## BEFORE THE

U.S. DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

April 25, 2014

In the Matter of:

ESSENTIAL AIR SERVICE AT

MANLEY AND MINTO, ALASKA

Under 49 U.S.C. 41731 et seq. Docket DOT

- OST

– 2004

- 17563



### Proposal to Provide Essential Air Service at Manley and Minto, Alaska

DOT

- OST

- 2004

- 17563

Tatonduk Outfitters Limited (dba Everts Air Alaska) is excited to submit this proposal for

Essential Air Service to transport the communities of Manley and Minto i nto Fairbanks

on the reliability and safety of its turbine

- powered aircraft.

This EAS proposal is for the contract period beginning September 1, 2014.

Everts Air Alaska ’s Pilatus PC

- 12 and Caravan Cessna 208 are the safest small aircraft

available in t oday’s aviation industry. Today’s turbine

- powered aircraft are reliable, fast,

quiet, warm in the winter, cool in the summer and allow up to nine passengers or 2400

pounds of mail or freight on each flight

.

Please visit Everts Air Alaska’s web site at www.e vertsair.com to examine Pilatus and

Caravan aircraft specific information and photos. (Select ‘Aircraft’ in the header part of

the p age and scroll down to find Pilatus and Caravan information.)

Everts Air Alaska’s record of safety is unmatched fo r Fairbanks flight operators.

Manley has opened its new runway but as of this time, there are no IFR instrument

approaches into ei ther Manley or Minto. Everts’ Pilatus and Caravan aircraft are both

certified for IFR flight (instrument flight rules) and can depart Fairbanks when the

weather is inclement and land at Manley or Minto in VFR conditio ns. Bein g able to

utilize IFR aircraft allow s flights in and out of Fairbanks in reduced we ather conditions

- thus not interrupt ing the flight schedule when the w eather in Manley or Minto is good

.Flight distance to Mi nto from Fairbanks is 50 miles, from Minto to Manley

, 3 9 m iles and

Manley to Fairbanks, 83 flight miles.

Ground transportation is c urrent available to Manley and Minto on t he Manley Village

Express bus service . This transport runs between Fairbanks

- Minto

- Manley on Tuesdays

and Saturday s . A n adult fare is $20.00 dollars one

- way.

This proposal includes 3 flights per week, 156 flights per year ( 1.0 block hours per

flight ), and 156.0 hours of total flying time.

Proposed Schedule

• 3 flights per week with 156 flights per year

• Monday, Wednesday, and Friday leaving Fairbanks at 9:45 am each day

• Fairbanks departure at 9:45 arri ve in Minto at 10:00

• Minto departure at 10:10 arrive in Manley at 10:25

• Manley departure at 10:35 arrive Fairbanks at 11:00

Projected Revenue

Projected revenue has been calculated using analysis of various data including DOT

numbers, USPS calulations

, communicating with community members at Manley and

Minto , and internal company numbers. Our calculated trend numbers suggests a

continual decline with perhaps a flattening out for a short period. EAA plans to reduce

the current freight rate hoping that the subsidy will influence more freight shipments on

the Monday, Wednesday, and Friday morning flight schedule. For this reason, we use the

following numbers for projected traffic:

FAIRBANKS

- MANLEY HOT SPRINGS

- FAIRBANKS

• 80 projected FAI

- MLY

- FAI passengers per year

• Passenger fares per $80.00 one

- way ticket $ 6400.00

• Projected FAI

- MLY

- FAI mail per year 24,732 pounds

• Current bush mail rate @ $ 1.040021 x 24,732 lbs $ 25,721.80

• Projected FAI

- MLY

- FAI freight per year 2905 pounds

• Freight rate @ $.50 cents a pound x 2905 lbs $1000.00

Total p rojected yearly income FAI

- MLY

- FAI route : $33,121.80FAIRBANKS

- MINTO

- FAIRBANKS

• 200 projected FAI

- MNT

- FAI passengers per year

• Passenger fares per $75.00 one

- way tic ket $ 15,000.00

• Projected FAI

- MNT

- FAI mail per year 13,410 pounds

• Current bush mail rate @ $. 795613 x 13,410 lbs $10,669.17

• Projected FAI

- MNT

- FAI freight per year 2754 pounds

• Freight rate @ $.40 cents a pound x 2754 lbs $ 1101.60

Total p rojected yearly income FAI

- MNT

- FAI route : $26,770.77

Project ed Revenue per year for passengers, mail, & freight : $ 59,898.57

Hourly Pilatus/Caravan Operating Costs

Per Hour Extended Costs

12 months

block 200.0 hours

Pilot

Aircraft Fuel & Oil

Other

Maintenance

Total Direct

Total Expenses: $85.00

$220.00

$200.00

$150 .00

$655.00

$ 655.00 $17,000.00

$44,000.00

$40,000.00

$30,000.00

$131,000.00

$ 131 ,000.00

Subsidy Request

 Total Annual Operat i ng Costs $131,000.00

 Profit Element @ 10% $ 13,100.00

 Total Economic Cost $ 144,100.00

Projected Revenue $ 59,892.57

Yearly Subsidy required at 100% completion 

### $ 84,207.43Everts Air Alaska certifies that operations are conducted in compliance with Department

regulations regarding drug

- free workplaces, nondiscrimination and all regulations

governing lobbying activities. Everts Air Alaska will present official documents

verifying conformity on request.

Sincerely,

Tatonduk Outfitters Limited

Dba Everts Air Alaska

5525 Airport Industrial Rd.

Fairbanks, AK 99709

Ken Leary

Director of Operations

Everts Air Alaska

kleary@evertsair.com

907

- 450

- 2353