j ' 

### To:

From: February 

### 10,2015 United States ofAmerica Department of Transportation Office ofthe Secretary Washington D.C. ServantAir. Inc. 

### 1633 Airport Way Kodiak, !\Iaska 996 1

### 5

ALEKNAGIK. ALASKA under49 U.S.C. DOCKET DOT-OST-2014-0219
Summary 

### UnderOrder

### 2014-0219, The DepartmentofTransportation has requested proposals for essential serviceairtransportation atAleknagik,Alaska

. Please acceptthis proposal as submitted by ServantAir Inc. ofKodiak, Alaskato provide such service. History 

### Servant Air, Inc

.. is an air carrier with interstate transportation authority and 

### 401 certification.This entity has been operationally based in Kodiak Alaska since 

### 2004. Servant Air's pilots are 311 qualified, conscientious, and well-establishedin Alaskan aviation. Mission 

### It is the mission of Servant Air, Inc. to provide safe. reliable, affordable transportation around the entire State ofAlaska, with special emphasis on the coastal region ofthis state. Our primary offices are currently located atthe Kodiak State Airport, and with the inception ofthis essential air service contract, we will be establishing a branch location in Dillinghan<. ServantAir, Inc. takes pride in the service it currently provides to the Kodiak Island District.. However, Servant Air, Inc. wishes to expand itsoperations to encon1pass more of the coastal region. Therefore, it is Servant Air's intent to bidthis essential air service outlined above.

Page 1 of 3Aircraft To accomplishthis goal ofthe Departments request, ServantAir. Inc. proposes to use a Piper Cherokee aircraft. Option 1would use 

### a PA-32 aircraft which is capable ofcarrying a maximum of

### 5 passengers. It cruises at 120 knots and performs very well in short I soft field operations. Option 2 would use 

### a PA-28 aircraft capable ofcarr·ying only 3 passengers at a cruise speed of 100 Knots. This proposal is being included as its lower**operatin~l** cost and acquisition cost would allow more frequency. We also feel that a higlier frequency flight schedule will allow passengers to make "Day Trips" to Dillingl1am. thereby increasing the incentive to tr·avel, and increase revenues somewhat. This in 

### turn will allow for a lower overall subsidy cost. 

### Proposed Scheduling The Exhibit"A",attached, is 

### a financial spreadshr:;etshowing the calculations forServantAir's proposed subsidy requestto provide the following service: Option 1 One round trip flight each MondayWednesday and Friday Dillingham- Aleknagik- Dillingham Monday,Wednesday. Friday Option 

### 2 Two round trip flights each MondayWednesday and Friday Dillingham- Aleknagik
- Dillingham Monday.Wednesday Friday Upon award ofany subsidy contract, Servant Airwill 

### work 

### witii the destination Community to further refine the above schedule to best meet the: needs ofthis community. These final schedules will then be published in t!1e Official Airline Guide (OAG). Operations Logistics Operations oversight will be conducted from Servant Air's flight coordination office at Kodiak. The aircraft will begin and terminate these flight operations at the Dillingham airport terminaL and all flights will be monitored VIA 

### a GPS tracking system currently in place. 

### Compensation Contract compensation is expected as outline in Exhibit ''A"with 

### a fixed cost allocation for option 

### 1 of $20,333.33 or option 2 

### $18,083.33 being paid monthly, in addition to a variable component paid based on departures completed. ie: total subsidy request less fixed costs (paid above) divided into departures.for an additional monthly compens<ltion equalto (Option 

### 1 S42.76 per departure) (Option 2 S12.80 per departure). This equates to a total subsidy request of $257,342.15 for option 1 or $224,985.12 for option 2 per year for a two year term. Itis also understood that only completc?d flights wili be eligible forVariable Costcompensation. Page 2 of 3Exhibit ''A" 

### Servant Air Inc. 1633Airport Way Kodiak Alaska 99615
Essential Service Subsidy Request At Aleknagik, Alaska
Total Estimated flightTime Option 1 Option 2 PA-32 One Trip M,W,F PA-28 Twa Trips M,W,F Hrs PerTrip

Option 1 0.4
0.4

Revenue Exptectation $ 13,020.00 Annual Hrs. Plus 10% weatherdeviation 62.4 68.64
124.8 137.28
Option 2 $ 18,000.00 217 PEQX$60.00 300 PEQX$60.00 Fixed Cast Allocation Pilot Training Insurance Aircraft Lease Hanger

### I Dispatch Facility Crew Housing Agent Accounting

### I Admin

### I Dispatch Total Fixed Cast Variable Casts per flight hour Fuel Maintenance Reserves (Prop and Engine) Total Variable Costs per Hour Total Operating Cast NetOperating Loss Target Profit Margin 5% Total Subsidy Request $ 50,000.00 $ 5,000.00 $ 27,000.00 

### $ 36,000.00 $ 72,000.00 $ 36,000.00 

### $ 6,000.00 $ 12,000.00 $ 244,000.00


### $ 144.00 $ 30.00 $ 22.50 $ 196.50 $ 257,487.76 $ (244,467.76) $ 12,874.39 

### $ 257,342.15 Page 3 of3 

### $ 50,000.00 $ 5,000.00 

### $ 18,000.00 $ 18,000.00 $ 72,000.00 $ 36,000.00 

### $ 6,000.00 

### $ 12,000.00 

### $ 217,000.00


### $ 64.00 

### $ 30.00 $ 11.00 $ 105.00 

### $ 231,414.40 $ (213,414.40) $ 11,570.72 

### $ 224,985.12