Order 2011-3-18

Served: March 15, 2011

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 15th of March, 2011

Essential Air Service at

ANGOON, ALASKA, AND 

TENAKEE, ALASKA

Under 49 U.S.C. 41731 et seq. 

DOCKET OST-2006-25542

DOCKET OST-2006-25542

Order Amending Payout Formula

By Order 2010-12-7 the Department selected Alaska Seaplane Service, LLC, to provide essential 

air service (EAS) at Angoon and Tenakee, Alaska. Alaska Seaplane’s annual subsidy rates 

remain unchanged. The carrier has now requested that its payout be changed so that it receives 

constant subsidy rates per flight year round, rather than constant payouts per week, year round. 

This simplifies matters for the carrier, making its subsidy payout formula at Angoon and Tenakee 

consistent with Pelican and Elfin Cove in Order 2011-3-11. Since this does not affect the total 

annual subsidy, we will honor the request, as reflected in Appendices C-1A and C-1B of this 

order.

This order is issued under authority delegated in 49 CFR 385.12 (k)(4). 

ACCORDINGLY,

1. The Department amends the payout formula for Angoon and Tenakee as shown in 

Appendix C-1A and C1B;

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

3. We will serve copies of this order on Alaska Seaplane Service, LLC, and on the state of 

Alaska.
- 2 -

Persons entitled to petition the Department for review of this order under the Department’s 

Regulations, 14 CF 385.5, must file such petitions within ten (10) days after the date service of 

this order.

This order will be effective immediately, and the filing of a petition for review shall not preclude 

its effectiveness.

By:

TODD M. HOMAN

Director

Office of Aviation Analysis

(SEAL)

An electronic version of this document is available on the World Wide Web at

http://www.regulations.gov
Appendix C-1A

Alaska Seaplane Service, LLC., Essential Air Service to be Provided to 

Angoon, Alaska, Docket OST-2002-11586

Effective Period: February 1, 2011, through January 31, 2015.

Scheduled Service: Ten nonstop round trips per week in the 18-week peak and five nonstop 

round trips per week in the 34-week off-peak to Juneau.

Aircraft: DeHavilland Beaver, six seats

Rate per Eligible Flight: $2081.

Weekly Ceiling: Peak, $4,1602; Off-Peak $2,0803

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 this rate, 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 completely, 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 contract 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 are not currently available for performance under this order beyond December 3, 2010. The Government’s 

obligation for performance under this order beyond December 3, 2010, is subject to the availability of appropriated 

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 December 3, 2010, until funds are made available to the 

Department for performance. If funds are not made available for performance beyond December 3, 2010, the 

Department will provide notice in writing to the carrier.

All claims for payment must be submitted within 60 days of the last day of service provided under this order.

 

1 $145,734 annual subsidy ÷ by 700 flights, calculated as follows:

Peak: 10 trips per week * 2 directions * 18 weeks = 360.

Off-Peak: 5 trips per week * 2 directions * 34 weeks = 340.

2 $208 per flight x 20 flights per week = $4,160.

3 $208 per flight x 10 flights per week = $2,080. 
Appendix C-2A

Alaska Seaplane Service, Inc., Essential Air Service to be Provided to 

Tenakee, Alaska, Dockets OST-2006-25542

Effective Period: February 1, 2011, through January 31, 2015.

Scheduled Service: Seven nonstop round trips per week in the peak and three nonstop round trips 

per week in the off-peak to Juneau.

Aircraft: DeHavilland Beaver, six seats

Rate per Eligible Flight: $2971

Weekly Ceiling: Peak, $4,1582; Off-Peak $1,782 3

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 this rate, 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 completely, 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 contract 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 are not currently available for performance under this order beyond December 3, 2010. The Government’s 

obligation for performance under this order beyond December 3, 2010, is subject to the availability of appropriated 

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 December 3, 2010, until funds are made available to the 

Department for performance. If funds are not made available for performance beyond December 3, 2010, the 

Department will provide notice in writing to the carrier.

All claims for payment must be submitted within 60 days of the last day of service provided under this order.

 

1 $135,576 annual subsidy ÷ 456 flights, calculated as follows:

Peak: 7 trips/week* 2 directions *18 weeks = 252. 

Off-Peak: 3 trips/week * 2 directions * 34 weeks = 204.

2 Peak: 14 flights/week * $297.

3 Off-Peak: 6 flights/week * $297.