Community of Diomede Page i

BEFORE THE DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

Establishing Air Transportation for

Diomede, Alaska

DUNS # 809387467

Proposal Under the

Small Community Air Service

Development Program

Docket OST-2010-0124

Legal Sponsor: State of Alaska Department of Commerce, 

Community and Economic Development

Congressional District Alaska: At Large
Community of Diomede Page ii

Table of Contents

Title Page ............................................................................................................................. i

Table of Contents............................................................................................................ii-iii

Overview..............................................................................................................................1

I. Overall Summary..............................................................................................................4

Project Scope and Goal........................................................................................................4

The Intent of the Application...............................................................................................4

Recommended Solution.......................................................................................................4

Sponsor and Contact Information ........................................................................................5

II. Community of Diomede..................................................................................................6

Physical Location.................................................................................................................6

Iñupiat Culture .....................................................................................................................6

Local Economy/Housing/Infrastructure...............................................................................7

III. Diomede Air Transport..................................................................................................8

Service Area – Defined by Mail Carrier..............................................................................8

Recommended Solution.......................................................................................................9

IV. Potential Economic Development ...............................................................................10

V. Grant Administration ....................................................................................................11

The Intended Service .........................................................................................................11

Program Structure ..............................................................................................................11

Funding and Cash Contribution.........................................................................................12

VI. Unreasonably High Air Fares......................................................................................12

Distressed Community Status 2010...................................................................................13

VII. Summary ....................................................................................................................14

Key Points to Grant Application........................................................................................14

Achievement of Two Major Strategic Goals.....................................................................14

Severely Limited Air Transportation to Diomede .............................................................14
Community of Diomede Page iii

Extremely High Airfare .....................................................................................................15

Life or Death Travel Alternatives......................................................................................15

Community Economic Sustainability ................................................................................15

VIII. Attachments ..............................................................................................................16

Appendix B SCASDP Docket DOT-OST-2010-0124 Summary Information............ 16-18

Authorizing City of Diomede Resolution 2010-03...................................................... 19-20

Joint letter of support from Senators Lisa Murkowski, Mark Begich & Representative 

Don Young................................................................................................................... 21-22

Letter of support from Senator Donald Olson ...................................................................23

Letter of support from Kawerak, Inc. .......................................................................... 24-25

Letter of support from Representative Reggie Joule ................................................... 26-27

Letter of support from Norton Sound Health Corporation ................................................28

Letter of support from Native Village of Diomede ..................................................... 29-30

Letter of support from City of Diomede ...................................................................... 31-32
Application under the 2010 Small Community Air Service Development Grant Program

Community of Diomede Page 1

Overview

The State of Alaska, Department of Commerce, Community and Economic Development

(DCCED) Division of Community and Regional Affairs (DCRA) requests a grant from 

the U.S. Department of Transportation under the Small Community Air Service 

Development Program (SCASDP). The State is applying at the request of the City of 

Diomede and will act as its legal sponsor under the terms of the grant agreement should 

the application be funded.

The SCASDP grant program will help support safe, reliable, year-round air transportation 

for the residents of remote Diomede, Alaska, and provide only the most basic community 

access to health services and economic opportunities that do not exist now.

SCASDP grant application has two major strategic goals:

1. Establish for the first-time scheduled weekly air service to Diomede, and,

2. Provide interim air service, allowing the time necessary for regional partners to 

negotiate financial participation in the Essential Air Service 50% match program.

Little Diomede Island is home to the Native Village of Diomede IRA Council, a federally 

recognized tribe of Iñupiat Alaska Natives. The village is located above the Arctic Circle

in the Bering Strait, 25 miles off the northwest coast of Alaska. This community is a 

traditional subsistence based economy, with a minimal cash economy. It is perhaps the 

most remote community in the United States; only one mile from the Russian border.

In Alaska Native communities, the word subsistence refers to hunting, fishing and 

gathering activities providing for both food and other necessities. Before European 

contact, subsistence was the only form of economic production in which Alaska Natives 

fed, clothed and housed themselves. Traditionally, subsistence has been produced using 
Application under the 2010 Small Community Air Service Development Grant Program

Community of Diomede Page 2

small scale technology to harvest and preserve foods for communal living. Today, 

Diomede, like many remote villages, cannot depend entirely on a subsistence economy.

Diomede has very limited community access with one state-owned heliport; however,

Diomede has not had any commercial passenger helicopter service since July 2009. 

