BEFORE THE 

U.S: DEPARTMENT OF-TRANSPORTATION ,. 

OFFICE OF THE SECRETARY WASHINGTON, D.C. 

June 13, 2012 

In the Matter of: 

ESSENTIAL AIR SERVICE AT 

MANLEY AND MINTO, ALASKA 

-e 

Docket DOT-OST-2004-1756§:? 

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

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_.). 

Proposal to Provide Essential Air Service at Manley and Minto, Alaska DOTOST-2004-17563 .. 

Tatonduk Outfitters Limited (dba Everts Air Alaska) is hereby submitting a proposal to provide 

Essential Air Service (EAS) at Manley Hot Springs and Minto, Alaska for contract period 

beginning September 1, 2012. There would be 156 flights per year at 1.3 block hours per flight 

for 202.8 hours of total flying time. Everts Air Alaska looks forward to serving and providing 

service to the communities of Minto and Manley Hot Springs. 

Everts Air Alaska will provide scheduled direct nonstop round trip service over a FairbanksMinto-Manley Hot Springs-Fairbanks routing three days .per week. Scheduled service will be 

flown in a· PA-32R Piper Lance aircraft with five insured seats a~d lhe capability to haurbetween 

850-900 pounds of mail, freight or passengers on each flight. 

A new runway in Manley is expected to open in 2013. As of this time, there are no IFR instrument 

approaches into either Minto or Manley Hot Springs. When flying passengers, the PA-32R is 

limited to VFR conditions only. The Manley Village Express bus service runs between FairbanksMinto-Manley on Tuesdays and Thursdays and an adult fare cost $40.00 dollars one-way. 

Flight distance to Minto from Fairbanks is 50 miles; from Minto to Manley Hot springs is 39 miles 

and Manley to Fairbanks is 83 flight miles. 

Proposed Schedule 

• 3 flights per week with 156 flights per year 

• Monday, Wednesday, and Friday leaving Fairbanks at 9:45am each day 

• Fairbanks departure at 9:45am arrive Minto at 10:05am 

• Minto departure at 10:15am arrive Manley at 10:30am 

• Manley departure at 10:40am arrive Fairbanks at 11: lOam 
,,, , Projected Reyenue 

Projected revenue has been calculated using analysis of various data including DOT numbers, 

communicating with community members at Minto and Manley, and internal company numbers. 

Our calculated trend numbers suggests a continual decline with perhaps a flattening out for a short 

period. EAA plans to reduce the current freight rate hoping that the subsidy will influence more 

freight shipments on the Monday, Wednesday, and Friday morning flight schedule. For this 

reason, we use the following numbers for projected traffic: 

FAIRBANKS-MINTO-FAIRBANKS 

• 

• 

• 

• 

• 

• 

• 

130 projected FAI-MNT-FAI passengers per year 

Passenger fares per $75.00 one-way ticket 

Minus the Federal Transportation Tax 

Projected FAI-MNT-FAI mail per year 19,000 pounds 

Curtentbush mail rate@ $.762105 x 19,000lbs 

Projected FAI-MNT-FAI freight per year 2800 pounds 

Freight rate@ $.40 cents a pound x 2800lbs 

' Total projected yearly income FAI-MNT-FAI route: 

FAIRBANKS-MANLEY HOT SPRINGS-FAIRBANKS 

.. 

• 

• 

• 

• 

• 

• 

50 projected f AI--ML Y-F AI passengers per year 

Passenger fares per $80.00 one-way ticket 

Minus the Federal Transportation Tax 

Projected FAI-MLY-FAI mail per year 40,000 pounds 

Current bush mail rate@ $.8957319 x 40,000lbs 

Projected FAI-MLY-FAI freight per year 2000 pounds 

Freight rate @ $.50 cents a pound x 2000lbs 

$9750.00 

-$731.25 

$14,479.99 

$1120.00 

$24,618.74 

$4000.00 

-$300.00 

$35,829.28 

$1000.00 

Total projected yearly income FAI-MLY-FAI route: $40,529.28 

Projected Revenue per year for passengers, mail, & freight: $65,148.02 
" ' 

' 

Hourly PA-32R Operating Costs 

Pilot 

Aircraft Fuel & Oil 

Other 

Maintenance 

Total Direct 

Indirect expenses 

Total Expenses: 

Subsidy Request 

TotalAnnual Operating Costs 

Profit Element @ 10% 

Total Economic Cost 

Per Hour 

$66.38 

$72.05 

$71.27 

$196.17 

$405.87 

$44.71 

$450.58 

. '$91,377.62 

$9137.77 

$100,515.39 

Extended Costs .. 

12 months 

block 202.8 hours 

$13,461.86 

$14,611.74 

$14,453.56 

$39,783.28 

$82,310.15 

$9067.19 

$91,377.62 

-Projected Revenue 

Subsidy required at 100% completion 

$65,148.02 

$68,000.00 

Requested Annual Subsidy $68,000.00 (weekly subsidy $1307.70) 

. Two year Subf;idy-Amount .·: . $136,000.00 .. 

Everts Air Alaska certifies that operations are conducted in compliance with Department 

regulations regarding drug-free workplaces, nondiscrimination and all regulations governing 

lobbying activities. Everts Air Alaska will present official documents verifying conformity on 

request. 

Sincerely, 

Tatonduk Outfitters Limited 

dba Everts Air Alaska 

5525 Airport Industrial Rd. 

Fairbanks, AK 99709 

Ken Leary 

Director of Operations 

Everts Air Alaska 

klcary@cvcrtsair.com 

907-450-2353