BEFORE THE 

U.S. DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY, WASHINGTON D.C. 

April 4, 2013 

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; .. ·. ' .. 

. __ : / ., 

Essential Air Service at: TATITLEK, AK 

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

DOCKET DOT-OST-2013-0030 

J & M Alaska Air Tours, Inc. dba Alaska Air Transit hereby submits this proposal to 

provide subsidized essential air service to Tatitlek, Alaska for a contract period of two 

years. 

PROPOSED SCHEDULE 

Alaska Air Transit is submitting three proposals. All proposals provide three scheduled 

flights per week between Anchorage and Tatitlek, Alaska. Proposals A and C are for 

three direct, non-stop flights per week. Proposal B is for two direct, non-stop flights per 

week and one triangle flight per week, to be shared with the neighboring community of 

Chenega Bay. Our proposed schedule would operate year-round, every Monday, 

Wednesday, and Friday. If weather required postponement of a flight, service would be 

rescheduled to the next flyable day. The schedule would operate in one of Alaska Air 

Transit's two IFR-equipped seven-seat Navajo Chieftain aircraft. Alaska Air Transit 

would maintain the right to upgrade service to our nine-seat Cessna Grand Caravan or 

our nine-seat Pilatus PC-12 at the company's discretion for no additional subsidy. 

HISTORY 

Alaska Air Transit has been serving communities in Prince William Sound since the 

current owners purchased the business in the spring of 2004. Over the past nine years, 

Alaska Air Transit has grown from two full-time employees and two aircraft to thirteen 

full-time employees and four aircraft, and has been recognized as an industry leader in 

safety and customer service. Alaska Air Transit has expanded from an exclusively ondemand charter operation, to include scheduled service between Anchorage and 

several Alaskan communities off the road system. 

Currently, Alaska Air Transit offers three scheduled flights per week to Chenega Bay, 

with a flag-stop in Tatitlek. Regular patrons of our service include medical patients, 

health care providers, teachers, students, village managers, maintenance technicians, 

cruise ship pilots, and local families. Without air service, travel between Tatitlek and 

Anchorage requires an approximately two hour boat ride to Valdez and then a five or 

more hour drive to Anchorage. The Navajo Chieftain shortens the trip to less than one 

hour, and offers a safer and more reliable mode of transport. Alaska Air Transit has a 

proven record in Tatitlek, and is supported by both the community leadership and the 

state and local agencies that serve the community. 

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CONCLUSION 

Alaska Air Transit has been serving the community of Tatitlek, Alaska for the past nine 

years. During that time, the community has seen other air carriers enter the market, only 

to disappear. Alaska Air Transit has consistently sought ways to expand service options, 

improve reliability, and manage affordability for flights to Prince William Sound. Thank 

you for considering our proposal as we continue to seek opportunities to serve the 

community of Tatitlek. 

Daniel Owen 

Owner/President 

Alaska Air Transit 

www.flyAAT.com 

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J & M Alaska Air Tours, Inc. (dba Alaska Air Transit) 

Proposal to Provide Essential Air Service to Tatitlek, Alaska 

Docket DOT-OST-2013-0030 

Proposal A 

Weekly round-trip schedule 

Aircraft Type 

Direct non-stop Mon/Weds/Fri 

Navajo Chieftain* 

*This proposal is bid as a seven seat Navajo Chieftain, with the option to upgrade to a nine seat Cessna 

Grand Caravan or nine seat Pilatus PC-12 at the company's discretion, for no additional subsidy. 

Direct Operating Costs 

Pilot 

Fuel 

Maintenance 

Indirect Operating Costs 

Insurance 

Aircraft & Hangar Lease 

General & Administrative 

Total Operating Costs 

Profit Return@10% 

TOTAL ECONOMIC COST 

Revenue Source 

EXPENSES 

Per Hour 

$95 

$240 

$175 

Per Hour 

$70 

$122 

$261 

REVENUES 

Per Flight 

$152 

$384 

$280 

$816 

Per Flight 

$112 

$195 

$418 

$725 

$1541 per flight 

$ 154 per flight 

$1695 per flight 

$264,420 per year 

Passengers 520 seats per year@ $180 per seat $93600 

Freight 10000 lbs. per year @ .75 cents per lb. $ 7500 

TOTAL PROJECTED GROSS REVENUE $101,100 per year 

TOTAL PROJECTED NET REVENUE (subtracts FET) 

