### Order 2011

-4

-23 Served: April 27, 2011 

### UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 27th 

### of April, 2011 Essential Air Service at ALITAK, AMOOK BAY, KITOI BAY, MOSER BAY, OLGA BAY, PORT BAILEY, PORT WILLIAMS, SEAL BAY, UGANIG, WEST POINT, ZACHAR BAY, ALASKA Under 49 U.S.C. 41731 et seq

. DOCKET DOT
-OST
-2000
-6945

ORDER REQUESTING PROPOSALS Summary By this order, the Department is requesting proposals by June 1 , 201 1 , from carriers interested in providing essential air service (EAS) at these eleven Kodiak, Alaska, communities for a new two

-year period, beginning June 1, 2011 , with or without subsidy

. Background By Order 2009

-4

-23 , April 28 , 2009, the Department selected Redemption, Inc., d/b/a Island Air Service, (Island Air) to provide subsidized EAS at these eleven communities, through October 31 , 201 1

. Under that order, the Department authorized subsidy for Island Air, as follows:

Community Peak Flights per Week Off

-Peak Flights Per Week Total IntermediateStops

Allowed on Each Round Trip 1 Alitak 3 1 2 Moser Bay 3 1 2 Olga Bay 3 1 2 Amook Bay 2 1 2 Kitoi Bay 2 1 2 Port Bailey 2, 1 2 Port Williams 2 1 2 Seal Bay 2 1 2 Uganik 2 1 2 West Point 2 1 2 Zachar Bay 2 1 2 

### All of the service was to be provided with 6

-seat DHC

-2 (Beaver) aircraft for a total annual subsidy of $146,061

.

1 For example, for a round trip routed Kodiak

-Olga Bay

-Moser Bay

-Alitak

-Kodiak, Moser Bay has one intermediate stop in each direction, but a total of two for each round trip.

### -2

-

Request for Proposals As the end of the current rate term approaches, we are hereby requesting proposals from carriers interested in providing service at the Kodiak 11 , with or without subsidy, for the two

year period beginning November 1, 2011 . Carriers should file their proposals by June 1

. Staff will then docket the proposals, thereby making them public. Shortly afterwards, we will provide a summary

of the proposals to the communities and State and ask them to submit their final comments. We will give full consideration to all proposals filed in a timely manner. 2 

### Interested carriers should prepare their proposals with every expectation that their initial proposals will also be theirfinal and only proposals. We retain the discretion to negotiate proposals with carriers when we deem it desirable. We also retain the discretion to reject outright all unreasonable or unrealistic proposals and, if necessary, solicit a new round of proposals. However, we anticipate that negotiation or rejection will remain only occasional exceptions to the rule. We are here providing interested carriers with some basic information to serve as guidance when they

prepare their proposals, but we will not prescribe a precise format for their proposals. We expect proposals to adequately describe the service being proposed and the annual amount of subsidy being requested. The applicants can make their own judgments as to the level of detail they wish to present; however, they might want to include proposed schedules as well as supporting data for their subsidy requests, such as projected block hours, revenues, and expenses . We strongly encourage clear, well

documented proposals that will facilitate their evaluation by the affected communities and the Department. We do not anticipate any change in our selection criteria, or in the general provisions governing subsidy pay ments for essential air service. 3 

### With specific respect to the Kodiak 11 , we expect proposals consisting of service consistent with the historical service pattern, outlined in the table above. However, because of decreasing traffic, we request proposals having two round trips a week in the 18

-week peak period at Alitak, Moser Bay, and Olga Bay, in lieu of the three round trips a week currently

provided. We note, too, that Moser Bay and Olga Bay generated no passengers, freight, or mail in the first quarters of 2010 and 2011, so we expect proposals offering no service at those communities in the first quarters of 2012 and 2013. If there is traffic during those time periods, we would anticipate that the carrier could drop down on those few occasions at those communities on a flagstop basis

.

