Megan Ouellette 

Managing Director, Government and Community Relations 

February 11, 2015 

Mr. Kevin Schlemmer 

Office of Aviation Analysis 

U.S. Department of Transportation 

1200 New Jersey Avenue, S.E. 

Washington, D.C. 20590 

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

Docket DOT-OST-2000-8556 

Dear Mr. Schlemmer: 

Please see the enclosed essential air service proposal from Alaska Airlines, Inc. for the 

community of Adak, Alaska. 

Also attached is the certification for a drug-free workplace, certification for 

nondiscrimination, and the certification pertaining to influencing activities. 

Please contact me if you need additional information. 

Sincerely, 

Enclosures 

cc: Michael Gormas 

P.O. BOX 689110 • SEt\TTLI\, Wt\ 9HI6R-0900 • SL·:Ac;T • l;i\X 206-392-27H6 
Page 1 of 1 

Alaska Airlines, Inc. 

Essential Air Service at Adak, Alaska 

Index of Exhibits 

Exhibit Title Pages 

AS-I Narrative Statement 1 

AS-2 Subsidy Request 1 

AS-3 Schedule 1 
Alaska Airlines, Inc. 

Compensation Requirement 

Essential Air Service to Adak, Alaska 

Narrative Statement 

AS-1 

Alaska Airlines, Inc. ("Alaska Airlines" or "Alaska") is pleased, in response to Order 2000-

8556, to submit our EAS proposal to provide twice-weekly nonstop Anchorage-Adak service 

with Boeing 737 jet aircraft. Alaska Airlines requests an EAS compensation level of $2,043,620 

annually for this two-year contract proposal. 

This EAS compensation proposal, which is lower than the current subsidy rate, is 

primarily the result of a modest projected increase in revenues and projected decrease in fuel 

expenses. These financial considerations in part offset increases in several other costs 

categories, as noted in our bid (AS-2). 

Adak is one of the very most remote communities in the state of Alaska, located more 

than 1,000 miles from Anchorage, so far down the Aleutian island chain that it is actually in the 

Hawaiian-Aleutian time zone. Our 737 jet aircraft are well suited to this market, providing not 

only passenger service, but also serving as the primary way for shipments of goods to reach this 

isolated community. Jet aircraft are critical for serving Adak given the extremely long distance 

between Anchorage and the community and the very limited number of suitable alternative 

airports along the route or near Adak. The 737 jet aircraft's nearly three hours of Adak flying 

time is hours less than any one-stop (or multi-stop) small aircraft service. In addition, our 

Thursday and Sunday aircraft rotations correspond well with the Adak community's 

demonstrated passenger travel and shipper usage patterns. Importantly, the large cargo and 

passenger capacity of the 737 aircraft ensures the passenger's baggage will arrive on the same 

flight as the passenger- an important consideration for passengers traveling such long 

distances to and from the Adak community. 

Alaska's 737 aircraft are equipped with Required Navigation Performance (RNP) 

technology, which helps us reliably serve Adak, a community known for its inclement weather. 

In addition to this special aircraft equipage and flight crew training, Alaska Airlines also has 

special, FAA-approved, RNP approach procedures developed specifically for usage at Adak. 

Given the anticipated closure of the Adak crosswind runway and the 600 foot shortening of the 

main runway, our RNP equipage and special procedures are particularly important, enabling us 

to maintain a comparatively high flight completion factor in serving this community. 

Alaska Airlines is firmly committed to continuing to fulfill our longstanding role as Adak's 

transportation link to our hubs within and beyond the state of Alaska. Our nonstop jet service 

fulfills a critical need for this community. We are hopeful to continue to provide not only 

"essential" service to Adak, but excellent service as well. 
Alaska Airlines, Inc. 

Annual Compensation Requirement 

Operating Revenue 

Passenger 1/ 

Freight/Mail 

Excess Baggage 

Other Revenue 

Operating Expense 

Direct Operating 

Flying 2/ 

Station 3/ 

Maintenance 

Flight Attendant 4/ 

Selling/ Advert 

· Fuel 51 

Indirect 

Ownership 

Overhead 

$ 

$ 

Total Operating Exp. $ 

Operating Profit (Loss) $ 

Return $ 

Essential Air Service at Adak 

October 1, 2015 and Forward 

1,363,115 

747,792 

74,559 

214,331 

2,399,797 

689,878 

577,781 

406,704 

223,197 

61,499 

1,466,942 

3,426,001 

490,941 

314,883 

805,825 

4,231,826 

(1 ,832,029) 

211,591 

Compensation - ._1 _____ .;.$2~,~0.;.43;;.:'.;.6;;;,20;;.... ____ .... 

