Order 2010-9-16

Served: September 14, 2010

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 14th of September, 2010

Essential Air Service at

ANGOON AND TENAKEE , ALASKA

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

DOCKET OST-2006-25542

ORDER REQUESTING PROPOSALS

Summary

By this order, the Department is requesting proposals by October 13, 2010, from carriers 

interested in providing essential air service (EAS) at Angoon and Tenakee, Alaska, for a 

new two-year period, beginning February 1, 2011, with or without subsidy. 

Background

By Order 2008-12-27, December 29, 2008, the Department selected Alaska Seaplane Service, 

LLC., to provide subsidized EAS to Angoon and Tenakee, Alaska, through January 31, 2011. 

Under that order, the Department authorized subsidy for Alaska Seaplane consisting ten round 

trips per week in the peak and five in the off-peak to Angoon, and seven round trips per week 

in the peak and three in the off-peak to Tenakee, for $101,359 and $63,748, respectively. All 

of the service is to be provided on a nonstop basis to Juneau with 5-seat DeHavilland Beaver 

aircraft.

Request for Proposals

As the end of the current rate term approaches, we are hereby requesting proposals from 

carriers interested in providing service at Angoon and Tenakee, with or without subsidy, for 

the two-year period beginning February 1, 2011. Carriers should file their proposals by

October 13. Staff will then docket proposals, thereby making them public, and direct each 

carrier to serve a copy of its proposal on the civic parties and other applicants. Shortly

afterwards, we will provide a summary of the proposals to the communities and ask them for 

their final comments. We will give full consideration to all proposals filed in a timely

manner.1 

Interested carriers should prepare their proposals with every expectation that their initial 

proposals will also be their final and only proposals. We retain the discretion to negotiate 

 

1 Carriers should not expect the Department to accept late filings. In cases where a carrier proposes to 

provide essential air service without subsidy and we determine that service can be reliably provided without 

such compensation, we do not proceed with the carrier-selection case. Instead, we simply rely on that 

carrier’s subsidy-free service as proposed.
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proposals with carriers when we deem it desirable. We also retain the discretion to reject 

outright all unreasonable or unrealistic proposals and, if necessary, solicit a new round of 

proposals. However, we anticipate that negotiation or rejection will remain only

occasional exceptions to the rule.

We are here providing interested carriers with some basic information to serve as 

guidance when they prepare their proposals, but we will not prescribe a precise format for 

their proposals. We expect proposals to adequately describe the service being proposed 

and the annual amount of subsidy being requested. The applicants can make their own 

judgments as to the level of detail they wish to present; however, they might want to 

include proposed schedules as well as supporting data for their subsidy requests, such as 

projected block hours, revenues, and expenses. We strongly encourage clear, welldocumented proposals that will facilitate their evaluation by the affected community and 

the Department. We do not anticipate any change in our selection criteria, or in the 

general provisions governing subsidy payments for essential air service.2 

As always, we will formally solicit the communities’ views on any service options we 

receive before making a long-term carrier-selection decision. The communities and air 

carriers are encouraged to work together in advance of the due date for proposals to craft 

a service pattern that is both desirable to the communities and meets the operational 

needs of the airline, as carriers cannot amend their proposals after the due date.

We encourage proposals that meet these requirements in an efficient manner. As we 

have mentioned, carriers are welcome to propose more than one service option, if they

choose; they need not limit themselves to those requirements if they envision other, 

potentially more attractive service possibilities – different hubs, for example – with 

subsidy requirements that remain competitive.

New Filing Procedures

Carrier proposals should be submitted to the Department with all materials merged into a 

single document. In addition, because the document will be published on 

Regulations.gov, each page should be formatted to be viewed online.

