Order: 2010-4-6

Served: April 9, 2010

 UNITED STATES OF AMERICA

 DEPARTMENT OF TRANSPORTATION

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

Issued by the Department of Transportation

on the 9th day of April, 2010

Essential Air Service at

EXCURSION INLET, ALASKA

KAKE, ALASKA

Docket DOT-OST-2002-12014

Docket DOT-OST-2008-0217

under 49 U.S.C. 41731 et seq.

ORDER REQUESTING PROPOSALS 

Summary

By this order, the Department is requesting proposals from carriers interested in providing 

essential air service (EAS) at Excursion Inlet and Kake, Alaska, for the two-year period 

beginning September 1, 2010, with or without subsidy. Proposals are due by 

May 18, 2010. (See Appendix A for a map.)

Background

By Order 2008-8-16, the Department selected Alaska Juneau Aeronautics, Inc., d/b/a 

Wings of Alaska, Inc. (Wings), to provide EAS at Excursion Inlet and Kake, at annual 

subsidy rates of $34,659 at Excursion Inlet and $314,302 at Kake, for the two-year period 

ending August 31, 2010. Excursion Inlet currently receives three round trips per week in 

the 16-week peak season and one round trip per week in the 36 remaining weeks of the 

year to Juneau with 5-seat Cessna 206/207 aircraft. Kake currently receives 14 round trips 

per week in the 21-week peak season and seven round trips per week in the 31 remaining 

weeks of the year to Juneau using 9-seat Cessna 208 Caravans.

Request for Proposals

As the end of the current contract approaches, we are here requesting proposals for a new 

two-year period beginning September 1. Interested carriers should prepare their proposals
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with every expectation that their initial proposals will represent their final and only

proposals. However, 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 resolicit a new round of proposals. However, we anticipate that 

negotiation or rejection will remain only occasional exceptions to the rule. Shortly after 

May 18, we will provide a summary of the proposals to the communities and ask them to 

submit their final comments. We will give full consideration to all proposals that are 

timely filed.1

We are here providing interested carriers with some basic information to assist them as 

they prepare their proposals, but we will not prescribe a precise format for their 

preparation. We expect proposals to adequately describe the service being proposed and 

the annual amount of subsidy being requested. 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 community and the Department.2

With specific respect to these communities, carriers should provide sufficient capacity to 

accommodate historical levels of traffic. In that regard, as is typically the case in Alaska, 

significantly more freight and mail flow from the hub to EAS communities than from the 

EAS communities to the hub. For Excursion Inlet, we are requesting proposals for three 

round trips a week to Juneau during peak season and one round trip a week during off-peak

season with 10-seat or less aircraft. For Kake, we are requesting 14 round trips per week

to Juneau during peak season and 7 round trips a week during off-peak season using 10-

seat or less aircraft.3

 As always, we will formally solicit the communities’ views on any 

service options we receive before making a long-term carrier selection decision. The 

communities and air carriers are encouraged to work together in advance of the due date 

for proposals to craft a service pattern that is desirable to the community and meets the 

operational needs of the airline interested in submitting a proposal.

 

1 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.

2 In selecting a carrier to provide subsidized essential air service in Alaska, 49 U.S.C. 41733(c)(1) directs us 

to consider five factors: (1) scheduled service reliability; (2) contractual and marketing arrangements with a 

larger carrier to ensure service beyond the hub; (3) interline arrangements that the applicant has made with a 

larger carrier at the hub; (4) community views, giving substantial weight to the views of the elected officials 

representing the users; and (5) the experience of the applicant in providing, in Alaska, 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 Carriers are free to set their peak-period service at different periods based on the peak traffic demand as 

shown in Appendix B.
- 3 -

We encourage proposals that meet those 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 those requirements if they envision other, potentially more attractive service 

possibilities -- different hubs, for example -- with subsidy requirements that remain 

competitive.

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 prospective applicants in making traffic and revenue forecasts, 

Appendix B shows historical traffic data from 2006-2009, by quarter and direction so that 

carriers can tailor their proposals to meet peak demands.

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 for 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, all carriers that plan to submit proposals involving 

subsidy should be aware that the selected carrier will be expected to complete the required 

certifications. 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) 366-5903.5

Community and State Comments

The communities and the state are welcome to submit comments at any time. We 

encourage prospective applicants to contact the community before they submit their 

proposals in order to tailor them to the community’s needs. As noted earlier, we will 

provide a copy of the proposals to the civic parties and ask them to submit their final 

comments shortly after May 18, the deadline for filing carrier proposals.