Evergreen Helicopters, Inc. (Evergreen) provides contracted U.S. mail air service for

Diomede once per week, weather permitting. In the past, Evergreen flew mail on a twoengine Bokow-105 (BO-105) helicopter from Nome to Diomede with seat tickets 

available for purchase as mail weight allowed; typically one seat ticket to Diomede and 

four seat tickets returning to Nome. Evergreen has provided expensive charter flights on 

demand. In June 2009 the BO-105 experienced major mechanical problems, resulting in

Evergreen switching to a single-engine A-Star helicopter for the mail delivery. While 

FAA regulations allow passenger service on a single-engine helicopter over open-ocean, 

as a policy Evergreen will not fly passengers over open-ocean, especially in the Arctic,

on a single-engine helicopter. Now Diomede has no passenger helicopter service. Their 

only means for community access is by small boat.

Small boat access is unpredictable because of weather conditions in the Arctic marine 

environment. There have been instances when community members were stranded in 

Nome or Wales for weeks or months due to unpredictable weather conditions.

Additionally, barge service is very limited, due to volatile weather and water conditions 

of the Bering Strait. The community is also hindered by inadequate moorage facilities. 

Diomede does not have an ocean-going boat harbor. Routine medical services are not 

available for the residents of Diomede. A hospital, Norton Sound Health Corporation, is 

located 130 miles away in Nome, Alaska. Standard medical problems, untreated, can and 

do turn into serious medical conditions. Now only emergency medevac is available from 

the Coast Guard or Alaska National Guard by helicopter as a last resort.

Diomede meets the Office of Aviation Analysis’s priority requirements to be considered 

as eligible for grant funding under the SCASDP. There is no year-round commercial air 

service for Diomede residents. In the past when air service was available, it was severely 

limited, not scheduled, and airfares were unreasonably high. Typically, air fare for the

130 mile one-way seat from Diomede to Nome was $320, and $640 round-trip. The rise 

in fuel prices will continue to drive air travel costs up in the foreseeable future.

Due to Diomede’s severe lack of air service or other forms of community access, the 

State of Alaska/DCCED-DCRA is requesting a grant in the amount of $1,250,000 or 

$417,000 per year for three years, to establish air service from Nome to Diomede. Grant 

funding is estimated based upon a proposal from Evergreen to EAS, so that this dollar 

amount assumes passenger ticket revenue. This will provide one round-trip flight per 

week with four seats on the helicopter. This is a most basic air service for the community 

of Diomede.

The Alaska Department of Transportation owns the heliport, and built it with funding 

from FAA’s Airport Improvement Program. The heliport is on the list of facilities in the 
Application under the 2010 Small Community Air Service Development Grant Program

Community of Diomede Page 3

FAA’s National Plan of Integrated Airport Systems (NPIAS). The City of Diomede will 

spend $38,243 annually or $114,729 during the proposed grant period, to operate and 

maintain the heliport under contract with ADOT&PF. Additionally the community will

establish the level of demand during this grant period for air transport services. Based on 

this data, the community will seek support and financial match from key agencies who 

routinely travel to Diomede and use it to support its application through the EAS 50%

match program.

This grant application would provide very basic air transport and thereby help establish 

safe, reliable, and scheduled air service for Diomede residents. U.S. citizens living on 

Little Diomede Island face unique transportation problems that no other U.S. citizens 

living in other cities face. If funded, the grant would substantially improve the quality of 

life in Diomede, Alaska.

If there are any questions or further information is required, please direct correspondence 

to:

Gail Dabaluz, Special Projects Manager

Division of Community and Regional Affairs

P.O. Box 110809

Juneau, AK 99811-0809

(907) 465-4814
Application under the 2010 Small Community Air Service Development Grant Program

Community of Diomede Page 4

I. Overall Summary

Project Scope and Goal

The community of Diomede is requesting a three year grant in the total amount of 

$1,250,000 to offer consistent air service on behalf of its residents. The purpose of the 

project addresses a major air service deficiency in the community of Diomede. The 

community has never had scheduled air service, and did not even have a heliport until 

1996. In the recent past, the community relied upon weekly mail service from Evergreen 

Helicopters, Inc. The company provided helicopter service for vital services, such as 

food and supply transport. Diomede residents could purchase seat tickets on the mail 

carrier, as space allowed. Evergreen Helicopters, Inc. no longer provides the air 

transportation for the community of Diomede, including all contracted air service. The 

contracted helicopter air service was $10,000 per trip from Nome to Diomede, and even 

this service is no longer available.

