August 8, 2013 

Department of Transportation .-.".:""' ' "'-~ 

: . ~ ~... . J 

Kodiak 11 Water Stop Proposal 

Kitoi, Seal bay, Port Williams, Port bailey, Uganik, West Point ,Zachar Bay, Amook, Moser Bay, 

Olga Bay, Alitak / 

Docket DOT-OST-2000-6945 

The following proposal comprises the Kodiak 11 subsidy request and bid for Redemption Inc 

dba Island Air Service. The bid is for a DHC-2 Beaver as previous bid cycles and experience has 

clearly shown that aircraft smaller than the Beaver simply will not meet the PEQ requirements 

of this contract. Enclosed is the PEQ growth of the Kodiak 11 from 572 PEQ'S in 2008 to 785 

PEQ'S in the most recent 12 month cycle. Additionally, Island Air has retained three departures 

per week to Alitak in order to meet the customer requirements and timeliness of mail deliveries 

to this fishing community during peak operations. This third trip to Alitak and all extra sections 

to again meet customer desires have been in addition to all contract requirements. Island Air 

has maintained high service reliability to our communities by meeting the customer needs. In 

addition to the extra trip to the south end and all extra sections flown, Island Air added a High 

Gross Beaver in the spring of 2012 which further increases the maximum PEQ'S available from 

450 on the previous bid during the peak season to 504. This extra room and weight carrying 

ability has been sorely needed. The continual growth in these markets we believe, clearly show 

the service reliability in this contract. 

Island Air is the owner of Kodiak Adventures Unlimited a booking and marketing supplier for 

Kodiak destination tourism. It provides destination tourism booking capabilities for the Kodiak 

Island archipelago for all tourism venues and a strong source of customer referrals for incoming 

tourism requests. 

Island Air has interline arrangements with Alaska Airlines and ERA airlines to provide lost 

baggage delivery on next available scheduled flights. This is even more difficult when you 

consider many clients are not on normal scheduled runs and outside the box thinking is needed. 

Island air is located next to both carriers at Kodiak State Airport. Over the last two years we 

have invested in warm and dry waiting and storage facilities in Trident Basin- the departure 

point for these trips. In addition we have added the necessary hot water de-icing systems sorely 

needed in our winter float environments. 
The communities views are a matter of record over previous bid cycles and the growth of our 

loads during difficult economic times have shown our ability to adapt and provide flexibility to 

our customers' needs. 

Island air has been operating continually since 1980 under the same management with an 

experience and reliability record to keep it the longest running scheduled carrier in Kodiak 

today. 