2 Carriers should not expect the Department to accept late filings. In cases where a carrier proposes to provide essential air service without subsidy and we determine that service can be reliably provided without such compensation, we do not proceed with the carrier

-selection case. Instead, we simply rely on that carrier’s subsidy

-free service as proposed. 3In selecting a carrier to provide subsidized essential air service in Alaska, 49 U.S.C. 41733(c) (1) directs us to consider f

ive factors. (1) service reliability; (2) contractual and marketing arrangements with a larger carrier at the hub; (3) interline arrangements with a larger carrier at the hub; (4) community views; and (5) experience of the applicant in providing, in Alaska, scheduled air service or significant non

-scheduled air service. In addition, The Consolidated Appropriations Act, 2008, Public Law 110

- 161 , provides that when selecting a carrier to provide EAS, the Department may consider the relative subsidy requirements, thus codifying a factor that we have considered since the inception of the program. Interested carriers should also be aware that our general provisions governing essential air service will be included in the selection order as part of our authorization of subsidy for the selected service. Appendix C of this order contains those general provisions.

### -3

-

We encourage proposals that meet the communities ’ requirements in an efficient manner. Carriers are also welcome to propose more than one service option, if they choose; they need not limit themselves to the requested service pattern if they envision other, potentially more attractive service possibilities

– different hubs, or longer terms for the contracted service

– with subsidy requirements that remain competitive. We encourage carriers to work with the communities in advance of the due date for proposals when proposals can still be adjusted so that they can craft them to best meet the communities ’ needs. In addition, carriers should be very clear as to whether a specific community’s proposal may be considered on a stand

-alone basis, or whether it should be considered as part of a larger, inseparable package with another community. As always, we will fully

consider the communities ’ views before making a long

-term carrier

selection decision. New Filing Procedures Carrier proposals should be submitted to the Department with all materials merged into a single document. In addition, because the document will be published on Regulations.gov, each page should be formatted to be viewed online.
Historical Traffic In order to assist carriers in making their traffic and revenue projections, we have included historical traffic for the communities in Appendix B

. Other Carrier Requirements The Department is responsible for implementing various Federal statutes governing lobbying activities, drug

-free workplaces, and nondiscrimination. 4 

### Consequently, all carriers receiving Federal subsidy to support essential air service must certify that they are in compliance with Department regulations regarding drug

-free workplaces and nondiscrimination, and those carriers whose subsidies exceed $100,000 over the life of the rate term must also certify that they are in compliance with the regulations governing lobbying activities. Because the Department is prohibited from paying subsidy to carriers that do not submit these documents, the selected carrier will be required to submit them in order to receive subsidy

. Interested carriers requiring more detailed information regarding these requirements, as well as copies of the certifications, should contact the Office of Aviation Analysis at (202) 366

-5903 . The Department is prohibited from paying subsidy to carriers that do not submit these documents. Community Comments Civic officials and the State are welcome to submit comments on the proposals at any time. As noted earlier, we will provide a summary of the proposals to the civic parties and ask them to submit their final comments shortly after June 1 , the due date for carrier proposals. This order is issued under authority delegated in 49 CFR 1.56a(f) and re

-delegated to the Director, Office of Aviation Analysis.

4 The certifications are available on the web at http://ostpxweb.dot.gov/aviation/index.html.

### -4

-

ACCORDINGLY, 1. The Department requests proposals from carriers interested in providing essential air service at Alitak, Amook Bay, Kitoi Bay, Moser Bay, Olga Bay, Port Bailey, Port Williams, Seal Bay, West Point, Uganik, and Zachar Bay (Kodiak 11 ), Alaska

. Carriers should submit their proposals, with subsidy if necessary, by June 1 , 201 1

. Proposals should be emailed to EAS@dot.gov, with the title “Proposal to Provide Essential Air Service at Alitak, Amook Bay, Kitoi Bay, Moser Bay, Olga Bay, Port Bailey, Port Williams, Seal Bay, West Point, Uganik, and Zachar Bay (Kodiak 11), Alaska, Docket DOT

-OST

-2000

-6945

. ” Questions regarding filings may be directed to Kevin Adams at 202

-366

- 1047 or Kevin.Adams@dot.gov; 2

. These Dockets will remain open until further order of the Department; and
3 . We will serve this order on the service list for this Docket. Persons entitled to petition the Department for review of this order under the Department’s Regulations, 14 CFR 385.50, must file such petitions within ten (10) days after the date of service of this order. This order will be effective immediately, and the filing of a petition for review shall not preclude its effectiveness. By:

