### Order 2015-3-8 Served: March 12, 2015

U N I T E D S

T A T E S O F A

M E R I C A D E P A R T M E N T O F T R A N S P O R T A T

I O N 

### UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on the 12 th 

### day of March, 2015

Essential Air Service at

Alitak, Alaska Amook Bay, Alaska Kitoi Bay, Alaska Moser Bay, Alaska Olga Bay, Alaska Port Bailey, Alaska Port Williams, Alaska Seal Bay, Alaska Uganik, Alaska West Point, Alaska Zachar Bay, Alaska

Under 49 U.S. C. § 47131 et seq. DOCKET DOT-OST-2000-6945



## ORDER REQUESTING PROPOSALS

Summary By this Order, the Department is requesting proposals from air carriers interested in providing Essential Air Service (EAS) to Alitak, Amook Bay, Kitoi Bay, Moser Bay, Olga Bay, Port Bailey, Port Williams, Seal Bay, Uganik, West Poin t, and/or Zachar Bay, Alaska, (Kodiak 11) with or without subsidy support, beginning November 1, 2015. Proposals are due April 24, 2015. (See Appendix A for a map.)

Background By Order 2013-9-12, issued on September 20, 2 013, the Department re-selected Redemption Inc., d/b/a Island Air Service (Island Air), to provide subsidized EAS at the above captioned communities, using DHC-2 Beaver aircraft with up to 6 passenger seats, at a combined annual subsidy of $124,663. Service levels were set at two round trips per week to Kodiak, Alaska, during the 18-week peak season 1 

### and one round trip per week dur ing the remainder of the year, all with DHC-2 Beaver aircraft. 2

1 Peak : May 18, through September 20; and May 17, through September 19. Off-Peak : January 5, through April 5; and December 28, through March 28. Shoulder : November 1, through January 4; April 6, through May 17; September 21, through December 27; March 29, through May 16.

### 2

That Order, as well as the complete public file for EAS at the above captioned communities, may be accessed online through the Federal Docket Management System at http://www.regulations.gov , by entering “DOT-OST-2000-6945” in the “SEARCH for: Rules, Comments, Adjudications or Supporting Documents:” field.

Request for Proposals As the end of the current rate term approaches , the Department is reque sting proposals from air carriers interested in providing EAS at the Kodi ak 11, with or without subsidy support, for a new term beginning November 1, 2015. Air carriers should file their propo sals no later than April 24, 2015. After that date, Departmental staff will docket the proposals, thereby making them public. Additionally, the Department request s each air carrier serve a copy of its proposal on the civic parties at the above mentioned comm unities and on the other applicants. Shortly afterwards, the Department will provide a summ ary of the proposals to the civic officials representing the communities and ask them to submit any formal comments on this carrierselection case. The Department will give full cons ideration to all proposals that are timely filed. 3



### The following consists of some basic information to serve as guidance when air carriers prepare their proposals, but the Department will no t prescribe a precise fo rmat for proposals. Air carrier proposals should be submitted to th e Department with all materials merged into a single document. In addition, because the docu ment will be published on www.regulations.gov , each page should be form atted to be viewed online. The Department expects proposals to adequately describe the service being proposed and the annual amount of subsidy being requested. The applicants can make their own judgments as to the level of detail they wish to present; however, the De partment recommends th ey include information concerning proposed schedules and projected block hours. In addition, applicants are encouraged to provide financial data supporting their subsidy requests, including information on their projected expenses an d revenues. The Department strongly encourages clear, welldocumented proposal s that will facilitate their evaluatio n by the affected community and the Department. 4