 

4 The regulations applicable to these areas are: (1) 49 CFR Part 20 -- New restrictions on lobbying; 

(2) 49 CFR Part 21 -- Nondiscrimination in federally-assisted programs of the Department of Transportation -

- Effectuation of title VI of the Civil Rights Act of 1964; 49 CFR Part 27 -- Nondiscrimination on the basis of 

disability in programs and activities receiving or benefiting from Federal financial assistance; and 

14 CFR Part 382 -- Nondiscrimination on the basis of disability in air travel; and (3) 49 CFR Part 29 --

Government-wide debarment and suspension (non-procurement) and government-wide requirements for 

drug-free workplace (grants).

5 The certifications are also available on the World Wide Web athttp://ostpxweb.dot.gov/aviation/index.html.
- 4 -

This order is issued under authority delegated in 49 CFR 1.56a(f) and re-delegated to the 

Director, Office of Aviation Analysis.

ACCORDINGLY,

1. We request that carriers interested in providing essential air service at Excursion Inlet

and Kake, Alaska, submit their proposals, with or without subsidy requests, no later than 

May 18, 2010. The proposals should be e-mailed to EAS@dot.gov, with the title: 

“Proposal to Provide Essential Air Service at Excursion Inlet and/or Kake, Alaska, Docket 

OST-2002-12014 and DOT-OST-2008-0217”;6

2. These dockets will remain open until further order of the Department; and

3. We will serve copies of this order on the parties listed in Appendix D.

Persons entitled to petition the Department for review of this order under the Department’s 

Regulations, 14 CFR Part 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

 

6 Questions regarding filings in response to this order may be directed to Michael Martin at (202) 366-6494, 

and proposals should be emailed to EAS@dot.gov, no later than May 18, 2010.
Appendix A