PROPOSED SUBSIDY 

Per Direct Non-stop Flight 

Maximum Annual Subsidy (156 flights @ 100% completion) 

$648 per flight 

$94,04 7 per year 

$603 per flight 

$1092 

$170,373 

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J & M Alaska Air Tours, Inc. (dba Alaska Air Transit) 

Proposal to Provide Essential Air Service to Tatitlek, Alaska 

Docket DOT-OST-2013-0030 

Proposal B 

Weekly round-trip schedule 

Aircraft Type 

Direct non-stop 2x/wk, Triangle 1 x/wk 

Navajo Chieftain* 

*This proposal is bid as a seven seat Navajo Chieftain, with the option to upgrade to a nine seat Cessna 

Grand Caravan or nine seat Pilatus PC-12 at the company's discretion, for no additional subsidy. 

Direct Operating Costs 

Pilot 

Fuel 

Maintenance 

Indirect Operating Costs 

Insurance 

Aircraft & Hangar Lease 

General & Administrative 

Total Operating Costs 

Profit Return@10% 

EXPENSES 

Per Hour 

$95 

$240 

$175 

Per Hour 

$70 

$122 

$261 

Per Direct Flight 

$152 

$384 

$280 

$816 

Per Direct Flight 

$112 

$195 

$418 

$725 

$1541 per direct flight 

$ 154 per direct flight 

$1695 per direct flight 

Per Triangle Flight 

$95 

$240 

$175 

$510 (pro-rated) 

Per Triangle Flight 

$70 

$122 

$261 

$453 (pro-rated) 

$ 963 per triangle 

$ 96 per triangle 

$1059 per triangle 

Two direct flights per week @ $1695 per flight x 52 weeks $176,280 

One triangle flight per week @ $1 059 per flight x 52 weeks $ 55.068 

TOTAL ECONOMIC COST $231,348 

REVENUES 

Revenue Source 

Passengers 520 seats per year@ $180 per seat $93600 

Freight 10000 lbs. per year @ .75 cents per lb. $ 7500 

TOTAL PROJECTED GROSS REVENUE $101,100 per year 

TOTAL PROJECTED NET REVENUE (subtracts FET) 

Per Direct Non-stop Flight 

Per Pro-Rated Triangle Flight 

PROPOSED SUBSIDY 

Maximum Annual Subsidy (156 flights @ 100% completion) 

$648 per flight 

$94,04 7 per year 

$603 per flight 

$1092 

$456 

$137,301 

Page4of5 
J & M Alaska Air Tours, Inc. (dba Alaska Air Transit) 

Proposal to Provide Essential Air Service to Tatitlek, Alaska 

Docket DOT-OST-2013-0030 

Weekly round-trip schedule 

Aircraft Type 

Proposal C 

Direct non-stop Mon/Weds/Fri 

Navajo Chieftain* 

*This proposal is bid as a seven seat Navajo Chieftain, with the option to upgrade to a nine seat Cessna 

Grand Caravan or nine seat Pilatus PC-12 at the company's discretion, for no additional subsidy. 

Direct Operating Costs 

Pilot 

Fuel 

Maintenance 

Indirect Operating Costs 

Insurance 

Aircraft & Hangar Lease 

General & Administrative 

Total Operating Costs 

Profit Return@10% 

TOTAL ECONOMIC COST 

Revenue Source 

EXPENSES 

Per Hour 

$95 

$240 

$175 

Per Hour 

$70 

$122 

$261 

REVENUES 

Per Flight 

$152 

$384 

$280 

$816 

Per Flight 

$112 

$195 

$418 

$725 

$1541 per flight 

$ 154 per flight 

$1695 per flight 

$264,420 per year 

Passengers 520 seats per year @ $180 per seat $93600 

**Mail 32000 lbs. per year @ $1 per lb. $32000 

Freight 1 0000 lbs. per year @ . 75 cents per lb. $ 7500 

TOTAL PROJECTED GROSS REVENUE $133,100 per year 

TOTAL PROJECTED NET REVENUE (subtracts FET) 

PROPOSED SUBSIDY 

Per Direct Non-stop Flight 

Maximum Annual Subsidy (156 flights @100% completion) 

$853 per flight 

$123,814 per year 

$794 per flight 

$901 

$140,606 

**Note: This proposal is contingent upon Alaska Air Transit being awarded the contract 

to transport mail directly between Anchorage and Tatitlek, without requiring routing 

through any other terminal. 

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