February 11, 2014 

Mr. Kevin Schlemmer 

Director, Essential Air Service 

U.S. Department ofTransportation 

1200 New Jersey Ave., SE 

Washington, DC, 20590 

Re: Kalaupapa, HI Essential Air Service 

Dear Mr. Shlemmer: 

As the president and CEO of Mokulele Flight Services, Inc., dba Mokulele Airlines, I am 

respectfully requesting the opportunity to summarize the reasons that we feel Mokulele is 

uniquely qualified to provide Essential Air Service to Kalaupapa, Hawai'i. This is a follow-up to 

our EAS proposal dated October 30th, 2013. 

On a personal level, I have a strong commitment to the state through my 52 years of aviation 

history in Hawai'i. In fact, this is where I learned to fly. My goal when I purchased Mokulele in 

2011 was to provide safe, affordable interisland travel and it is a goal I continue to be deeply 

committed to. We are well prepared and well equipped to provide the residents and visitors of 

Kalauapapa with reliable, cost-effective service on a schedule that makes it convenient for them 

to complete round-trip, same-day travel to and from Honolulu and Kahului. 

It is our belief that Mokulele is uniquely qualified to serve this route for the following reasons: 

• On-time performance and reliability. Mokulele operates more than 120 flights per day 

and we have consistently maintained dispatch reliability and on-time departure ratings in 

the mid-ninety percent range. 

• Modern fleet. In 2013, we invested $22 million to add nine brand new nine-passenger 

Cessna Caravan aircraft to our fleet. This is part of our commitment to operate the 

youngest fleet of any Hawai'i carrier operating under either Part 121 or Part 135 ofthe 

Federal Aviation Regulations (PARs). By the end ofthe first quarter of2014, Mokulele 

Airline's fleet will consist ofall2013 model aircraft, the oldest ofwhich will not yet have 

seen one year of service. Our newest aircraft are the Cessna Grand Caravan EX model 

with the larger, 867 horsepower engine which enhances operational safety with greater 

climb gradients, faster speeds and more available excess power in the event of an 

emergency. 
• Extraordinary focus on safety. Mokulele Airlines has voluntarily adopted the FAA's 

"One Level of Safety" philosophy and has committed to operating its aircraft far beyond 

the minimum standards of Part 13 5. First of all, we have taken the important step of 

mandating that all of our revenue flights will be operated with a two-pilot crew, even 

though this is not required by the FAA. In addition: 

o We schedule pilots under strict crew rest requirements, well beyond the 

minimums. 

o We train our pilots to utilize the most current principles of Cockpit Resource 

Management (CRM) and mandate the use of written checklists for normal, 

abnormal and emergency operations. 

o We require that every passenger flight be operated under Instrument Flight Rules 

(IFR) under the guidance and supervision ofthe Air Traffic Control system which 

mandates safer routings, continuous communications from takeoff to landing, 

higher altitude minimums, greater terrain clearances, radar tracking and higherthan-minimum pilot qualifications. 

o We have been approved to use the same Electronic Flight Bag (EFB) program 

used by the largest air carriers, which places every operational document in the 

hands of the pilots during every moment of flight. 

o We operate a sophisticated flight tracking system, including a dispatch office 

located in our Kona System Operations Center (SOC). 

o We have initiated meetings with Air Traffic Control (ATC) management and line 

controllers with the goal of fostering a better understanding and awareness of the 

unique safety requirements of safely operating single-engine turbine aircraft in the 

mountainous, open-ocean environment of Hawai' i. 

• Strong, proactive commitment to aircraft maintenance. We have established 

maintenance operations in Kona, Kahului and Honolulu, and we have made a significant 

investment in training our mechanics and in upgrading our tooling and support of our 

engmes. 

• EAS track record. In September of2013, we were awarded the essential air service 

contract for Kamuela, and in the first month of operations, we carried more passengers in 

and out of Kamuela than the previous carrier had over a 12-month period. Interest in this 

route is so high that we are now planning to add a third flight per day. Our service to 
Hana, which we launched in 2012, is another success story about the importance and 

value of meeting the needs of an underserved market. 

• Excellent customer service. All eight ofMokulele Airlines' stations are staffed by 

trained Customer Service Agents (CSAs) to enhance safety, customer service and aircraft 

handling. We have also made additional investments in our information technology and 

reservations systems to ensure that we maintain a high level of service to our customers. 

• Global distribution. We have a global distribution system that makes it convenient for 

passengers to make reservations through traditional travel agents as well as through 

online travel booking sites. 

• Strong management team. We have established an experienced, cohesive and proactive 

management team to support our flight operations and ensure a positive passenger 

experience. 

• Community support. When I purchased Mokulele in 2011, the airline was serving 7,000 

passengers per month. Due to the growing demand for our flights, we now serve more 

than 21,000 passengers per month who are traveling to eight destinations on five islands. 

We believe this is a strong testament to the trust and confidence Hawai'i residents 

continue to place in Mokulele. In addition, as the largest carrier serving Ho'olehua 

Airport, we already have significant experience serving the residents ofMoloka'i. 

We appreciate the opportunity to bid on serving the Kalaupapa essential air service route. We 

also respect your recent decision to extend Makana Kai' s current contract until May 31st to give 

you sufficient time to evaluate all ofthe critical safety, service and reliability factors involved in 

choosing a carrier. 

Thank you again for this opportunity. We would be honored to be awarded this contract and we 

are prepared to begin daily service to meet the needs of the residents of Kalaupapa and the 

visitors who desire to visit this significant landmark in Hawai'i history. 

Respectfully, 

CEO/President 

Cc: Scott Faulk