# ERICKSf!j~NJune 4th

, 2014 

# zm JU~:!3 A II: 10 Kevin Schlemmer Albert Muldoon U.S. Department ofTransportation 1200New Jersey Avenue, S.E. Washington, D.C. 20590 Erickson's' Proposal to Provide Air Sen'ice to Little Diomede, Alaska:

Gentleman, Inresponse to the Department ofTransportation'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~onceper week: Nome (OME) to Diomede (DIO) to Wales (WAA) to Diomede (DIO) to Nome (OME). Erickson thanks you forthe opportunity to continue our service to the Little Diomede. Alaska community. Our combination ofsafe and reliable aircraft andextensive regional operational knowledge will ensure aquality air service that will meet Little Diomede's passenger transportation requirement most efficiently. Frequency and Schedule Erickson's proposal offers aunique routing structure that will serve to maximize value and create the most effective solution forpassenger and cargotransportation services forthe community of Little Diomede. Erickson will offer one scheduled routingtrip perweek:

Leg I: Fly Passengers/Cargo fromNome to Diomede ' Leg 2: Fly Passengers/Cargo fromDiomede to Wales (Refueling Stop) Leg 3: Fly Passengers/Cargo from Walesto Diomede Leg 4: Fly Passengers/Cargo from Diomede backtoNome. The above proposed air service routing will allow the most advantageous solution bymaximizing transportation to and from Little Diomede. giving passengers flightoptions 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 andNome currently provide.

OFFICE FAX 5035055800 // 5034738540 www.ericksonaviation.com ERICKSON AIR'CRANE INCORPORATED 5550 SW Macadam Avenue /1 Suite 200 Portland. Oregon 97239// USATo recap, Erickson's concept to support Little Diomede would be one schedul.edflight routing per

week. The flight routing proposed above would allowtransportation for 8passengers to Little Diomede and 8passengers from LittleDiomede to the respective locations above each week. Erickson would provide this service foraplanned 44weeks. Historically the ice runway is available for fixed-winged aircraft to landatLittle Diomede 8weeks ayear and during that time helicopter air service isnot required. Additional service maybe provided with theremaining subsidy funding. or if there are instances inwhich flight legs were cancelled due to weather. Safe and Reliable Twin Engine Aircraft Erickson's proposed service to Little Diomede will be provided usingthe BO-l OS, a four (4) passenger seat, twin engine helicopter. Atypical load out ofNome would be 4 passengers and approximately 450lbs ofbaggage/freight. The BO-I05 aircraft willprovide the safety that comes from atwin engine, and, as perthe requirements of 14eFR 135.183. the necessary specifications when flying over water inextremely coldenvironmental conditions and ithas proven to bethe optimal aircraft forthe austere conditions inthe Nome/Little Diomede region. Summary Erickson's proposed weekly service forthe routing listedabove requires a subsidy inthe amount of $377,520 per year. In order to execute the proposed airtransportation service forthe community of Little Diomede, Erickson respectfully requests this aforementioned subsidy. Inthe following pages, please findErickson's proposed routing solution, flight hours, fuel breakdown, and pricing information that necessitates agovernment subsidy.

Erickson provides the experience needed to meet and exceed expectations. Additionally, with our established infrastructure inNome andWales, we are uniquely positioned and extremely qualified in provo . ghigh quality and vitally important air serviceto Little Diomede, and should be strongly vored ~ receive asubsidy forthis service.

. Best R~ards,

.

avi J. e 1 ~s Manager Alaska Erickson Helicopters Page 2Erickson 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 ofthe above legs once aweek.

• Erickson requested subsidy pricing of $377,520 has fuel included inthe price. o Fuel is pegged the following rates per location: Nome is $7/Gallon; Wales is $15/Gallon. o Iffuel 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 ayear, 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.