Order: 2014-11-3

Served November 7, 2014

 UNITED STATES OF AMERICA

 DEPARTMENT OF TRANSPORTATION

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

Issued by the Department of Transportation

on the 7th day of November, 2014

Essential Air Service at

LAKE MINCHUMINA, ALASKA

RAMPART, ALASKA

DOT-OST-2008-0237

DOT-OST-2008-0201

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

ORDER SELECTING CARRIERS ESTABLISHING SUBSIDY

RATES AND TEMPORARILY EXTENDING CURRENT SUBSIDY

Summary

By this Order, the Department is re-selecting Wright Air Service, Inc., (Wright Air) to 

provide Essential Air Service (EAS) at Lake Minchumina, with two nonstop round trips per 

week to Fairbanks, using either 9-seat Cessna 208 Caravan or Piper PA-31 aircraft for one 

flight per week, and a 4-seat Cessna 206 or 3-seat Beechcraft Bonanza A36 aircraft for an 

additional flight per week, at an annual subsidy rate of $102,300, for the two-year period 

from November 1, 2014, through October 31, 2016.1

 

This Order is also selecting Tatonduk Outfitters Limited d/b/a Everts Air Alaska (Everts 

Air) to provide EAS at Rampart, with two nonstop round trips per week to Fairbanks, using 

either 9-seat Pilatus PC-12 or Cessna Grand Caravan aircraft, at an annual subsidy rate of 

$60,201, for the two-year period from December 1, 2014, through October 31, 2016.

2

Also by this Order, the Department is temporarily extending the service period of 

Warbelow’s Air Ventures, Inc. (Warbelow’s) to provide EAS at Rampart from 

November 1, 2014, until Everts Air commences full EAS at Rampart, but no later than 

 1 Such subsidy is calculated and distributed on a fiscal year basis, subject to the availability of funds.

2 Such subsidy is calculated and distributed on a fiscal year basis, subject to the availability of funds.
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January 31, 2015. Warbelow’s will continue to provide Rampart with two nonstop round 

trips per week to Fairbanks with Piper Navajo equipment, at its current annual subsidy rate 

of $76,416.

3

Background

By Order 2012-10-14, issued on October 11, 2012, the Department re-selected Wright Air 

to provide subsidized EAS at Lake Minchumina with two nonstop round trips per week to 

Fairbanks, using either 9-seat IFR Certified or 4-seat single-engine piston aircraft, at an 

annual subsidy rate of $102,300. Also by that Order, the Department re-selected 

Warbelow’s to provide EAS at Rampart with two nonstop round trips per week to 

Fairbanks using Piper Navajo aircraft, at an annual subsidy rate of $76,416. 

Lake Minchumina and Rampart are guaranteed to receive at least a minimum level of air 

service under the EAS program by virtue of the fact that those communities appeared on a 

certificated carrier’s Civil Aeronautics Board-issued certificate on October 24, 1978, the 

date the Airline Deregulation Act of 1978 was signed into law. (See 49 U.S.C. §§ 41731 

and 41744 for the EAS program’s governing statutes). In keeping with our normal 

procedures, in anticipation of the end of the rate term, the Department issued Order 

2014-6-8 on June 17, 2014, soliciting proposals from air carriers interested in providing 

EAS at Lake Minchumina and Rampart, with subsidy support if necessary, for a new term 

beginning November 1, 2014. 

That Order, as well as the complete public file for EAS at Lake Minchumina and Rampart, 

may be accessed online through the Federal Docket Management System at 

http://www.regulations.gov, by entering “DOT-OST-2008-0237” for Lake Minchumina

and “DOT-OST-2008-0201” for Rampart in the “SEARCH for: Rules, Comments, 

Adjudications or Supporting Documents:” field.

Proposal of Everts Air at Lake Minchumina and Rampart

Everts Air proposed to provide two nonstop round trips per week between both Lake 

Minchumina and Rampart to Fairbanks with either a Pilatus PC-12 or Cessna Caravan, 

both of which are 9-seat I.F.R. certified single-engine turboprop aircraft, at an annual 

subsidy rate of $101,564 at Lake Minchumina, and $60,201 at Rampart. Everts Air’s 

proposal for each community is distinct and does not require it to be selected for both 

communities.

Proposal of Wright Air at Lake Minchumina 

Wright Air proposed to provide two nonstop round trips per week between Lake 

Minchumina and Fairbanks with either a 9-seat I.F.R. certified Cessna 208 Caravan or 4-

seat Piper PA-31 aircraft, at an annual subsidy rate of $102,300.

Proposal of Warbelow’s Air Ventures at Rampart

Warbelow’s proposed to provide either two or three nonstop round trips per week between

Rampart and Fairbanks, using a 4-seat Piper PA-31 aircraft. For three round trips per 

 3 Such subsidy is calculated and distributed on a fiscal year basis, subject to the availability of funds.
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week, Warbelow’s subsidy request is $116,834 annually, or $233,668 for two years. For 

two round trips per week, Warbelow’s subsidy request is $75,281 annually, or $150,562 

for two years.

