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~~~k~#n~~~ Megan Lawrence 

Managing Director, Government and Community Relations 

May 9, 2013 

Mr. Dennis DeVany 

Chief, EAS and Domestic Analysis 

Office of Aviation Analysis 

U.S. Department of Transportation 

1200 New Jersey Avenue, S.E. 

Washington, D.C. 20590 

Subject: Proposal to Provide Essential Air Service at Adak, Alaska 

Docket DOT -OST -2000-8556 

Dear Mr. DeVany: 

.,., .. _.. 

("· 

Please see the attached proposal from Alaska Airlines, Inc. to provide essential air service 

to the community of Adak, Alaska. The proposal includes a subsidy request to provide 

this service. 

The certifications pertaining to compliance with a drug-free workplace, nondiscrimination and lobbying regulations will be sent under separate cover. 

Please contact me if you 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 

1 
Alaska Airlines, Inc. 

Compensation Requirement 

Essential Air Service to Adak 

Narrative Statement 

AS-1 

Page 1 of 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-73 7 nonstop combi service between the communities of Adak 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 of traffic including palletized 

cargo shipments. The arrival and departure of all traffic on the same aircraft would assure the 

contemporaneous arrival of all baggage accompanying larger passenger groups as well as avoid 

the freight loss and damage associated with the operation of smaller combination aircraft. The 

selection of Alaska would also offer the residents of Adak 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 pleased to answer any questions the Department may have. 
Alaska Airlines, Inc 

Annual Compensation Requirement 

Essential air Service at Adak 

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