Historical Traffic

In order to assist carriers in making their traffic and revenue projections, we have 

included historical traffic for the communities in Appendix B. For the most recent annual 

period, Angoon generated 254 deplaned passenger equivalents3 in its best month and no 

 

2 In selecting a carrier to provide subsidized essential air service in Alaska, 49 U.S.C. 41733(c) (1) directs 

us to consider five factors. (1) service reliability; (2) contractual and marketing arrangements with a larger 

carrier at the hub; (3) interline arrangements with a larger carrier at the hub; (4) community views; and 

(5) experience of the applicant in providing, in Alaska, scheduled air service or significant non-scheduled 

air service. In addition, The Consolidated Appropriations Act, 2008, Public Law 110-161, provides that 

when selecting a carrier to provide EAS, the Department may consider the relative subsidy requirements, 

thus codifying a factor that we have considered since the inception of the program. Interested carriers 

should also be aware that our general provisions governing essential air service will be included in the 

selection order as part of our authorization of subsidy for the selected service. Appendix C of this order 

contains those general provisions.

3 We have used deplanements, because deplanements at Angoon and Tenakee, as is typical of bush Alaska, 

exceed enplanements. Also, we have used passenger equivalents, where 200 pounds of mail or freight is 

one passenger equivalent, to reflect the importance of mail and freight in Alaska.
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85 per month in its lowest month. Similarly, Tenakee’s monthly traffic ranged between 

149 and 28 deplaned passenger equivalents.

Other Carrier Requirements

The Department is responsible for implementing various Federal statutes governing lobbying 

activities, drug-free workplaces, and nondiscrimination.4 Consequently, all carriers receiving 

Federal subsidy to support essential air service must certify that they are in compliance with 

Department regulations regarding drug-free workplaces and nondiscrimination, and those 

carriers whose subsidies exceed $100,000 over the life of the rate term must also certify that 

they are in compliance with the regulations governing lobbying activities. Because the 

Department is prohibited from paying subsidy to carriers that do not submit these documents, 

all carriers that plan to submit proposals should be aware that the selected carriers must 

complete the required certifications before they can be compensated. Interested carriers 

requiring more detailed information regarding these requirements, as well as copies of the 

certifications, should contact the Office of Aviation Analysis at (202) 366-5903. 

Community Comments

Civic officials and the state are welcome to submit comments on the proposals at any time. 

As noted earlier, we will provide a summary of the proposals to the civic parties and ask 

them to submit their final comments shortly after October 13, the due date for carrier 

proposals.

This order is issued under authority delegated in 49 CFR 1.56a(f) and re-delegated to the 

Director, Office of Aviation Analysis.

ACCORDINGLY,

1. The Department requests proposals from carriers interested in providing essential air 

service at Angoon and Tenakee, Alaska. Carriers should submit their proposals, with 

subsidy if necessary, by October 13, 2010. Proposals should be emailed to EAS@dot.gov, 

with the title “Proposal to Provide Essential Air Service at Angoon and Tenakee, Alaska, 

Docket DOT-OST-2006-25542.” Questions regarding filings may be directed to Kevin 

Adams at 202-366-1047 or Kevin.Adams@dot.gov;

2. This Docket will remain open until further order of the Department; and

 

4 The certifications are available on the web at http://ostpxweb.dot.gov/aviation/index.html.
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3. We will serve this order on the service list for this Docket.

Persons entitled to petition the Department for review of this order under the 

Department’s Regulations, 14 CFR 385.50, must file such petitions within ten (10) days 

after the date of service of this order.

This order will be effective immediately, and the filing of a petition for review shall not 

preclude its effectiveness.

By: 

TODD M. HOMAN

Director

Office of Aviation Analysis

(SEAL)

An electronic version of this document is available on the World Wide Web at

http://www.regulations.gov
Appendix A 

Great Circle Miles, Airport-to Airport, to Juneau 

Excursion Inlet, EXI 32 

Gustavus, GST 41 

Tenakee, TKE 50 

Angoon, AGN 59 

Elfin Cove, ELV 64 

Pelican, PEC 67 

Kake, KAE 98 

Ketchikan, KTN 234

This map is provided by Sabre® AirVisionTM Profit Essentials and is being used with express permission of the 

copyright holder, Sabre Airline Solutions®.
Appendix B-1

Angoon, Alaska (AGN), Scheduled Service, T-100 Market Report

Origin Destination Origin & Destination

Passenger Equivalents Passenger Equivalents Passenger Equivalents

Year Month Pax. Freight Mail Total Pax. Freight Mail Total Pax. Freight Mail Total