TODD M. HOMAN Director Office of Aviation Analysis (SEAL)
An electronic version of this document is available on the World Wide Web at http://www.regulations.gov

### Appendix A

Nonstop, Great Circle Mileages to Kodiak (ADQ) Kodiak Island ALZ, Alitak, 89 KMY, Moser Bay, 80 KOY, Olga Bay, 77 AOS, Amook Bay, 54 KZB, Zachar Bay, 49 KWP, West Point, 39 UGI, Uganik, 31 KPY, Port Bailey, 24 Afognak Island (Northeast of Kodiak Island) KPR, Port Williams, 47 SYB, Seal Bay, 44 KKB, Kitoi Bay, 31

This map is provided by Sabre® AirVisionTM Profit Essentials and is being used with express permission of the copyright holder, Sabre Airline Solutions®.Appendix B Page 1 of 6 Scheduled Traffic at the Kodiak 11, T-100 Market Report Enplaned Passenger Deplaned Passenger O&D Passenger Equivalents, PEQs Equivalents, PEQs Equivalents, PEQs Pax. Frt. Mail ∑PEQs Pax. Frt. Mail ∑PEQs Pax. Frt. Mail ∑PEQs By Qtr. Alitak, ALZ 2008-2 32 3.6 1.5 37.1 22 9.7 15.6 47.4 54 13.3 17.1 84.5 2008-3 95 0.0 5.5 100.5 16 9.8 12.8 38.6 111 9.8 18.3 139.1 2008-4 10 0.0 0.8 10.8 2 4.3 1.1 7.4 12 4.3 1.9 18.2 2009-1 4 0.0 0.5 4.5 3 0.0 0.1 3.1 7 0.0 0.6 7.6 Annual 141 3.6 8.3 152.9 43 23.8 29.6 96.5 184 27.4 37.9 249.4
2009-2 25 0.0 1.1 26.1 32 9.8 16.2 58.0 57 9.8 17.3 84.1 2009-3 90 0.0 3.8 93.8 12 7.7 13.8 33.5 102 7.7 17.6 127.3 2009-4 5 0.0 0.7 5.7 2 0.8 0.7 3.5 7 0.8 1.4 9.2 2010-1 2 0.0 0.0 2.0 5 3.2 1.5 9.7 7 3.2 1.5 11.7 Annual 122 0.0 5.6 127.6 51 21.5 32.2 104.7 173 21.5 37.8 232.3
2010-2 26 0.1 7.5 33.6 28 9.4 14.1 51.5 54 9.5 21.6 85.1 2010-3 55 0.2 13.9 69.1 17 6.4 8.6 31.9 72 6.6 22.5 101.0 2010-4 1 0.0 0.1 1.1 1 0.5 0.4 2.0 2 0.5 0.5 3.1 2011-1 2 0.0 0.0 2.1 0 2.3 1.2 3.5 2 2.3 1.2 5.6 Annual 84 0.3 21.5 105.9 46 18.6 24.3 88.9 130 18.9 45.8 194.8

By Qtr. Amook Bay, AOS 2008-2 7 0.0 0.2 7.2 3 3.3 1.0 7.2 10 3.3 1.2 14.4 2008-3 8 0.0 0.1 8.1 6 2.1 0.5 8.6 14 2.1 0.6 16.7 2008-4 2 0.0 0.0 2.0 0 1.6 1.0 2.6 2 1.6 1.0 4.6 2009-1 0 1.0 1.6 2.5 0 1.0 1.6 2.5 Annual 17 0.0 0.3 17.3 9 8.0 4.1 20.9 26 8.0 4.4 38.2
2009-2 2 0.0 0.0 2.0 2 4.0 1.3 7.3 4 4.0 1.3 9.3 2009-3 15 0.0 0.1 15.1 7 0.0 0.2 7.2 22 0.0 0.3 22.3 2009-4 0 0.0 0.0 0.0 1 2.5 0.1 3.7 1 2.5 0.1 3.7 2010-1 2 0.0 0.0 2.0 2 0.3 0.1 2.3 4 0.3 0.1 4.3 Annual 19 0.0 0.1 19.1 12 6.8 1.7 20.5 31 6.8 1.8 39.6
2010-2 7 0.0 0.1 7.1 6 0.9 0.7 7.6 13 0.9 0.8 14.7 2010-3 7 0.0 0.0 7.0 13 5.0 0.9 18.9 20 5.0 0.9 25.9 2010-4 1 0.0 0.0 1.0 0 0.7 0.2 1.0 1 0.7 0.2 2.0 2011-1 0 0.2 1.5 1.8 0 0.2 1.5 1.8 Annual 15 0.0 0.1 15.1 19 6.8 3.3 29.3 34 6.8 3.4 44.4

