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US. Department of 1200 New jersey Avenue, SE 

Transportation Washington, DC 20590 

Off ice Of the Secretary 

of Transportation 

Mr. Marc Luiken June 11, 2010 

Deputy Commissioner of Aviation 

Statewide Aviation 

Department of Transportation 

and Public Facilities 

4111 Aviation Avenue 

P.O. Box 196900 

Anchorage, AK 99519-6900 

Dear Commissioner Luiken: 

As you know, Warbelow's Air Ventures, Inc., (Warbelow's), provides subsidized air service 

under the essential air service (EAS) program at Rampart. Our current contract with 

Warbelow's, Order 2008-9-20, calls for an annual subsidy of $86,701 to provide Rampart with 

two nonstop round trips per week to Fairbanks with 9-seat Piper Navajo aircraft, and expires 

September 30. In anticipation of the end of that contract, by Order 2010-5-3 the Department 

requested "best and final" proposals to serve Rampart for a new, two-year period, and we 

received a timely-filed proposal from only one carrier, Warbelow's. 

My purpose in writing is to inform you of the results of the carrier's service and subsidy proposal 

before we submit a recommendation on the carrier-selection issue to the Assistant Secretary for 

Aviation and International Affairs for decision. Since there are no other options before the 

Department at this time, you need not respond to this letter. However, we wanted to give you the 

opportunity to submit any comments if you wish. Copies of the carrier's full proposal may be 

accessed online through the Department's Dockets Management System at 

http://www.regulations.gov/ by entering "DOT-OST 2008-0201" in the "enter Keyword or ID" 

field, so we will only summarize it here. 

Warbelow's indicates that during the current contract period, the community requested more 

frequent service (three round trips per week) with smaller, C-206 aircraft, in lieu of two round 

trips a week with the larger Piper Navajo aircraft under the current contract. In response, 

Warbelow's proposes to provide three daily nonstop round trips per week to Fairbanks with 

Cessna 206' aircraft for $97,679 annual subsidy. The contract would be effective from 

October 1, 2010, through September 30, 2012. 

Please note that the average passenger fare shown in the carrier's proposal does not necessarily 

reflect the average local fare passengers would pay, but, rather the prorated portion of the total 

ticket price, e.g., the Rampart - Fairbanks portion of a Rampart - Fairbanks - Anchorage ticket 

that the carrier would realize. Also, the fare shown is net of certain charges such as federal 

transportation security fees, excise or ticket taxes, and passenger facility charges. Of course, 

carriers have the discretion to charge fares they deem appropriate, and the passenger fares 

presented have been developed for subsidy rate computation purposes only. Based on the cost 

Warbelow's insures its Cessna 206 aircraft for four passenger seats. 
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elements incorporated in the carrier's computation summaries, a carrier would have to realize 

passenger fares comparable to the averages shown in its proposal in order to achieve break-even 

or profitable operations even with subsidy. 

Warbelow's included a flight schedule in its proposal, as shown below. You should also note 

that this schedule is illustrative only, and the carrier may make schedule changes to reflect 

changing conditions, e.g., to better meet shifting connecting bank times at the hub. The 

Department expects subsidized air carriers to maintain well-timed and well-spaced flights in 

order to ensure full compensation. 

We know this matter is important to you and we will act as quickly as possible upon receipt of your 

letter. In order to expedite the case, please submit your comments by email to EAS@dot.gov and 

Kevin.Adams@dot.gov by June 24. If you have any questions or do not wish to submit formal 

comments, please contact Kevin Adams at (202) 366-1047. 

Sincerely, 

Dennis J. DeVany 

Chief, Essential Air Service Division 

Office of Aviation Analysis 

cc: Warbelow's 

^ Warbelow's tentative schedule is as follows: 

Days of Week Fairbanks-Rampart Rampart to Fairbanks 

T,R,Sat 9:45 10:50 10:55 Noon