### Proposal to Provide Essential Air Service at Gulkana, May Creek, and McCarthy, Alaska Docket DOT=OST-1995-492
Rate Period Feb 1, 2013 toJan 31, 2015



### August 10, 2012 Todd Homan US Department ofTransportation Essential Air Service & 

### DomesticAnalysis Div, X-53 1200 New JerseyAvenue, SE 8th Floor Room W86-472 Washington DC 20590 Dear Mr. Homan ;·

### ...)

...J.:J



### Enclosed please find our proposal for continuation ofessential air service for Gulkana, McCarthy, May Creek, Alaska. Our attached bid is for the standard two year contract. Service proposal February 1, 2013 through January 31,2015 We would like to propose the same historical level ofservice for afour-year rate term if possible, with provisions for a rate change forfuel, oil and insurance aftertwo years.
Sincerely,

# t).~AKP~ Dave Parmenter Director of Operations CopperValley Air Service

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### Proposal to Provide Essential Air Service at Gulkana, May Creek, and McCarthy, Alaska Docket DOT=OST-1995-492
Rate Period Feb 1, 2013 toJan 31, 2015 

### U.S. Dept. ofTransportation Office ofthe Secretary Washington D.C. CopperValley Air Service Annual Subsidy forAnchorage, Gulkana, McCarthy and May Creek February 1, 2013 to January 31,2015 From Anchorage International Airport two (2) times perweek with fuiiiFR Piper PA-31 Twin engine aircraftwith six (6) passenger seats. Year-round service. CopperValley Air Service would reserve the option to use a Cessna 441 Conquesttwin Prop-Jet nine (9) passenger seats for aircraft backup, orto meet greaterthan six passenger seatdemand if needed to GulkanaAlaska. From Gulkana to McCarthy and May CreekAlaska, two (2) times perweek scheduled service for 52 weeks peryear. Proposed service with Cessna 185 wheel ski equipped, three (3) passenger aircraft, winter months, Cessna 206 four (4) passenger aircraftfor summer months. CopperValley Air Service would reserve the option to use a DHC-2 Beaver six (6) passenger seats for aircraft backup orto meet greaterthan four passenger seats demand 

### ifneeded to McCarthy and May Creek in winter or summer months. Routing: Monday and Thursdays Depart -ANC 8:30am Depart -GKN 10:00 am Depart -MXY 11 :15 am Depart- MYK 11 :30 am Depart -GKN 12:45 pm ARV- GKN 9:45 am ARV -MXY 10:55 am ARV- MYK 11:25 am ARV-GKN 12:30 pm ARV- ANC 2:00 pm

2Proposal to Provide Essential Air Service at Gulkana, May Creek, and McCarthy, Alaska Docket DOT=OST-1995-492 Rate Period Feb 1, 2013 toJan 31, 2015 August 10, 2012 United States ofAmerica Department ofTransportation Office ofSecretary Washington, DC
CopperValleyAir Service Service Proposal February 1, 2013 to January 31, 2015
CopperValleyAir Service would operate over a GKN- MXY- MYK- GKN, ANC
- GKN routing with a change ofguage at GKN. The carrierwould provide two round trips a week year-round between GKN and ANC with Piper PA-31 aircraftfor an annual subsidy need of$269,189 and two round trips a week year-round from GKN- MXYand MYKwith either Cessna 185 or 206 aircraftfor an annual subsidy of$206,198.

CopperValleyAir Service P.O. Box 234 Glennallen AK 99588 Phone 907-822-4200 e-mail cvas@coppervalleyak.net Fax: 907-822-4204

3Proposal to Provide Essential Air Service at Gulkana, May Creek, and McCarthy, Alaska Docket DOT=OST-1995-492 Rate Period Feb 1, 2013 toJan 31, 2015
Work Sheet Projection 

### ANC toGKN AircraftType: Piper PA-31-350 Block Hours: CopperValley Air Service wet leases a Piper PA-31-350 from Security Aviation at a cost of$2,500 pertrip. Direct Expense Indirect Expense $260,000 $ 45,917 Lease of Hanger Space five winter months@ $4,900 per month with Y2 use= $12,250 Ground handling, Aircraft and Passengers 

