Essential Air Service at Before the EAS 

### &Domestic Analysis Division, X-53

Office ofAviation Analysis, Room 6401 DepartmentofTransportation 400 7th Street, S.W. Washington,D.C. 20590

RAMPART, ALASKA ) ) ) ) ) DOCKET DOT-OST-2008-0201 Under49 U.S.C. 41731 etseq. 

# _______________________ )
July 31,2014 

## Proposal to ProvideEssentialAir Service at Rampart, Alaska
Warbelow's Air Ventures hereby submits its proposal to continue subsidized service to Rampart, Alaska for the two year contractperiod beginning November 1, 2014. This proposal provides an option and subsidyrequestfor three day perweek service as well as two day perweek 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 ofRampatt were caught offguard and continually struggled with the reduced service. The solution we derived was to onlypre-scheduletwo 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 perweek service. This would be a reduction to the current three day perweek schedule, therefore we have adjustedrevenue projections downward.

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## 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. DepartFairbanks 1310 Arrive Rampart 1350 Depart Rampart 1400 Arrive Fairbanks 1440 3times/week: 3flights per week x 52 weeks x 1.34 hours per flight= 209.04hours 2times/week: 2flights per week x 52 weeks x 1.34hours per flight= 139.36 hours


## ProjectedDemand 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.]



## ProjectedExpenses Our cost data is based on the F2, 298c DOT Quarterly Reports for all of2013. Fuel costs have continued on an upward trend over the recent years and have certainly attributed to the increase in the cost per hour. Wehave 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 higherdepreciation/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 ofthe capacity is reserved for mail and freight, offering uninterrupted travel and delivery of goods. At times conditions may warrant the utilization ofan alternate aircraft.
We look forward to working with you on this renewal, and providing continued service to the community ofRampart. Ifyou have any questions or require further clarification, please don't hesitateto contactus. Sincerely, 

# J1l\**~5-r=l=:tyzy~ c:::::::~:-----**  Matthew Atkinson Warbelow's Air Ventures, Inc. 3758 UniversityAvenue South Fairbanks, Alaska 99709 adventure@northernalaska.com 907-474-3520 or907-388-3571

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### Warbelow's Air Ventures, Inc. Essential AirService 

## APPENDIX 

## A To BeProvided AtRampart, Alaska 

# DEPARTURE DATA &ANALYSIS PERIOD
Routing: Depature Frequency: Annual BlockHours: AircraftType: Analysis Period:

Rampart Rampart Rampart Fairbanks >Rampart >Fairbanks 3trips/week 209.04 

### PA3!-350 1year


# 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 $42,197.50Appendix A, Page 2 

# EXPENSE ANALYSIS

Pilot & Co-pilot Fuel & Oil Other Maintenance Depreciation/Rental Total Direct Expense

Total IndirectExpense

ProfitElement @ 10% ofTOC Total Economic Cost 209.04 PerBlock Hour $93.09 $197.06

$28.01 $213.67

$62.37 $594.20
PerBlockHour $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: DepatureFrequency: Annual BlockHours: 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 $30,740.00Appendix B,Page 2 

# EXPENSE ANALYSIS

Pilot & Co-pilot Fuel & Oil Other Maintenance Depreciation/Rental Total DirectExpense

Total Indirect Expense

Profit Element @ 10% ofTOC Total Economic Cost 139.36 PerBlockHour $93.09 $197.06

$28.01 $213.67

$62.37 $594.20
PerBlockHour $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 1Year: 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