THE STATE

ojALASKA

GOVFR:-':OR SEA:-': PAR"F.U.

March 14,2014

Mr. Kevin Schlemmer

Chief, Essential Air Service Division

Office of Aviation Analysis

U.S. Department of Transportation

1200 New Jersey Avenue, SE

Washington, DC 20590

Re: ATNEP to the Gty of Diomede, Alaska

Docket 2009-0260

Dear Mr. Schlemmer,

Department'of Commerce, Community,

and Economic Development

DIVISION OF COM:VILii'iITYAND REGIONAL AFFAIRS

550 West Seventh Avenue. Suite 1640

Anchorage. Alaska 99501

Main: 907.269.4501607.269.4581

Programs fax: 90i .269.4539

Little Diomede is an extremely remote island in the Bering Strait, two and a half miles from Russia.

During a shon period of time in the winter an ice runway fonns that is thick enough to pennit fixedwing aircraft to land. Other than that, during the spring, summer, and fall there is NO scheduled

passenger service except for subsidized helicopter service. Before the subsidized helicopter service,

Diomede would have extended periods with no access to outside food or medical facilities.

Under Essential Air Service (EAS) all of funding necessary to ensure a community access to the

national transportation system is provided by the Federal Government. However because Diomede

did not have scheduled air service when EAS program was created, it was NOT listed as an EASeligible community. Thus this vital helicopter service is subsidized under the 49 U.S.C ~ 41736, Air

Transportation to Non-eligible Places (ATNEP), which requires that any federal expenditures be

matched on a one-for-one basis by a non-federal entity.

Currently Diomede's service and subsidy under ATNEP is set by Order 2013-6-11, June 11,2013,

which selected Evergreen Helicopters Inc., to provide the service through June 30,2014, when the

selection expires. Order 2013-6-11 subsidizes one round trip per week bem-een Diomede and Nome

and between Diomede and Wales for 44 weeks per year. US-DOT provides $188,760 annual subsidy

and Kawerak, Inc., Diomede's community representative, via a grant from the State of Alaska, a like

amount. The State of Alaska proposes to continue that arrangement.

In the past several years local-match funding was provided under a grant from the Alaska Division

-----~oo-,fG:mmnnrityand"fugiomrl Affa~ug!T Kawerak;inc. O:mendydIeA1aska-S1:I~te~------

Legislature is in the budget process and so it is unclear what if any funding may be made available as

a match to the federal share. Although Governor Parnell's budget proposes $200,000 for Diomede,

the final budget will have to be approved by the legislature and signed by the Governor to make any

funds available for match. When we have an approved budget and a grant agreement later this

spring, we would present the grant agreement to US-DOT for approval. This is the same process

that happened in the past with air service to Diomede.
Letter to Mr. Schlemmer

Diomede ATNEP Funding

March 14,2014

Page Two

As mentioned, the current rate expires on June 30, 2014, and so the time allotted for US-DOT to

execute the agreement and issue an Order will be very tight. We are diligently working to do our pan

to maintain this literally life-saving service, and we ask that you act on our proposal after we present

it to you quickly as possible.

We .look forward to continuing to work closely with the US-DOT to keep Diomede linked to the

rest of the United States.

cc: Kevin Adams, U.S. DOT

Rich Sewell, State of Alaska, DOT&PF