### '!4 = payroll one person = $ 12,480 Commissions Counted in MXY-MYK Projection Advertising Counted in MXY-MYK Projection Management 

### I Security= Office and Reservations 12 months $37,043 1/3 total= Anchorage and Gulkana Totallndirects Total Directs Total Operating Cost Return (5% ofoper. Exp) Total Economic Cost Operating Revenues Passenger Revenues 258 Passengers@ $195.00 Mail Revenues U.S. Post Office will nottender mail to this Market Freight 2,2851bs@ .75 Total Revenues Economic Cost Total Revenues $321,212 $ 52,023 Total Subsidy.Need@ 100% $269,189 $ 8,840 $12,347 $45,917 $260,000 $305,917 $15,295 $321,212 $50,310 $000 $1,713 $52,023

4Proposal to Provide Essential Air Service at Gulkana, May Creek, and McCarthy, Alaska Docket DOT=OST-1995-492 Rate Period Feb 1, 2013 toJan 31, 2015


### Work Sheet Projection MXY and MYK Cost Projection Aircraft Type: Cessna 185 & Cessna 206 

### Block Hours 240
Pilot @

### $133.00 

### Ihr $115.00 Pilot $5.75 Workman's Comp $3.45 Unemployment $7.13 Social Security $1.67 Medicare


### Fuel & 

### Oil 

### @ $183.43 17 Gal/ hr $5.82 base price $0.02 StateAirport Tax 

### $31,920

$44,023

$1.98 Storage, Handling, Spill and Liability Insurance $0.88 Projected rate increase 2011-2013 $8.70 per Gal+ $2.09 per hour oil Total=$ per Gallon fuel and Oil X 17.0 Gallon per hour 

### Insurance 

### @ $113.87 $27,328 $165,000 Hull x .13/400 = $53.62 perhour $5,700 3rct party+4 seats X 4,600/400 = $60.25 Total of$113.87

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### Proposal to Provide Essential Air Service at Gulkana, May Creek, and McCarthy, Alaska Docket DOT=OST-1995-492
Rate Period Feb 1, 2013 toJan 31, 2015
Maintenance@$143.15/ hr $34,356 

### Two (2.4) one hundred hour inspections= 240 hours 28.0 hours flat rate@ $13p.oo per hourshop rate= $3,640 X 2.4 = $8,736 Annual Inspection 35 

### hours@ $130.00 

### per hourshop rate= $4,550 

### Total for inspections only= $13,286 lnspections/240 hours $55.36 Engine $56,000/1500 hr. $37.34 Propeller $10,000/1500 hr. $6.67 Instruments and radios $4.94 Routine maintenance & unscheduled $38.84 Total $143.15 per hour
Depreciation @$26.66 

### Ihr $6,398 

### Hourly rate $26.66 

### @ 160,000/6000 Total Directs $144,025

lndirects $86,754 

### Hanger Lease Year Round@ $4,900 per month x 12 = $58,800% use= $29,400 Ground Handling Aircraft and Passengers $15,500 Advertising $9,949 Commissions, includes GKN-ANC-GKN $27,750 x 10% $2,775 Management I 

### Security $22,980 

### Office and Phone Reservations $6,150 Total indirect Total Direct$144,025 Total Indirect$86,754 Total Operating Expenses $230,779 Return (5% ofopr. Exp) $11,639**~I** I 

### $86,754

6Proposal to Provide Essential Air Service at Gulkana, May Creek, and McCarthy, Alaska Docket DOT=OST-1995-492 Rate Period Feb 1, 2013 toJan 31, 2015



### Operating Revenues Passenger Revenues 103 passengers MXY@ 95.00 27 passengers MYK@ 115.00 $9,785 Mail revenue total 25,777 lbs @ .82 Freight revenue 2,791 lbs@ .75 Total Revenue
Total Economic Costs $242,318 Total Revenue $36,120, Total subsidy need@ 100% = $206,198$3,105 $21,137 $2,093 $36,120

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