The Intent of the Application

The grant application seeks financial support from the federal government to establish air 

service for Diomede. A future goal will be to secure financial support to maintain air 

service for the community through the EAS 50% match program.

By securing grant funds, it will provide the necessary financial assistance toward 

providing safe, reliable air transportation to Diomede residents. Without it, Diomede 

residents do not have the quality of life all Alaskans and United States citizens have. 

Without air service to Diomede, residents cannot import necessary daily goods and 

services, seek health care, look for employment opportunities, invite economic 

development ventures, or obtain specialized professional services.

Established air service as presented in this proposal will greatly improve the everyday 

quality of life for each Diomede resident. Securing the financial resources to obtain a 

subsidy rate agreement for the provision of air service in Diomede will immediately 

address the current emergency conditions residents are experiencing.

Recommended Solution

With the resources obtained from this grant and the in-kind contributions from local 

organizations, Diomede will be able to fully execute a simple and focused transportation 

plan. It consists of two components:

• Establish reliable, safe air transportation with the grant to provide funding for a 

subsidy rate agreement with a helicopter service company.

• The established scheduled air service for Diomede will document passenger 

demand and provide the needed time for regional parties to negotiate participation 
Application under the 2010 Small Community Air Service Development Grant Program

Community of Diomede Page 5

in the EAS 50% match program, which will provide long-term scheduled air 

service for Diomede.

The community is very invested in establishing air service, as well as partner agencies 

that are required to travel to and from the community, but currently have no practical 

means of flying to Diomede. Future economic development opportunities can be further 

explored, if consistent air service is a service routinely provided.

Please note that Diomede is not considered eligible to apply for the Office of Aviation,

Essential Air Service grant funds, according to federal law. The October 24, 1978 law 

stipulated that small communities had commercial air service in order to be considered 

eligible for the Essential Air Service grant program. Diomede did not have commercial 

air service in 1978 because they had no heliport and no scheduled air service, so they are 

not considered eligible to apply for these critical grant funds. They are eligible to apply 

for the EAS 50% match program, but Diomede needs more time to gather the data and 

negotiate with the various parties to participate in the match amount.

Finally, please be aware that Diomede, Alaska is the home to the Native Village of 

Diomede IRA Council, a federally recognized tribe of Iñupiat Alaska Natives. We 

believe Environmental Justice is an additional issue U.S. DOT must consider during the 

grant making process for the SCASD program.

Sponsor and Contact Information:

Sponsor: The Department of Commerce, Community and Economic Development

Contact: Tara Jollie, Director

Division of Community and Regional Affairs

550 W. Seventh Avenue, Suite 1770

Anchorage, AK 99501-1770
Application under the 2010 Small Community Air Service Development Grant Program

Community of Diomede Page 6

II. Community of Diomede

Physical Location

The community of Diomede is 25 miles off the northwest coast of Alaska in the Bering 

Strait. It has 117 residents, down from 143 two years ago. It is about one mile from the

Russian boarder and 130 miles northwest of Nome, Alaska. The international boundary 

line is at approximately 65.758611 North Latitude and 168.953056 West Longitude. The 

actual area of Diomede encompasses 2.8 square miles of land and 0.0 square miles of 

water. The island community is a mass of boulders and is approximately 7 miles in 

diameter. The topography of the island does not support any tree habitat or shrubs and 

has very little vegetation. Summer temperatures range from 40 – 50 degrees Fahrenheit, 

with cloudy skies and fog. Winter temperatures average -10 to 6 degrees Fahrenheit, 

with 10 inches of annual precipitation and 30 inches of snowfall. Winds blow 

consistently throughout the year, averaging 15 knots with wind gusts up to 60 – 80 miles 

per hour. The Bering Strait is generally frozen between December and June. Because 

Diomede is located on extremely rocky slopes, the community experiences harsh storms, 

and lacks useable land for housing construction. This terrain influences the city’s 

inability to construct a water and sewer system, landfill and airport.

Aerial view of Diomede, Alaska

Iñupiat Culture

Diomede is an Iñupiat village, whose community members live a traditional subsistence 

lifestyle. They hunt bearded seal, walrus and polar bear for food throughout the year. 