AS-2 

1/ Excludes Public Service revenue, Adjusted to account for impact of crosswind Runway Closure 

2/ Flying cost based on YE 2014 actuals, contractual pilot rate increases 

3/ Station Costs for YE 2014 amortized over two years 

4/ F/A Cost based on YE 2014 actuals, includes contractual rate increases. 

51 Fuel Cost Based on YE 2014 Actuals, assume No Change to PPG OF $3.24 
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UNITED STATES OF AMERICA 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

OFFICE OF AVIATION ANALYSIS 

TITLE VI ASSURANCE 

(Implementing Title VI of the Civil Rights Act of 1964, as amended) 

ASSURANCE CONCERNING NONDISCRIMINATION ON THE 

BASIS OF DISABILITY IN FEDERALLY-ASSISTED PROGRAMS 

AND ACTIVITIES RECEIVING OR BENEFITING FROM 

FEDERAL FINANCIAL ASSISTANCE 

(Implementing the Rehabilitation Act of 1973, as amended, and the 

Air Carrier Access Act of 1986) 

49 CFR Parts 21 and 27 and 14 CFR Parts 271, and 382 

r. " \ Cl ,£,\C... -

\ ~b?f S \l..~';j \.~... fT\ (!,'.,,))the Recipient) HEREBY AGREES THAT, 

(Name ofRecipient) 

I. As a condition to receiving any Federal financial assistance from the 

Department of Transportation, it will comply: with Title VI of the Civil Rights Act of 1964, 

as amended, 42 U.S. C. 2000d--42 U.S. C. 2000d-4; all requirements imposed by or pursuant 

to: Title 49, Code of Federal Regulations, Part 21, Nondiscrimination in Federally-Assisted 

Programs of the Department of Transportation--Effectuation ofTitle VI ofthe Civil Rights 

Act of 1964; and other pertinent directives so that no person in the United States shall, on the 

grounds of race, color, or national origin, be excluded from participation in, be denied the 

benefits of, or be otherwise subjected to discrimination under any program or activity for 

which the Recipient receives Federal financial assistance from the Department of 

Transportation. This assurance is required by Title 49, Code of Federal Regulations, section 

21.7(a) and Title 14, Code of Federal Regulations, section 271.9(c). 

II. As a condition to receiving any Federal financial assistance from the 

Department of Transportation, it will comply with: section 504 of the Rehabilitation Act of 

1973, as amended (29 U.S.C. 794); the Air Carrier Access Act of 1986 (49 U.S.C. 1374(c)); 

and all requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Part 

27, Nondiscrimination on the Basis of Handicap in Programs and Activities Receiving or 

Benefitting from Federal Financial Assistance, Title 14, Code of Federal Regulations, Part 

382, Nondiscrimination on the Basis of Handicap in Air Travel; and other pertinent directives 
so that no otherwise qualified person with a disability, be excluded from participation in, be 

denied the benefits of, be discriminated against by reason of such handicap in the provision 

of air transportation, or otherwise be subjected to discrimination under any program for 

which the Recipient receives Federal financial assistance from the Department of 

Transportation. This assurance is required by Title 49, Code of Federal Regulations, section 

27.9 and Title 14, Code of Federal Regulations, sections 271.9(c) and 382.9. 

III. It will promptly take any meaures necessary to effectuate this agreement. The 

Recipient further agrees that it shall take reasonable actions to guarantee that it, its 

contractors and subcontractors subject to the Department of Transportation regulations cited 

above, transferees, and successors in interest will comply with all requirements imposed or 

pursuant to the statutes and Department of Transportation regulations cited above, other 

pertinent directives, and the above assurances. 

IV. These assurances obligate the Recipient for the period during which Federal 

fmancial assistance is extended. The Recipient agrees that the United States has a right to 

seek judicial enforcement with regard to any matter arising under the statutes and Department 

of Transportation regulations cited above, other pertinent directives, and the above 

assurances. 