AREA MAP

 
Appendix B

Page 1 of 2

Year Quarter Pax

Freight 

PEQ

Mail 

PEQ Total Pax

Freight 

PEQ

Mail 

PEQ Total Pax

Freight 

PEQ

Mail 

PEQ Total

2006 1 411 26 23 460 460 30 139 629 871 56 162 1089

2006 2 356 77 19 452 396 75 114 585 752 152 133 1037

2006 3 1,032 172 29 1233 844 165 150 1159 1876 337 179 2392

2006 4 319 38 30 387 239 31 127 397 558 69 157 784

Total 2118 313 101 2532 1939 301 530 2770 4057 614 631 5302

2007 1 179 2 23 204 214 3 81 298 393 5 104 502

2007 2 580 78 29 687 589 24 167 780 1169 102 196 1467

2007 3 898 90 25 1013 788 63 115 966 1686 153 140 1979

2007 4 446 56 30 532 348 76 152 576 794 132 182 1108

Total 2103 226 107 2436 1939 166 515 2620 4042 392 622 5056

2008 1 272 6 23 301 241 34 118 393 513 40 141 694

2008 2 582 22 36 640 593 24 78 695 1175 46 114 1335

2008 3 317 29 10 356 293 45 103 441 610 74 113 797

2008 4 363 24 25 412 252 68 136 456 615 92 161 868

Total 1534 81 94 1709 1379 171 435 1985 2913 252 529 3694

2009 1 152 9 17 178 159 50 98 307 311 59 115 485

2009 2 405 58 19 482 396 69 104 569 801 127 123 1051

2009 3 356 49 23 428 373 65 111 549 729 114 134 977

2009 4 283 55 25 363 219 71 123 413 502 126 148 776

Total 1196 171 84 1451 1147 255 436 1838 2343 426 520 3289

Year Quarter Pax

Freight 

PEQ

Mail 

PEQ Total Pax

Freight 

PEQ

Mail 

PEQ Total Pax

Freight 

PEQ

Mail 

PEQ Total

2006 1 7 0 1 8 5 1 2 8 12 12 29 53

2006 2 5 1 1 7 4 8 10 22 9 10 34 53

2006 3 13 2 10 25 28 3 12 43 41 11 42 94

2006 4 1 0 0 1 2 0 2 4 3 8 38 49

Total 26 3 12 41 39 12 26 77 65 41 143 249

2007 1 0 0 0 0 0 0 3 3 0 12 24 36

2007 2 9 0 1 10 11 3 14 28 20 13 13 46

2007 3 47 4 5 56 45 2 11 58 92 9 33 134

2007 4 0 0 1 1 0 2 4 6 0 7 40 47

Total 56 4 7 67 56 7 32 95 112 41 110 263

2008 1 1 0 1 2 1 2 5 8 2 12 27 41

2008 2 38 1 1 40 33 4 5 42 71 5 41 117

2008 3 14 1 7 22 21 3 17 41 35 11 55 101

2008 4 0 0 1 1 0 2 4 6 0 11 44 55

Total 53 2 10 65 55 11 31 97 108 39 167 314

2009 1 0 0 1 1 3 0 3 6 3 0 4 7

2009 2 7 0 1 8 3 10 16 29 10 10 17 37

2009 3 14 0 9 23 7 7 4 18 21 7 13 41

2009 4 0 0 0 0 0 1 2 3 0 1 2 3

21 0 11 32 13 18 25 56 34 18 36 88

Source: US DOT Bureau of Transportation Statistics, Form T-100 for Warbelows

Note: PEQs indicates passenger equivalents. 200 lbs. of mail/freight is equivalent to one PEQ

Historical Traffic at Kake and Excursion Inlet, Source T-100 Market Report

KAE-JNU JNU-KAE Origin & Destination Totals

EXI-JNU JNU-EXI Origin & Destination Totals
Appendix B

Page 2 of 2

Year Quarter Pax

Freight 

Lbs.

Mail 

Lbs. Total Pax

Freight 

Lbs.

Mail 

Lbs. Total Pax

Freight 

Lbs.

Mail 

Lbs. Total

2006 1 411 5,248 4,504 10163 460 5,913 27,765 34138 871 11161 32269 44301

2006 2 356 15,467 3,860 19683 396 15,068 22,697 38161 752 30535 26557 57844

2006 3 1,032 34,468 5,800 41300 844 32,926 30,057 63827 1876 67394 35857 105127

2006 4 319 7,669 5,961 13949 239 6,136 25,359 31734 558 13805 31320 45683

Total 2118 62852 20125 85095 1939 60043 105878 167860 4057 122895 126003 252955

2007 1 179 470 4,678 5327 214 500 16,269 16983 393 970 20947 22310

2007 2 580 15,623 5,796 21999 589 4,714 33,405 38708 1169 20337 39201 60707

2007 3 898 18,070 4,967 23935 788 12,509 22,896 36193 1686 30579 27863 60128

2007 4 446 11,226 6,069 17741 348 15,194 30,340 45882 794 26420 36409 63623

Total 2103 45389 21510 69002 1939 32917 102910 137766 4042 78306 124420 206768

2008 1 272 1,139 4,647 6058 241 6,823 23,601 30665 513 7962 28248 36723

2008 2 582 4,456 7,184 12222 593 4,741 15,637 20971 1175 9197 22821 33193

2008 3 317 5,739 2,046 8102 293 8,891 20,680 29864 610 14630 22726 37966

2008 4 363 4,877 5,036 10276 252 13,621 27,235 41108 615 18498 32271 51384

Total 1534 16211 18913 36658 1379 34076 87153 122608 2913 50287 106066 159266

2009 1 152 1,841 3,309 5302 159 19,610 19,610 39379 311 21451 22919 44681

2009 2 405 11,511 3,727 15643 396 20,730 20,730 41856 801 32241 24457 57499

2009 3 356 9,826 4,529 14711 373 22,191 22,191 44755 729 32017 26720 59466

2009 4 283 11,003 4,913 16199 219 24,592 24,592 49403 502 35595 29505 65602

1196 34181 16478 51855 1147 87123 87123 175393 2343 121304 103601 227248

Year Quarter Pax

Freight 

Lbs.

Mail 

Lbs. Total Pax

Freight 

Lbs.

Mail 

Lbs. Total Pax

Freight 

Lbs.