Various shellfish are harvested as well. There is archeological evidence that date 

Diomede as a village 3,000 years old. It was previously a spring hunting village site, and 

over time, became a permanent dwelling.
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Community of Diomede Page 7

After World War II ended, the Soviet Union established the Iron Curtain and Big 

Diomede became a Russian military base. The Russian Iñupiat Natives were forcibly 

removed from their ancestral homelands and relocated to mainland Russia. Little 

Diomede residents never saw their Russian relatives again.

Local Economy/Housing/Infrastructure

Jobs in the community are service oriented. The jobs in Diomede are for the city 

government, school district, Alaska Native Corporation and tribal entity. Of these jobs, 

15-20% are temporary; the remainder of the community rely upon subsistence living, 

governmental assistance and retirement pay. Seasonal mining, construction and 

commercial fisheries have been on the decline. Subsistence hunting and fishing are 

significant means of survival for Diomede residents. The most current resource data 

show unemployment for Diomede residents over 16 years old at 70% or greater.

Housing in Diomede has been provided by the Bureau of Indian Affairs (BIA) and the 

Department of Housing and Urban Development (HUD) prefabricated homes. Prior to 

1976, homes in Diomede were constructed utilizing traditional methods. A traditional 

Iñupiat home was erected with a wood frame covered by a layer of sod and then enclosed 

entirely by rocks.

As previously mentioned, there is no permanent airstrip for planes in Diomede. The 

village utilizes heavy equipment and water to create an ice runway during the winter 

months. When the ice runway is not utilized, Evergreen has a weekly single-engine 

helicopter deliver mail as well as goods and services. Passenger service is not available.

The freshwater system in Diomede is derived from a mountain spring during the summer 

months, as well as desalinization of sea water. The water is then stored in a 434,000 

gallon water tank for winter consumption. There is no running water, with the exception 

of the elementary, high school and teacher’s living quarters. At the public laundry 

facility residents can purchase fresh water at 50 cents per 10 gallons. The Diomede 

ground is made of boulders and steep terrain, the Public Health System (PHS) has ruled 

out an underground water piping system as a viable option for the community.

Diomede does not have a sewer system and residents use honey buckets. The honey 

bucket system places a plastic bucket under a wooden frame with a toilet seat lid, in place 

of a water-born sewage system.

The community does not have a solid waste, or refuse system. Burnable products are 

incinerated and other non-burnable items are placed onto the ice during the winter 

months and into the ocean. The Alaska Department of Health and Human Services, 

Division of Public Health has not found any other alternatives to waste disposal, due to 

the ground conditions of Diomede.
Application under the 2010 Small Community Air Service Development Grant Program

Community of Diomede Page 8

III. Diomede Air Transport

Service Area – Defined by Mail Carrier

Diomede does not have reliable air transportation for its community and its members. 

Diomede does have weekly mail delivery, resulting from the contract between the United 

States Postal Services and Evergreen Helicopters, Inc. In the past, when space was 

available, seat tickets were sold on Evergreen International Aviation mail helicopters for 

Diomede residents to commute to and from their home community. Even when this 

service was available, due to the type of helicopter used for the mail contact, seating was 

limited to one seat ticket per commute. For a one-way ticket from Diomede to Nome, 

passengers were charged $320, or $640 round trip. If Diomede experienced stormy 

weather, residents could be stranded in Nome or Wales for weeks, if not months.

Evergreen has utilized a twin-engine helicopter for the weekly mail routes. When the 

helicopter required substantial repair work a year ago, it was replaced with a singleengine helicopter. While FAA regulations allow use of a single-engine helicopter, 

Evergreen has decided, as a policy, a single engine helicopter is not suitable for human 

transport across Arctic open ocean.

During the winter months, Diomede is able to construct an ice runway, allowing a 9 seat 

airplane to land. If the weather allows the ice runway to be built, it is in operation 2-3 

months at a time. In 2009, the sea ice did not freeze up enough for the ice runway to be 

built so there was no fixed-wing air service and helicopter charter service only through 

July 2009.

There are no road systems in the Bering Strait region. Many rural Alaskan communities 

that do not have a road system tend to be more isolated. Because of this isolation, 

transportation costs for goods and services are much higher than the regional hub areas in 

Alaska, and exponentially higher than the contiguous United States.

In most isolated villages, residents do not own a car. Most utilize All Terrain Vehicles

(ATV), snowmobiles and aluminum or motor boats or traditional Iñupiat skin boats for 

transportation. The aluminum boats used for open sea transport are not equipped for long 

transports and due to Diomede’s extremely rocky and steep incline, securing boats to any 

fixed structure is a huge risk. The terrain precludes construction of a runway.