2 At Olga Bay and Moser Bay, no service is required du ring the off-peak, which in th is case is the first three months of the year. 3 Air carriers should not expect the Department to accept late filings. In cases where a carrier proposes to provide EAS without subsidy and we determine that service can be reliably provided without such compensation, we usually do not proceed with the carrier-s election case. Instead, we simply rely on that carrier’s subsidy- free service as proposed. 4 In selecting a carrier to provide subsidized EAS in Alaska, 49 U.S.C. § 41733(c)(1) directs the Department to consider six factors: (1) service relia bility; (2) contractual and marketing arra ngements with a larger air carrier at the hub; (3) interline arrangements with a larger air carrier at the hub (4) community vi ews; (5) the experience of the applicant in providing air service in Alaska, scheduled air service or significant patterns of non-scheduled air service; and (6) whether the air carrier has included a plan in its proposal to market the service. In addition, the Consolidated Appropriations Act, 2012, Public Law 112-55, and continued by the Consolidated and Further Continuing Appropriations Act, 2015, Public Law No. 113-235, provides that when selecting a carrier to provide EAS, the Department may consider the relative subsidy requirements, thus codifying a factor that has been considered since the inception of the program. Interested air carriers should also be aware of the general provisions governing EAS, which will be included in the selection Orde r as part of the Department’s authorization of subsidy for the selected service. Appendix C of this Order contains those general provisions.

### 3

Proposals should provide sufficient capacity to ac commodate historical le vels. Specifically, the Department requests proposals for two round trip s a week during the 18 -week peak period and one round trip per week during th e remainder of the year, and with service having up to two intermediate stops. At Moser Bay and Olga Bay, where no service is required during the months of January, February, and March, flagstop service is permitted to meet those communities’ needs.

Appendix B contains historical tra ffic levels to assist air carrie rs in making traffic and revenue forecasts. Typically in Alaska, mail and freight flows are asymmetrical, with up to 90% of the total mail and freight flowing outbound from the hub airport to the EAS community. Historical traffic data (Appendix B) show that the above service pattern is sufficient to fulfill the EAS needs of the Kodiak 11.

Interested air carriers should prepare their prop osal with every expectation that their initial proposal will also be their final and only proposal. The Department retains the discretion to negotiate proposals with air carri ers when the Department deems it desirable; in such cases the Department will give all applicants the same opportunity. The Department also retains the discretion to reject outright all unreasonable or unrealistic proposals and solicit a new round of proposals. However, negotiation or rejections will re main only occasional exceptions to the rule.

Other Air Carrier Requirements The Department is responsible for implementing various Federal statutes governing lobbying activities, drug-free workplaces and nondiscrim ination. Consequently, all air carriers receiving Federal subsidy to su pport EAS must certify that they are in compliance with Department regulations regarding drug-free work places and nondiscrimination, and those air carriers whose subsidies exceed $100, 000 over the life of the rate term must also certify that they are in compliance with the regulations governing lobbying ac tivities. All air carriers that plan to submit proposals involvi ng subsidy should submit the re quired certifications along with their proposals. Interested air carrier s requiring more detailed information regarding these requirements, as well as copies of th e certifications, should contact the Office of Aviation Analysis at (202) 366- 5903. The Department is proh ibited from paying subsidy to air carriers that do not submit these documents. 5



### Community Comments Civic officials and the State are welcome to su bmit comments at any time. The Department encourages prospective appli cants to contact the communitie s before they submit their proposals so that they can tailor them to the co mmunities’ needs, as they will not be able to amend them after the due date. As noted earlier, the Department will provide a copy of the

5 The regulations applicable to these areas are: (1) 49 CFR Part 20 – New restrictions on lobbying; (2) 49 CFR Part 21 – Nondiscrimination in federally-assisted programs of the Department of Transportation – Effectuation of title VI of the Civil Rights Act of 1964; 49 CFR Part 27 – Nondiscrimination on the basis of disability in programs and activities receiving or benefiting from Federal financia l assistance; and 14 CFR Pa rt 382 – Nondiscrimination on the basis of disability in air travel; and (3) 49 CF R Part 32 – Government-wide requirements for drug-free workplace (grants). The certificati ons are available on the web at http://www.dot.gov/policy/aviation-policy/smallcommunity-rural-air-service/essential-air-service

.

