Dated: April 02, 2013 

1 "; 

Reeve Air Alaska, LLC 

2247 Mistybrook Circle 

Anchorage, Alaska 99502 

(907) 250-4766 

mreeve@reevecorp.com 

Reeve Air Alaska, LLC 

Proposal to Provide Essential Air Service at 

Tatitlek, Alaska 

DOCKET DOT-OST-2013-0030 

For the rate period of this docket beginning in 2013 and lasting 2 years from the 

date of commencement, Reeve Air Alaska, LLC proposes to provide passenger 

and freight service between Tatitlek (PAKA) and Anchorage International Airport 

(PANG) using an IFR equipped Piper Navajo PA-31 twin engine aircraft with up 

to 7 passenger seats. For consideration by the Department of Transportation and 

the Village of Tatitlek, Reeve Air Alaska offers two (2) options of service for 

review. 

Option 1 

Year-round, weekly service of a single flight for an annual subsidy of $117,250 

Option 2 

Year-round, weekly service with two flights for an annual subsidy of $187,430 

For further consideration: 

• Reeve Air Alaska will seek to provide scheduled mail delivery to Tatitlek 

from the USPS. 

• Reeve's flights to Tatitlek will be direct flights to and from Anchorage. 

• Reserved one-way seat fare for self-paying village residents is $110.00. 

• Reeve will hire a local agent in Tatitlek. 

• Due to the strong ties and family connections between neighboring 

communities, Tatitlek passengers will have the option to include Chenega, 

Alaska in this routing on a flag stop basis at no additional fare or subsidy 

cost. 

• Keeping in tradition for communities served by Reeve, we participate in 

local economic opportunities that create job for residents. 

Proposed Flight Schedule 

• Depart Anchorage at 1:00pm- Arrive at Tatitlek at 2:00pm 

• Depart Tatitlek at 2:15 pm- Arrive at Anchorage at 3:15 pm 

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Reeve Air Alaska, LLC 

Proposal to Provide Essential Air Service at 

Tatitlek, Alaska 

DOCKET DOT -OST -2013-0030 

Appendix A 

Worksheet 

DIRECT EXPENSES 

Flight: Anchorage- Tatitlek- Anchorage 1.9 flight hours 

Cost per flight hour 

(fuel, maintenance reserves, insurance, depreciation, pilot): $ 800 

Option 1 total annual flight hours: 

Option 1 Direct Expenses: 

Option 2 total annual flight hours: 

Option 2 Direct Expenses: 

INDIRECT EXPENSES (Annually) 

Facility (lease/tie-down/insurance/utilities)- Y2 of $15600 

Freight warehousing/tendering/labor 

Reservations and billing 

Additional maintenance inspections 

Management 

Total Indirect Expenses 

TOTAL OPERATING COSTS 

Option 1 Total Cost 

Option 2 Total Cost 

98.8 hours 

$ 79,040 

197.6 hours 

$ 158,080 

$ 7800 

12000 

12000 

7200 

20000 

$59,000 

$134,440 

$217,080 

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. Reeve Air Alaska, LLC 

Proposal to Provide Essential Air Service at 

Tatitlek, Alaska 

DOCKET DOT-OST-2013-0030 

Appendix A (continued) 

REVENUES (Estimated due to lack of historical data) 

Option 1 

Passenger Revenues: 129 passengers@ $110.00 fare 

Freight Revenues: 5,000 lbs. @ $0.60/lb. 

Mail (currently flown on USPS charter) 0 lbs. 

Total Revenues (Estimated) 

Option 2 

Passenger Revenues: 215 passengers@ $110.00 fare 

Freight Revenues: 10,000 lbs. @ $0.60/lb. 

Mail (currently flown on USPS charters) 0 lbs. 

Total Revenues (Estimated) 

Option 1 Total subsidy need at 100% 

Option 2 Total subsidy need at 100% 

$14,190 

$ 3,000 

$ 0 

$17,190 

$23,650 

$ 6,000 

$ 0 

$29,650 

$117,250 

$187,430 

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