Essential Air Service at 

Before the 

EAS & Domestic Analysis Division, X-53 

Office of Aviation Analysis, Room 6401 

Department of Transportation 

400 7th Street, S.W. 

Washington, D.C. 20590 

RAMPART, ALASKA 

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DOCKET DOT -OST -2008-0201 

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

July 31,2014 

Proposal to Provide Essential Air Service at Rampart, Alaska 

Warbelow's Air Ventures hereby submits its proposal to continue subsidized service to Rampart, 

Alaska for the two year contract period beginning November 1, 2014. This proposal provides an 

option and subsidy request for three day per week service as well as two day per week service. 

Appendix A is the option for three day per week service. For the contract period November 

2010 through October 2012, Rampart received three day per week service. When DOT selected 

the option for two day per week service for the contract period November 2012 through October 

2014, the residents of Rampatt were caught off guard and continually struggled with the reduced 

service. The solution we derived was to only pre-schedule two flights a week, but we would do a 

third flight if any passengers booked for that third day. As a result, Warbelow's Air Ventures 

essentially provided three day per week service with those third flights each week being 

ineligible to be submitted for subsidy. 

Appendix B is the option for two day per week service. This would be a reduction to the current 

three day per week schedule, therefore we have adjusted revenue projections downward. 

1 
Schedule 

Warbelow's prefeJTed option is a three day per week subsidized serviee schedule because it 

meets community needs and projected demand for passenger, freight, and mail service. 

Depart Fairbanks 1310 

Arrive Rampart 1350 

Depart Rampart 1400 

Arrive Fairbanks 1440 

3 times/week: 3 flights per week x 52 weeks x 1.34 hours per flight= 209.04 hours 

2 times/week: 2 flights per week x 52 weeks x 1.34 hours per flight= 139.36 hours 

Projected Demand 

By continuing three day per week service, we have seen a slight increase in passenger travel in 

the Rampart market. Based on direct feedback from Rampart residents, we are confident that 

there would be a decrease in passenger travel if the schedule is reduced to two day per week 

service. The passenger count and revenue figures for both proposals are based on TlOO data 

submitted for 2013, adjusted for discounts in fares, including frequent flyer programs and 

donated tickets and freight. [The adjustment is derived from comparing the actual revenue 

figures versus the forecasted revenue figures that would be generated from the TlOO counts.] 

Projected Expenses 

Our cost data is based on the F2, 298c DOT Quarterly Reports for all of 2013. Fuel costs have 

continued on an upward trend over the recent years and have certainly attributed to the increase 

in the cost per hour. We have conservatively estimated future fuel costs based on the 2013 data 

and are not increasing our request based on any anticipated increase in fuel prices. We expect a 

slightly higher depreciation/rental cost, and have adjusted the costs accordingly. 

2 
Aircraft Type/Utilization 

Warbelow's Air Ventures offers for consideration by DOT and the community of Rampart, 

service in twin-engine aircraft with nine insured passenger seats. The balance of the capacity is 

reserved for mail and freight, offering uninterrupted travel and delivery of goods. At times 

conditions may warrant the utilization of an alternate aircraft. 

We look forward to working with you on this renewal, and providing continued service to the 

community of Rampart. If you have any questions or require further clarification, please don't 

hesitate to contact us. 

Sincerely, J1l\ ~5-r=l=:tyzy~c:::::::~:-----

Matthew Atkinson 

Warbelow's Air Ventures, Inc. 

3758 University Avenue South 

Fairbanks, Alaska 99709 

adventure@northernalaska.com 

907-474-3520 or 907-388-3571 

3 
Warbelow's Air Ventures, Inc. 

Essential Air Service 

APPENDIX A 

To Be Provided At Rampart, Alaska 

DEPARTURE DATA & ANALYSIS PERIOD 

Routing: 

Depature Frequency: 

Annual Block Hours: 

Aircraft Type: 

Analysis Period: 

Rampart 

Rampart 

Rampart 

Fairbanks > Rampart >Fairbanks 

3 trips/week 

209.04 

PA3!-350 

1 year 

REVENUE ANALYSIS 

Pax Fare Totals 

290 $93.95 $27,245.50 

Pounds Rate Totals 

20000 $0.49 $9,800.00 

Pounds Rate Totals 

5600 $0.9200 $5,152.00 

$42,197.50 
Appendix A, Page 2 

EXPENSE ANALYSIS 

Pilot & Co-pilot 

Fuel & Oil 

Other 

Maintenance 

Depreciation/Rental 

Total Direct Expense 

Total Indirect Expense 

Profit Element @ 10% of TOC 

Total Economic Cost 

209.04 

Per Block Hour 

$93.09 

$197.06 

$28.01 

$213.67 

$62.37 

$594.20 

Per Block Hour 

$97.41 

Annually 

$19,459.53 

$41,193.42 

$5,855.21 

$44,665.58 

$13,037.82 

Annually 

$20,362.59 

$124,211.57 

$20,362.59 

$144,574.15 

$14,457.42 

$159,031.57 

SUBSIDY ANALYSIS 

Total Economic Cost 

Less Revenue 

Annual subsidy need at 100% Completion 

$159,031.57 

$42,197.50 

1 Year: $116,834.07 

2 Years: $233,668.14 
Warbelow's Air Ventures, Inc. 

Essential Air Service APPENDIXB 

To Be Provided At Rampart, Alaska 

DEPARTURE DATA & ANALYSIS PERIOD 

Routing: 

Depature Frequency: 

Annual Block Hours: 

Aircraft Type: 

Analysis Period: 

Rampart 

Rampart 

Rampart 

Fair banks > Rampart > Fair banks 

2 trips/week 

139.36 

PA31-350 

I year 

REVENUE ANALYSIS 

Pax Fare Totals 

200 $93.95 $18,790.00 

Pounds Rate Totals 

15000 $0.49 $7,350.00 

Pounds Rate Totals 

5000 $0.9200 $4,600.00 

$30,740.00 
Appendix B, Page 2 

EXPENSE ANALYSIS 

Pilot & Co-pilot 

Fuel & Oil 

Other 

Maintenance 

Depreciation/Rental 

Total Direct Expense 

Total Indirect Expense 

Profit Element @ 10% of TOC 

Total Economic Cost 

139.36 

Per Block Hour 

$93.09 

$197.06 

$28.01 

$213.67 

$62.37 

$594.20 

Per Block Hour 

$97.41 

Annually 

$12,973.02 

$27,462.28 

$3,903.47 

$29,777.05 

$8,691.88 

Annually 

$13,575.06 

SUBSIDY ANALYSIS 

Total Economic Cost 

Less Revenue 

Annual subsidy need at 100% Completion 1 Year: 

2 Years: 

$82,807.71 

$13,575.06 

$96,382.77 

$9,638.28 

$106,021.05 

$106,021.05 

$30,740.00 

$75,281.05 

$150,562.09