V. These assurances are given for the purpose of obtaining Federal subsidy 

under the Essential Air Service Program and are binding on the Recipient, contractors, 

subcontractors, transferees, successors in interest, and all other participants receiving Federal 

subsidy in the Essential Air Service Program. The person or persons whose signatures 

appear below are authorized to sign this agreement on behalf of the Recipient. 

VI. In addition to these assurances, the Recipient agrees to file: a summary of all 

complaints filed against it within the past year that allege violation(s) by the Recipient of 

Title VI of the Civil Rights Act of 1964, as amended, section 504 ofthe Rehabilitation Act of 

1973, as amended, or the Air Carrier Access Act of 1986; or a statement that there have been 

no complaints filed against it. The summary should include the date the complaint was filed, 

the nature of the complaint, the status or outcome of the complaint (k, whether it is still 

pending or how it was resolved). 

J/to /IS Tob'i S \Cey -h~ ,A\ejS.\'-"'- fv..C\i ..,....e~ 

By: 

Legal Name of Recipient _ 

Si~ 

Date 
UNITED STATES OF AMERICA 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

OFFICE OF AVIATION ANALYSIS 

CERTIFICATION REGARDING DRUG-FREE WORKPLACE REQUIREMENTS 

IN THE PERFORMANCE OF SUBSIDIZED ESSENTIAL AIR SERVICE 

A. The subsidized essential air service carrier certifies that it will, or will continue, to provide a drugfree workplace by: 

(a) Publishing a statement notifying employees that the unlawful manufacture, distribution, 

dispensing, possession or use of a controlled substance is prohibited in the carrier's workplace, and 

specifying the actions that will be taken against employees for violation of such prohibition; 

(b) Establishing an ongoing drug-free awareness program to inform employees about--

(1) The dangers of drug abuse in the workplace; 

(2) The grantee's policy of maintaining a drug-free workplace; 

(3) Any available drug counseling, rehabilitation, and employee assistance programs; and 

(4) The penalties that may be imposed upon employees for drug abuse violations 

occurring in the workplace; 

(c) Making it a requirement that each employee to be engaged in the performance of work 

supported by the subsidy be given a copy of the statement required by paragraph (a); 

(d) Notifying the employee in the statement required by paragraph (a) that, as a condition of 

employment supported by the subsidy, the employee will--

(1) Abide by the terms of the statement; and 

(2) Notify the employer in writing of his or her conviction for a violation of a criminal 

drug statute occurring in the workplace no later than five calendar days after such 

conviction; 

(e) Notifying the agency in writing, within ten calendar days after receiving notice under 

paragraph (d)(2) from an employee or otherwise receiving actual notice of conviction. 

Employers of convicted employees must provide notice, including position title, to the 

Office of Aviation Analysis. Notice shall include the order number of each affected 

subsidized service; 

(f) Taking one of the following actions, within 30 days of receiving notice under paragraph 

(d)(2), with respect to any employee who is so convicted--

(!) Taking appropriate personnel action against such an employee, up to and including 

termination, consistent with the requirements of the Rehabilitation Act of 1973, as 

amended, or 

(2) Requiring such employee to participate satisfactorily in a drug abuse assistance or 

rehabilitation program approved for such purposes by a Federal, State or local 

health, law enforcement, or other appropriate agency; 
(g) Making a good faith effort to continue to maintain a drug-free workplace through 

implementation of paragraphs (a), (b), (c), (d), (e) and (f). 

B. The subsidized essential air service carrier may, but is not required to, insert in the space provided 

below the site for the performance of work done in connection with the specific grant. 

Places of Performance (street address, city, county, state, zip code). For the provision of essential air 

service, workplaces include outstations, maintenance sites, headquarters office locations, training sites 

and any other worksites where work is performed that is supported by the subsidy. 

Check [ ] if there are workplaces on file that are not identified here. 

Signature Date 
INSTRUCTIONS FOR CERTIFICATION 

1. By signing and/or submitting this application or grant agreement, the subsidized essential air service 

carrier is providing the certification. 

2. The certification is a materia 1 representation of fact upon which reliance is placed when the agency 

awards the subsidy. If it is later determined that the subsidized carrier knowingly rendered a false 

certification, or otherwise violated the requirements of the Drug-Free Workplace Act, the agency, in 

addition to any other remedies available to the Federal Government, may take action authorized under 

the Drug-Free Workplace Act. 

