## BEFORE THE U.S: DEPARTMENT OF-TRANSPORTATION
,. 

## OFFICE OF THE SECRETARY WASHINGTON, D.C.

June 13, 2012 Inthe Matter of: ESSENTIAL AIR SERVICE AT MANLEY AND MINTO, ALASKA 

# -e DocketDOT-OST-2004-1756§:? Under 49 U.S.C. 41731 et seq. c::> _.).


### 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 blockhours per flight for 202.8 hours oftotal flying time. Everts Air Alaska looks forward to serving and providing service to the communities ofMinto and Manley Hot Springs. Everts Air Alaska will provide scheduled direct nonstop roundtrip service over a FairbanksMinto-Manley Hot Springs-Fairbanks routing three days.per week. Scheduled service will be flown in a·PA-32R PiperLance aircraft with

# five insured seats

### a~dlhecapabilityto haurbetween 850-900 pounds ofmail, freight orpassengers on each flight. A new runway in Manley is expected to open in 2013. As ofthis 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 onTuesdays 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 departureat 10:15am arrive Manley at 10:30am • Manley departure at 10:40am arrive Fairbanks at 11:lOam

### ,,, , Projected Reyenue Projectedrevenuehas been calculatedusing analysis ofvarious data includingDOT numbers, communicating with community members atMinto and Manley, and internal company numbers. Ourcalculated trend numbers suggests a continual decline with perhaps a flattening out for a short period. EAAplans to reduce the current freight rate hoping thatthe subsidy will influence more freight shipments onthe Monday, Wednesday, and Friday morning flight schedule. Forthis reason, we use the following numbers for projectedtraffic:



### FAIRBANKS-MINTO-FAIRBANKS



## • 

# • • 

# • • 

# • • 130 projected FAI-MNT-FAIpassengers 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 Freightrate@ 

### $.40 cents a pound x 2800lbs


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

FAIRBANKS-MANLEY HOT SPRINGS-FAIRBANKS



# .. • • 

# • • 

## • • 50 projected

## fAI--MLY-FAIpassengers 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 Currentbush mail rate@ 

### $.8957319 x 40,000lbs Projected FAI-MLY-FAIfreight per year 

### 2000 pounds Freightrate @ 

### $.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 AircraftFuel & Oil Other Maintenance Total Direct Indirect expenses
Total Expenses: 

### Subsidy Request TotalAnnual Operating Costs ProfitElement @ 10% Total Economic Cost PerHour
$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

-ProjectedRevenue Subsidyrequired 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 withDepartment 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 ofOperations Everts Air Alaska klcary@cvcrtsair.com 907-450-2353