### STATE OF AlASKA DEPARTMENT OF 

# ERCE COMMUNITY AND ECONOMIC DEVElOPMENT Office ofthe Commissioner
June 20, 2012
Mr. DennisJ. DeVany Chief, Essential 

### Air Service Division Office ofAviation Analysis U.S. Department ofTransportation 1200 NewJersey Avenue, SE Washington, DC 20590 Re: Essential

### Air Service to the City ofDiomede, 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 ofDiomede 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 ifthere was at least one scheduled roundtrip flight perweek to Nome, Alaska above and beyond the current space available on U.S. Postal

.Service mail service**flig~ts:** . . 

## ... ' ·.· ·, ...**~.~**..**~~~.** The State ofAlaska proposes to the Secretary ofTransportation 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, 

### etseq, Basic Essential 

### Air Service. Based on this request, I anticipate that the U.S. Department ofTransportation (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 operatingbudget, funding in the amount of$200,000 was added to the Department ofCommerce, 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 ofDiomede." The.FY13 operatingbudget has been signed and becomes effectiveJuly 1, 2013. The funding was included as part ofthe Department's base budget and would be subject to legislative appropriations and approvals by the Governorin subsequent years. P.O. B?x 110800, Juneau, Alaska 99811-0800 Telephone: (907) 465-250() Fax: (90'7) 465-5442 TextTelephone: (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 ofoffering a grant to Kawerak, Inc. in the amount of$200,000. 

# .. . We have systems in place to provide the 

### full amount ofthe grant as an advance payment. Kawerak, Inc. has indicatedin the grantbudget 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. DOTin the typically transparent manner the U.S. DOT follows in providing Basic EAS in Alaska and elsewhere in the United States. Ifyou have any questions, please feel free tocontactme at 907**·269~8100.** Sincerely,

Curtis Thayer Assistant Commissioner

cc: Mr. :Andrew Milligrock, Mayor, City ofDiomede Ms. Melanie Bahnke, President, Kawerak, Inc.



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