2007 8 249 8.6 10.2 267.8 236 25.8 35.0 296.8 485 34.4 45.2 564.6

2007 9 161 3.8 12.1 176.9 112 19.3 38.9 170.2 273 23.1 51.0 347.1

2007 10 120 4.1 7.8 131.9 88 23.5 37.0 148.5 208 27.6 44.8 280.4

2007 11 131 2.4 4.6 138.0 86 21.2 29.6 136.8 217 23.6 34.2 274.8

2007 12 64 1.9 5.5 71.4 53 11.1 37.7 101.8 117 13.0 43.2 173.2

2008 1 63 1.4 7.0 71.4 50 7.2 22.3 79.5 113 8.6 29.3 150.9

2008 2 71 2.2 7.1 80.3 55 11.1 23.5 89.6 126 13.3 30.6 169.9

2008 3 94 3.4 4.8 102.2 61 15.6 28.1 104.7 155 19.0 32.9 206.9

2008 4 138 5.2 6.9 150.1 135 21.1 26.3 182.4 273 26.3 33.2 332.5

2008 5 142 3.4 16.4 161.8 135 20.8 29.7 185.5 277 24.2 46.1 347.3

2008 6 208 4.0 10.1 222.1 203 24.0 28.1 255.1 411 28.0 38.2 477.2

2008 7 218 6.7 4.3 229.0 210 34.9 26.7 271.6 428 41.6 31.0 500.6

Total 1,659 47.1 96.8 1,802.9 1,424 235.6 362.9 2,022.5 3,083 282.7 459.7 3,825.4

2008 8 245 8.8 7.5 261.3 209 38.6 29.9 277.5 454 47.4 37.4 538.8

2008 9 167 4.9 9.4 181.3 117 34.7 33.0 184.7 284 39.6 42.4 366.0

2008 10 114 1.6 6.4 122.0 91 21.8 33.0 145.8 205 23.4 39.4 267.8

2008 11 121 2.4 4.6 128.0 94 17.8 30.2 142.0 215 20.2 34.8 270.0

2008 12 82 2.5 7.8 92.3 58 20.5 31.5 110.0 140 23.0 39.3 202.3

2009 1 53 1.4 2.8 57.2 40 9.3 16.9 66.2 93 10.7 19.7 123.4

2009 2 66 2.0 3.5 71.5 65 19.0 28.7 112.7 131 21.0 32.2 184.2

2009 3 73 2.3 6.8 82.1 47 16.6 18.7 82.3 120 18.9 25.5 164.4

2009 4 140 8.7 3.6 152.3 111 26.7 22.1 159.8 251 35.4 25.7 312.1

2009 5 155 3.5 4.0 162.5 139 32.3 27.4 198.7 294 35.8 31.4 361.2

2009 6 241 3.2 4.1 248.3 214 36.4 27.7 278.1 455 39.6 31.8 526.4

2009 7 231 8.6 7.2 246.8 202 36.6 26.9 265.5 433 45.2 34.1 512.3

Total 1,688 49.9 67.7 1,805.6 1,387 310.3 326.0 2,023.3 3,075 360.2 393.7 3,828.9