Note: Passenger Equivalents (PEQs). 200 pounds of mail or freight is one (1) PEQ.Appendix B Page 2 of 6 Scheduled Traffic at the Kodiak 11, T-100 Market Report Enplaned Passenger Deplaned Passenger O&D Passenger Equivalents, PEQs Equivalents, PEQs Equivalents, PEQs Pax. Frt. Mail ∑PEQs Pax. Frt. Mail ∑PEQs Pax. Frt. Mail ∑PEQs By Qtr. Kitoi Bay, KKB 2008-2 4 0.0 0.8 4.8 14 2.4 8.0 24.4 18 2.4 8.8 29.2 2008-3 5 0.0 0.4 5.4 26 1.3 8.9 36.2 31 1.3 9.3 41.6 2008-4 8 0.0 0.0 8.0 1 0.0 3.0 4.0 9 0.0 3.0 12.0 2009-1 1 0.0 0.0 1.0 1 0.1 6.9 8.0 2 0.1 6.9 9.0 Annual 18 0.0 1.2 19.2 42 3.8 26.8 72.6 60 3.8 28.0 91.8
2009-2 2 0.0 0.4 2.4 13 0.4 5.5 18.8 15 0.4 5.9 21.2 2009-3 4 0.0 2.1 6.1 39 2.3 6.4 47.7 43 2.3 8.5 53.8 2009-4 2 0.0 0.1 2.1 7 0.2 1.6 8.8 9 0.2 1.7 10.9 2010-1 3 0.0 0.0 3.0 4 0.4 2.9 7.3 7 0.4 2.9 10.3 Annual 11 0.0 2.6 13.6 63 3.3 16.4 82.6 74 3.3 19.0 96.2
2010-2 0 0.0 0.4 0.4 13 1.0 7.1 21.0 13 1.0 7.5 21.4 2010-3 16 0.4 2.3 18.8 54 0.2 4.4 58.6 70 0.6 6.7 77.4 2010-4 9 0.0 0.0 9.0 8 0.1 7.1 15.2 17 0.1 7.1 24.2 2011-1 5 0.8 4.9 10.7 5 0.8 4.9 10.7 Annual 25 0.4 2.7 28.2 80 2.1 23.5 105.5 105 2.5 26.2 133.7

By Qtr. Moser Bay, KMY 2008-2 3 0.0 0.1 3.1 2 0.2 1.0 3.1 5 0.2 1.1 6.2 2008-3 2 0.0 0.1 2.1 2 0.4 1.4 3.8 4 0.4 1.5 5.9 2008-4 0 0.0 0.0 0.0 2009-1 3 0.0 0.0 3.0 3 0.0 0.0 3.0 Annual 5 0.0 0.2 5.2 7 0.6 2.4 9.9 12 0.6 2.6 15.1
2009-2 0 0.0 0.0 0.0 7 0.1 1.6 8.7 7 0.1 1.6 8.7 2009-3 6 0.0 0.2 6.2 1 0.2 1.7 2.9 7 0.2 1.9 9.1 2009-4 4 0.0 1.1 5.1 0 0.0 0.1 0.1 4 0.0 1.2 5.2 2010-1 0 0.0 0.0 0.0 Annual 10 0.0 1.3 11.3 8 0.3 3.4 11.7 18 0.3 4.7 23.0
2010-2 2 0.0 0.1 2.1 16 2.2 5.1 23.3 18 2.2 5.2 25.4 2010-3 10 0.2 0.1 10.2 11 0.9 0.9 12.8 21 1.1 1.0 23.0 2010-4 4 0.0 1.4 5.4 4 0.1 0.1 4.2 8 0.1 1.5 9.6 2011-1 0 0.0 0.1 0.1 0 0.0 0.1 0.1 Annual 16 0.2 1.6 17.7 31 3.2 6.2 40.4 47 3.4 7.8 58.1

