease 

Insurance $76,000.00

Pilots $162,240.00

Fuel $269,568.00

Maintenance $187,250.00 – Parts and labor

Engine & Prop Reserve $149,800.00 – Set aside for engine and propeller overhauls

State Landing Fees $15,600.

Administration $85,000.00

Facilities & Utilities $55,000.000

Total Expenses $1,179,658.00

Operational Loss $(1,086,058.00)

Subsidy requested 1st year $998,950.00

Subsidy requested 2nd year $948,925.00

Estimated passengers 1st year 624

Departures 1248

Flight Hours 1498

Daily Flight Schedule: Monday thru Saturday

Depart Honolulu (HNL) 5:30am Arrive (Kamuela) 6:45am

Depart Kamuela (MUE) 7:05am Arrive Honolulu (HNL) 8:20am

Depart Honolulu (HNL) 4:00pm Arrive Kamuela (MUE) 5:15pm

Depart Kamuela (MUE) 5:30pm Arrive Honolulu (HNL) 6:45pm