2009 8 201 9.8 6.5 217.3 166 36.2 19.2 221.4 367 46.0 25.7 438.7

2009 9 170 8.6 7.9 186.5 150 30.4 22.7 203.1 320 39.0 30.6 389.6

2009 10 174 6.9 5.5 186.4 172 47.9 29.0 248.9 346 54.8 34.5 435.3

2009 11 80 4.6 3.8 88.4 78 20.9 21.6 120.5 158 25.5 25.4 208.9

2009 12 97 1.2 7.2 105.4 57 16.1 28.9 102.0 154 17.3 36.1 207.4

2010 1 66 2.6 3.6 72.2 52 13.9 19.1 85.0 118 16.5 22.7 157.2

2010 2 86 2.0 3.2 91.2 86 21.6 19.8 127.4 172 23.6 23.0 218.6

2010 3 108 4.3 4.3 116.6 75 24.8 20.7 120.5 183 29.1 25.0 237.1

2010 4 141 11.0 3.6 155.6 99 39.7 30.2 168.9 240 50.7 33.8 324.5

2010 5 172 11.6 5.9 189.5 143 66.9 27.6 237.5 315 78.5 33.5 427.0

2010 6 163 6.0 3.1 172.1 141 37.1 25.3 203.4 304 43.1 28.4 375.5

2010 7 218 13.0 3.0 234.0 199 28.4 26.5 253.9 417 41.4 29.5 487.9

Total 1,676 81.6 57.6 1,815.2 1,418 383.9 290.6 2,092.5 3,094 465.5 348.2 3,907.7
Appendix B-2