When ice conditions allow, Diomede has an ice runway during 2-3 of the winter months, 

allowing fixed-wing aircraft to land. However, when the community experiences warmer 

winter conditions, an ice runway is not a viable option. In fact one year while plowing 

the runway, a state-owned bulldozer went through the soft ice and disappeared in deep 

water.

When air transport has not been available due to limited air service, lack of ice runways, 

or mechanical problems, some Diomede residents have opted for open skiff 
Application under the 2010 Small Community Air Service Development Grant Program

Community of Diomede Page 9

transportation. This is a risky endeavor and tragedy has struck those who have resorted 

to this option. In 1998, 6 residents (including small children) attempted to travel 28 miles 

in the Bering Strait via open skiff, from Diomede to Wales and back to Diomede. The 

skiff was able to land in Wales and after purchasing essential goods, the skiff began its 

journey back to Diomede. The skiff disappeared and all 6 residents were lost at sea; their 

remains were never found.

This past academic year, the Bering Strait School District contracted a larger fishing 

vessel to transport school teachers from Nome to Diomede. This trip took a total of 36 

hours and the teachers had to wait 16 hours upon arriving in Diomede for the waters to 

calm down so they could be lifted from the fishing boat to shore. The schoolteachers had 

to be lightered from the fishing boat to shore because of the hazardous combination of 

rocky shoreline and rough seas prevented the larger boat from landing.

The Bering Strait School District wants to rehabilitate the school at Diomede, but have 

been unable to send the necessary engineers and architects that are needed to do the 

necessary site review and planning. Additionally the Bering Strait School District is not 

able to send any contractors to do the actual construction without air service. So the 

students at Diomede continue to have a sub-standard school facility.

The State of Alaska has not been able to deliver state services to the village because of 

the lack of air service. For example, the Alaska Department of Transportation owns and 

operates the heliport at Diomede, and DOT has been unable to send an electrician to 

Diomede to repair landing lights at the airport. DOT is not able to do a transportation 

planning study for Diomede because there is no air service to go and have public 

meetings in Diomede. Similarly, last year the Alaska Department of Military and 

Veterans Affairs was not able to send personnel to Diomede to maintain the National 

Guard Armory building and as a result the roof caved in due to heavy snows. The 

Department of Public Safety is not able to send personnel to Diomede for any law 

enforcement purpose. The Department of Health and Human Services is not able to send 

personnel to investigate any family or child protection issues.

Recommended Solution

In the past year, Diomede residents have not had the ability to freely travel from their 

home community to neighboring communities. This has hindered their ability to seek 

economic opportunities and routine health care for their individual well being.

After many discussions with the key organizations, it has been determined that is in the 

best interest of the residents of Diomede to work with the State of Alaska/Department of 

Commerce, Community and Economic Development, Division of Community and 

Regional Affairs, as their legal sponsor, to seek grant funds to establish air transport to 

their community. Based upon the Department’s ability to administer both federal and 

state grants, this would be the first step toward securing the financial resources to initiate 

scheduled and sustainable air transport to Diomede.
Application under the 2010 Small Community Air Service Development Grant Program

Community of Diomede Page 10

Diomede is not able to apply for the Office of Aviation/Essential Air Service grant funds, 

which would provide a subsidy to establish air service to the community. They are not 

eligible to apply for these grants funds, since the federal law stipulates that scheduled

commercial air service had to have been in place prior to October 24, 1978. It would 

require an act of Congress to reverse the federal law.

In the interim the grant application for the small SCASD grant program can provide the 

much needed financial resources to establish scheduled weekly air transport to Diomede

as well as provide the time needed to document the level of need for air transport 

services.

As previously mentioned, Diomede has weekly mail services via Evergreen. The 

company ceased air service for Diomede residents in July 2009. The helicopter used to 

transport Diomede residents required a complete mechanical overhaul. In its place, a 

smaller helicopter was dispatched to provide weekly mail service. Evergreen will not

provide air services to and from Diomede with a single engine helicopter as a matter of 

company policy.

For events that are life threatening or require immediate medical attention, transport to 

the mainland by boat is not an option for the community at all. Medevac by Coast Guard 

or Alaska National Guard is only available in emergency situations and all transports are 

taken to Seattle.

For community members who may be in imminent danger, finding refuge from a 

perpetrator is nearly impossible, without reliable air transportation to and from Diomede. 

Professionals that can provide injunctive relief for victims are not able to perform their 

statutorily defined mandates, without air transportation.

