; «-•..-. . s 

BEFORE THE 

• U.S. DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY WASHINGTON, D.C. 

June 16, 2010 

In the Matter of: 

ESSENTIAL AIR SERVICE AT 

LAKE MINCHUMINA, ALASKA Docket OST - 2008-0237 

^m 

CD 

Proposal to Provide Essential Air Service at Lake Minchumina, Alaska 

Tatonduk Outfitters Limited herby submits its proposal to continue subsidized air services to Lake 

Minchumina, Alaska. 

Tatonduk Outfitters Limited has provided one flight per week scheduled services with PA32 Piper 

Lance aircraft with five insured seats, or one Cessna 208 Caravan with nine insured seats for the 

previous two year rate period with Essential Air Service subsidy. 

The Order Requesting Proposals for the next two year period of the EAS subsidy requests two 

flights per week with similar aircraft. 

Tatonduk Outfitters Limited offers two PAS 2 Piper Lance flights per week, or substitute one 

Cessna 208 Caravan flight per week when weather or load circumstance make the larger IFR 

equipped air craft more suitable for the same cost of the two PA32 flights (extra sections will be 

provided at no cost to EAS when load requirements require the need). TOL will manage these 

flights as either two PA32 flights or one Cessna 208 flight billed in a week. 

Proposed Schedule 

2 fit per week year round with PA32 Piper Lance aircraft. 

2 fit per week x 52 weeks x 2.2 hours per flight = 228.8 hours total 
Operating Costs of PA32 

Pilots & Copilots 

Aircraft Fuel & Oil 

Other 

Maintenance 

Hour 

$ 66.38 

$ 72.05 

$71.27 

$ 196.17 

Extended Costs 

12 months 

228.8 hours 

$ 15,187.74 

$ 16,485.04 

$ 16,306.58 

$ 44.883.70 

Total Direct $ 405.87 $ 92,863.06 

Indirect expenses $44.71 $ 10.229.65 

Total Expenses: $450.58 $103,092.71 

Projected revenue has been calculated using analysis of various data including DOT numbers and 

internal company numbers & information. Our calculated trend reflects a continual decline with 

perhaps a flattening out for a short period. EAA plans to reduce the freight rate hoping that the 

subsidy will influence more freight shipments on the empty aircraft flight schedule rather than 

private charters. For this reason, we use the following numbers for projected traffic: 

69 passengers per year 

$ 160 one way passenger fare = $ 11,040.00 

16,500 pounds of mail per year 

$ 1.362672 current bush rated mail = $ 22,484.09 

9,000 pounds of freight 

$0.55/# $ 4.950.00 

Total Projected Revenue = $ 38,474.09 

Projected Revenue per week 52 fits / yr $739.89 
Subsidy Request 

Total Annual Operating.Costs 

Profit Element @ 10% 

Total Economic Cost 

- Projected Revenue 

Subsidy required at 100% completion 

Requested Annual Subsidy 

Two year Subsidy Amount 

$ 103,092.71 

$ 10.309.27 

$ 113,401.98 

$ 38^474.09 

$ 74,927.89 

$ 74,927.89 

(weekly subsidy $1,440.92) 

$ 149,855.78 

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

regulations regarding drug-free workplaces, nondiscrimination and all regulations governing 

lobbying activities. 

Sincerely, 

Tatonduk Outfitters Limited 

dba Everts Air Alaska 

5525 Airport Industrial Rd. 

Fairbanks, AK 99709 

Robert Ragar 

Manager Contract Sales 

rragar@evei1sair.com 

907-450-2300, ext 349