Dated: April 02, 2013 1 "; 

### ReeveAirAlaska, LLC 2247Mistybrook Circle Anchorage, Alaska 99502 (907) 250-4766 mreeve@reevecorp.com

Reeve AirAlaska, LLC Proposal to Provide Essential Air Service at Tatitlek, Alaska DOCKET DOT-OST-2013-0030

Forthe rate period ofthis docket beginning in 2013 and lasting 2 years from the date of commencement, Reeve AirAlaska, 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 aircraftwith up to 7 passenger seats. For consideration by the Department ofTransportation and the Village ofTatitlek, Reeve AirAlaska offers two (2) options ofservice for review. Option 1 Year-round, weekly service ofa 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 Forfurther consideration: • Reeve AirAlaska will seek to provide scheduled mail delivery to Tatitlek from the USPS. • Reeve's flights to Tatitlekwill be directflights to and from Anchorage. • Reserved one-way seatfare 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 aflag stop basis at no additional fare orsubsidy cost. • Keeping in tradition for communities served by Reeve, we participate in local economic opportunities that create job for residents. Proposed Flight Schedule • DepartAnchorage at 1:00pm-Arrive atTatitlek at 2:00pm • DepartTatitlek at 2:15 pm- Arrive atAnchorage at 3:15 pm 

### 1Reeve AirAlaska, 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 perflight hour (fuel, maintenance reserves, insurance, depreciation, pilot): $ 800 Option 1total annual flight hours: Option 1 Direct Expenses: Option 2total annual flight hours: Option 2 Direct Expenses:

INDIRECT EXPENSES (Annually) Facility (lease/tie-down/insurance/utilities)- 

### Y2 of$15600 Freightwarehousing/tendering/labor Reservations and billing Additional maintenance inspections Management Total Indirect Expenses

TOTAL OPERATING COSTS Option 1Total 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



### 2. Reeve AirAlaska, LLC Proposal to Provide Essential Air Service at Tatitlek, Alaska DOCKET DOT-OST-2013-0030
AppendixA (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 1Total 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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