BEFORE THE 

U.S. DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY WASHINGTON, D.C. 

July 11,2012 

Essential Air Service at: 

Adak, Alaska DOCKET DOT-OST- 2000-8556 

Under 49 U.S.C. § 41731 et. ~ 

Proposals to Provide Essential Air Service at Adak, Alaska 

Tatonduk Outfitters Limited (TOL), dba Everts Air Cargo (Everts Airj hereby responds to. the 

Department of Transportation's re-soliciting for proposals for subsidized Essential Air Service 

(EAS) at Adak, Alaska with the following proposals for freight and mail only. . . 

The Order Re-soliciting Proposals for the next period of the EAS subsidy at Adak is attempting to 

receive alternative bids to what is currently proposed by the previous single respondent i.e. more 

lift and less requested subsidy. This is a tall order with the current known aircraft types currently 

being operated in the state. Utilization of Alaska Airlines' combi jet truly provides a beneficial 

service to the community of Adak. Everts Air encourages the Department to negotiate with Alaska 

Airlines' to determine if there is a possibility for them to continue their jet service to Adak for an 

additional period of time. 

TOL Adak EAS 2012 I of5 pages 
The following proposal is based on service to and from Adak (from Anchorage), using Everts 

Air's DC-9-33 cargo jet. 

Operating Costs ofthe DC-9-33 

Pilots & Copilots 

Aircraft Fuel & Oil 

Extended Aircraft Fuel* 

Other 

Maintenance 

Depreciation 

Total Direct 

Indirect expenses 

Total Expenses: 

Per Hour 

$302 

$3476 

$ 1124 

$221 

$ 1638 

$249 

$7010 

$1496 

$8506 

Per Trip Extended Costs 

5.9 hours 52 flights I year 

307 hours 

$1782 $ 92,664 

$20,508 $ 1,066,416 

$6632 $ 344,864 

$1304 $67,808 

$9664 $502,528 

$1469 $76,388 

$41,359 $ 2,150,668 

$8826 $458,952 

$50,185 $2,609,620 

*The extended aircraft fuel is the additional cost of fuel above the average for fuel purchases expected in Cold Bay 

and Adak based on the singular flight plan of ANC-CDB-ADK-ANC (does not include any other stops for subsidy 

calculations). 

Several proposals are listed below for the Community and the Department to consider. Everts Air 

is also available for :further discussions or negotiation as needed, which may consjder alternate 

frequencies of flights. 

Everts Air's proposed operations provides a weekly scheduled flight from Anchorage to Adak, and 

requests that the subsidy amount be payable (for each flight) beyond a one week billing period 

should a flight be delayed and not flown until the subsequent week. 

Everts Air is currently operating three DC-9-33s, and plans for adding more, so expects ample 

back up such that mechanical delays will be minimal and rarely felt by the customer. Enroute to 

Adak, a stop is planned in Cold Bay for fuel (ANC-CDB-ADK-). Depending on the need, a fuel 

stop may or may not be made in Cold Bay on the return trip from Adak. 

Commerce in the form of a regular and published service schedule to Cold Bay has not been 

included in the revenues in this proposal, but may develop into revenue that can be relied upon for 

inclusion and calculations of future requested subsidy amounts in this EAS to Adak. Everts Air is 

agreeable to recalculate the billable amount of the subsidy against increased regular revenues 

sooner than biennial if the department finds this beneficial. In such a Scenario, Everts Air in 

coordination with the Department, will recalculate reliable expected ongoing revenues into the 

projected revenue, and where appropriate, reduce the billable amount to the department for the 

EAS subsidy. On subsequent recalculations, if a previously reduced biJled subsidy amount does 

not hold, due to reduced revenues, than the billed subsidy amount may revert back up to or below 

TOLAdakEAS 2012 2 of5 pages 
the ceiling amount of the original proposal amount( stated in option #I or #2, which ever is chosen 

by the department) for EAS to Adak. 

In each proposal, Everts Air requests that an additional stop be allowed to any unknown location 

en-rout to or from Adak for purposes of additional air service & commerce. Any additional stop 

will be planned such that time sensitive scheduled service is not delayed to or from Adak and will 

apply only to space that Adak commerce does not use. Adak's commerce will take priority over 

other business. This flexibility is intended to allow potential increased financial return on this 

route with out detrimental impact to the Adak Community (As an example: ANC-DLG-CDBADK-AKN-ANC). 

If the Community and Department believe a second additional stop to and from Adak is 

detrimental to the Adak service, Everts Air will heed the concern, and negotiate on that specific 

allowance. Everts Air believes that utilizing the un-used space on the aircraft will have a potential 

benefit in reducing requested subsidy amounts in future EAS solicitations and response proposals. 

