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# ~~~k~#n~~~ Megan Lawrence Managing Director, Government and Community Relations


### May 9, 2013



### Mr. Dennis DeVany Chief, EAS andDomesticAnalysis Office ofAviationAnalysis U.S. Department ofTransportation 1200NewJerseyAvenue, S.E. Washington, D.C. 20590 Subject: Proposal to ProvideEssential Air Service at Adak, Alaska DocketDOT-OST-2000-8556 Dear

### Mr. DeVany: .,.,.._..

("·



### Please see the attachedproposal from AlaskaAirlines, Inc. toprovide essential air service tothe community ofAdak, Alaska. Theproposal includes a subsidyrequesttoprovide this service. Thecertificationspertainingto compliance with a drug-free workplace, nondiscriminationand lobbyingregulations will be sentunder separate cover. Please contact meifyou need additional information. Sincerely,

Attachments

PO BOX 68900 SEATTLE, WA 98168 • 206-433-3200

### Exhibit AS-1 AS-2 AS-3 Alaska Airlines, Inc. Compensation Requirement Essential Air Service to Adak
Index of Exhibits 

### Title Narrative Statement Subsidy Request Schedule Page 1 of 1



### Pages 

### 1 1 1Alaska Airlines, Inc. Compensation Requirement Essential Air Service to Adak Narrative Statement AS-1 Page 1of 1

Alaska Airlines, Inc. ("Alaska") is pleased, in response to Order DOT-OST-2000- 8556, to submit its EAS proposal to continue, for a two year period, providing twice weekly B-737 nonstop combi service between the communities ofAdak and Anchorage. The days and nature of the proposed operation would be the same as Alaska now operates. The compensation level Alaska requests is $2,057,114 annually for each of the two years of Alaska's proposal. Alaska proposes that this rate become effective as of the date of the Department's final carrier selection for Adak essential air service. Alaska's proposal offers the residents of Adak continuation of modern jet aircraft accommodating the greatest volumes of passenger, freight and mail. Alaska's B-737 combi aircraft have the capacity to easily accommodate all three types oftraffic including palletized cargo shipments. The arrival and departure of all traffic on the same aircraft would assure the contemporaneous arrival ofall baggage accompanying larger passenger groups as well as avoid the freight loss and damage associated with the operation ofsmaller combination aircraft. The selection ofAlaska would also offer the residents ofAdak single carrier access to virtually the entire U.S. as well as mileage benefits on the extensive route systems of both Alaska and its many global marketing partners. Alaska's operational performance at Adak has also been exemplary in spite of the challenges posed by the Aleutian weather conditions. In fact, Alaska purchased and maintains the altimeter at Adak to assure the safe operation of its service-a purchase and maintenance responsibility which is customarily borne by the FAA. And, perhaps most importantly, Alaska has maintained strong community relations with the Adak community, which in the past has supported Alaska in each successive Adak essential air service proceeding. Alaska is hopeful that the Adak community will again do so. Alaska also shortly intends to separately submit the nondiscrimination, lobbying compliance and drug-free workplace certifications addressed in the Department's resolicitation. Finally, Alaska would be pleasedto answer any questions the Department may have.Alaska Airlines, Inc Annual Compensation Requirement Essential air Service atAdak October 1, 2013 and Forward

Operating Revenue Passenger Freight/Mail Excess Baggage Other Revenue Operating Expense Direct Operating Flying Station Maintenance Flight Attendant Fuel Indirect Ownership Overhead

Total Operating Exp. Operating Profit (Loss) $

$ $ $ $ 1,137,026 828,146

52,155 144,054 2,161,381

684,503 469,818 497,528 157,551 1,646,113 3,455,514

232,767 329,333 562,100 4,017,614 (1 ,856,233)

200,881 $2,057,114 AS-2

Icicle closure

Assumed $3.60 PPG

5% of Operating Exp.' 

### .

EAS Schedule

Dept Station Anchorage Adak
Source: Fall {Sept '13} Fit# 160 161 Mon Tues Wed Thurs 1455 1800 Fri Sat AS-3

Sun 1455 1800