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US
. Departmen t o f 120 0 Ne wjerse yAvenue , S E Transportatio n Washington , D C 2059 0 Off ic e O f th e Secretar

y o f Transportatio n
Mr . Mar c Luike n Jun e 11 , 201 0 Deputy Commissione r

of Aviatio n Statewid e Aviatio n Departmen t

of Transportatio n an dPubli c Facilitie s 411 1 Aviatio n Avenu e P.O
. Bo x 19690 0 Anchorage , A K

99519-690 0 Dea r Commissione r

Luiken : A s yo u know , Warbelow' s Ai r Ventures , Inc. , (Warbelow's) , provide s subsidize dai r servic e unde r th e essentia l ai r

servic e (EAS ) progra ma t Rampart . Ou r

curren t contrac t with Warbelow's , Orde r

2008-9-20 , call s for

an annua l subsid y o f

$86,70 1 t o provid e Rampart wit h tw o nonsto p roun dtrip s pe r wee k t o Fairbank s with9-seat

Pipe r Navaj o aircraft , an dexpire s Septembe r

30
. I n anticipatio n of

th e en dof

tha t contract , b y Orde r

2010-5- 3 th e Departmen t requeste d"bes t

an dfinal " proposal s t o serv e Rampart for anew , two-year

period , an dw e receive datimely-file dproposa l fromonl y on e carrier , Warbelow's
. M y purpos e i n writin g i s t o informyo u of th e result s of

th e carrier' s servic e an dsubsid y proposa l befor e w e submi t

arecommendatio n o n th e carrier-selectio n issu e t o th e Assistan t Secretary for Aviatio n an dInternationa l Affair s for decision
. Sinc e ther e ar e n o othe r option s befor e th e Departmen t

a t thi s time , yo u nee dnot

respon dt o thi s letter
. However , w e wante dt o giv e yo u th e opportunit y t o submi t

an y comment s i

f yo u wish
. Copie s of

th e carrier' s full proposa l may b e accesse donlin e throug hth e Department' s Docket s Managemen t Syste ma

t http://www.regulations.gov / b y enterin g "DOT-OS T 2008-0201 " i n th e "ente r Keywor do r

ID " field , s o w e wil l onl y summariz e i t here
. Warbelow' s indicate s that durin g th e curren t

contrac t period , th e communit y requeste dmor e frequent servic e (thre e roun dtrip s pe r week ) withsmaller , C-20 6 aircraft , i n lie u o f tw o roun d trip s aweek

wit hth e large r

Pipe r Navaj o aircraf

t unde r th e curren t

contract . I

n response , Warbelow' s proposes t o provid e thre e dail y nonsto p roun dtrip s pe r wee k t o Fairbank s with Cessn a206 ' aircraf

t for $97,67 9 annua l subsidy
. Th e contrac t woul db e effectiv e from Octobe r 1 , 2010 , throug hSeptembe r 30 , 2012
. Pleas e not e that

th e average passenge r

fare show n i n th e carrier' s proposa l doe s no t necessaril y reflec t th e average loca l fare passenger s woul dpay , but , rathe r th e prorate dportio n of

th e tota l ticke t price , e.g. , th e Rampart

- Fairbank s portio n of

aRampart

- Fairbank s - Anchorag e ticke t that th e carrie r

woul drealize
. Also , th e fare show n i s ne t of certai n charge s suc ha s federal transportatio n security fees , excis e o r ticke t taxes , an dpassenge r

facility charges
. O f

course , carrier s hav e th e discretio n t o charg e fare s the y dee mappropriate , an dth e passenge r fare s presente dhav e bee n develope dfor subsid y rat e computatio n purpose s only
. Base do n th e cos t Warbelow' s insure s it s Cessn a20 6 aircraf t for fou r passenge r

seats .- 2 -

element s incorporate di n th e carrier' s computatio n summaries , acarrie r woul dhav e t o realiz e passenge r fare s comparabl e t o th e average s show n i n it s proposa l i n orde r t o achiev e break-eve n o r profitabl e operation s eve n withsubsidy
. Warbelow' s include daflight schedul e i n it s proposal , a s show n below
. Yo u shoul dals o not e tha t thi s schedul e i s illustrativ e only , an dth e carrie r ma y mak e schedul e change s t o reflec t changin g conditions , e.g. , t o bette r mee t shiftin g connectin g ban k time s a t th e hub
. Th e Departmen t

expect s subsidize dai r

carrier s t o maintai n well-time dan dwell-space dflight s i n orde r t o ensur e ful l compensation
. W e kno w thi s matte r

i s importan t

t o yo u an dw e wil l ac t

a s quickl y a s possibl e upo n receip t of you r letter
. In orde r

t o expedit e th e case , pleas e submi t you r comment s b y emai l t o EAS@dot.go v an d Kevin.Adams@dot.go v b y Jun e 24
. I f yo u hav e an y question s o r d o not wis ht o submi t

formal comments , pleas e contac t Kevi n Adam s a

t (202 ) 366-1047
. Sincerely ,
Denni s J . DeVan y Chief , Essentia l Ai r

Servic e Divisio n Offic e o f Aviatio n Analysi s

cc : Warbelow' s

^ Warbelow' s tentativ e schedul e i s a s follows : Day s o f Wee k Fairbanks-Rampar t

Rampar t

t o Fairbank s T,R,Sa t 9:4 5 10:5 0 10:5 5 Noo n