Order 2010-5-13

Served: May 11, 2010

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 11th of May, 2010

Essential Air Service at

LAKE MINCHUMINA, ALASKA

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

DOCKET OST-2008-0237

ORDER REQUESTING PROPOSALS

Summary

By this order, the Department is requesting proposals by June 10, 2010, from carriers 

interested in providing essential air service (EAS) at Lake Minchumina, Alaska, for a 

new two-year period, beginning November 1, 2010, with or without subsidy. 

Background

By Order 2008-9-21, September 16, 2008, the Department selected Tatonduk Outfitters, Ltd., 

d/b/a Everts Air Cargo (Everts), to provide subsidized EAS between Lake Minchumina and 

Fairbanks, Alaska, through October 31, 2010. Under that order Everts provides one nonstop 

round trip per week for 26 weeks with IFR-equipped 9-seat Cessna 208 Caravan aircraft, and 

one nonstop round trip per week for 26 weeks with 5-seat Piper PA-32 aircraft that are not so 

equipped, at an annual subsidy of $42,560. 

Request for Proposals

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

carriers interested in providing service at Lake Minchumina, with or without subsidy, for the 

two-year period beginning November 1, 2010. Carriers should file their proposals by June 10. 

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 community and State and ask them to submit 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 

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.

 

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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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 

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 community in Appendix B. With specific respect to 

Lake Minchumina, we expect proposals consisting of one or two round trips per week 

with small aircraft. However, we would not dismiss any proposal out of hand without 

first consulting with the community officials. For the most recent annual period, Lake 

Minchumina generated an average of 4.3 deplaned passenger equivalents per week.3 In

view of this level of traffic, we would also entertain proposals having two round trips per 

week with smaller, single-engine piston aircraft such as the PA-32 or one round trip per 

week with larger IFR-equipped aircraft such as the 9-seat Cessna 208.

We encourage proposals that meet the community’s requirements in an efficient manner. 

Carriers are also welcome to propose more than one service option, if they choose; they

need not limit themselves to the current service pattern if they envision other, potentially

more attractive service possibilities – different hubs, or seasonal service – with subsidy

requirements that remain competitive.

We encourage carriers to work with the community as they are preparing their proposals 

so that they can craft them to best meet the community’s needs. As always, we will fully

consider the community’s views before making a long-term carrier-selection decision. 

 

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 Lake Minchumina, 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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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. All carriers that 

plan to submit proposals involving subsidy should submit the required certifications along 

with their proposals. 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. The Department is prohibited from paying subsidy to carriers 

that do not submit these documents.

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 June 10, 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 Lake Minchumina, Alaska. Carriers should submit their proposals, with subsidy

if necessary, by June 10, 2010. Proposals should be emailed to EAS@dot.gov, with the 

title “Proposal to Provide Essential Air Service at Lake Minchumina, Alaska, Docket DOTOST-2008-0237.” 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 Aviation Economic 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

Currently Subsidized Communities with Fairbanks as the Hub

Carriers: 3Z, Tatonduk, Q5, 40-Mile, 4W, Warbelow’s

Nonstop, Great Circle Miles from Fairbanks (FAI)

Central (CEM) 104

Circle (IRC) 131

Healy Lake (HKB) 110

Lake Minchumina (LMA) 148

Manley (MLY) 83

Minto (MNT) 50

Rampart (RMP 82

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

Enplaned, Lake Minchumina Deplaned, Lake Minchumina O&D, Lake Minchumina

Psgr. Equivalents Psgr. Equivalents Psgr. Equivalents

Year Month Psgrs. Freight Mail Total Psgrs. Freight Mail Total Psgrs. Freight Mail Total