Diomede residents who unexpectedly pass away, pose an exceptionally heart wrenching 

dilemma to the inadequate air transportation issue. For those who require an autopsy, 

these standard requests a grieving family makes in any other community, face lengthy 

delays for transport. This adds unnecessary heartache to a grieving family. There is one 

documented case where the body of a boy had to be transported to Nome in a helicopter 

in a sitting position with other passengers. These are unacceptable conditions in a 

country as wealthy as the United States.

IV. Potential Economic Development

Although Diomede’s remote location has hindered community transportation, there have 

been recent studies undertaken to explore the Northwest Passage as an emerging strategic 

location for ocean freight traffic. The Army Corps of Engineers and regional partners 

such as Kawerak, Inc. and the Denali Commission have initiated a feasibility study to 

strategize constructing a boat harbor in Diomede. The extremely harsh Arctic Ocean 

weather conditions, coupled with the inhospitable terrain, are issues that require a 

pragmatic approach when evaluating studies to construct a boat harbor. If a boat harbor 
Application under the 2010 Small Community Air Service Development Grant Program

Community of Diomede Page 11

can be constructed, it would offer Diomede barge services, opening the door for future 

economic development opportunities. The boat harbor could be used as a landing port 

for vessels and workers supporting future offshore oil exploration to the north of the 

Bering Strait. Diomede could also be a future tourist spot, offering a unique snapshot of 

Arctic life for small cruise liners.

V. Grant Administration

The Intended Service

The requested $1,250,000 will be matched with $114,729 cash contribution from the City 

of Diomede, which they use to maintain and operate the heliport. The community of 

Diomede intends to use the funds as follows:

• Establish scheduled weekly air service to Diomede to demonstrate demand level;

and,

• Provide interim air service that will provide the necessary time for various 

regional partners to negotiate financial participation in the Essential Air Service 

50% match program, which will continue air service after SCASDP grant funds 

expire.

Program Structure

The Department of Commerce, Community and Economic Development (DCCED) as 

the legal sponsor for Diomede has federal receipt authority to accept grant funds from the 

Office of Aviation Analysis. Upon award of grant funds, the Department will prepare a 

Request for Proposal (RFP) to negotiate a rate agreement for air service in Diomede. 

After securing a vendor through the RFP process, the Department will negotiate a subsidy 

rate agreement to establish scheduled air service at Diomede, Alaska as soon as possible.

DCCED will monitor the project, assuring that all program expenditures and progress are 

consistent with US DOT guidelines and grant objectives. DCCED will submit quarterly 

progress reports during the life of the grant agreement.

The grantee will obtain a certificate of sponsor’s attorney, as the legal sponsor for the 

project. All grant terms and conditions will be identified in the certificate of sponsor’s 

attorney, in accordance to Title 49 U.S.C. The State of Alaska, Department of Law and 

the Office of Aviation Analysis will provide technical assistance to DCCED to finalize 

the certificate of sponsor’s attorney and negotiate the terms of the agreement.
Application under the 2010 Small Community Air Service Development Grant Program

Community of Diomede Page 12

Funding and Cash Contribution

The grant application is $1,250,000. This will include a cash contribution from the city 

of Diomede totaling $114,729. The City of Diomede’s cash contribution will be the 

continued maintenance and operation cost for the existing helipad. The total amount will 

be applied as show below.

Diomede Grant Program Fund Allocation over Three Years

Fund Source Amount Total

Office of Aviation Analysis $

Year One $416,667 $416,667

Year Two $416,667 $416,667

Year Three $416,666 $416,666

City of Diomede, heliport maintenance

Year One $ 38,243 $ 38,243

Year Two $ 38,243 $ 38,243

Year Three $ 38,243 $ 38,243

Total: $1,364,729 $1,364,729

DCCED/DCRA program oversight will not exceed $100,000 per year for three years. 

This will include one project administrator salary and fringe benefits, travel to Diomede, 

office equipment and supplies. DCRA will closely monitor the performance of the 

project, coordinate communication with the community, air carrier providing service, and 

other partner agencies. DCRA will submit all required reports as well as an end of 

project report as required by the funding agency. DCRA will ensure all grant activities 

meet federal, state and local statutes, regulations, ordinances and customs.

VI. Unreasonably High Air Fares

There is no helicopter service available to Diomede, and emergency medevac is only 

available from the U.S. Coast Guard or Alaska National Guard as a last resort measure. 