Everts Air is also receptive to developing a sharing provision with the Department for revenues 

received from transporting commerce on the additional stop, such that substantial profitable 

operations may be captured, and the subsidy billable amount reduced. The mechanics and 

formulas for this will have to be discussed and agreed to. Please note that exclusive use of the 

aircraft for Adak commerce only, may diminish the likelihood of future potential decreases in 

requested subsidy amounts. 

It is generally believed that there will be an up-swing in the coming years' traffic with an increase 

in government work and potential private industry business development in Adak. However, it is 

uncertain exactly how much traffic may be transported as air freight at this time. These unknown 

revenues are not included in the below revenue projections. 

Projected revenues have been calculated using historical data averages from the past three years 

(as provided in the re-solicitation), and from speaking with members of the community and other 

interested parties. 

Average past three year Freight 

IntoAdak, 315,000 

Out from Adak 160,000 

Average past three year Mail 

In to Adak 

Pri 

Non-Pri 

Out from Adak 

Non-Pri 

Total Projected Revenue 

TOL Adak EAS 2012 

55,000# 

110,000 # 

16,000# 

X 

X 

X 

X 

X 

$1.50 I# 

$0.701# 

$2.46 I# 

$1.57 I# 

$1.57 I# 

= 

= 

= 

= 

$472,500 

$112,000 

$135,300 

$172,700 

$25,120 

$ 917,620 

3 of5 pages 
The following proposal options use revenue projections from the above estimates. 

Option # 1. ( With the USPS Mail ) 

52 round trip flights per year (scheduled day of week to be determined) with service between 

Anchorage to Adak back to Anchorage. Flights will be scheduled regularly and any delays will be 

re-scheduled to operate as quickly and timely as can be. 

Total projected Expenses 

Profit element at 5% 

Total projected RevenueProjected necessary subsidy for option #1 at a 100% completion 

$2,609,620 

$ 130,481 

- $ 917.620 

$ 1,822,481 

Annual amount of$1,822,481 divided by 52 weeks= $35,047.71 per flight. 

The amount of requested EAS subsidy in option # 1: 

Per flight $ 35,048.00 

Annual amount $1,822,496.00 

Biennial amount $3,644,992.00 

Option #2 ( with out the USPS Mail ) 

Same as option #1 except with no mail revenues included. 52 round trip flights per year 

(scheduled day of week to be determined) with service between Anchorage to Adakhack to 

Anchorage. Flights will be scheduled regularly and any delays will be re-scheduled to operate as 

quickly and timely as can be. 

Total projected Expenses 

Profit element at 5% 

Projected Freight Revenue 

Projected necessary subsidy for option #2 at 100% completion 

$2,609,620 

$ 130,481 

$ 584,500 

$ 2,155,601. 

Annual amount of$2,155,601 divided by 52 weeks= $41,453.87 per flight 

The amount of requested EAS subsidy in option #2: 

Per flight $ 41,454.00 

Annual amount $2,155,608.00 

Biennial amount $4,311,216.00 

TOL Adak EAS 2012 4 of5 pages 
The requested subsidy amount will differ depending on the dispatch of the USPS Mail. Option #1 

includes transportation of the USPS mail, and option #2 does not include transportation of the 

USPS mail. 

The USPS normally requires a 28 day notice of scheduling prior to mail dispatch, but has also 

elected to dispatch mail with less notice when they deem fit to do so. Note that the USPS has also 

on occasion neglected to dispatch mail in a timely manner following the 28 day advance 

notification. For this reason, Everts Air offers two options that may be used in combination, or 

separately. 

Everts Air will begin service to Adak depending on which Option is chosen and agreed to. If the 

Department requests that Everts Air begin scheduled air service to Adak prior to the USPS 

dispatching mail to the flight, then the subsidy amount would be that indicated in Option #2 

(without the USPS Mail). If the Department chooses option #1, than the scheduled service will 

start in coordination with the USPS dispatching the mail to the Everts Air flight, taking into 

consideration the Post Office's 28 day filed schedule notice requirement. Public notice and 

advertising will advise the public of the new service so that freight may find its way onto the 

scheduled flights to and from Adak. 

Tatonduk Outfitters Limited certifies that operations are conducted in compliance with Department 

regulations regarding drug-free workplaces, nondiscrimination and all regulations·goveming 

lobbying activities. 

Sincerely, 

Tatonduk Outfitters Limited 

dba Everts Air Cargo 

5525 Airport Industrial Rd. FairbaW;(U ;:cg ~ 

RobertRagar 

Manager Contracts 

· ~ rragar@evertsair .com 

907-450-2300, ext 349 

TOL Adak EAS 20 I 2 5 of5 pages