Order 2014-8-12

Served: August 14, 2014

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 14th of August, 2014

Essential Air Service at

MANLEY, ALASKA 

MINTO, ALASKA

Under 49 U.S.C. § 41731 et seq. 

DOCKET DOT-OST-2004-17563

ORDER RESELECTING CARRIER

Summary

By this Order, the Department is reselecting Warbelow’s Air Ventures, Inc., (Warbelow’s) to 

provide Essential Air Service (EAS) at Manley and Minto, Alaska, at a combined annual subsidy 

rate of $94,722 ($47,361 per community) for the period from September 1, 2014, through 

August 31, 2016.1

Background

By Order 2012-8-10, issued August 3, 2012, we reselected Warbelow’s to provide EAS at 

Manley and Minto through August 31, 2014, consisting of three round trips per week to 

Fairbanks on a Fairbanks-Manley-Minto-Fairbanks routing. Service is provided with either 

eight-seat Cessna 206 or nine-seat Piper PA-31-350 Navajo aircraft at a combined annual subsidy 

rate of $91,068 ($45,534 at each community). 

In anticipation of the end of the current contract, on April 2, 2014 we issued Order 2014-4-3,

requesting proposals from carriers interested in providing EAS at the communities for a new 

contract period, beginning September 1, 2014. We received two proposals, from Warbelow’s, 

the incumbent, and Tatonduk Outfitters Limited d/b/a Everts Air Alaska (Everts).

 1 Such subsidy is calculated on a fiscal year basis, subject to the availability of funds.
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The carriers’ complete proposals and community comments may be accessed online at 

www.regulations.gov by entering “DOT-OST-2004-17563” in the search box. Therefore, we 

will only briefly summarize the proposals and comments below.

Proposal of Warbelow’s

Warbelow’s proposal included only one service option, to continue its existing service, 

consisting of three weekly round trips to Fairbanks, routed Fairbanks-Manley-Minto-Fairbanks. 

Service will be provided with a twin-engine, nine-seat Piper PA-31-350 Navajo aircraft. For this 

service, Warbelow’s will require a combined annual subsidy of $94,722 ($47,361 at each 

community).

Proposal of Everts

Everts proposal also consists of three weekly round trips to Fairbanks. Everts would route the 

flights Fairbanks-Minto-Manley-Fairbanks. Service would be provided with either single-engine 

Pilatus PC-12 or Cessna 208 aircraft, both with nine passenger seats. For this service, Everts 

would require a combined annual subsidy of $84,207.

Community Comments

On May 7, 2014, we requested comments from the community and State regarding the carrier 

selection case. We received multiple comments in support of continuation of Warbelow’s 

service from individuals in the communities as well as the Minto Development Corporation and 

Seth-De-Ya-Ah Corporation. We received one comment in favor of Everts. The comments we 

received in favor of Warbelow’s cited their reliability and good customer service. In their 

support of Warbelow’s, both the Minto Development Corporation and Seth-De-Ya-Ah 

Corporation cited, among other factors, Warbelow’s use of twin-engine aircraft.

Decision

The carrier-selection issue is straightforward. When selecting a carrier to provide EAS in 

Alaska, 49 U.S.C. § 41733(c)(1) directs us 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, 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. 

Everts has an advantage in terms of required subsidy, requesting $10,515 less annually than 

Warbelow’s. However, in this case, the communities desire to continue twin-engine service is 

decisional. The Minto Development Corporation cites twin-engine service as necessary to

provide the capacity needed to support its growing tourism development efforts. The Seth-DeYa-Ah Corporation also cited the additional lift capacity of twin engine aircraft for when they 

require the shipment of inventory by air. We will therefore select Warbelow’s to continue 

providing EAS at Manley and Minto, Alaska.
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Carrier Fitness

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

provide reliable service before DOT may subsidize it to provide Essential Air Service.2 

Warbelow’s is subject to the Department’s continuing fitness requirements, and no information 

has come to our attention that would cause us to question the carrier’s fitness at this time. DOT 

has contacted the Federal Aviation Administration, and it has raised no concerns that would 

negatively affect our fitness findings. DOT therefore concludes that the carrier remains fit to 

conduct the operations proposed here.

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

ACCORDINGLY,

1. We reselect Warbelow’s Air Ventures, Inc., to provide Essential Air Service at Manley and 

Minto, Alaska, as described in Appendix C;

2. We direct 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 date of service 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 carrier may 

forfeit its compensation for any claim that is not supported under the terms of this Order;

3. We find that Warbelow’s Air Ventures, Inc., continues to be fit, willing and able to operate as 

a certificated air carrier and capable of providing reliable Essential Air Service at Manley and 

Minto, Alaska; 

4. This docket will remain open until further order of the Department; and

 2 Warbelow’s is authorized to provide services as a commuter carrier under Part 135 of the Federal Aviation 

Regulations (FARs) and Part 298 of our regulations (14 CFR 298).
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5. We will serve copies of this Order on the Division of Statewide Aviation of the Alaska 

Department of Transportation, the civic parties of Manley and Minto, Alaska, Warbelow’s Air 

Ventures and Tatonduk Outfitters Limited d/b/a Everts Air Alaska.

By:

SUSAN L. KURLAND

Assistant Secretary for Aviation

and International Affairs

(SEAL)

An electronic version of this document is available at

http://www.regulations.gov
APPENDIX A

SERVICE AREA MAP
APPENDIX B

Page 1 of 2
APPENDIX B

Page 2 of 2
APPENDIX C

Warbelow’s Air Ventures, Inc.

Essential Air Service to be Provided at Manley and Minto, Alaska

DOT-OST-2004-17563

Effective Period: September 1, 2014, through August 31, 2016

Scheduled Service:

Manley: Three (3) weekly nonstop or one-stop round trips to Fairbanks

Minto: Three (3) weekly nonstop or one-stop round trips to Fairbanks

Aircraft type: Nine-seat Piper PA-31-350 Navajo

Manley Minto

Annual Subsidy:1 $47,361 $47,361

Annual Flights:2 312 312

Subsidy per Flight:3 $152 $152

Weekly Ceiling:4 $912 $912

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 these rates, 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 complete, 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 amounts or at the stipulated service levels, the carrier may cease to provide service to that specific location without regard 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 contracts 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 September 30, 2014. The Government’s obligation for 

performance under this Order beyond September 30, 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 

September 30, 2014, until funds are made available to the Department for performance. If sufficient funds are not made available for 

performance beyond September 30, 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 31st; August claims must be 

submitted by November 30th, and so on.

 1 See Appendix B. Annual subsidy of $94,722 divided by 2 communities.

2 3 round trips per week x 2 directions x 52 weeks = 312.

3 Annual subsidy divided by annual flights.

4 Subsidy per flight x weekly flights.