# i>t^-o^T - tm-fo^^ ^ SCHUM^V N AVIATIO N COMPANY , LT D , - . , j ^ r 13 0 lOLAN A PLACE . HONOLUL U , H I 9681 9 ! V-RT^' N 808-81)4-581 3 FA X 808-837-786 7 EMA mRichard@makaniki^i^oWi(J;r [ i f Np

Januar y19,201 2 Honorabl e Susa n L . Kurlan d Assistan t Secretar

yo f Aviatio n an d Internationa l Affairs Offic e o f th e Secretar

y Unite d State s Departmen t o f Transportatio n M-3 0 Wes t Buildin g Groun d Floo rW12-14 0 120 0 Ne wJerse yAve , S E 2059 0 RE : Docke t DOT-OST-2000-6773 . Pacifi cWing s LL C Petitio n of Reconsideratio n of Orde r201 1 -1 1 -2 7 Dea rAssistan t Secretar yKurland : Schuma n Aviatio n Compan yLt d woul d lik e t o addres s som e o f th e area' s tha t Pacifi cWing s LL C raise s i n thei r Petitio n fo rReconsideratio n tha t I believ e ar e incorrect , erroneou s an d blatantl ymisrepresented . 1 . "Makan i Ka i subsid ycalculation s contai n significan t errors".. . I fin d i t somewha t amusin g ho wthe yfigur e a profi t of ove r30% . Unlik e Pa cWing s havin g th e experience , knowledg e an d historica l dat a o f havin g operate d thi s route , I ha d t o mak e quit e a fewassumption s abou t thi s operation . Th e historicall ylo wridershi p i n th e firs t hal f of 2010 , i t appeare d tha t ther e migh t b e les s tha n on e passenge rpe rdepartur e o r3. 6 passenger s pe rda yaverage . Littl e difficul t t o estimat e th e futur e ridershi p o r revenu e base d o n thei rnumbers . Th e contract calle d fo ron e aircraft flyin g si xday s a week . I n m yproposal , I di d no t includ e an yo f th e secon d Caravan' s expenses . I believ e i t take s tw o aircraft t o servic e thi s agreemen t if yo u wan t t o hav e 99.9 % dependability , reliability , an d accountabilit ywhic h m ycompan yi s committe d t o do . Non e o f th e startu p cost s fo raircraft accusation , aircraft maintenanc e upgrades , employe e training , facility , airpor t des k locations , phones , computers , electric , an d advertisin g cost s wer e include d i n thi s firs t proposal . Non e o f m ysuppor

t staf f o radditiona l aircraft t o suppor t thi s agreemen t wa s take n int o consideration . Anothe rsubstantia l cos t no t include d i s th e developmen t of a we b sit e fo rpassenge rbooking . Ofte n time' s passengers returnin g t o Honolul u fro m Kaluapap a ar e take n i n ou rcompan yshuttl e t o rent-a-ca rfacilitie s an d o rdroppe d of

f i n dow n tow n Honolulu . Thes e additiona l service s wer e als o no t include d i n ou rinitia l proposal . Currentl yal l reservation s ar e take n b yphon e utilizin g rea l reservation s people , seve n day s a wee k fro m 7:00a m t o 10:pm , A s a n exampl e o f ou rcommitmen t t o service , ou rreservation s mad e a erro ri n departur e tim e fo rMr . Joh n Wakefiel d o n 12/21/11 , a Kaluapap a resident . Mr . Wakefiel d showe d u p tw o hour s afte rth e aircraft departed . I tol d m ychie f pilo t t o tak e hi m t o Kaluapap a i n ou rPipe rChieftai n wit h n o additiona l charge s o rdely . I f an d whe n w e mak e a n error , th e custome rwil l no t hav e t o suffer . Thos e type s o f cos t wer e not figure d int o th e initia l agreemen t either . W e starte d flyin g th e schedule d servic e Decembe r10 , 201 1 an d hav e alread yflow n ove r30 0 passenger s i n an d ou t of Kalaupap a b yth e en d of December . Somethin g i s obviousl yworking . Makan i Ka i Helicopter s - Makan i Ka l Ai rCharter s - K o Olin a Helicopter s - Pacifi cAi rExpres s - Hawai i Aviatio n Service sTh e agreemen t calle d fo rsi xda ya wee k operatio n bu t w e currentl yru n seve n day s i n orde rt o bette rsen/ic e th e community . I t too k