3. Workplaces under grants, for grantees other than individuals, need not be identified on the 

certification. If known, they may be identified in the subsidy application. If the subsidized carrier does 

not identify the workplaces at the time of application, or upon award if there is no application, the 

carrier must keep the identity of the workplaces on file in its office and make the information available 

for Federal inspection. Failure to identify all known workplaces constitutes a violation of the 

subsidized carrier's drug-free workplace requirements. 

4. Workplace identifications must include the actual address ofbuildings (or parts ofbuildings) or 

other sites where work under the grant takes place. Categorical descriptions may be used (e.g., all 

counters at the airports served by the carrier). 

5. If the workplace identified to the agency changes during the performance of the subsidized service, 

the subsidized carrier shall inform the agency of the change, if it previously identified the workplace in 

question. 

6. Defmitions of terms in the Nonprocurement Suspension and Debarment common rule ( 49 CFR Part 

29) and Drug-Free Workplace common rule (49 CFR Part 29, Subpart F) apply to this certification. 

Carriers' attention is called, in particular, to the following definitions from these rules: 

Controlled substance means a controlled substance in Schedules I through V of the Controlled 

Substances Act (21 USC 812) and as further defmed by regulation (21 CFR 1308.11 through 1308.15); 

Conviction means a finding of guilt (including a plea of nolo contendere) or imposition of sentence, or 

both, by any judicial body charged with the responsibility to determine violations of the Federal or 

State criminal drug statutes; 

Criminal drug statute means a Federal or non-Federal criminal statute involving the manufacture, 

distribution, dispensing, use, or possession of any controlled substance; 

Employee means the employee of a subsidized carrier directly engaged in the performance of work 

supported by the subsidy, including: (i) All direct charge employees; (ii) All indirect charge 

employees unless their impact or involvement is insignificant to the performance of subsidized service; 

and (iii) Temporary personnel and consultants who are directly engaged in the performance of work 

supported by the subsidy and who are on the subsidized carrier's payroll. This definition does not 

include workers not on the payroll ofthe subsidized carrier (e.g., volunteers, even if used to meet a 

matching requirement; consultants or independent contractors not on the subsidized carrier's payroll; or 

employees of subrecipients or subcontractors in covered workplaces). 
UNITED STATES OF AMERICA 

DEPARTMENT OF TRANSPORTATION 

OFNCEOFTHESECRETARY 

OmCE OF AVIATION ANALYSIS 

CERTIFICATION REGARDING INFLUENCING ACTIVITIES 

Certification for Contracts, Grants, Loans, 

and Cooperative Agreements 

The undersigned certifies, to the best of his or her knowledge and belief, that: 

(1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the 

undersigned, to any person for influencing or attempting to influence an officer or employee 

of any agency, a Member of Congress, an officer or employee of Congress, or an employee 

of a Member of Congress in connection with the awarding of any Federal contract, the 

making of any Federal grant, the making of any Federal loan, the entering into of any 

cooperative agreement, and the extension, continuation, renewal, amendment, or 

modification of any Federal contract, grant, loan, or cooperative agreement. 

(2) If any funds other than Federal appropriated funds have been paid or will be paid to any 

person for influencing or attempting to influence an officer or employee of any agency, a 

Member of Congress, an officer or employee of Congress, or an employee of a Member of 

Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the 

undersigned shall complete and submit Standard Form-LLL, "Disclosure Form to Report 

Influencing Activities," in accordance with its instructions. 

(3) The undersigned shall require that the language of this certification be included in the 

award documents for all subawards at all tiers (including subcontracts, subgrants, and 

contracts under grants, loans and cooperative agreements) and that all subrecipients shall 

certify and disclose accordingly. 

This certification is a material representation of fact upon which reliance was placed when 

this transaction was made or entered into. Submission of this certification is a prerequisite 

for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. 

Any person who fails to file the required certification shall be subject to a civil penalty of not 

less than $10,000 and not more than $100,000 for each such failure. 

Signature Date 

';;611\IIS 

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Air Carrier 

A ..R os tc 1 ,A\ CO\ S. \C...'-

Essential Air Service Point(s) To Which Certification Applies