Mail 

Lbs. Total

2006 1 7 14 205 226 5 250 298 553 12 264 503 779

2006 2 5 140 137 282 4 1,490 2,006 3500 9 1630 2143 3782

2006 3 13 483 2,018 2514 28 660 2,461 3149 41 1143 4479 5663

2006 4 1 50 67 118 2 0 323 325 3 50 390 443

Total 26 687 2427 3140 39 2400 5088 7527 65 3087 7515 10667

2007 1 0 0 46 46 0 0 537 537 0 0 583 583

2007 2 9 73 157 239 11 707 2,857 3575 20 780 3014 3814

2007 3 47 786 1,005 1838 45 482 2,182 2709 92 1268 3187 4547

2007 4 0 5 285 290 0 410 863 1273 0 415 1148 1563

Total 56 864 1493 2413 56 1599 6439 8094 112 2463 7932 10507

2008 1 1 0 275 276 1 294 909 1204 2 294 1184 1480

2008 2 38 279 254 571 33 791 1,075 1899 71 1070 1329 2470

2008 3 14 130 1,417 1561 21 425 3,396 3842 35 555 4813 5403

2008 4 0 0 202 202 0 346 825 1171 0 346 1027 1373

Total 53 409 2148 2610 55 1856 6205 8116 108 2265 8353 10726

2009 1 0 0 94 94 3 68 601 672 3 68 695 766

2009 2 7 12 195 214 3 2,088 3,218 5309 10 2100 3413 5523

2009 3 14 0 1,756 1770 7 1,291 859 2157 21 1291 2615 3927

2009 4 0 56 67 123 0 182 463 645 0 238 530 768

Total 21 68 2112 2201 13 3629 5141 8783 34 3697 7253 10984

Source: US DOT Bureau of Transportation Statistics, Form T-100 for Warbelows

Note: PEQs indicates passenger equivalents. 200 lbs. of mail/freight is equivalent to one PEQ.

Historical Traffic at Kake and Excursion Inlet, Source T-100 Market Report

Origin & Destination Totals

KAE-JNU JNU-KAE Origin & Destination Totals

EXI-JNU JNU-EXI
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 community.

If the Department unilaterally, either partially or completely, terminates or reduces payments 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 payments 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 payment.

Funds are not currently available for performance under this solicitation beyond 

September 30, 2010. The Department’s obligation for performance under this solicitation

beyond September 30, 2010, is contingent upon the availability of appropriated funds from 

which payment for services can be made. No legal liability on the part of the Department for any 

payment may arise for performance under this order beyond September 30, 2010, until funds are 

made available to the Department for performance. If funds are not made available for 

performance beyond September 30, 2010, the carrier will receive notice in writing by the 

Department.

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.

All claims for payment must be submitted within 60 days of the last day of service provided 

under this order.
Appendix D

SERVICE LIST

Aero Twin, AACA, Tony Cestnik Northern Air Cargo, John Eckles

Alaska Air Carriers Association, Joy Journeay Northern Air Cargo, Keven Schlosstein

Alaska Airlines, Joe Sprague Pacific Airways, Steve Montanus

Alaska Airlines, Sandy Sinick PenAir Consultant, Patrick Rizzi

Alaska Central Express, John Seamon PenAir, Betty Gonzalez

Alaska Central Express, Mike Bergt PenAir, Danny Seybert

Alaska Central Express, Steve Endlich PenAir, Orin Seybert

Alaska DOT, Christine Klein PenAir, Robert Cohn

Alaska DOT, Rebecca Cronkhite PenAir, Scott Bloomquist

Alaska DOT- Medicaid Passenger Fares PM, Air, d/b/a Promech, Marc Sessoms

Alaska Seaplanes, Craig Loken RITA, Bernard Stankus

Alsek Air, Les and Debra Hartley Servant Air, Wes Osowski

Arctic Circle, Donald Singsass Skagway, Ben Lingle

Arctic Circle, Kelly Harris Smokey Bay Air, Claire McCann

Arctic Transportation Services (ATS), Wilfred Ryan Spernak Airways, Mike Spernak

Arctic Transporation Services, (ATS), Jim Hjelm Tanana Air Service, Brian Martin

Baker Aviation, Marjorie Baker Taquan Air Service, Brian Salazaar

Bering Air, Allen Haddadi Taquan, Beckie Allen

Bering Air, Jim Rowe Tatonduk, Controller, Tina Paylor

Congressional, Murkowski, Arne Fuglvog Tatonduk, Marketing, Robert Ragar

Congressional, Young, Jeremy Price Tatonduk, Owner, Robert Everts

Consultant, Hank Myers USPS, Greg Garcia

Consultant, Ken Acton USPS, Joel Rosen

Consultant, Norm Israelson USPS, Mary Tobias

Ellis Air Taxi, Lynn Ellis USPS, Meredith Chavez, Consultant

Era Aviation, Mike Lenorman USPS, Steve Deaton

ERA, David M. Richards USPS, Mary T. Taylor

Frontier Flying, Bob Haiducovich USPS, Tina Campbell

Grant Aviation, Bruce McGlasson USPS, William Jones

Hageland, Mike Hageland Warbelow’s Air Ventures, Arthur Warbelow

Hageland, Patrick Thurston Ward Air, Kiesel

Hageland, Steve Wahrnke Wings of Alaska, Bob Jacobsen

Harris Air, Fly Hackett Wings of Alaska, Michelle Donahue

Harris Air, Scott Harris Wright Air Service, Bob Bursiel

Homeland Security, David Bernier Yute, Tim Vottis

Homeland Security, William Ragan

Homer Air, Andy Smircich

Iliamna Air, Tim LaPorte

Inland Aviation, Stephen Hill

Island Air Service, Bob Stanford

Katmai Air, Sonny Peterson