Note: Passenger Equivalents (PEQs). 200 pounds of mail or freight is one (1) PEQ.Appendix B Page 3 of 6 Scheduled Traffic at the Kodiak 11, T-100 Market Report Enplaned Passenger Deplaned Passenger O&D Passenger Equivalents, PEQs Equivalents, PEQs Equivalents, PEQs Pax. Frt. Mail ∑PEQs Pax. Frt. Mail ∑PEQs Pax. Frt. Mail ∑PEQs By Qtr. Olga Bay, KOY 2008-2 2 0.0 0.1 2.1 21 0.8 3.1 24.9 23 0.8 3.2 27.0 2008-3 3 0.0 0.0 3.0 13 1.6 3.3 17.9 16 1.6 3.3 20.9 2008-4 0 0.0 0.0 0.0 0 0.0 0.0 0.0 0 0.0 0.0 0.0 2009-1 0 0.0 0.0 0.0 4 0.0 0.1 4.1 4 0.0 0.1 4.1 Annual 5 0.0 0.1 5.1 38 2.4 6.5 46.9 43 2.4 6.6 52.0
2009-2 1 0.0 0.0 1.0 17 2.3 1.5 20.8 18 2.3 1.5 21.8 2009-3 0 0.0 0.1 0.1 19 0.7 2.3 22.1 19 0.7 2.4 22.2 2009-4 1 0.0 0.0 1.0 1 0.1 0.3 1.4 2 0.1 0.3 2.4 2010-1 0 0.0 0.0 0.0 Annual 2 0.0 0.1 2.1 37 3.1 4.1 44.3 39 3.1 4.2 46.4
2010-2 1 0.3 0.0 1.3 23 0.4 2.2 25.5 24 0.7 2.2 26.8 2010-3 14 0.0 0.2 14.2 15 1.7 2.4 19.1 29 1.7 2.6 33.3 2010-4 3 0.0 0.0 3.0 0 0.0 0.0 0.0 3 0.0 0.0 3.0 2011-1 0 0.0 0.0 0.0 Annual 18 0.3 0.2 18.5 38 2.1 4.6 44.6 56 2.4 4.8 63.1

By Qtr. Port Bailey, KPY 2008-2 0 0.0 0.0 0.0 0 0.0 0.2 0.2 0 0.0 0.2 0.2 2008-3 0 0.0 0.0 0.0 0 0.0 0.4 0.4 0 0.0 0.4 0.4 2008-4 1 0.0 0.0 1.0 1 0.3 0.4 1.7 2 0.3 0.4 2.7 2009-1 0 0.2 0.1 0.4 0 0.2 0.1 0.4 Annual 1 0.0 0.0 1.0 1 0.5 1.1 2.7 2 0.5 1.1 3.7
2009-2 0 0.0 0.3 0.3 3 0.6 0.4 3.9 3 0.6 0.7 4.2 2009-3 2 0.0 0.0 2.0 7 1.5 1.3 9.8 9 1.5 1.3 11.8 2009-4 3 0.0 0.4 3.4 2 2.4 0.5 5.0 5 2.4 0.9 8.4 2010-1 1 0.0 0.2 1.2 1 1.8 0.4 3.2 2 1.8 0.6 4.4 Annual 6 0.0 0.9 6.9 13 6.3 2.6 21.9 19 6.3 3.5 28.8
2010-2 0 0.0 0.1 0.1 0 0.8 1.2 2.0 0 0.8 1.3 2.1 2010-3 4 0.0 1.9 5.9 3 0.1 0.6 3.7 7 0.1 2.5 9.6 2010-4 0 0.0 0.1 0.1 1 1.1 0.2 2.3 1 1.1 0.3 2.4 2011-1 0 0.0 0.3 0.3 2 4.2 0.5 6.7 2 4.2 0.8 7.0 Annual 4 0.0 2.4 6.4 6 6.2 2.5 14.7 10 6.2 4.9 21.1