### 4

proposals to the civic parties and ask them to submit their final comments shortly after April 24, 2015, the due date for air carrier proposals.

This Order is issued under authority delegated in 49 CFR Part 1.25a(b) and re-delegated to the Director, Office of Aviation Analysis.

ACCORDINGLY,

1. The Department requests th at air carriers interested in pr oviding Essential Air Service at any or all of the following: Alitak, Amook Bay, Kitoi Bay, Moser Bay, Olga Bay, Port Bailey, Port Williams, Seal Bay, Uganik, West Point, and/or Zachar Bay, Alaska, submit their proposals, with or without subsidy requests , no later than April 24, 2015. The proposals should be emailed to: EAS@dot.gov with the title “Proposal to Provide EAS at [name of community or communities], Docket DOT-OST-2000-6945;” 6



### 2. Docket DOT-OST-2000- 6945 will remain open until furt her Order of the Department; and

3. The Department will serve c opies of this Orde r on the civic officials of Alitak, Am ook Bay, Kitoi Bay, Moser Bay, Olga Bay, Port Bailey, Po rt Williams, Seal Bay, Uganik, West Point, and/or Zachar Bay, Alaska, the Alaska Department of Transportation and Public Facilities, and the service list fo r this docket.

Persons entitled to petition the Department for review of this Order under the Department’s Regulations, 14 CFR Part 385.31(a), must file such petitions within seven (7) days after the date of service of this Order.

This Order will be effective immediately, and the filing of a petition for review shall not preclude its effectiveness.

By:

TODD M. HOMAN Director Office of Aviation Analysis

An electronic version of this document is available online at www.regulations.gov.

6 Questions regarding filings in response to this Order s hould be directed to Mr. Scott Faulk at scott.faulk@dot.gov or (202) 366-9967.

### Appendix A



## AREA MAP 1

1 

### Map generated by Google Earth

### Appendix B Page 1 of 11 

## Alitak, Alaska 1

Year Quarter Pax Freight PEQ Mail PEQ Total Year Quarter Pax Freight PEQ Mail PEQ Total Year Quarter Pax Freight PEQ Mail PEQ Total 2012 1 2 0 1 3 2012 1 6 1 1 8 2012 1 8 1 2 11 2012 2 28 1 1 30 2012 2 42 20 20 82 2012 2 70 21 21 112 2012 3 68 4 5 77 2012 3 36 6 0 42 2012 3 104 10 5 119 2012 4 13 0 0 13 2012 4 6 0 1 7 2012 4 19 0 1 20 111 5 7 123 90 27 22 139 201 32 29 262

2013 1 1 0 1 2 2013 1 8 5 1 14 2013 1 9 5 2 16 2013 2 44 2 1 47 2013 2 54 10 10 74 2013 2 98 12 11 121 2013 3 79 11 4 94 2013 3 24 11 8 43 2013 3 103 22 12 137 2013 4 9 1 1 11 2013 4 5 2 1 8 2013 4 14 3 2 19 133 14 7 154 91 28 20 139 224 42 27 293

2014 1 3 0 1 2 2014 1 3 2 1 6 2014 1 4 2 2 8 2014 2 41 1 1 43 2014 2 69 15 12 96 2014 2 110 16 13 139 2014 3 80 5 7 92 2014 3 22 19 7 48 2014 3 102 24 14 140 2014 4 1 0 1 2 2014 4 0 0 4 4 2014 4 1 0 5 6 125 6 10 139 94 36 24 154 217 42 34 293 Origination Destination Origin and Destination

1 Source: Bureau of Transportation Statistics; Schedule T-100. PEQs: Passenger Equivalents. Every 200 pounds of freight or mai l is the equivalent of one passenger.

