Essential Air Service at 

Akun, Alaska 

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

October 10, 2012 

EAS & Domestic Analysis Division 

Office of Aviation Analysis 

U.S. Department of Transportation 

400 ih Street S.W., Room 6401 

Washington, D.C. 20590 

Dear Sirs, 

Enclosed find Grant Aviation, Inc.'s proposal to provide Essential Air Service between Dutch Harbor, 

Alaska and the runway on Akun Island, Alaska. 

As you know, the runway built to serve the village of Akutan was not built on Akutan itself, but on the 

nearby island of Akun, necessitating very expensive surface transportation between Akun and Akutan. 

At this time, secure mail storage facilities, labor for handling mail and freight, and ground transportation 

on Akun are unresolved issues, as the island is uninhabited and there is a near complete lack of 

infrastructure. 

According to the hovercraft operator's stated expectations, the proposed hovercraft transportation 

between Akun island where the runway is situated, and the village of Akutan, is expected to perform 

with THIRTY percent reliability. This will present logistical problems with scheduling, timely delivery of 

mail, and passenger waiting areas in what is arguably one of the most hostile climates on Earth. These 

problems also are unresolved at this time. 

Therefore, this proposal makes NO provision for transport of mail and cargo between the runway on 

Akun and the village of Akutan. Neither is any expense of transporting passengers between the runway 

on Akun and the village of Akutan included in this proposal. 

At this time we are able only to provide a proposal for air transportation of passengers, mail, and freight 

between Dutch Harbor and the runway built on Akun Island. 

Our proposals below are contingent on the Postal Service agreeing, in writing, that Grant Aviation will 

not be held responsible for failing to transport mail beyond Akun, to Akutan itself. Such transport is 

beyond the scope of the proposals stated below. 
We propose to provide twelve direct, nonstop flights per week between Dutch Harbor and the runway 

on Akun Island. 

The aircraft types to be utilized for this proposed service are a Beech Kingair B-200, and a Piper PA31-

350. Both plane types are 9 seat, twin engine aircraft, fully equipped for IFR flight. The B-200 is 

powered by turbine engines and the PA31-350 by reciprocating engines. 

There are two possible proposals included in the attached workbook. 

One proposal considers service to Akun Island independently of the EAS now provided by Grant Aviation 

between Dutch Harbor and Atka I Nikolski, Alaska. This option is very expensive, as the fixed costs for 

the required base of operations in Dutch Harbor would be incurred by the service to Akun, were we to 

be held in service to Akun after failing to renew the Atka I Nikolski contract. 

The second proposal considers the additional cost of service between Dutch Harbor and Akun, were the 

EAS contracts for the villages of Atka, Nikolski, and Akun tied together into a single contract. It is our 

hope that the procedural rules of the DOT allow these contracts to be tied together for the sake of 

efficiency. 

We look forward to working with you in finding solutions to the unique problems presented in providing 

service to the people of Akutan. 

Please contact me at 907 529-6999 if you have further questions. 

Cost data follows. 

Sincerely, 

R. Bruce McGlasson, President, Grant Aviation, Inc. 
Akun EAS Proposal Summary, Akun tied with AKB/IKO 

Weekly Round Trips 

Annual OW Flights @ 100% completion 

Per RT flight Block Time 

Annual Block Hours 

Distance DUT- Akun (stat miles) 

Annual 0/W Passengers expected 

OW fare 

Annual maillbs expected 

Current mail rate I lb 

Annual Freight lbs expected 

Current Freight rates I lb 

Total Annual Block Hours 

Passenger Fares 

Mail Revenue 

Freight Revenue 

Total Revenue 

Direct Expense (Base) 

Fuel/oil ($/gallon) 

Aircraft lease expense (monthly lease) 

Maintenance (engine&prop +labor+parts I block hr) 

Pilot labor, all inclusive @ 400.00 + tax&beni 

Aviation Insurance annual hull and liability 

Total Direct Expense 

Indirect Expense 

Hanger lease I month 

Ticketing & ground service I per turn 

Freight & mail Handling I lb DUT & Akun 

Pilot housing+utility I month 

Total Indirect Expense 

Sum of direct and indirect costs 

Burden@ 17.2% 

Profit @ 5.0% 

Total Annual Economic cost 

Annual Subsidy 

374.40 

Base 

$ 7.50 

$ 2,500.00 

$ 595.00 

$ 400.00 

$ 

$ 300.00 

$ 0.18 

$ 

17.2% 

5.0% 

12 

1,248 

0.60 

374.40 

35 

2,000 

$ 132.00 

121,000 

$ 0.7014 

33,000 

$ 0.75 

41,184 

12 

374 

365 

12 

624 

154,000 

12 

$ 264,000.00 

$ 84,869.40 

$ 24,750.00 

$ 373,619.40 

Annual Expense 

$ 308,880.00 

$ 30,000.00 

$ 222,768.00 

$ 169,360.00 

$ 16,965.00 

$ 747,973.00 

$ 

$ 187,200.00 

$ 27,720.00 

214,920.00 

962,893.00 

165,617.60 

1,128,510.60 

56,425.53 

1,184,936.13 

811,316.73 
k~re'7,~-: x\b 

Akun EAS Proposal Summary, Akun Stand Alone 

Weekly .Round Trips 

Annual OW Flights @ 100% completion 

Per RT flight Block Time 

Annual Block Hours 

Distance DUT- Akun (stat miles) 

Annual 0/W Passengers expected 

OW fare 

Annual maillbs expected 

Current mail rate I lb 

Annual Freight lbs expected 

Current Freight rates I lb 

Total Annual Block Hours 

Passenger Fares 

Mail Revenue 

Freight Revenue 

Total Revenue 

Direct Expense (Base) 

Fuel/oil ($/gallon) 

Aircraft lease expense (monthly lease) 

Maintenance (engine&prop +labor+parts I block hr) 

Pilot labor, all inclusive @ 400.00 + tax&beni 

Aviation Insurance annual hull and liability 

Total Direct Expense 

Indirect Expense 

Hanger lease I month 

Ticketing & ground service I per turn 

Freight & mail Handling I lb DUT & Akun 

Pilot housing+utility I month 

Total Indirect Expense 

Sum of direct and indirect costs 

Burden@ 17.2% 

Profit @ 5.0% 

Total Annual Economic cost 

Annual Subsidy 

374.40 

Base 

$ 7.50 

$ 15,000.00 

$ 595.00 

$ 400.00 

$ 4,000.00 

$ 300.00 

$ 0.18 

$ 1,800.00 

17.2% 

5.0% 

12 

1,248 

0.60 

374.40 

35 

2,000 

$ 132.00 

121,000 

$ 0.7014 

33,000 

$ 0.75 

41,184 

12 

374 

374 

12 

624 

154,000 

12 

Annual Revenue 

$ 264,000.00 

$ 84,869.40 

$ 24,750.00 

$ 373,619.40 

Annual Expense 

$ 308,880.00 

$ 180,000.00 

$ 222,768.00 

$ 169,360.00 

$ 50,895.00 

$ 931,903.00 

$ 48,000.00 

$ 187,200.00 

$ 27,720.00 

21,600.00 

284,520.00 

1,216,423.00 

209,224.76 

1,425,647.76 

71,282.39 

1,496,930.14 

1,123,310.74