. ^ i- V
Befor e th e EA S & Domesti c Analysi s Division , X-5 3 Offic e of Aviatio n Analysis , Roo m640 1 Departmen t

o f Transportatio n 40 0 7t h Street , S.W . Washington , D.C . 2059 0

I n th e Matte r

of: ESSENTIA L AI RSERVIC E A T RAMPART , ALASK A Docke t OS T 2008-020 1 

## Proposa l t o Provid e Essentia l Ai r Servic e a t

Rampart , Alask a Warbelow' s herb y submit s it s proposa l t o continu e subsidize dservic e t o Rampart , Alask a for ane w two-yea r

period , beginnin g Octobe r 1 , 2010 . Whil e th e runwa y condition s a t Rampart wil l easil y support

VF Rmulti-engin e aircraf t (ther e i s n o IFRapproac h o r reporte dweather ) Warbelow' s i s currentl y providin g servic e with VFRsingl e engin e Cessn a20 6 aircraft
. Durin g th e previou s curren t subsid y perio dnegotiation , th e villag e indicate dapreferenc e for mor e frequen t

servic e with asingl e engin e aircraf t rathe r tha n les s frequen t

servic e with amulti-engin e aircraft
. Thi s proposa l i s therefor e base do n th e curren t thre e day s pe r

wee k servic e i n asingl e engin e aircraf

t with four

insure dpassenge r

seats , th e balanc e o f

th e capacit y reserve dfor mai l an dfreight
. Revenu e projection s ar e base do n th e laggin g four quarter s o f

dat athroug h Decembe r

31 , 2009 . Ou r

cos t dat ai s base do n reporte dF 2 dat afo r th e sam e period
. Th e propose dservic e i s direc t t o Rampart

fro mFairbanks , an dreturn . N o uplin e o r downlin e point s ar e contemplated
. 

## Mai l Rate s Orde r 2010-3-1 8 se t

ne w mai l rate s that

w e hav e use dt o calculat e mai l revenu e ove r th e subsid y period :

RT M $13.478 2Terminal/To n Enplaned$745.0 1 Fairbanks-Rampar t

8 2 mile s Therefore th e P-13 5 rat e for Fairbanks/Rampart

i s $0.9 3 /poun dan dw e hav e not projecte dan y chang e ove r th e subsid y period
. Curren t passenge r

fare s an dcarg o rate s ar e use di n thes e calculations
. Thes e reflec t n o chang e ove r

th e curren t

subsid y period
. 

## Schedul e Th e followin g schedul e operate dthre e day s pe r wee k ha s bee n publishe di n th e OAG :
Fro m Fairbank s t o Rampar t Bac k t o To p One

- Round

Fligh t Depar t

Arriv e Frequenc y Stop s wa y Tri p Adul t Adul t 33 0 9:4 5 a

m10:5 0 a

mTues , Th , Sa

t 0 $10 1 $20 2 Fro m Rampar t t o Fairbank s Bac k t o To p One

- Round

Fligti t Depar t

Arriv e Frequenc y Stop s wa y Tri p Adul t Adul t 33 0 10:5 5 a

m12:0 0 pmTues , Th , Sa t 0 $10 1 $20 2 One-wa y Child/Senio r $9 1

One-wa y Child/Senio r $9 1 Round-Tri p

Child/Senio r $18 2

Round-Tri p Child/Senio r $18 2 Base do n historica l flight times , th e actua l bloc k

hour s t o complet e th e fligh t ar e 1.6 7 hour s x 3 flight s pe r

wee k x 5 2 week s pe r

year = 26 0 hours
. 

## Projecte dDeman d Passenge r an dcarg o traffi c i n Rampart ha s continue dt o declin e slightl y a s th e populatio n ha s decline dove r

th e previou s subsid y period
. Mai l volum e ha s increased
. Ou r revenu e projection s assum e n o chang e ove r th e subsid y period
. 

## Projecte dExpense s Actua l cost s a s reporte do n ou r F 2 hav e continue dt o increas e ove r th e las t tw o years , with th e exceptio n of

hul l an dliability insuranc e whic h i s at th e botto mof

asof t market
. Fue l cost s hav e bee n o n a

n upwar dtren dove r

th e pas t year after declining , an dw e expec t may continu e t o increas e a s th e econom y recover s fro mrecession
. W e hav e not projecte dan y fue

l cos t increases
.

## Requeste dSubsid y Calculatio n

Revenu e Passenqe rRevenue Rampar t Les s Passenge rTa x7.5 % Passenge rTota l Cara o Revenu e Rampar t Les s Freigh t Ta x6.25 % Carg o Tota l Mai l Revenu e Rampar t Mai l Tota l Tota l Annua l Revenu e Expense s Depre/Renta l 80.0 0 Allocate d Bloc k

Hour s Direc t Expens e Pilo t & Co-pilo t Fue l & Oi l Othe r Maintenanc e Depreciation/Renta l Tota l Direc t Expens e 200 9 Pax 23 4

Pound s 1286 0

Pound s 2942 0 Far e Total s

Indirec t Expens e 26 0 hr @ $135.5 1 p rh r Tota l Operatin g Cos t Profi t Elemen t o

f TO C = 0.1 0 Inboun d Traffi c Marketin g Expens e Tota l Economi c Cos t Annua l Subsid ynee d at 100 % Completio n Tw o Yea rTota l Subsid ynee d a t 100 % Completio n 101.0 0

Rat e 0.4 9

Rat e 0.9 3

Cessn a Rat e pe rBloc k

Hou r 23,634.0 0 1,648.8 8 21,985.1 2 6,301.4 0 370.6 7 5,930.7 3
27,360.6 0 27,360.6 0 $55,276.4 5

26 0 69.5 4 51.7 7 16.2 5 131.4 1 80.0 0 18080.4 0 13460.2 0 4225.0 0 34166.6 0 20800.0 0 $90,732.2 0 35232.6 0 125964.8 0 12596.4 8 14394.0 0 $152,955.2 8 $97,678.8 3 $195,357.6 6Thi s proposa l reflect s adecreas e i n th e requeste dsubsid y ove r th e previou s period
. Th e decreas e reflect s ane t

increas e in revenu e resultin g fro madecreas e i n passenge r an dfreight revenue , bu t

a n increas e i n mai l revenue . In additio n ou r actua l expense s hav e decrease do n a bloc k hou r basi s ove r

tha t previousl y projected
. I n th e even t

that weathe r condition s require , o r

th e communit y request s servic e with 9 seat Pipe r Chieftai n aircraft , w e offer tha t servic e a s wel l o n atwic e pe r wee k basi s a t th e sam e subsid y rat e pe r

wee k a s th e thre e day pe r

wee k servic e with th e Cessn a206 . W e than k yo u for you r consideratio n of

thi s proposa l an dhop e t o b e abl e t o continu e servic e t o th e Rampar t

communit y for

anothe r tw o yea r period
. Sincerely , Warbelow' s Ai r

Ventures , Inc . 375 8 Universit y Avenu e Sout h Fairbanks , Alask a



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### r Arthu r Warbalow , Presiden t art@warbelows.co m (907 ) 378-720 3