For a community that meets federal standards of an economically distressed community, 

securing funds in order to travel for a medical appointment or to seek employment 

opportunities is an insurmountable challenge.

Given the scarce economic opportunities in the community of Diomede and the 

unpredictability of air transport, residents have very little chance to seek jobs. Diomede 

is an economically distressed community. The federal government defines an 

economically distressed community as follows:

• Per capita income of 80 percent or less than the national average; or

• An unemployment rate one percent greater than the national average for 

the past 24 months.
Application under the 2010 Small Community Air Service Development Grant Program

Community of Diomede Page 13

The most current data for per capita and unemployment rates for Diomede reported by 

the Denali Commission are as follows:

Distressed Community Status 2010

Alaska Communities by Borough/Census Area and Place

2010 

Distressed 

Community

2009 Distressed 

Community

Average 

earnings in 

2009 from UI 

employment 

& fishing

Percentage 

with 2009 

earnings less 

than 

minimum 

wage of 

$14,968

Percentage employed all 4 

quarters of 2009

Distressed Non-Distressed 11,388 75.7 30.0

Distressed Community Criteria 2010 Update by the Denali Commission

The 2010 distressed community data report is updated annually by the Denali 

Commission, with data derived from the State of Alaska/Department of Labor-Research 

and Analysis Section. The state agency uses the most current population, employment 

and earnings data available to the communities considered distressed.

Distressed communities are determined by comparing:

• Average income of a community to full-time minimum wage earnings,

• The percentage of population earning greater than full-time minimum wage 

earnings, and

• A measure of the percentage of the population engaged in year-round wage and 

salary employment.

In addition to comparing per capita income and unemployment rates in each community, 

the Denali Commission included aggregate data for distressed communities. The 

Commission included three sources of data in the 2010 distressed community lists.

• 2009 Permanent Fund Dividend (PFD) applications. The application includes 

each applicant’s age, social security number, and physical place of residence.

• Alaska unemployment insurance wage records for calendar year 2009. The 

records include wage and salary worker earnings from all private, state, and local 

government employers. Federal government, military and self employed earnings 

are not available and not included in the earnings estimate.

• Calendar year 2008 Commercial Fisheries Entry Commission (CFEC) total fish 

value data by community, which is the most current data.

Including the 2009 PFD applicants age 16 and over in 2009 were assigned to an Alaska 

borough/census area and community by place of residence. PFD applicants age 16 and 

over were matched with wage and employment information by SSN. CFEC 2008 total 
Application under the 2010 Small Community Air Service Development Grant Program

Community of Diomede Page 14

fish values were added to wage and salary earnings to compute community average 

market income.

A community that meets two of the following three surrogate standard criteria are

considered distressed:

Criteria 1: Average market income in 2009 is less than $14,968.

Average market income = Community UI earnings + Community CFEC earnings

Number Residents 16 and Over

$14,968 = Minimum Wage until 7/24/09 ($7.15/hour x 1,120 hours/year)

Criteria 2: More than 70% of residents 16 and over earned less than $14,968 in 

2009.

Percent residents with earnings < than $14,968 = 100 x number residents w/ earnings < than 14,968

Number Residents 16 and Over

Any community with more than 70% of its residents earning less than $14,968 in 2009 

meets the criteria.

Criteria 3: Less than 30% residents 16 and over worked all four quarters of 2009.

Percent residents employed all 4 quarters = 100 x number residents employed all 4 quarters

Number residents 16 and over

Any community with less than 30% of its residents employed all four quarters of 2009 

meets the criteria.

VII. Summary

Key Points to Grant Application

This grant application establishes the desperate need to restore air service to the 

community of Diomede. Key points to the grant proposal are:

• Achievement of Two Major Strategic Goals

Establishing scheduled weekly air service to Diomede, demonstrating demand 

level and providing interim air service, allowing the necessary time for regional 

partners to negotiate financial participation in the Essential Air Service 50% 

match program.

• Severely Limited Air Transportation to Diomede

Air transportation has been severely limited to the community since July 2009, 

over a year’s time. Not having reliable, safe air service to Diomede has 
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Community of Diomede Page 15

negatively impacted the daily living conditions of its citizens. All services 

available to the community, including medical, dental, mental health and social 

service providers has abruptly ended, with the suspension of helicopter service.

• Extremely High Airfare

When helicopter service was available to Diomede residents, the airfare was 

extremely high. Round-trip airfare was $640 from Diomede to Nome. 