Community Comments

By letters dated August 1 and September 9, 2014, the Department requested community 

comments regarding this EAS selection case. In response, by letter dated 

October 15, 2014, the Lake Minchumina Homeowners Association provided support for 

Wright Air’s proposal. Mr. Walter Maakestad, Vice President of the Minchumina 

Homeowners Association, stated that Wright has earned a positive reputation in the 

community by “providing timely, reliably efficient and caring customer service.” Mr. 

Maakestad further stated that, “we would like to see [Wright Air] continue to serve in such 

a capacity in the future.”

Additionally, by letter dated July 1, 2014, Ms. Antoinette Wright, Second Chief of the 

Rampart Village Council, submitted a letter in support of Everts Air’s proposal to provide 

EAS to Rampart. Ms. Wright stated that Everts’ staff, service, schedule, level of service, 

safety, and commitment meets the needs of the community. 

Decision

When selecting a carrier to provide EAS in Alaska, 49 U.S.C. §41733(c)(1) directs the 

Department to consider six 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; (5) the carrier’s plan to market its service to the 

community; and (6) the experience of the applicant in providing scheduled air service or 

significant patterns of non-scheduled air service. In addition, the Continuing 

Appropriations Act, 2014, Public Law No. 113-46, and continued in the Continuing 

Appropriations Resolution, 2015, Public Law No. 113-164, 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. 

We have decided to select Wright Air to provide EAS at Lake Minchumina. We note that 

Everts Air requires slightly less subsidy, however the Lake Minchumina community fully 

supports Wright Air, which has a successful history of providing EAS at Lake 

Minchumina. Additionally, we find the proposed subsidy rates to be reasonable and the air 

carrier’s performance satisfactory. 

We have decided to select Everts Air to provide EAS at Rampart. The Rampart 

community supports Everts Air’s proposal, which requires less subsidy than Warbelow’s 

proposal. Additionally, we find the service levels and subsidy request to be reasonable. 

The selection of Wright Air and Everts Air will ensure the citizens of Lake Minchumina 

and Rampart will continue to have access to the national air transportation system. 
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Air Carrier Fitness

49 U.S.C. §§ 41737(b) and 41738 require that we find an air carrier fit, willing, and able to 

provide reliable air transportation before we may subsidize it to provide EAS. Wright Air 

and Everts Air are subject to the Department’s continuing fitness requirements, and no 

information has come to our attention that would cause us to question the air carriers’

fitness at this time. We have contacted the Federal Aviation Administration, and it has 

raised no concerns that would negatively affect our fitness findings. We therefore conclude 

that both air carriers are reliable and remain fit to conduct the operations proposed here.

This Order is issued under authority delegated in 49 CFR Part 1.25a(b).

ACCORDINGLY,

1. The Department selects Wright Air Service, Inc. to provide Essential Air Service at 

Lake Minchumina, Alaska, at the service level and subsidy rates described in Appendix B, 

for the period from November 1, 2014, through October 31, 2016;

2. The Department selects Tatonduk Outfitters Limited d/b/a Everts Air Alaska to provide

Essential Air Service at Rampart, Alaska, at the service level and subsidy rates described in 

Appendix B, for the period from November 1, 2014, through October 31, 2016; 

3. The Department requires Warbelow’s Air Ventures, Inc., to continue to provide 

Essential Air Service at Rampart, Alaska, until Tatonduk Outfitters Limited d/b/a Everts 

Air Alaska commences full Essential Air Service at Rampart, but no later than 

January 31, 2015;

4. The Department sets the rate of compensation for Tatonduk Outfitters Limited d/b/a 

Everts Air Alaska, for the provision of Essential Air Service at Rampart, Alaska, as 

described in Appendix B.

5. The Department directs Wright Air Service, Inc., Tatonduk Outfitters Limited d/b/a 

Everts Air Alaska, and Warbelow’s Air Ventures, Inc., to retain all books, records, and 

other source and summary documentation to support claims for payment, and to preserve 

and maintain such documentation in a manner that readily permits its audit and 

examination by representatives of the Department. Such documentation shall be retained 

for seven years from the service date of this Order or until the Department indicates that the 

records may be destroyed, whichever comes first. Copies of flight logs for aircraft sold or 

disposed of must be retained. The air carrier may forfeit its compensation for any claim 

that is not supported under the terms of this Order;

6. The Department finds Wright Air Service, Inc. and Tatonduk Outfitters Limited d/b/a 

Everts Air Alaska, continue to be fit, willing and able to operate as certificated air carriers

and capable of providing reliable Essential Air Service at Lake Minchumina and Rampart, 

Alaska;
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7. These dockets will remain open pending further Department action; and

8. The Department will serve copies of this Order on the civic officials of Lake 

Minchumina and Rampart, Alaska, the Alaska Department of Transportation and Public 

Facilities, and the service list for these dockets.