2007 4 9 0.9 1.8 11.7 3 7.8 6.1 16.9 12 8.7 7.9 28.6

2007 5 1 0.0 1.0 2.0 2 1.2 5.5 8.8 3 1.2 6.6 10.8

2007 6 11 0.1 0.7 11.8 9 2.1 8.3 19.4 20 2.2 9.0 31.2

QE 6/30/07 21 1.0 3.6 25.5 14 11.1 19.9 45.0 35 12.1 23.5 70.6

2007 7 6 0.1 0.7 6.8 5 0.9 9.8 15.8 11 1.0 10.5 22.6

2007 8 6 1.1 2.0 9.0 4 1.6 24.4 30.1 10 2.7 26.4 39.1

2007 9 8 0.7 0.8 9.5 12 7.7 5.8 25.4 20 8.4 6.5 35.0

QE 9/30/07 20 1.9 3.5 25.4 21 10.3 40.0 71.2 41 12.1 43.5 96.6

2007 10 1 1.0 1.3 3.3 1 2.7 20.0 23.7 2 3.7 21.4 27.0

2007 11 3 0.0 1.6 4.6 5 6.7 15.3 27.0 8 6.7 16.9 31.6

2007 12 2 0.0 2.2 4.2 1 4.2 20.1 25.3 3 4.2 22.3 29.6

QE 12/31/07 6 1.0 5.2 12.2 7 13.6 55.4 76.0 13 14.6 60.6 88.2

2008 1 0 0.0 0.9 0.9 0 1.2 7.6 8.8 0 1.2 8.5 9.7

2008 2 3 0.0 0.8 3.8 2 0.1 5.1 7.1 5 0.1 5.9 10.9

2008 3 7 1.2 0.9 9.1 2 3.3 8.4 13.7 9 4.5 9.3 22.8

QE 3/31/08 10 1.2 2.6 13.8 4 4.6 21.1 29.7 14 5.8 23.6 43.4

YE 3/31/08 57 5.1 14.8 76.9 46 39.5 136.4 221.9 103 44.6 151.2 298.8

2008 4 11 1.8 1.3 14.0 8 0.7 14.5 23.2 19 2.4 15.8 37.2

2008 5 3 0.5 1.1 4.6 5 1.4 5.1 11.5 8 1.9 6.2 16.1

2008 6 3 0.2 0.5 3.6 4 11.2 8.6 23.8 7 11.3 9.1 27.4

QE 6/30/08 17 2.4 2.9 22.3 17 13.3 28.2 58.5 34 15.7 31.1 80.7

2008 7 2 0.0 0.7 2.7 0 0.4 3.1 3.5 2 0.4 3.8 6.2

2008 8 3 0.1 1.2 4.3 7 6.5 16.1 29.6 10 6.6 17.4 33.9

2008 9 4 1.9 1.2 7.1 7 6.9 11.4 25.3 11 8.8 12.6 32.4

QE 9/30/08 9 2.0 3.1 14.1 14 13.8 30.6 58.4 23 15.7 33.8 72.5

2008 10 3 4.5 1.0 8.5 1 0.2 13.9 15.1 4 4.7 14.9 23.6

2008 11 2 0.0 0.3 2.3 1 1.4 10.8 13.2 3 1.4 11.2 15.5

2008 12 3 0.2 2.1 5.3 1 1.7 18.6 21.4 4 1.9 20.8 26.6

QE 12/31/08 8 4.7 3.4 16.1 3 3.4 43.4 49.7 11 8.0 46.8 65.8

2009 1 0 0.0 0.5 0.5 0 0.1 8.3 8.4 0 0.1 8.8 8.9

2009 2 0 0.0 0.5 0.5 1 0.1 11.3 12.4 1 0.1 11.8 12.9

2009 3 0 0.0 0.9 0.9 1 0.4 17.2 18.7 1 0.4 18.1 19.6

QE 3/31/09 0 0.0 1.9 1.9 2 0.6 36.9 39.5 2 0.6 38.8 41.4

YE 3/31/09 34 9.0 11.3 54.4 36 31.0 139.1 206.0 70 40.0 150.4 260.4

2009 4 3 0.4 0.8 4.1 6 2.5 19.0 27.5 9 2.9 19.7 31.6

2009 5 1 0.1 0.5 1.5 1 0.6 5.4 7.0 2 0.7 5.8 8.5

2009 6 5 0.6 1.5 7.1 5 2.3 8.3 15.7 10 2.9 9.8 22.7

QE 6/30/09 9 1.0 2.7 12.7 12 5.5 32.6 50.1 21 6.5 35.4 62.9

2009 7 0 0.0 0.4 0.4 4 0.2 2.3 6.4 4 0.2 2.6 6.8

2009 8 1 0.1 0.9 2.0 4 7.3 10.2 21.5 5 7.5 11.1 23.5

2009 9 1 2.9 0.8 4.7 10 5.1 13.9 29.0 11 8.0 14.7 33.8

QE 9/30/09 2 3.1 2.1 7.1 18 12.6 26.3 57.0 20 15.7 28.4 64.1

2009 10 4 1.0 0.3 5.3 3 0.7 10.9 14.6 7 1.6 11.2 19.9

2009 11 1 0.6 1.2 2.7 3 6.0 13.6 22.7 4 6.6 14.8 25.4

2009 12 1 0.2 0.5 1.7 1 3.9 12.0 17.0 2 4.1 12.5 18.6

QE 12/31/09 6 1.7 2.0 9.7 7 10.6 36.6 54.2 13 12.3 38.5 63.9

2010 1 1 0.0 0.9 1.9 2 6.8 11.2 20.0 3 6.8 12.1 21.9

2010 2 0 0.0 0.6 0.6 2 2.1 7.0 11.2 2 2.1 7.6 11.8

2010 3 5 0.8 0.5 6.4 7 3.2 19.7 29.9 12 4.0 20.2 36.3

QE 3/31/10 6 0.8 2.0 8.8 11 12.2 37.9 61.1 17 13.0 39.9 69.9

YE 3/31/10 23 6.6 8.8 38.4 48 40.9 133.4 222.4 71 47.5 142.2 260.7
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

Page 1 of 2

Distribution List, Alaska Bush Carriers

40-Mile Air, Leif Wilson

40-Mile Air, Vanessa Thompson

Adams, Kevin, Work

Aero Twin, AACA, Tony Cestnik

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, 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

Dorato Jets

Dorato Jets, Mark McKenna

Ellis Air Taxi, Lynn Ellis

Era Aviation, Mike Lenorman

ERA, David M. Richards

Frontier Flying, Bob Hajducovich

Grant Aviation, Bruce McGlasson

Hageland, Mike Hageland

Hageland, Patrick Thurston 

Hageland, Steve Wahrnke 

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

Katmai Air, Sonny Peterson

LAB Flying Service, Eric Bennett 

Larrys Flying, Jean Chenaille
Appendix D

Page 2 of 2

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 

Servant Air, Wes Osowski

Skagway, Ben Lingle

Smokey Bay Air, Claire McCann

Spernak Airways, Mike Spernak

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

Everts, Ed Kiesel 

Wings of Alaska/SeaPort, Nate Vallier

Wings of Alaska/Seaport, Rob McKinney

Wright Air Service, Bob Bursiel 

Yute, Tim Vottis