ERICKSf!j~NJune 4

th

, 2014

zm JU~:!3 A II: 10

Kevin Schlemmer

Albert Muldoon

U.S. Department of Transportation

1200 New Jersey Avenue, S.E.

Washington, D.C. 20590

Erickson's' Proposal to Provide Air Sen'ice to Little Diomede, Alaska:

Gentleman,

In response to the Department of Transportation's request, Erickson hereby submits this proposal to

provide air service to Little Diomede, Alaska. Erickson's proposal isto provide direct service 10

Little Diomede performing the following rout~ once per week: Nome (OME) to Diomede (DIO) to

Wales (WAA) to Diomede (DIO) to Nome (OME).

Erickson thanks you for the opportunity to continue our service to the Little Diomede. Alaska

community. Our combination of safe and reliable aircraft and extensive regional operational

knowledge will ensure a quality air service that will meet Little Diomede's passenger transportation

requirement most efficiently.

Frequency and Schedule

Erickson's proposal offers a unique routing structure that will serve to maximize value and create

the most effective solution for passenger and cargo transportation services for the community of

Little Diomede. Erickson will offer one scheduled routing trip per week:

Leg I: Fly Passengers/Cargo from Nome to Diomede '

Leg 2: Fly Passengers/Cargo from Diomede to Wales (Refueling Stop)

Leg 3: Fly Passengers/Cargo from Wales to Diomede

Leg 4: Fly Passengers/Cargo from Diomede back to Nome.

The above proposed air service routing will allow the most advantageous solution by maximizing

transportation to and from Little Diomede. giving passengers flight options into Wales and also into

Nome. Thus, Erickson's proposal doubles the space capacity for.passengers seeking air service from

Little Diomede to an airport with regional air service capability, which both Wales and Nome

currently provide.

OFFICE FAX

5035055800 // 5034738540

www.ericksonaviation.com

ERICKSON AIR'CRANE INCORPORATED

5550 SW Macadam Avenue /1 Suite 200

Portland. Oregon 97239// USA
To recap, Erickson's concept to support Little Diomede would be one schedul.ed flight routing per

week. The flight routing proposed above would allow transportation for 8 passengers to Little

Diomede and 8 passengers from Little Diomede to the respective locations above each week.

Erickson would provide this service for a planned 44 weeks. Historically the ice runway is available

for fixed-winged aircraft to land at Little Diomede 8 weeks a year and during that time helicopter air

service is not required. Additional service may be provided with the remaining subsidy funding. or if

there are instances in which flight legs were cancelled due to weather.

Safe and Reliable Twin Engine Aircraft

Erickson's proposed service to Little Diomede will be provided using the BO-l OS, a four (4)

passenger seat, twin engine helicopter. A typical load out of Nome would be 4 passengers and

approximately 450lbs of baggage/freight. The BO-I05 aircraft will provide the safety that comes

from a twin engine, and, as per the requirements of 14 eFR 135.183. the necessary specifications

when flying over water in extremely cold environmental conditions and it has proven to be the

optimal aircraft for the austere conditions in the Nome/Little Diomede region.

Summary

Erickson's proposed weekly service for the routing listed above requires a subsidy in the amount of

$377,520 per year. In order to execute the proposed air transportation service for the community of

Little Diomede, Erickson respectfully requests this aforementioned subsidy. In the following pages,

please find Erickson's proposed routing solution, flight hours, fuel breakdown, and pricing

information that necessitates a government subsidy.

Erickson provides the experience needed to meet and exceed expectations. Additionally, with our

established infrastructure in Nome and Wales, we are uniquely positioned and extremely qualified in

provo . g high quality and vitally important air service to Little Diomede, and should be strongly

vored ~ receive a subsidy for this service. .

Best R~ards, .

avi J. e 1

~s Manager Alaska

Erickson Helicopters

Page 2
Erickson

Proposal to Provide Air Service to Little Diomede, Alaska

The below information is pertinent to providing Air Service to Little Diomede and includes flight time,

flights per year, fuel requirements, fuel pricing pegged rates for each location that requires fueling, flight

routing, assumptions and subsidy requirements.

The Below information is Erickson's proposed weekly scheduled air service based on the following flight

routing:

Leg 1:Fly Passengers/Cargo from Nome to Diomede.

Leg 2: Fly Passengers/Cargo from Diomede to Wales (Refueling Stop).

Leg 3: Fly Passengers/Cargo from Wales to Diomede.

Leg 4: Fly Passengers/Cargo from Diomede back to Nome.

Erickson's Proposed Air Service Information:

Page S

Flights Per Week:

Weeks. of Service per Year:

Total Flight Time for Routing:

Price per Hour (8):

Total Fuel Required Per Routing:

Fuel Required at Nome (Departure):

Nome Fuel Pricing (pegged):

Fuel Required at Wales (Return):

Wales Fuel Pricing (pegged):

Yearly Total Subsidy Requested:

Flight Price for Complete Routing:

Hourly Rate Including Fuel:

1 Flight Routing per week, 4 flight legs

44 Weeks

2.5 Hours

$2,900

150 Gallons

lIS Gallons

$7.00/Gallon

35 Gallons

$15.00/Gallon

$377,520Near

$8,850/Flight Routing

$3,432

Erickson's Assumptions:

• Erickson offers passenger and/or cargo air service on each of the above legs once a week.

• Erickson requested subsidy pricing of $377,520 has fuel included in the price.

o Fuel is pegged the following rates per location: Nome is $7/Gallon; Wales is $15/Gallon.

o If fuel price increases beyond pegged pricing per gallon at the above locations, Erickson

reserves the right to ask for economic price adjustment.

• Erickson's proposal is for 44 weeks of flying a year, due to the ice runway in place for an average

of 8 weeks per year.

• Erickson shall be paid the full amount listed for completed flight routes or flight hours.