a bette rpar

t of tw o week s workin g wit h Mar k Miller , Kaluapap a Administrator , t o custo m mak e a fligh t schedul e tha t fi t th e community' s need s fo rDamie n Tours , th e Stat e an d Federa l employees . Th e additiona l cos t of runnin g a n additiona l da ype rwee k wa s no t i n m yinitia l proposal . Pa cWing s shoul d kno wtha t startin g u p a n operatio n fro m zer o i s substantiall ymor e costl ythe n takin g a n alread yongoin g operatio n an d redirectin g th e aircraft . 2 . "Pacifi cWing s fai rexcessive " Passenge rrate s fo rresident s fro m Kalaupap a t o th e Moloka i Airpor t ar e no w$38.6 4 an d fro m Kalaupap a t o Honolulu , $70.89 . Thes e price s ar e muc h mor e realisti cwit h th e cos t an d fligh t time . Pa cWing s i s correct tha t Kalaupap a i s a mor e remot e airpor t an d muc h mor e difficul t t o acces s i f yo u hav e maintenanc e issues . I' m assumin g yo u alread ykne wtha t an d thei rassertio n t o suppor t thei rexcessiv e rate s wa s becaus e of thi s potentia l problem s ar e laughable . Havin g t o sen d i n mechanic s wit h part s b yhelicopte ri s ver yexpensiv e bu t neve rnecessar

yi f anothe rairplan e operato rwoul d support the m o rthe ywer e abl e t o suppor t themselve s lik e m ycompan ycan . A s fa ra s Damie n Tours , ther e i s n o exclusiv e agreemen t betwee n m ycompan yan d Damie n Tours . Pa c Wing s i s totall yincorrect wit h thei rdescriptio n of fact s an d assessmen t of reality . Damie n Tour s refers potentia l customer s t o Makan i Ka i becaus e w e offe rgrea t servic e a t a reasonabl e price . W e hav e bee n flyin g passengers . Par t 13 5 O n Demand , fro m Honolul u t o Kalaupap a fo rth e purpos e of visitin g Fathe rDamien' s tour . Th e simpl e mat h i s m yPipe rChieftain s charte rrat e i s $95 0 pe rhour , plu s th e FE Tan d Segmen t fe e pe rpassenger . I t wa s cheape rpe rperso n fo rfou rpassenger s t o fl yfro m Honolul u t o Kalaupapa , d o th e Damie n tour , an d retur n t o Honolul u the n i s wa s fo ron e perso n t o fl yon e wa yfro m Moloka i Airport t o Kalaupap a o n Pa cWings . Pa cWing s i s correct tha t the ydi d no t receiv e muc h of th e touris t Damie n Tou rbusines s bu t i t ha d littl e t o d o wit h m ycompan yan d mor e t o d o wit h thei rfligh t tim e schedul e an d pricin g strategy . Seem s comica l tha t Pa cWing s woul d thin k the yca n fee d th e DO Ts o muc h mis s informatio n believin g th e departmen t wil l gobbl e i t u p lik e ice-crea m o n a ho t summe rday . Thi s whol e situatio n tha t Pa cWing s no wbring s u p i s eve n mor e comica l becaus e i t wa s the ywh o sen t a notic e t o DO Twantin g t o suspen d schedul e servic e t o Kalaupap a whic h triggere d thi s EA S proposal . I t wa s the ywh o decide d no t t o bi d o n thi s sen/ic e give n tw o separat e opportunitie s an d no wthe yclai m foul . A s fa ra s the m slappin g themselve s o n th e bac k fo rsavin g th e taxpayer s lot s of mone yb ysuspendin g th e EA S contract whe n i n fac t patients . Federal , State , & Count ypersonnel , governmen t contract s fo rsuppor t an d o r an ybusines s tha t ha d t o b e conducte d i n Kalaupap a wa s eventuall ypai d b yth e ta xpayer s thr u reimbursement s fo rtrave l a t th e Stat e an d Federa l level . I t i s fo rthes e reason s I believ e th e Departmen t of Transportatio n shoul d den yPacifi cWing s petitio n of reconsideration . I f yo u hav e an yquestions , yo u mayreac h m e a t (808 ) 834-581 3 o rvi a emai l a t Richard@makanikai.com . Sincerely , Richar d Schuma n Makan i Ka i Helicopter s - Makan i Ka i Ai rCharter s - K o Olin a Helicopter s - Pacifi cAi rExpres s - Hawai i Aviatio n Service s

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Makan i Ka i Helicopter s - Makan i Ka i Ai rCharter s - K o Olin a Helicopter s - Pacifi cAi rExpres s - Hawai i Aviatio n Service s