### Appendix B Page 2 of 11



## Amook Bay, Alaska 1

Year Quarter Pax Frei g ht PEQ Mail PEQ Total Year Quarter Pax Frei g ht PEQ Mail PEQ Total Year Quarter Pax Frei g ht PEQ Mail PEQ Total 2012 1 0 0 0 0 2012 1 2 3 0 5 2012 1 2 3 0 5 2012 2 1 1 0 2 2012 2 1 4 3 9 2012 2 2 5 3 11 2012 3 5 1 0 6 2012 3 2 11 1 14 2012 3 7 12 1 20 2012 4 9 1 0 10 2012 4 1 7 5 13 2012 4 10 8 5 23 15 3 0 18 6 25 9 40 21 28 9 58

2013 1 0 1 0 1 2013 1 1 10 1 12 2013 1 1 11 1 13 2013 2 3 1 0 4 2013 2 1 6 4 11 2013 2 4 7 4 15 2013 3 8 1 0 9 2013 3 1 3 12 17 2013 3 9 4 12 26 2013 4 9 1 0 10 2013 4 2 10 12 24 2013 4 11 11 12 34 20 5 0 25 6 29 33 68 26 34 33 93

2014 1 1 5 0 6 2014 1 3 6 4 13 2014 1 4 11 4 19 2014 2 2 0 0 2 2014 2 2 9 7 18 2014 2 4 9 7 20 2014 3 7 1 0 8 2014 3 3 6 7 16 2014 3 10 7 7 24 2014 4 4 1 0 5 2014 4 3 6 7 16 2014 4 7 7 7 21 14 7 0 21 12 26 25 63 26 33 25 84 Origination Destination Origin and Destination

1 Source: Bureau of Transportation Statistics; Schedule T-100. PEQs: Passenger Equivalents. Every 200 pounds of freight or mai l is the equivalent of one passenger.

### Appendix B Page 3 of 11



## Kitoi Bay, Alaska 1

Year Quarter Pax Frei g ht PEQ Mail PEQ Total Year Quarter Pax Frei g ht PEQ Mail PEQ Total Year Quarter Pax Frei g ht PEQ Mail PEQ Total 2012 1 3 0 17 20 2012 1 4 2 6 12 2012 1 7 2 23 32 2012 2 7 0 1 8 2012 2 31 4 6 41 2012 2 38 4 7 49 2012 3 27 0 1 28 2012 3 27 1 2 30 2012 3 54 1 3 58 2012 4 7 0 1 8 2012 4 10 1 6 17 2012 4 17 1 7 25 44 0 20 64 72 8 20 100 116 8 40 164

2013 1 5 0 1 6 2013 1 19 1 7 27 2013 1 24 1 8 33 2013 2 18 0 1 19 2013 2 18 6 5 29 2013 2 36 6 6 48 2013 3 9 1 1 11 2013 3 30 5 10 45 2013 3 39 6 11 56 2013 4 6 0 1 7 2013 4 8 1 4 13 2013 4 14 1 5 20 38 1 4 43 75 13 26 114 113 14 30 157

2014 1 6 0 1 7 2014 1 10 1 4 15 2014 1 16 1 5 22 2014 2 9 0 1 10 2014 2 17 3 14 34 2014 2 26 3 15 44 2014 3 18 1 1 20 2014 3 39 2 10 51 2014 3 57 3 11 71 2014 4 5 0 1 6 2014 4 9 1 8 18 2014 4 14 1 9 24 38 1 4 43 75 8 35 118 113 9 39 161 Origination Destination Origin and Destination

1 Source: Bureau of Transportation Statistics; Schedule T-100. PEQs: Passenger Equivalents. Every 200 pounds of freight or mai l is the equivalent of one passenger.