Tenakee, Alaska (TKE), Scheduled Service, T-100 Market Report

Origin Dest Origin and Destination

Passenger Equivalents Passenger Equivalents Passenger Equivalents

Year Month Pax. Freight Mail Total Pax.Freight Mail Total Pax.Freight Mail Total

2007 8 126 3.3 4.9 134.1 145 19.6 26.5 191.0 271 22.9 31.4 325.1

2007 9 55 1.1 3.3 59.5 49 6.4 19.9 75.3 104 7.5 23.2 134.8

2007 10 53 3.5 5.3 61.8 37 10.8 17.5 65.3 90 14.3 22.8 127.1

2007 11 34 1.5 7.9 43.4 46 12.1 16.7 74.8 80 13.6 24.6 118.2

2007 12 5 0.3 2.3 7.6 6 9.5 12.5 27.9 11 9.8 14.8 35.5

2008 1 17 0.1 4.2 21.3 6 13.2 11.3 30.5 23 13.3 15.5 51.8

2008 2 6 0.1 2.7 8.8 9 6.7 8.5 24.2 15 6.8 11.2 33.0

2008 3 16 0.2 2.7 18.8 24 8.2 15.8 48.0 40 8.4 18.5 66.8

2008 4 36 0.6 3.2 39.7 23 11.6 18.8 53.3 59 12.2 22.0 93.0

2008 5 96 2.0 4.0 102.0 84 12.9 16.2 113.1 180 14.9 20.2 215.1

2008 6 72 0.8 3.2 76.0 68 11.1 16.7 95.8 140 11.9 19.9 171.8

2008 7 107 3.1 3.2 113.3 107 22.9 23.6 153.5 214 26.0 26.8 266.8

Total 623 16.6 46.9 686.3 604 145.0 204.0 952.7 1,227 161.6 250.9 1,639.0

2008 8 115 1.6 5.0 121.6 101 18.5 24.6 144.1 216 20.1 29.6 265.7

2008 9 59 3.9 4.1 66.9 58 17.8 23.8 99.5 117 21.7 27.9 166.4

2008 10 20 0.2 2.6 22.7 22 12.5 19.7 54.2 42 12.7 22.3 76.9

2008 11 20 0.1 3.2 23.3 24 10.8 17.0 51.7 44 10.9 20.2 75.0

2008 12 18 1.4 4.3 23.6 8 10.2 17.7 35.9 26 11.6 22.0 59.5

2009 1 3 0.0 1.6 4.7 1 5.2 10.5 16.7 4 5.2 12.1 21.4

2009 2 8 0.8 2.6 11.4 1 12.3 17.0 30.2 9 13.1 19.6 41.6

2009 3 12 0.1 2.1 14.2 11 9.9 11.6 32.5 23 10.0 13.7 46.7

2009 4 25 1.1 3.4 29.6 27 18.4 11.8 57.2 52 19.5 15.2 86.8

2009 5 85 2.3 1.9 89.1 61 21.6 17.0 99.6 146 23.9 18.9 188.7

2009 6 71 0.8 2.6 74.4 70 23.3 18.3 111.6 141 24.1 20.9 186.0

2009 7 108 3.8 2.8 114.5 94 25.0 13.7 132.7 202 28.8 16.5 247.2

Total 544 16.1 36.2 596.0 478 185.5 202.7 865.9 1,022 201.6 238.9 1,461.9

2009 8 110 1.7 3.0 114.8 74 18.3 11.5 103.8 184 20.0 14.5 218.6

2009 9 65 2.4 2.9 70.2 63 27.2 11.8 102.1 128 29.6 14.7 172.3

2009 10 47 3.0 3.6 53.6 26 25.9 13.2 65.1 73 28.9 16.8 118.7

2009 11 22 0.3 2.0 24.2 21 13.1 9.8 43.9 43 13.4 11.8 68.1

2009 12 9 0.5 3.4 13.0 13 19.3 13.1 45.4 22 19.8 16.5 58.4

2010 1 12 0.2 2.8 15.0 7 10.4 10.2 27.6 19 10.6 13.0 42.6

2010 2 8 0.0 2.0 10.0 14 13.9 9.9 37.9 22 13.9 11.9 47.9

2010 3 8 0.2 3.1 11.3 19 20.1 9.3 48.4 27 20.3 12.4 59.7

2010 4 31 0.5 2.2 33.7 37 17.7 37.1 91.8 68 18.2 39.3 125.5

2010 5 52 1.8 2.0 55.8 51 18.8 15.0 84.7 103 20.6 17.0 140.5

2010 6 91 1.5 2.8 95.3 75 24.5 14.9 114.4 166 26.0 17.7 209.7

2010 7 98 5.0 3.5 106.5 100 27.7 20.8 148.5 198 32.7 24.3 255.0

Total 553 17.1 33.3 603.4 500 236.9 176.6 913.6 1,053 254.0 209.9 1,517.0
Appendix C

Example of General Terms and Conditions for Essential Air Service

The carrier understands that it may forfeit its compensation for any flights that it does not 

operate in conformance with the terms and stipulations of the rate order, including the 

service plans outlined in the order and any other significant elements of the required 

service, without prior approval. The carrier understands that an aircraft take-off and 

landing at its scheduled destination constitutes a completed flight; absent an explanation 

supporting subsidy eligibility for a flight that has not been completed, such as certain 

weather cancellations, only completed flights are considered eligible for subsidy. In 

addition, if the carrier does not schedule or operate its flights in full conformance with the 

order for a significant period, it may jeopardize its entire subsidy claim for the period in 

question. If the carrier contemplates any such changes beyond the scope of the order 

during the applicable period of these rates, it must first notify the Office of Aviation 

Analysis in writing and receive written approval from the Department to be ensured of 

full compensation. Should circumstances warrant, the Department may locate and select 

a replacement carrier to provide service on these routes. The carrier must complete all 

flights that can be safely operated; flights that overfly points for lack of traffic will not be 

compensated. In determining whether subsidy payment for a deviating flight should be 

adjusted or disallowed, the Department will consider the extent to which the goals of the 

program are met and the extent of access to the national air transportation system 

provided to the community.

If the Department unilaterally, either partially or completely, terminates or reduces 

payments for service or changes service requirements at a specific location provided for 

under this order, then, at the end of the period for which the Department does make 

payments in the stipulated amounts or at the stipulated service levels, the carrier may

cease to provide service to that specific location without regard to any requirement for 

notice of such cessation. Those adjustments in the levels of subsidy and/or service that 

are mutually agreed to in writing by the Department and carrier do not constitute a total 

or partial reduction or cessation of payment.

Subsidy contracts are subject to, and incorporate by reference, relevant statutes and 

Department regulations, as they may be amended from time to time. However, any such 

statutes, regulations, or amendments thereto shall not operate to controvert the foregoing 

paragraph.

Funds are not currently available for performance under this solicitation beyond 

[DATE]. The Department’s obligation for performance under this solicitation beyond 

[DATE], is contingent upon the availability of appropriated funds from which payment 

for services can be made. No legal liability on the part of the Government for any

payment may arise for performance under this order beyond [DATE], until funds are 

made available to the Department for performance. If funds are not made available for 

performance beyond [DATE], the carrier will receive notice in writing by the 

Department.