Note: Passenger Equivalents (PEQs). 200 pounds of mail or freight is one (1) PEQ.Appendix B Page 4 of 6 Scheduled Traffic at the Kodiak 11, T-100 Market Report Enplaned Passenger Deplaned Passenger O&D Passenger Equivalents, PEQs Equivalents, PEQs Equivalents, PEQs Pax. Frt. Mail ∑PEQs Pax. Frt. Mail ∑PEQs Pax. Frt. Mail ∑PEQs By Qtr. Port Williams, KPR 2008-2 1 0.0 0.0 1.0 0 0.0 1.2 1.2 1 0.0 1.2 2.2 2008-3 1 0.0 0.0 1.0 0 0.0 0.7 0.7 1 0.0 0.7 1.7 2008-4 1 0.0 0.0 1.0 0 0.4 0.0 0.4 1 0.4 0.0 1.4 2009-1 1 0.0 0.1 1.1 0 0.0 0.0 0.0 1 0.0 0.1 1.1 Annual 4 0.0 0.1 4.1 0 0.4 1.9 2.3 4 0.4 2.0 6.4
2009-2 7 0.0 0.1 7.1 0 0.0 0.1 0.1 7 0.0 0.2 7.2 2009-3 6 0.0 0.5 6.5 4 0.0 0.1 4.1 10 0.0 0.6 10.6 2009-4 1 0.0 0.2 1.2 2 0.3 0.7 3.0 3 0.3 0.9 4.2 2010-1 0 0.0 0.6 0.6 0 0.0 0.2 0.2 0 0.0 0.8 0.8 Annual 14 0.0 1.4 15.4 6 0.3 1.1 7.4 20 0.3 2.5 22.8
2010-2 4 0.2 0.1 4.3 0 0.0 0.5 0.6 4 0.2 0.6 4.9 2010-3 3 0.0 0.5 3.5 1 0.0 0.2 1.2 4 0.0 0.7 4.7 2010-4 2 0.0 0.6 2.6 0 0.5 0.0 0.5 2 0.5 0.6 3.1 2011-1 5 0.0 0.0 5.0 0 0.1 0.0 0.1 5 0.1 0.0 5.1 Annual 14 0.2 1.2 15.4 1 0.6 0.7 2.4 15 0.8 1.9 17.8

By Qtr. Seal Bay, SYB 2008-2 2 0.0 0.2 2.2 4 0.9 1.0 5.9 6 0.9 1.2 8.1 2008-3 4 0.0 0.2 4.2 2 1.8 1.6 5.3 6 1.8 1.8 9.5 2008-4 0 0.0 0.1 0.1 2 1.2 1.6 4.9 2 1.2 1.7 5.0 2009-1 0 0.0 0.0 0.0 2 1.3 0.3 3.6 2 1.3 0.3 3.6 Annual 6 0.0 0.5 6.5 10 5.2 4.5 19.7 16 5.2 5.0 26.2
2009-2 0 0.0 0.1 0.1 4 5.2 0.6 9.8 4 5.2 0.7 9.9 2009-3 0 0.0 0.2 0.2 7 4.6 3.4 15.0 7 4.6 3.6 15.2 2009-4 0 0.0 0.1 0.1 0 1.5 0.2 1.7 0 1.5 0.3 1.8 2010-1 1 0.0 0.6 1.6 0 0.6 0.1 0.7 1 0.6 0.7 2.3 Annual 1 0.0 1.0 2.0 11 11.9 4.3 27.2 12 11.9 5.3 29.2
2010-2 6 0.0 0.8 6.8 3 4.8 0.1 8.0 9 4.8 0.9 14.8 2010-3 13 0.0 0.4 13.4 17 7.4 1.7 26.1 30 7.4 2.1 39.5 2010-4 0 0.0 0.1 0.1 4 2.2 0.8 7.0 4 2.2 0.9 7.1 2011-1 0 0.0 0.0 0.0 0 0.0 0.0 0.0 Annual 19 0.0 1.3 20.3 24 14.4 2.6 41.1 43 14.4 3.9 61.4