### Appendix B Page 6 of 11



## Moser Bay, Alaska 1

Year Quarter Pax Freight PEQ Mail PEQ Total Year Quarter Pax Freight PEQ Mail PEQ Total Year Quarter Pax Freight PEQ Mail PEQ Total 2010 2 2 0 1 3 2010 2 16 2 5 23 2010 2 18 2 6 26 2010 3 10 1 1 12 2010 3 11 1 1 13 2010 3 21 2 2 25 2010 4 4 0 1 5 2010 4 4 1 1 6 2010 4 8 1 2 11 16 1 3 20 31 4 7 42 47 5 10 62

2011 2 2 0 0 1 2011 2 3 0 0 3 2011 2 5 0 0 4 2011 3 19 0 1 20 2011 3 3 1 3 7 2011 3 22 1 4 27 2011 4 0 0 0 0 2011 4 2 1 1 4 2011 4 2 1 1 4 21 0 1 21 8 2 4 14 29 2 5 35

2012 2 1 0 0 1 2012 2 25 9 0 34 2012 2 26 9 0 35 2012 3 1 0 0 1 2012 3 17 1 0 18 2012 3 18 1 0 19 2012 4 1 0 0 1 2012 4 0 0 0 0 2012 4 1 0 0 1 3 0 0 3 42 10 0 52 45 10 0 55

2013 2 10 0 1 2013 2 61 0 7 2013 2 71 0 8 2013 3 26 1 1 28 2013 3 16 3 0 19 2013 3 42 4 1 47 2013 4 10 0 1 2013 4 70 0 7 2013 4 80 0 8 28 1 1 30 29 4 0 33 57 5 1 63

2014 2 10 0 1 2014 2 26 1 0 27 2014 2 27 1 0 28 2014 3 10 0 1 2014 3 13 5 0 18 2014 3 14 5 0 19 2014 4 00 0 0 2014 4 00 0 0 2014 4 00 0 0 2 0 0 2 39 6 0 45 41 6 0 47 Origination Destination Origin and Destination

1 Source: Bureau of Transportation Statistics; Schedule T-100. PEQs: Passenger Equivalents. Every 200 pounds of freight or mai l is the equivalent of one passenger.

### Appendix B Page 6 of 11



## Olga Bay, Alaska 1

Year Quarter Pax Freight PEQ Mail PEQ Total Year Quarter Pax Freight PEQ Mail PEQ Total Year Quarter Pax Freight PEQ Mail PEQ Total 2010 2 1 1 1 3 2010 2 28 1 2 31 2010 2 29 2 3 34 2010 3 14 0 1 15 2010 3 15 2 2 19 2010 3 29 2 3 34 2010 4 3 0 0 3 2010 4 0 0 1 1 2010 4 3 0 1 4 18 1 2 21 43 3 5 51 61 4 7 72

2011 2 9 0 1 10 2011 2 25 3 2 30 2011 2 34 3 3 40 2011 3 9 0 1 10 2011 3 31 2 3 36 2011 3 40 2 4 46 2011 4 2 0 0 2 2011 4 8 0 1 9 2011 4 10 0 1 11 20 0 2 22 64 5 6 75 84 5 8 97

2012 2 0 1 0 1 2012 2 18 5 1 24 2012 2 18 6 1 25 2012 3 5 0 0 5 2012 3 14 3 0 17 2012 3 19 3 0 22 2012 4 4 0 0 4 2012 4 4 0 0 4 2012 4 8 0 0 8 9 1 0 10 36 8 1 45 45 9 1 55

2013 2 80 0 8 2013 2 22 2 0 24 2013 2 30 2 0 32 2013 3 31 0 4 2013 3 17 1 0 18 2013 3 20 2 0 22 2013 4 13 0 0 13 2013 4 28 1 0 29 2013 4 41 1 0 42 24 1 0 25 67 4 0 71 91 5 0 96

2014 2 00 0 0 2014 2 25 1 0 26 2014 2 25 1 0 26 2014 3 30 0 3 2014 3 53 0 8 2014 3 83 0 11 2014 4 40 0 4 2014 4 10 0 1 2014 4 50 0 5 7 0 0 7 31 4 0 35 38 4 0 42 Origination Destination Origin and Destination

1 Source: Bureau of Transportation Statistics; Schedule T-100. PEQs: Passenger Equivalents. Every 200 pounds of freight or mai l is the equivalent of one passenger.

