BEFORE THE 

U.S. DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY, WASHINGTON D.C. 

Essential Air Service at: TATITLEK, AK 

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

PROPOSED SERVICE 

March 19, 2015 

DOCKET DOT-OST-2013-0030 

Alaska Air Transit [Mn is offering two proposals for the two year contract period beginning 

October 1, 2015. 

Proposal A provides twice weekly EAS scheduled flights to Tatitlek, Alaska, with optional flag 

stops in Chenega Bay. AAT will do this with two of its three existing scheduled flights that 

currently operate to Chenega Bay and flag stop neighboring Tatitlek. (The third existing flight is 

not included in our EAS subsidy request, and would. continue to serve Chenega Bay, with 

optional flag stops in Tatitlek.) 

AAT operates its current schedule with one of two new nine-passenger Grand Caravan EX 

turboprops, and will continue to utilize these aircraft in its proposed EAS service. 

AAT feels that its Proposal A provides the best value to the government, because Chenega Bay 

flag stop revenues reduce the required subsidy amount. We also feel that this option will best 

serve the needs of Tatitlek's supporting agencies, including the Chugach School District, the 

Alaska Native Medical Center, and the Chugachmiut tribal health organization, who all have a 

need for inter-village travel between Tatitlek and Chenega Bay. 

Alternately, if the DOT is constrained to a proposal with no flag stop provisions, AAT is 

submitting Proposal B for twice weekly direct non-stop scheduled service to Tatitlek using its 

eight seat Navajo Chieftain aircraft. 

BACKGROUND 

AAT has over two decades of experience serving Tatitlek with frequent charters. We initiated 

flag stop seat fare flights in 2010 as a response to community desire for scheduled service, and 

have provided year-round scheduled service to Tatitlek ever since. AAT maintains a positive 

relationship with the community and the organizations that serve the region. Alaska Air Transit 

offers: 

RELIABLE SCHEDULE 

--over two decade of experience providing air service to Prince William Sound 

--five ye~rs offering year-round scheduled seat fare flights to Tatitlek 

--aircraft redundancy so we can maintain our aircraft while maintaining our schedule 
MODERN EQUIPMENT 

--2013 and 2014 model Grand CaravanEX turboprop aircraft 

--large exterior cargo pods and cargo doors for freight 

--advanced anti-ice system, satellite flight tracking, and terrain and traffic alerting 

SAFETY MANAGEMENT SYSTEMS 

--structured safety programs with standards exceeding FAA regulations 

--third-party safety audits conducted by the Medallion Foundation and corporate customers 

--approved carrier for safety sensitive State and Federal agencies 

CUSTOMER SERVICE 

--support of community programs through discounted and donation travel 

--comfortable passenger lounge with restrooms, compli_mentary beverages, and WiFi 

--large cargo facility with refrigerated storage space 

CONCLUSION 

Our current scheduled flight is well patronized. By offering stops in both Tatitlek and Chenega 

Bay, we're able to offer economical inter-village travel for providers like the school district and 

the health care consortiums which serve both locations. Many community members also have 

family ties to both villages. We market our schedule online, through local advertising, and 

through the word of mouth that comes with a good reputation in a small community. With our 

experience serving the community, reliable schedule·, modern equipment, attention to safety, 

and commitment to customer service, we believe that Alaska Air Transit offers a superior value, 

both to the community of Tatitlek and to the Essential Air Service program. Thank you for 

considering our proposal. · 

Josie Breeding-Owen 

Owner/Secretaryffreasurer 

Alaska Air Transit 

www.flyAAT.com 
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 

Schedule: two flights per week to Tatitlek, with optional Chenega Bay flag stops 

Aircraft Type: Cessna Grand CaravanEX 9 passenger aircraft (new in 2013 and 2014) 

EXPENSES 

(based on 2.0 block hours per trip for Tatitlek service, with Chenega Bay flag stops) 

Direct Operating Costs 

Pilot 

Fuel 

Maintenance 

Indirect Operating Costs 

Insurance 

Aircraft & Hangar Lease 

General & Administrative 

Total Operating Costs 

Profit Return@10% 

TOTAL ECONOMIC COST 

REVENUES 

Per Hour 

$110 

$245 

$145 

Per Hour 

$68 

$176 

$380 

Per Flight 

$220 

$490 

~ 

$1000 

Per Flight 

$136 

$352 

$760 

$1248 

$2248 per flight 

$ 225 per flight 

$2473 per flight 

$257,192 per year 

(based on Tatitlek service, supplemented with Chenega Bay flag stops) 

Revenue Source 

Passengers 832 seats per year @ $185 per seat $153,920 

Freight 12,000 lbs. per year@ .75 cents per lb. $9.000 

TOTAL PROJECTED GROSS REVENUE $162,920 per year 

TOTAL PROJECTED NET REVENUE (subtracts FET) 

PROPOSED SUBSIDY 

Maximum Annual Subsidy (104 flights @100% completion) 

($1,567 per flight) 

$151,553 per year 

($1457 per flight) 

$105,639 per year 

($1 016 per flight) 
Proposal B 

Schedule: two direct non-stop flights to Tatitlek per week 

Aircraft Type: Piper PA-31-350 "Navajo Chieftain" 8 passenger aircraft 

EXPENSES 

(based on 1.6 block hours per trip for direct Tatitlek service) 

Direct Operating Costs 

Pilot 

Fuel 

Maintenance 

Indirect Operating Costs 

InsuranceAircraft & Hangar Lease 

General & Administrative 

Total Operating Costs 

Profit Return@ 1 0% 

TOTAL ECONOMIC COST 

Per Hour 

$110 

$230 

$160 

Per Hour 

$72 

.$185 

$400 

Per Flight 

$176 

$368 

~ 

$800 

Per Flight 

$115 

$296 

$640 

$1051 

$1851 per flight 

$ 185 per flight 

$2036 per flight 

$211,744 per year 

REVENUES (b!3-sed on direct Tatitlek service only) 

Revenue Source 

Passengers 312 seats per year @ $185 per seat 

Freight 5,000 lbs. per year @ . 75 cents per lb. 

$57,720 

$3.750 

TOTAL PROJECTED GROSS REVENUE 

TOTAL PROJECTED NET REVENUE (subtracts FET) 

PROPOSED SUBSIDY 

Maximum Annual Subsidy (104 flights @100% completion) 

$61,470 per year 

($591 per flight) 

$57,181 per year 

($550 per flight) 

$154,563 per year 

($1486 per flight)