Note: Passenger Equivalents (PEQs). 200 pounds of mail or freight is one (1) PEQ.Appendix B Page 5 of 6 Scheduled Traffic at the Kodiak 11, T-100 Market Report Enplaned Passenger Deplaned Passenger O&D Passenger Equivalents, PEQs Equivalents, PEQs Equivalents, PEQs Pax. Frt. Mail ∑PEQs Pax. Frt. Mail ∑PEQs Pax. Frt. Mail ∑PEQs By Qtr. Uganik, UGI 2008-2 1 0.0 0.4 1.4 1 0.2 1.3 2.5 2 0.2 1.7 3.9 2008-3 2 0.0 0.1 2.1 4 0.3 2.0 6.3 6 0.3 2.1 8.4 2008-4 0 0.0 0.2 0.2 1 0.2 1.0 2.2 1 0.2 1.2 2.4 2009-1 1 0.0 0.0 1.0 0 0.2 1.0 1.2 1 0.2 1.0 2.2 Annual 4 0.0 0.7 4.7 6 0.9 5.3 12.2 10 0.9 6.0 16.9
2009-2 1 0.0 0.1 1.1 1 0.0 1.2 2.2 2 0.0 1.3 3.3 2009-3 6 0.0 0.2 6.2 5 0.7 1.8 7.5 11 0.7 2.0 13.7 2009-4 0 0.0 0.0 0.0 1 0.3 0.7 2.0 1 0.3 0.7 2.0 2010-1 0 1.2 0.7 1.9 0 1.2 0.7 1.9 Annual 7 0.0 0.3 7.3 7 2.2 4.4 13.6 14 2.2 4.7 20.9
2010-2 0 0.0 0.2 0.2 0 0.0 2.1 2.1 0 0.0 2.3 2.3 2010-3 0 0.0 0.0 0.0 3 0.0 1.3 4.3 3 0.0 1.3 4.3 2010-4 0 0.0 0.2 0.2 1 1.4 1.9 4.3 1 1.4 2.1 4.5 2011-1 1 0.0 0.0 1.0 0 0.0 0.1 0.1 1 0.0 0.1 1.1 Annual 1 0.0 0.4 1.4 4 1.4 5.4 10.8 5 1.4 5.8 12.2

By Qtr. West Point, KWP 2008-2 5 0.0 0.2 5.2 1 0.0 1.5 2.5 6 0.0 1.7 7.7 2008-3 22 0.0 0.1 22.1 11 0.0 2.2 13.2 33 0.0 2.3 35.3 2008-4 5 0.0 0.4 5.4 10 0.0 0.9 10.9 15 0.0 1.3 16.3 2009-1 1 0.0 0.3 1.3 0 0.2 2.1 2.3 1 0.2 2.4 3.6 Annual 33 0.0 1.0 34.0 22 0.2 6.7 28.9 55 0.2 7.7 62.9
2009-2 12 0.0 0.4 12.4 6 0.0 1.7 7.7 18 0.0 2.1 20.1 2009-3 16 0.0 0.2 16.2 26 0.2 1.9 28.1 42 0.2 2.1 44.3 2009-4 4 0.0 0.3 4.3 1 0.0 0.5 1.5 5 0.0 0.8 5.8 2010-1 0 0.0 0.0 0.0 0 0.0 0.0 0.0 Annual 32 0.0 0.9 32.9 33 0.2 4.1 37.3 65 0.2 5.0 70.2
2010-2 11 0.0 0.1 11.1 8 0.0 0.5 8.5 19 0.0 0.6 19.6 2010-3 16 0.0 0.1 16.1 10 0.1 1.3 11.4 26 0.1 1.4 27.5 2010-4 7 0.0 0.0 7.0 7 0.0 0.0 7.0 2011-1 0 0.0 0.1 0.1 0 0.0 0.1 0.1 Annual 34 0.0 0.3 34.3 18 0.1 1.8 19.9 52 0.1 2.1 54.2