By:

 BRANDON M. BELFORD

Deputy Assistant Secretary for

 Aviation and International Affairs

(SEAL)

 An electronic version of this document is available at

 http://www.regulations.gov
Appendix A

Page 1 of 2

Wright Air

Annual Compensation Requirements for Essential Air Service at

Lake Minchumina, Alaska
Appendix A

Page 2 of 2

Everts Air

Annual Compensation Requirements for Essential Air Service at

Rampart, Alaska
 Appendix B

 Page 1 of 3 

Wright Air Essential Air Service 

to be provided at Lake Minchumina, Alaska, DOT-OST-2008-0237

Effective Period: November 1, 2014, through October 31, 2016

Scheduled Service: Two nonstop round trips each week to Fairbanks, Alaska

Aircraft: One with 9-seat Cessna 208 Caravan or 9-seat Navajo Piper PA-31 aircraft; one with 4-

seat Cessna 206 or 3-seat Beechcraft Bonanza A36 aircraft.

Rate per Eligible Flight: $4921

Weekly Ceiling: $1,9682

Note: 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 this rate, 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 service levels, the carrier may cease to provide service to that 

specific location without regards 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 contract 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 may not be available for performance under this order beyond December 11, 2014. The Government’s obligation for 

performance under this order beyond December 11, 2014, is subject to the availability of 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 December 11, 2014, until funds are made available to the Department for performance. If sufficient funds are 

not made available for performance beyond December 11, 2014, the Department will provide notice in writing to the carrier.

All claims for payment, including any amended claims, must be submitted within 90 days of the last day of the 

month for which compensation is being claimed. For example, claims for service provided in July must be filed by 

October 31; August claims must be submitted by November 30, and so on.

 1 Annual compensation of $102,300 divided by 208 arrivals and departures: 4 flights per week x 52 weeks. 2 The subsidy rate for each arrival/departure ($492) multiplied by four eligible arrival and departure each week. 
Appendix B

Page 2 of 3

Everts Air Alaska Essential Air Service 

to be provided at Rampart, Alaska, DOT-OST-2008-0201

Effective Period: November 1, 2014, through October 31, 2016

Scheduled Service: Two nonstop round trips each week to Fairbanks, Alaska

Aircraft: Pilatus PC-12 (9-Seat) or Cessna Caravan (9-Seat)

Rate per Eligible Flight: $2893

Weekly Ceiling: $1,1564

Note: 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 this rate, 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 service levels, the carrier may cease to provide service to that 

specific location without regards 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 contract 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 may not be available for performance under this order beyond December 11, 2014. The Government’s obligation for 

performance under this order beyond December 11, 2014, is subject to the availability of 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 December 11, 2014, until funds are made available to the Department for performance. If sufficient funds are 

not made available for performance beyond December 11, 2014, the Department will provide notice in writing to the carrier.

All claims for payment, including any amended claims, must be submitted within 90 days of the last day of the 

month for which compensation is being claimed. For example, claims for service provided in July must be filed by 

October 31; August claims must be submitted by November 30, and so on.

 3 Annual compensation of $60,201 divided by 208 arrivals and departures: 4 flights per week x 52 weeks. 4 The subsidy rate for each arrival/departure ($289) multiplied by four eligible arrival and departure each week. 
 Appendix B

 Page 3 of 3 

Warbelow’s Air Ventures, Inc. Essential Air Service 

to be provided at Rampart, Alaska, DOT-OST-2008-0201

Effective Period: November 1, 2014, through January 31, 2015

Scheduled Service: Two nonstop round trips each week to Fairbanks, Alaska 

Aircraft: Piper Navajo (9-Seat)

Rate per Eligible Flight: $3671

Weekly Ceiling: $1,4682

Note: 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 this rate, 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 service levels, the carrier may cease to provide service to that 

specific location without regards 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 contract 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 may not be available for performance under this order beyond December 11, 2014. The Government’s obligation for 

performance under this order beyond December 11, 2014, is subject to the availability of 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 December 11, 2014, until funds are made available to the Department for performance. If sufficient funds are 

not made available for performance beyond December 11, 2014, the Department will provide notice in writing to the carrier.

All claims for payment, including any amended claims, must be submitted within 90 days of the last day of the 

month for which compensation is being claimed. For example, claims for service provided in July must be filed by 

October 31; August claims must be submitted by November 30, and so on.

 1 Annual compensation of $76,416 divided by 208 arrivals and departures: 4 flights per week x 52 weeks. 2 The subsidy rate for each arrival/departure ($367) multiplied by four eligible arrival and departure each week.