BEFORE THE U.S. DEPARTMENT OFTRANSPORTATION OFFICE OFTHE SECRETARY, WASHINGTON D.C.

EssentialAir Service at: TATITLEK, AK Under49 U.S.C. 41731 

### etseq.

PROPOSED SERVICE March 19, 2015
DOCKET DOT-OST-2013-0030

AlaskaAirTransit 

### [Mn isoffering two proposalsfor the two yearcontract period beginning October 1, 2015. ProposalA providestwice weekly EAS scheduled flights toTatitlek, Alaska, with optional flag stops in Chenega Bay. AAT will do this with two of itsthree existing scheduled flights that currently operate to Chenega Bay and flag stop neighboringTatitlek. (Thethird 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 oftwo new nine-passenger Grand CaravanEX turboprops, and will continue to utilize these aircraft in its proposed EAS service. AAT feels that its ProposalA providesthe bestvalueto the government, because Chenega Bay flag stop revenues reduce the required subsidy amount. We also feel that this option will best serve the needs ofTatitlek's supporting agencies, including the Chugach School District, the Alaska Native Medical Center, and the Chugachmiuttribal health organization, who all have a need for inter-village travel betweenTatitlek and Chenega Bay. Alternately, ifthe DOT is constrained to a proposal with no flag stop provisions, AAT is submitting Proposal B fortwice weekly direct non-stop scheduled service to Tatitlek using its eight seat Navajo Chieftain aircraft.
BACKGROUND AAT has overtwo decadesof 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 organizationsthat serve the region. AlaskaAirTransit offers: RELIABLE SCHEDULE --overtwo decade of experience providing air service to Prince William Sound --five**ye~rs** offering year-round scheduled seatfare flights to Tatitlek --aircraft redundancy so we can maintain our aircraftwhile maintaining our scheduleMODERN 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 thatAlaskaAir 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 AlaskaAir Transit www.flyAAT.com

## J & MAlaskaAirTours, Inc. (dbaAlaskaAirTransit) Proposal to Provide EssentialAir ServicetoTatitlek, Alaska Docket DOT-OST-2013-0030 ProposalA Schedule: two flights perweek 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 tripfor 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 perflight $ 225 perflight $2473 perflight $257,192 per year (based on Tatitlek service, supplemented with Chenega Bayflag stops) Revenue Source Passengers 832 seats peryear @ 

### $185 per seat $153,920 Freight 12,000 lbs. per year@ .75 cents per lb. $9.000 TOTAL PROJECTED GROSS REVENUE $162,920 peryear
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 ($1016 per flight)

### Proposal B Schedule: two direct non-stop flights to Tatitlek per week AircraftType: Piper PA-31-350 "Navajo Chieftain" 8 passenger aircraft
EXPENSES (based on 1.6 block hours per trip for directTatitlek service) Direct Operating Costs Pilot Fuel Maintenance

Indirect Operating CostsInsuranceAircraft & Hangar Lease General 

### &Administrative

Total Operating Costs Profit Return@10% 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 perflight $ 185 perflight $2036 perflight $211,744 per year REVENUES (b!3-sed on directTatitlek 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 perflight) $57,181 peryear ($550 perflight)

$154,563 per year

($1486 per flight)