All claims for payment must be submitted within 60 days of the last day of service 

provided under this order.
Appendix D

40-Mile Air, Leif Wilson

40-Mile Air, Vanessa Thompson

Adams, Kevin, Work

Aero Twin, AACA, Tony Cestnik

Air Excursions, Marion Broughton 

Air Excursions, Mike Loverink

Alaska Air Carriers Association, Joy Journeay 

Alaska Airlines, Joe Sprague

Alaska Airlines, Sandy Sinick

Alaska Central Express, John Seamon

Alaska Central Express, Mike Bergt

Alaska Central Express, Steve Endlich

Alaska DOT, Marc Luiken

Alaska DOT, Rebecca Cronkhite

Alaska DOT-Medicaid Passenger Fares

Alaska Seaplanes, Craig Loken

Alsek Air, Les and Debra Hartley

Arctic Circle, Donald Singsaas

Arctic Circle, Kelly Harris

Arctic Transportation Services (ATS), Wilfred Ryan

Arctic Transportation Services, (ATS), Jim Hjelm 

Bering Air, Allen Haddadi

Bering Air, Jim Rowe

Bob Stanford (Islairbk@Alaska.com)

Congressional, Begich, David Ramseur

Congressional, Begich, Megan Foster 

Congressional, Begich, Tiffany Zulkosky

Congressional, Murkowski, Arne Fuglvog 

Congressional, Young, Jeremy Price

Consultant, Hank Myers

Consultant, Ken Acton

Consultant, Norm Israelson

Copper Valley Air, Dave Parmenter 

Copper Valley Air, Todd Hand 

Dorato Jets

Dorato Jets, Mark McKenna

ERA Aviation, Lori Goodman 

Era Aviation, Steve Wahrnke 

Frontier Flying, Bob Hajducovich

Frontier Flying, Paul Hendrickson 

Grant Aviation, Bruce McGlasson

Hageland, Mike Hageland

Hageland, Patrick Thurston 

Harris Air, Fly Hackett

Harris Air, Scott

Harris Air, Scott Harris

Homeland Security, David Bernier

Homeland Security, Ragan, William

Homer Air, Andy Smircich 

Iliamna Air, Tim LaPorte 

Inland Aviation, Stephen Hill

Island Air, Bob Stanford

Island Air, Jennifer Stanford
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Katmai Air, Sonny Peterson

LAB Flying Service, Eric Bennett 

Larrys Flying, Jean Chenaille

Michael Duffy (Michael.Duffy@dhs.gov)

Myers, Larry (OST)

Northern Air cargo, Dave Squier

Northern Air Cargo, Keven Schlosstein

OST, Dennis DeVany

OST, Renee Williams

Pacific Airways, Steve Montanus

PenAir Consultant, Patrick Rizzi

PenAir, Danny Seybert

PenAir, Kim Kawaguchi

PenAir, Orin Seybert

PenAir, Robert Cohn

PenAir, Scott Bloomquist

ProMech, Mark Sessoms 

RITA, Benard Stankus

Salmon Air, Ron Salmon 

Seaport/Wings of Alaska, Nate Vallier

Seaport/Wings of Alaska, Rob McKinney

Servant Air, Wes Osowski

Skagway, Ben Lingle

Smokey Bay Air, Claire McCann

Spernak Airways, Mike Spernak

Steve Warnke (sw@flyera.com)

Tanana Air Service, Brian Martin

Taquan Air Service, Brien Salazaar

Taquan, Beckie Allen

Tatonduk, Controller, Tina Paylor

Tatonduk, Marketing, Robert Ragar

Tatonduk, Owner, Robert Everts

USPS, Greg Garcia 

USPS, Leonard Kilburn

USPS, Mary Tobias

USPS, Steve Deaton

USPS, Tina Campbell 

USPS, William Jones

Warbelows Air Ventures, Art Warbelow

Ward Air, Ed Kiesel 

Ward Air, Tom Williams

Wings Airline Services, Bob Jacobsen 

Wings Airline Services, Holly Johnson

Wright Air Service, Bob Bursiel 

Yute, Tim Vottis
Appendix D

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