::o.. ··--. 

### BEFORETHE DEPARTMENT

### OF TRANSPORTATION WASHINGTON,D.C.

Essential Air Service**~•t** 

### ADAK, ALASKA under .t9 U.S.C. 

### §4 I731 et. seq. ) ) ) ) ) ) 

### Docket OST-2000-8556

PnOPOSAL OF 

### EnA AVIATION INC. 

### TO PROVIDE ESSENTIAL AIR SERVICE AT AI>AK, ALASKA

Communications with respect to this document should be addressed to: 

### James Hajdukovich Robert Hajdukovich 

### Era Aviation Inc. 4700 Old Internatiomil Airport Road Anchorage, AK 99502



### Jul)' 24, 2012 . ;

# ,,. BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

Essential Air Service at 

### '

.



### ADAK, ALASKA ) ) ) ) ) 

### ) Docket

### OST-2000-8556



# ... under 

### 49 U.S.C. 

### §41731 et. seq. .July 24, 2012



### PROPOSAL OF ERA AVIATION INC. TO PROVIDE ESSENTIAL AIR SERVICE AT ADAK, ALASKA Pcrsuant to DOT Order 2012-2-8. Era Aviation. Inc. hereby presents its proposal to provide subsidized essential air service (''EAS") to Adak, Alaska. for a two year period beginning August I, 

### 20 12. 

### l. Era Aviation 

### AdakEAS Proposal 

### Era Aviation proposes to provide 

### 108 roundtrip t1ights between 

### Adak and Anchorage 

### using Era's 37-passenger deHavilland Dash 

### 8 that will 

### afford customers a level ofsafe, all weather access to their community. Era's proposal would require an annual subsidy of$ 2,208,808.36. See Exhibit and Notes. Era's 37 seat dcHavilland 

### Dash 8 aircraft is appropriately sized for the ;\dak market. 

### The Dash 8 aircraft offers stand-up cabin, leather seating, full lavatory, tlight attendant service, 

### and substantial baggage capacity. The Dash 8 

### aircraft could 

### offer 7696 

### seats with 2 

### day a week service for the Adak market. TI1e Adak market is estimated to have 3000 total passengers annually. The reduced frequency (2 tlights weekly) is offered in hopes that a large capacity 

### cargo carrier could 

### provide substantial Cargo 

### and Mail service. Everts Air Cargo has been 

### contacted and the DC-9-33 aircraft with an average 

### payload ofJO,OOO pounds could be operated into the Adak 

### market. Cargo and Mail is estimated at 

### 450,000 pounds 

### annually into Adak and 200.000 

### pounds out 

### ofAdak. 18 

### flights with 

### a payload of25.000 cargo amlmail would provide adequate cargo 

### and mail .service neeueJ for the Adak markd.Era /\vlation's entire scheduled operation is conducted under Federal Aviation Regulation (fAR) Part 1:21**~the** highest safety and 

### regulatory standard 

### tt1r scheduledairlines. Erahas an excellent safety record and a strongrecord ofregulatory compliance withtheFederal AviationAdministration (FAA). 

### Era**e1~joys** a positive relationship with the 

### F.'\A at the local, regional, and national levels. Era Aviation has a long-standing marketing relationship with AlaskaAirlines and is part

# orthe Era Alaska network ofcarriers. The Era Alaska family is now proud to otfer scheduled serviceto more than 

### 100 communities statewide. 

### II. Carrier Selection 

### Fac!Qrf!


### • • 

## • • • Largest Payload Passenger Aircraft offered by all current proposals

. Era Aviation can operate I9 seat aircraft along 

### \Vith 37 seat 

### aircraft capable ofproviding 

### senice into Adak. Passenger Preference Operation for the community ofAdak Ability to Remain**qv~::r-Night** (RON) with aircraft

### in Adak and Cold Bay
. Providing over 62 years ofAviation Services in the State of.\Iaska

. ln conclusion, EraAviation requests that the Department select

### it to be the subsidized passengeressential air service carrier at Adak, Alaska, for a two-year period. Era Aviation also requests thatthe department consider selecting a subsidized cargo only catTier for cargo and mail. which is essential to the community qfAdak.

