STATE OF AlASKA 

DEPARTMENT OF 

ERCE 

COMMUNITY AND 

ECONOMIC DEVElOPMENT 

Office of the Commissioner 

June 20, 2012 

Mr. Dennis J. DeVany 

Chief, Essential Air Service Division 

Office of Aviation Analysis 

U.S. Department of Transportation 

1200 New Jersey Avenue, SE 

Washington, DC 20590 

Re: Essential Air Service to the City of Diomede, Alaska . . '· ; 

Docket dot-ost-2009-0260 

Dear Mr. DeVany, 

Little Diomede is a remote island in the Bering Strait with a heliport which was built in 1996 with 

Federal Aviation Administration Airport Improvement Program funds. The City of Diomede is the 

only community on the island. Some years during the winter when the ice is thick enough, there is 

an ice runway for fixed-wing aircraft to land; however, there has never been scheduled air service to 

the island. I understand the community would be satisfied if there was at least one scheduled roundtrip flight per week to Nome, Alaska above and beyond the current space available on U.S. Postal 

. Service mail service flig~ts: . . ... ' ·.· ·, ... ~.~ .. ~~~. 

The State of Alaska proposes to the Secretary of Transportation that compensation be provided to . . 

an air carrier to supply air transportation to/ from Diomede. I am submitting this proposal under 

49 U.S.C. §41736, Air Transportation to Non~etigible Places, because Diomede is not eligibie for 

subsidy support under 49 U.S.C. 41731, et seq, Basic Essential Air Service. Based on this request, I 

anticipate that the U.S. Department of Transportation (U.S. D01) would issue a Request for 

Proposals (RFP), select an air carrier, and administer/pay the selected carrier for air service provided 

in a similar manner that it administers carrier selections and subsidy payments under Basic EAS. 

In the FY13 State operating budget, funding in the amount of $200,000 was added to the 

Department of Commerce, Community, and Economic Development's budget to provide a grant to 

Kawerak, Inc. for "A~tration and 50% match to the federal Essential Air Service program for 

the City of Diomede." The.FY13 operating budget has been signed and becomes effective July 1, 

2013. The funding was included as part of the Department's base budget and would be subject to 

legislative appropriations and approvals by the Governor in subsequent years. 

P.O. B?x 110800, Juneau, Alaska 99811-0800 

Telephone: (907) 465-250() Fax: (90'7) 465-5442 Text Telephone: (907) 465-5437 

Email: questions@alaska.gov Website: http:// www.commerce.alaska.gov / 
Mr. DeVany 

June 20, 2012 

Pag~2 

The Department is in the process of offering a grant to Kawerak, Inc. in the amount of $200,000. .. . We have systems in place to provide the full amount of the grant as an advance payment. Kawerak, 

Inc. has indicated in the grant budget that they will be providing $190,476 in funding directly to the 

U.S. DOT for use in the project. 

We look forward to working closely with the U.S. DOT in the typically transparent manner the U.S. 

DOT follows in providing Basic EAS in Alaska and elsewhere in the United States. If you have any 

questions, please feel free to contact me at 907 ·269~8100. 

Sincerely, 

Curtis Thayer 

Assistant Commissioner 

cc: Mr. :Andrew Milligrock, Mayor, City of Diomede 

Ms. Melanie Bahnke, President, Kawerak, Inc. 

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