BEFORE THE

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

________________________________ )

In the matter of Essential Air Service at )

)

CHATHAM, ALASKA ) DOCKET DOT

- OST

- 1997

- 3134

FUNTER BAY, ALASKA )

)

Under 49 U.S.C. § 417231 et seq. )

_________________________________ )

PROPOSAL OF ALASKA SEAPLANE SERVICE

TO PROVIDE ESSENTIAL AIR SERVICE AT

CHATHAM AND FUNTER BAY, AK

Alaska Seaplane Service, (Seaplanes) a DOT certificated air carrier, hereby submits its proposal to

provide Essential Air Service to the points of Chatham and Funter Bay. Alaska Seaplane Service

, and its

anteceden t carrier Loken Aviation

, have a long history of serving these points and both Admiral ty and

Chichagof Islands for over thirty years. In addition to being the only DOT certificated carrier proposing

service, Alaska Seaplane Service currently provides Essential Service flights to Pelican and Elfin Cove

which fly over Funter Bay, as well as to Angoon which is across the channel fr om Chatham, and Tenakee,

which is a few mile s northwest of Chatham on Chichagof Island.

Seaplanes proposes to operate the services on a standalone basis using aircraft suitably sized to the

markets. Seaplanes ’ existing fleet and scheduled route structure give it flexibility to provide

supplemental service as needed. Seaplanes reserves the right to substitute larger deHavilland Beaver

aircraft on the routes at no additional subsidy need, or provide additional on a flagstop basis as needed.

The fares and rates proposed in Appendix A reflect the current f are and rate structure for existing

scheduled service adjusted for the distance flown. These fares represent similar revenue per hour yields

as Seaplanes ’ existing scheduled service. This bid also reflec ts the philosophy of Seaplanes and its sister

company Air Excursions to request no more subsidy than necessary to provide the service at the

expected revenue. This philosophy was reflected in its recent proposal at Kake where Air Excursions

reduced its al ready lower bid to reflect experienced expenses for the service.

Seaplanes has an excellent safety record and public support based on its decades of service in the

immediate area. Basic service will be provided with Cessna 180 aircraft on straight floats during thesummer season, and a Cessna 206 aircraft on amphibious floats when the float pond in Juneau is frozen

over during the winter. The 206 is configured on straight floats during the summer, and cou ld be used

to provide more capacity per flight as needed.

Alaska Seaplane Service hereby submits its proposal to provide Essential Air Service at Chatham and

Funter Bay at the rate of $21,584 per year for a two year term.

Respectfully submitted,

ALASKA SEAPLANE SERVICE

____________________________ By Hank Myers, its representative

August 8, 2012Appendix A

Page 1 of 1



## Expense

AIRCRAFT

DOC OVERHEAD/

HR. Funter Chatham COST

Annual Frequency 104 24

$248 $325 C206 Amphib/C180 Straight $11,918 $13,752



### - $25,670

With 5% profit margin



### - $26,954



## Revenue

Funter Chatham REVENUE

Passengers 35 13

Freight 0 840

Mail 1043 292

Fare $50 $130

PAX Revenue $1,750 $1,690

Freight Revenue $0 $588

Mail Revenue $939 $403

TOTAL REVENUE $2,689 $2,681 

### $5,370



## NET SUBSIDY REQUIRED $21,584