Note: Passenger Equivalents (PEQs). 200 pounds of mail or freight is one (1) PEQ.Appendix B Page 6 of 6 Scheduled Traffic at the Kodiak 11, T-100 Market Report Enplaned Passenger Deplaned Passenger O&D Passenger Equivalents, PEQs Equivalents, PEQs Equivalents, PEQs Pax. Frt. Mail ∑PEQs Pax. Frt. Mail ∑PEQs Pax. Frt. Mail ∑PEQs By Qtr. Zachar Bay, KZB 2008-2 0 0.0 0.1 0.1 0 0.0 1.6 1.6 0 0.0 1.7 1.7 2008-3 0 0.0 0.1 0.1 1 0.0 2.2 3.2 1 0.0 2.3 3.3 2008-4 0 0.0 0.1 0.1 0 0.0 1.4 1.4 0 0.0 1.5 1.5 2009-1 2 0.0 0.1 2.1 1 0.0 0.0 1.0 3 0.0 0.1 3.1 Annual 2 0.0 0.4 2.4 2 0.0 5.2 7.2 4 0.0 5.6 9.6
2009-2 3 0.0 0.1 3.1 4 0.0 0.6 4.6 7 0.0 0.7 7.7 2009-3 0 0.0 0.1 0.1 1 0.0 1.1 2.1 1 0.0 1.2 2.2 2009-4 0 0.0 0.0 0.0 1 0.0 1.8 2.8 1 0.0 1.8 2.8 2010-1 0 0.0 0.0 0.0 0 0.0 0.0 0.0 0 0.0 0.0 0.0 Annual 3 0.0 0.2 3.2 6 0.0 3.5 9.5 9 0.0 3.7 12.7
2010-2 0 0.0 0.1 0.1 0 0.9 0.2 1.2 0 0.9 0.3 1.3 2010-3 0 0.0 0.0 0.0 0 0.0 0.3 0.3 0 0.0 0.3 0.3 2010-4 0 0.0 0.0 0.0 0 0.0 0.0 0.0 2011-1 1 0.0 0.2 1.2 0 0.2 0.1 0.3 1 0.2 0.3 1.5 Annual 1 0.0 0.3 1.3 0 1.1 0.6 1.8 1 1.1 0.9 3.1

Note: Passenger Equivalents (PEQs). 200 pounds of mail or freight is one (1) PEQ.

### Appendix C Example of General Terms and Conditions for Essential Air Service The carrier understands that it may forfeit its compensation for any flights that it does not operate in conformance with the terms and stipulations of the rate order, including the service plans outlined in the order and any other significant elements of the required service, without prior approval. The carrier understands that an aircraft take

-off and landing at its scheduled destination constitutes a completed flight; absent an explanation supporting subsidy

eligibility

for a flight that has not been completed, such as certain weather cancellations, only completed flights are considered eligible for subsidy

. In addition, if the carrier does not schedule or operate its flights in full conformance with the order for a significant period, it may jeopardize its entire subsidy claim for the period in question

. If the carrier contemplates any such changes beyond the scope of the order during the applicable period of these rates, it must first notify the Office of Aviation Analysis in writing and receive written approval from the Department to be ensured of full compensation. Should circumstances warrant, the Department may locate and select a replacement carrier to provide service on these routes. The carrier must complete all flights that can be safely operated; flights that overfly points for lack of traffic will not be compensated. In determining whether subsidy payment for a deviating flight should be adjusted or disallowed, the Department will consider the extent to which the goals of the program are met and the extent of access to the national air transportation system provided to the communities

. If the Department unilaterally, either partially or completely, terminates or reduces pay ments for service or changes service requirements at a specific location provided for under this order, then, at the end of the period for which the Department does make pay ments in the stipulated amounts or at the stipulated service levels, the carrier may cease to provide service to that specific location without regard to any requirement for notice of such cessation. Those adjustments in the levels of subsidy and/or service that are mutually agreed to in writing by the Department and carrier do not constitute a total or partial reduction or cessation of pay ment. Subsidy contracts are subject to, and incorporate by reference, relevant statutes and Department regulations, as they may be amended from time to time. However, any such statutes, regulations, or amendments thereto shall not operate to controvert the foregoing paragraph. Funds are not currently

available for performance under this solicitation beyond [DATE]. The Department’s obligation for performance under this solicitation beyond [DATE], is contingent upon the availability of appropriated funds from which pay ment for services can be made. No legal liability on the part of the Government for any pay ment may arise for performance under this order beyond [DATE], until funds are made available to the Department for performance. If funds are not made available for performance beyond [DATE], the carrier will receive notice in writing by the Department. All claims for pay

ment must be submitted within 60 days of the last day of service provided under this order