1 Muldoon, Albert (OST)

From: Muldoon, Albert (OST)

Sent: Monday, November 17, 2014 4:14 PM

To: 'admin@gulkanacouncil.org'; 'manderson@ahtna.net'; Jason Hoke (jhoke@coppervalley.org); Rich Sewell (rich.sewell@alaska.gov); Weeks, Patrick N (DOT); Maggard, Roger K (DOT)

Cc: Copper Valley Air, Todd Hand (TodCVAS@cvinternet.net); ssimpson@majesticland.com; Reeve Air Alas ka, Mike Reeve (mreeve@reevecorp.com); 'Copper Valley Air Service' Subject: Essential Air Service at Gulkana, May Cr eek, and McCarthy, Alaska - Request for Comments - Due December 9, 2014

Attachments: Copper Valley EAS Proposal.pdf; Reeve Air Alaska DOT-OST-1995-492 Gulkana EAS Proposal.pdf

All:

I would like to update you on the Esse ntial Air Service (EAS) situation at Gulkana, May Creek, and McCarthy, Alaska, and give you an opportunity to submit comments on the record before we submit a recommendation to the Assistant Secretary for Aviation and International Affairs. As you know, Ellis Air Taxi, Inc. dba Copper Valley Air Service (Copper Valley) is the current EAS provider at these communities, receiving a combined annual subsidy of $475,387 ($269,189 at Gulkana and $206,198 for both May Creek and McCarthy). Their current contract expires on January 31, 2015. In anticipation of that e xpiration, we issued Order 2014-10-3 (October 9, 2014) soliciting proposals from carriers intere sted in providing EAS at these communities, for a new contract period b eginning February 1, 2015. In response to our request, we received proposals from Copper Valley, the incumbent, and Reeve Air Alaska, LLC (Reeve).

I have attached a copy of the proposals to this email. The proposals can also be accessed online through the Federal Dockets Management System at www.regulations.gov by entering DOT-OST-1995- 492 in the search box. For your convenience, I will briefl y summarize the proposal below.

Copper Valley has proposed to maintain its existing leve l of service at the three communities. At Gulkana, it would provide two round trips per week to Anchorage, utilizing twin-engine Piper PA-31 aircraft with six passenger seats. Copper Valley may substitute a ni ne seat Cessna 441 when warranted by passenger demand. For its Gulkana service, Copper Valley woul d require an annual subsidy of $289,190. For May Creek and McCarthy, Copper Valley would provide two weekly round trips to Gulkan a. During winter months, service would be provided on three passenge r Cessna 185 aircraft. In summer, service would be on four passenger Cessna 206 aircraft. Copper Valley may substitute six pa ssenger de Havilland DHC-2 Beaver when warranted by passenger demand. For its May Creek and McCarthy service, Copper Valley w ould require an annual subsidy of $256,847

Reeve submitted a proposal only for Gulkana. Reeve would provide two weekly roundtrips to Anchorage utilizing twin-engine, seven passenger Piper PA-31 Navajo aircraft. For th is service, Reeve would require an annual subsidy of $223,298.

The schedules that the carrier has propos ed are illustrative only, and they may make schedule changes to reflect changing conditions. The Department expects subsidized carriers to main tain well-timed and well-spaced flights in order to ensure full compensation. The Depa rtment requests that you review the proposals and submit2 any comments you may have as soon as possible, but no later than Decembe r 9, 2014. We will carefully consider your comments before we submit a recomm endation to the Assistant Secretary for a decision.

Please send your comments via email to EAS@dot.gov or by fax to (202) 366-7638. If you have any questions, please feel free to contact A.J. Muldoon of my staff at albert.muldoon@dot.gov or (202) 366-1058.

Regards,

Kevin D. Schlemmer Chief, EAS and Dome stic Analysis, X-53 U.S. Department of Transportation