Sincerely 

Redemption Inc Island Air Service 

Robert G Stanford 

Stanford@alaska.com 

9075391182 
Proposal to Provide Essential Air Service at Alitak, Amook Bay, Kitoi Bay 

Moser Bay, Olga Bay, Port Bailey, Port Williams,Seal Bay, West Point 

Uganik, Zachar Bay 

Bid DHC-2 2013 

Total block hours 

Aircraft Type: DHC-2 Beaver 

Departures 

REVENUE 

Passenger 

Cargo 

Mail 

Total Operating Revenue 

DIRECT OPERATING EXPENSES 

Pilot 

Fuel & Oil 

Maintenance 

Aircraft 

Insurance 

Total Direct Operating Expenses 

Indirect Operating Expenses 

Traffic Related 

departure Related 

Capacity Related 

Total Indirect Operating Expenses 

TOTAL OPERATING EXPENSES 

Operating Loss 

75 

152 

49 

81 

54 

ph 

ph 

ph 

ph 

ph 

7.2% of Revenues 

33.93 per Depart 

12.6% of Revenues 

Profit element@ 5 percent of Total Operating Expense 

Compensation Requirement 

402 

1011 

72950 

14950 

19279 

107179 

30142 

61188 

19693 

32553 

21702 

165277 

7717 

34303 

13505 

55525 

220801 

113622.43 

11040.07 

124662.50 
2008 

Alitak 249.4 

Moser Bay 15.1 

Olga Bay 52 

TOTAL PEQ'S 316.5 

Amook 38.2 

Zachar Bay 9.6 

TOTAL PEQ'S 47.8 

Kitoi Bay 91.8 

Seal Bay 26.2 

Port Williams 6.4 

TOTAL PEQ'S 124.4 

Port Bailey 3.7 

Uganik 16.9 

West Point 62.9 

TOTAL PEQ'S 83.5 

2008 PEQ'S 572.2 

2009 PEQ'S 622.1 

2010 PEQ'S 663.9 

2011 PEQ'S 684.7 

2012 PEQ'S 767.0 

2013 PEQ'S 785.0 

7501bs 

Cessna 206 PEQ'S 

2009 

232.3 

23 

46.4 

301.7 

39.6 

12.7 

52.3 

96.2 

29.2 

22.8 

148.2 

28.8 

20.9 

70.2 

119.9 

PEQ'S 

2010 2011 

194.8 171 

58.1 54.1 

63.1 66.9 

316 292 

44.4 51.2 

3.1 2 

47.5 53.2 

133.7 142 

61.4 79.4 

17.8 24.3 

212.9 246 

21.1 22.2 

12.2 11.1 

54.2 60.6 

87.5 93.9 

14001bs 

Beaver PEQ'S 

18 week peak - 2 trips per week 

270 504 

2012 2013 

270.7 240.1 

38.1 52.3 

79.8 45.5 

388.6 337.9 

46.8 59.7 

23.6 28.4 

70.4 88.1 

103.4 169.2 

63.9 34.5 

40.7 46.7 

208 250.4 

41.6 26.1 

21.7 23.3 

36.7 59.2 

100 108.6 
Proposal to Provide Essential Air Service at Alitak, Amook Bay, Kitoi Bay 

Moser Bay, Olga Bay, Port Bailey, Port Williams,Seal Bay, West Point 

Uganik, Zachar Bay 

2013 

Off-peak (34 weeks) MIN MIN MIN MIN TRIPS WEEKS Hours Dep./wk Total Dep. 

ADO-KZB-AOS-ALZ -ADO 30 6 20 45 13 21.9 4 52 

ADO-KZB-AOS-ADO 30 6 36 21 25.2 3 63 

ADO-KKB-SYB-KPR-ADO 20 18 12 36 34 48.7 4 136 

ADO-KOY -KMY -ALZ -ADO 45 6 6 45 21 35.7 4 84 

ADO-KPY -UGI-KWP-ADO 20 18 6 30 34 41.9 4 136 

173.5 19.0 471.0 

Peak (18 weeks) 

ADO-KOY-KMY-ALZ-ADO 45 6 6 45 2 18 61.2 8 144 

ADO-KKB-SYB-KPR-ADO 20 18 12 36 2 18 51.6 8 144 

ADO-KZB-AOS-ADO 30 6 36 2 18 43.2 6 108 

ADO-KPY -UGI-KWP-ADO 20 18 6 30 2 18 44.4 8 144 

200.4 30.0 540.0 

Total Hours 373.9 

Total Hours with weather adjustment- see note 1. 401.89 

Note 1.: An additional 7.5 percent for bad weather has been added to the calculated total 

to account for adverse weather delays 

2013 traffic/Revenue PAX RATE REV CARGO RATE REV MAIL RATE REV 

ALZ 181 160.9 29128.33 37.1 0.7341 5447.022 22.0 1.89837 8352.828 

AOS 20 97.67 1953.4 33.7 0.6118 4123.532 6.0 1.31896 1582.752 

KKB 134 87.91 11779.94 8.5 0.4706 800.02 26.7 0.93821 5010.0414 

KMY 45 160.9 7241.85 7.3 0.7341 1071.786 0.0 1.71 0 

KOY 41 160.9 6598.13 4.5 0.7341 660.69 0.0 1.69972 0 

KPR •37 112.6 4164.72 6.9 0.5647 779.286 2.8 1.20308 673.7248 

SYB 18 97.67 1758.06 10.2 0.5176 1055.904 6.3 1.15342 1453.3092 

KPY 17 82.79 1407.43 4.8 0.4235 406.56 4.3 0.85223 732.91952 

KWP 56 87.91 4922.96 0.2 0.4706 18.824 3.0 1.07064 642.384 

KZB 22 97.67 2148.74 4.1 0.6118 501.676 2.3 1.23619 568.6474 

UGI 21 87.91 1846.11 0.9 0.4706 84.708 1.4 0.93821 262.6988 

72949.67 14950.01 19279.305