Oftentimes, only one seat ticket was available for sale. Given the treacherous 

weather conditions in Diomede, it is not unusual for travelers to be stranded in 

another community for weeks or months at a time. Charter helicopter service, 

while not available now, cost about $10,000 for a round-trip flight from Nome to 

Diomede when it was available.

• Life or Death Travel Alternatives

Given the dire transportation issues in Diomede, residents have utilized either skin 

or aluminum boats to travel in open ocean. Travel in open ocean conditions is 

extremely dangerous and residents have lost their lives, attempting to secure

goods and services so many of us take for granted in our daily lives.

• Community Economic Sustainability

Diomede cannot offer professional economic opportunities for their residents or 

others to remain in their community. Lifelong Diomede residents have been 

forced to move to communities that have reliable transportation. Professional and 

service providers that have resided in Diomede, move elsewhere, due to the 

unpredictable and harsh weather conditions. In 2009, new schoolteachers were 

being transported to Diomede by boat. Due to rough seas, they were forced to 

moor outside of Diomede for 16 hours, totaling a 36-hour transit.

With these key points in mind, DCCED believes that the $1,250,000 grant will be 

an excellent application of the program’s scarce funds. It will establish scheduled 

air service to Diomede, ensuring the overall well being of an entire community. 

Additionally the grant will provide the basis to demonstrate passenger demand 

level and provide the necessary time to allow regional entities to negotiate 

participation in the Essential Air Service 50% match program for continuing air 

service beyond the three year grant period.
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VIII. Attachments

APPENDIX B

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT-OST-2010-0124

SUMMARY INFORMATION

All applicants must submit this information with their proposal, along with a completed 

form SF424 on htpp://www.grants.gov

A. APPLICANT INFORMATION: (CHECK ALL THAT APPLY)

 Not a Consortium  Interstate Consortium  Intrastate Consortium

 Community now receives EAS subsidy

 Community (or Consortium member) previously received a Small Community Grant

If previous recipient: Date of grant: 

Expiration of grant: 

B. PUBLIC/PRIVATE PARTNERSHIPS: (LIST ORGANIZATION NAMES)

Public Private

1. State of Alaska-Department of Commerce, Community and Economic Development (Legal Sponsor)

2. City of Diomede . 2.

3. 3.

4. 4.

5. 5.

C. PROJECT PROPOSAL: (CHECK ALL THAT APPLY)

 Marketing  Upgrade Aircraft  New Route

 Personnel  Increase Frequency  Low Fare 

Service

 Travel Bank  Service Restoration  Subsidy

 Surface Transportation  Regional Service  Other (specify)

 Revenue Guarantee  Launch New Carrier

 Start Up Cost Offset  First Service

 Study  Secure Additional Carrier
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D. EXISTING LANDING AIDS AT LOCAL AIRPORT:

 Full ILS  Outer/Middle Marker  Published Instrument 

Approach

 Localizer  Other (specify)

E. PROJECT COST:

1. Federal amount requested: $1,250,000.00

2. State cash financial contribution:

3. Local cash financial contribution: $ 114,729.00

3a. Airport cash funds: 0.00

3b. Non-airport cash funds: 0.00

3c. Total local cash funds (3a. + 3b.): $ 114,729.00

4. TOTAL CASH FUNDING (1. + 2. + 3c): $1,364,279.00

5. Local funds contributed from already-existing

Programs or projects included in line 3c. amount: 0.00

6. Local funds contributed from new commitments

or new resources included in line 3c amount: 0.00

7. Airport In-Kind contribution: 0.00

(amount & description) 0.00

8. Other In-Kind contribution: 0.00

9. TOTAL IN-KIND CONTRIBUTION (7. + 8.): 0.00

10. TOTAL PROJECT COST (4. + 9.) $1,364,279.00
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F. ENPLANEMENTS:

2000 -0- 2004 -0- 2008 -0-

2001 -0- 2005 -0- 2009 -0-

2002 -0- 2006 -0-

2003 -0- 2007 -0-

G. IS THIS APPLICATION SUBJECT TO REVIEW BY STATE UNDER 

EXECUTIVE ORDER 12372 PROCESS?

 a. This application was made available to the State under the 

Executive Order 12372 Process for review on (date) .

 b. Program is subject to E.O. 12372, but has not been selected by the 

State for review.

 c. Program is not covered by E.O. 12372.

H. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT? (IF 

“YES”, PROVIDE EXPLANATION)

 No  Yes (explain) 
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