Grant Aviation, Inc 

P.O. Box 92200 

Anchorage, AK 99509 

Proposal to Provide EAS at Akutan, Alaska 

Docket DOT -OST -2000-7068 

EAS & Domestic Analysis Division 

Office of Aviation Analysis 

U.S. Department of Transportation 

400 71

h Street S.W., Room 6401 

Washington, D.C. 20590 

July 3, 2014 

Dear Sirs, 

Enclosed, find Grant Aviation, Inc.'s proposal to provide Essential Air Service between Dutch H rbor, Alaska and the 

runway on Akun Island, Alaska for the period October 1, 2014 through September 30, 2016. 

In accord with the Department's request for proposals, Grant Aviation proposes to provide Tw lve direct, nonstop flights 

per week between Dutch Harbor and the runway on Akun Island. 

The aircraft types to be utilized for this proposed service are Beech Kingair B-200, and Piper P 31-350. Both plane types 

are 9 seat, twin engine aircraft, fully equipped for IFR flight. 

This proposal makes NO provision for transportation between the runway on Akun and the vii age of Akutan. Currently 

this service is being provided by the Aleutians East Borough, via contract with a local helicopter operator. 

This proposal WILL provide for handling of inbound and outbound mail and freight to and fro the village of Akutan, via 

an agreement between Grant Aviation and the Aleutians East Borough. 

At 100% performance of the schedule proposed above, Grant Aviation expects a total annual co nomic cost of 

$1,322,327.34 Estimated annual revenue derived from scheduled passenger fares, freight tari s, and compensation for 

transporting U.S. Mail flown along the route is expected to total $491,212.00, leaving $831,11 .34 in uncovered costs. 

To cover the difference between expected economic costs and expected revenues, Grant Avia ion will require an annual 

subsidy of $831,115.34. 

We look forward to working with you in providing service to the people of Akutan. 

If you require further information, I may be contacted by phone at 907 529-6999, or by e-mail at 

bmcglasson@flygrant.com. 

Cost data follows. 

Respectfully, 

!{Jf£~!1~ President, 

Grant Aviation, Inc. 
Akutan EAS Cost Data 

Weekly Round Trips 12 

Annual RT Flights @ 100% completion 624 

Per RT flight Block Time 0.66 

Annual Block Hours 4 1.84 

Distance OUT- Akun Airport (stat miles) 41 

Annual 0/W Passengers expected t.,500 

OW fare $ 1 [ 4.00 

Annual maillbs expected 12( ,000 

Current mail rate I lb $ 0. 076 

Annual Freight lbs expected 3(,000 

Current Freight rates I lb $ 0.71 

Total Annual Block Hours 411.8 

Revenue Annual Revenue 

Passenger Fares $ 385,000.00 

Mail Revenue $ 84,912.00 

Freight Revenue $ 21,300.00 

Total Annual Revenue from Scheduled Operations $ 491,212.00 

Direct Expe nse Base Ur its Annual Direct Exp. 

Fuel/oil ($/gallon) $ 6.455 4 ,243 $ 279,134.86 

Aircraft lease expense (monthly lease) $ 4,500.00 12 $ 54,000.00 

Maintenance (engine&prop +labor+parts I block hr) $ 656.00 L 11.8 $ 270,167.04 

Pilot labor, all inclusive w/tax&beni I daily rate $ 440.80 365 $ 160,892.00 

Aviation Insurance annual hull and liability $ 38,000.00 

Total Annual Direct Expense $ 802,193.90 

Indirect Ex pense Base Ur its Annual Indirect Exp. 

Hanger lease I month $ 4,000.00 12 $ 48,000.00 

Ticketing & ground service I per turn $ 200.00 624 $ 124,800.00 

Freight & mail Handling OUT, Akun, Akutan I lb $ 0.62 15( ,000 $ 93,000.00 

Pilot housing+utility I month $ 2,100.00 12 25,200.00 

Total Annual Indirect Expense 291,000.00 

Sum of dire ct and indirect costs 1,093,193.90 

Add Burden 15.2% 166,165.47 

subtotal 1,259,359.37 

Add Profit @ 5.0% 5.0% 62,967.97 

Total Annual Economic Cost 1,322,327.34 

Total Annu al Revenue from Scheduled Operations 491,212.00 

Annual Sub sidy Required 831,115.34