Sincerely,



## .-, ) rV

## r--:::?f--**·-~---** ames IIajdukmich Vice President Finance 

## rra Aviation Inc. 

### 4700 Old international Airport 

### Road Anchorage, AK 99502 

### (907) 450-7247

### Notes to Era Aviation Inc.EAS subsidv Proposal Note 1: Mail and Freight revenues were excluded from ourrevenue estimates because our proposal relies on ajoint approach to meeting the community passenger, mail and freight needs. While the Dash 8 can carry a significant amount ofmail and freight in the cargo compartment. we anticipate most of

### the "passenger plane" cargo to he 

### priority 1naiL**ex~.:ess** bags and priority 

### freight. After l\\<O years ofproviding this**service~** \Ve \Vould be better positiom:d to estimate hmv much Mail and cargo could be expected to 

### be transported on the passenger ship. Mail is also specifically excluded because ofthe lack ofmandate to transport the mail on the prevailing EAS provider. 

### Because the Postal 

### Senil:e has thelatitude to transport the mail as they see 

### fit, it can't berelied upon as a revenue stream for this particularprojection. Note 

### 2: Era !\viation 

### wi 11 

### require a 

### refuding tech stop at Cold 

### Bay (CDB) on the ·Anchorage to 

### Adak flight. There \vill be no local ANC-CDB traffic on the tlight

servicing Adak. Note 3: Era 

### t\viation estimates average revenue per passenger of$ 393.00 (net oftaxes) for the ANC-ADK 

### market. Note 4: 

### The Price offuel has increased in the past two years. Era's fuel expense is based on current fuel prices of$3.50 (Anchorage) and $6.69 

### (Adak and Cold Ba:y.) A\erage fuel price of$5.I0. Block fuel bum perhour of 160 gallons and block t1ig.ht time of9.S. 816.00 per block hourfuel cost. Note 

### 5: The ··extru crew member'' includes estimated pay/training for an additional Captain to meet 14 CFR Section 117.11. · ·**~** Note 6: The "extramx 

### crew 

### member'' includes estimatedpay/training for A & P mechanic to travel on board the 1\NC-CDB-!\DK-i\NC flight.

### Aircraft dcHavilland Dash 8-106 PassengerAircraft Only- 9 Monthly /\NC/CDB//\DK/ANC 

### Passenger Distance Passengers Payload

. Monthly Round Trips

Annual flights Annual Departures Block 

### lime 

### 8lock Hours 

### Passenger Anchorage-Adak· Adak-Anchorage 

### Freight Anchorage-Adak Adak-Anchorage 

### Mail Anchorage-t\dak Adak-Anchorage ANC-ADK-ANC priority 1192 2983 6000 C) 

### 108 324 9.!) 

### l.05S.4

$393.00 $393.00

$1.50/lb $.75/lb

$1.6102 $1.6102 $2.4345 

### Revenue

----- 1,496 pax $ 587,928.00 1A87 pax $ 5S4,391.00

284,520 lb. $ 426.780 174,500 lb_ $ 130,875



### 138,468 lb. 

### $ 222.961 17 13.740 lb_ $ 22.124.15 10,912 lb. 

### $ 41.172.26 (10 percent ofthc total 

### mail estimated to be paid at mainline 

### pri-ratc of$2.4345) 

### Total 

### Revenue $ 1,173,319 

### flying Ops per hr 

### $ 223.24 

### pcr/blk/hr $ 236.280.26 

### Fuel & 

### Oil per hr $ 816.00 per/blk/hr $ 

### 863,65..J.
..HJ In::.urance per hr 

### $ 40.24 periblk/hr $**42.5~)7_53** Maintenanceper hr 

### $ 722.49 per/blk/hr 

### $ 764.685.34 Aircraft per hr $ 193.04 per/blk!hr**~** 

### ,, 204.308.84 Flight Attendantperhr 

### $ 52.03 pcr/blklhr 

### $ 55.069.14 Extra Crew Member $ 174.75 pcr/blk/hr 

### $ 184,955.40 Extra Mx Crew member 

### S39.00 per/blk/hr $ 41.277_60 Star1 up cxpen::;e 1 

### $ 125,000

# ... Total Directs 

# s 2,517,818.51
Departure 

### Related**(a~** $3S5.4S 

### per Dep. 

### $ 124JN4.0S Tratlic**Related({~>** 

### 233.03 pcr/blk/hr 

### $ 246,633.94 Capacity Related (a) 

### 313.42 periblk!hr $ 

### 331.727.16 Total lndirccts 

# s 7U3,155.17 

### TOTAL OPERATING EXPENSE $ 

### 3,221,073.68 

### Profit 

### (??; 5% 

### $ 16L053.68 

### Economic Costs $ 

### 3,382,127.36 Annual 

### Subsidy

## ~ 2,208,808.361