OffiCeoftheSecretary ofTronspQrtofion -'

Mr. Marc Luiken Deputy CommissionerofAviation Statewide Aviation Department ofTransportation

and Public FaCIlities 4111 Aviation Avent1e P.O. Box 196900 Anchorage, AK 99519-691J0
DearCommissionerLuiken: , I,:
J200 NewJersey 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 currentcontract 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 PiperPA-32 aircraft that are not so equipped. In anticipation ofthe end ofthat contract, by Order**2010-5~13** the Departmentrequested "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 ofeach carrier's service and subsidy proposal and request your commentbefore we submit a recommendation on the carrier-selection issue to the Assistant Secretary for Aviation and International Affairs for decision. Copies ofeach 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 ofthe 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 PiperNavajo PA-31 aircraft would be IFR equipped; all ofthe 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 1Warbelow's proposes 26 weeks ofpeak 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 ofservice.

### • - 2

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## .- Option 2 Warbelow's proposes**~** 

### total of78 annual round trips, 39,with a Cessna 206 and 39 with either a Cessna CaravanorPip€rNavajo. 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 ofservice. Option4 Warbelow's proposes one round trip per week with a CessnaCaravan aircraft. Warbelow's requests $46,800 annual subsidy for this level ofservice. 

### Wright Option 1 

### Wright proposes one round trip perweek with either a CessnaCaravan or Piper Navajo. Wright requests $67,600 annual subsidy. Option 2 Wright proposes to supplement the service in Option 1with a Cessna 206 aircraft operating once a week. 

### In other words, the communitywould receive a total oftwo 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 passengerfares 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
Weknow tbis matter is important to you andwe will act as quickly as possible upon receipt ofyour letter. In 

### orderto expedite the case, please submit your comments by email to EAS@dot.gov and to Kevin.Adams@dot.gov, by July 1. [fyou have any questions ordo not wish to submit formal comments, please contact Kevin Adams at (202) 366-1047.

Enclosures Sincerely,

# ~~ x:t?/

### Dennis J, DeVany

, Chlef, Essential Air Service Division Office ofAviation Analy.sis

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