OffiCe of the Secretary 

of TronspQrtofion -' 

Mr. Marc Luiken 

Deputy Commissioner of Aviation 

Statewide Aviation 

Department of Transportation 

and Public FaCIlities 

4111 Aviation A vent1e 

P.O. Box 196900 

Anchorage, AK 99519-691J0 

Dear Commissioner Luiken: 

, I,: 

J 200 New Jersey Avenue, SE 

Washington, DC 20590 

June 18,2010 

As you know, Tatonduk Otltfitters,-Ud., d/b/a Everts Air Cargo (Everts), provides subsidized air 

service under the essential air service (EAS) program at Lake Minchumina under contract with 

the Department through October 31, 2010. The Depmtment's current contract with Everts calls 

for an annual subsidy of $42,560 to provide Lake Minchumina one nonstop round trip per week 

for 26 weeks with IFR-equipped Cessna 208 Caravan aircraft, and one nonstop round trip per 

weeK for 26 weeks with Piper PA-32 aircraft that are not so equipped. In anticipation of the end 

of that contract, by Order 2010-5~13 the Department requested "best and final" proposals to 

serve Lake Minchumina for a new, two-year period, and we received timely-filed proposals from 

Evert~, Warbelow's, and Wright Air Service, Inc. 

My purpose in writing is to inform you of each carrier's service and subsidy proposal and request 

your comment before we submit a recommendation on the carrier-selection issue to the Assistant 

Secretary for Aviation and International Affairs for decision. Copies of each carrier's full 

proposal may be accessed online through the Department's Dockets Management System at 

http://www.regulations.goy! by entering "DOT-OST 2008-0237" in the "enter Keyword or ID" 

field, so we will only summarize it here. 

Each of the carriers proposes nonstop service between Lake Minchumina and Fairbanks for a 

two-year period. The carriers' single-engine Cessna 208 Caravan turboprops and twin-engine 

piston Piper Navajo PA-31 aircraft would be IFR equipped; all of the other aircraft are singleengine piston aircraft not so equipped. 

Everts Everts proposes to provide, each week, for the same weekly subsidy, either one rollnd trip 

with a Cessna Caravan or, in the alternative, two rOllnd trips with a Piper PA-32 Lance, for an annual 

subsidy of $74,928 

Warbelow's 

Option 1 Warbelow's proposes 26 weeks of peak and off-peak service. For the off-peak period, 

Warbelow's would provide one round trip per week with a Cessna 206 aircraft, and during the 

peak period one rollnd trip per week with either a Cessna Caravan or Piper Navajo. Warbelow's 

requests $39,000 annual subsidy for this level of service. 
• - 2 -

.-

Option 2 

Warbelow's proposes ~ total of 78 annual round trips, 39 ,with a Cessna 206 and 39 with either a 

Cessna Caravan or Pip€r Navajo. Warbelow's requests $58,5OQ annual subsidy for this level of 

service. 

Option 3 

Warbelow's proposes two round trips per week with A Cessna 206 aircraft. Warbelow's requests 

$62,400 annual subsidy for this level of service. 

Option 4 

Warbelow's proposes one round trip per week with a Cessna Caravan aircraft. Warbelow's 

requests $46,800 annual subsidy for this level of service. 

Wright 

Option 1 

Wright proposes one round trip per week with either a Cessna Caravan or Piper Navajo. Wright 

requests $67,600 annual subsidy. 

Option 2 

Wright proposes to supplement the service in Option 1 with a Cessna 206 aircraft operating once 

a week. In other words, the community would receive a total of two round trips each week, one 

with IFR-equipped aircraft and one with single-engine piston aircraft. Wright request $93,080 

annual subsidy for this service. 

, 

Warbelow's states that it has used current passenger fares aqd cargo rates for its subsidy 

calculations; Wright did not include such calculations; and Tatonduk provided detailed fares in 

its subsidy c;:alculations: We note that all carriers have the discretion to charge fares they deem 

appropriate 

We know tbis matter is important to you and we will act as quickly as possible upon receipt of your 

letter. In order to expedite the case, please submit your comments by email to EAS@dot.gov and to 

Kevin.Adams@dot.gov, by July 1. [f you have any questions or do not wish to submit formal 

comments, please contact Kevin Adams at (202) 366-1047. 

Enclosures 

Sincerely, 

x: t?/ Dennis 

~~ J, De V an y 

, Chlef, Essential Air Service Division 

Office of Aviation Analy.sis 

cc: Everts. Warbelow's. Wright, Lake Minchumina Homeowners Association