### Appendix B Page 6 of 11



## Port Bailey, Alaska 1

Year Quarter Pax Freight PEQ Mail PEQ Total Year Quarter Pax Freight PEQ Mail PEQ Total Year Quarter Pax Freight PEQ Mail PEQ Total 2012 1 2 0 1 3 2012 1 3 1 1 5 2012 1 5 1 2 8 2012 2 0 0 1 1 2012 2 1 2 1 4 2012 2 1 2 2 5 2012 3 11 0 1 12 2012 3 6 1 1 8 2012 3 17 1 2 20 2012 4 8 0 0 8 2012 4 3 1 1 5 2012 4 11 1 1 13 21 0 3 24 13 5 4 22 34 5 7 46

2013 1 1 0 1 2 2013 1 3 3 1 7 2013 1 4 3 2 9 2013 2 0 0 1 1 2013 2 1 1 1 3 2013 2 1 1 2 4 2013 3 1 0 1 2 2013 3 1 1 1 3 2013 3 2 1 2 5 2013 4 2 0 1 3 2013 4 2 1 1 4 2013 4 4 1 2 7 4 0 48 7 6 4 17 11 6 8 25

2014 1 1 0 1 2 2014 1 1 1 1 3 2014 1 2 1 2 5 2014 2 1 0 1 2 2014 2 3 1 3 7 2014 2 4 1 4 9 2014 3 9 0 1 10 2014 3 6 1 2 9 2014 3 15 1 3 19 2014 4 0 0 1 1 2014 4 0 1 3 4 2014 4 0 1 4 5 11 0 4 15 10 4 8 22 21 4 12 37 Origination Destination Origin and Destination

1 Source: Bureau of Transportation Statistics; Schedule T-100. PEQs: Passenger Equivalents. Every 200 pounds of freight or mai l is the equivalent of one passenger.

### Appendix B Page 7 of 11



## Port Williams, Alaska 1

Year Quarter Pax Freight PEQ Mail PEQ Total Year Quarter Pax Freight PEQ Mail PEQ Total Year Quarter Pax Freight PEQ Mail PEQ Total 2012 1 2 0 1 3 2012 1 0 1 3 4 2012 1 2 1 4 7 2012 2 11 0 1 12 2012 2 5 2 1 8 2012 2 16 2 2 20 2012 3 13 0 1 14 2012 3 3 1 1 5 2012 3 16 1 2 19 2012 4 7 0 1 8 2012 4 0 1 1 2 2012 4 7 1 2 10 33 0 4 37 8 5 6 19 41 5 10 56

2013 1 6 0 1 7 2013 1 0 1 1 2 2013 1 6 1 2 9 2013 2 6 0 1 7 2013 2 4 5 1 10 2013 2 10 5 2 17 2013 3 9 1 1 11 2013 3 2 3 1 6 2013 3 11 4 2 17 2013 4 1 1 1 3 2013 4 0 3 5 8 2013 4 1 4 6 11 22 2 4 28 6 11 8 25 28 13 12 53

2014 1 1 0 1 2 2014 1 1 1 1 3 2014 1 2 1 2 5 2014 2 6 0 1 7 2014 2 2 1 1 4 2014 2 8 1 2 11 2014 3 15 0 1 16 2014 3 0 0 1 1 2014 3 15 0 2 17 2014 4 4 0 1 5 2014 4 2 0 0 2 2014 4 6 0 1 7 26 0 4 30 5 2 3 10 31 2 7 40 Origination Destination Origin and Destination

1 Source: Bureau of Transportation Statistics; Schedule T-100. PEQs: Passenger Equivalents. Every 200 pounds of freight or mai l is the equivalent of one passenger.

### Appendix B Page 9 of 11



## Seal Bay, Alaska 1

Year Quarter Pax Freight PEQ Mail PEQ Total Year Quarter Pax Freight PEQ Mail PEQ Total Year Quarter Pax Freight PEQ Mail PEQ Total 2012 1 0 1 1 2 2012 1 1 2 1 4 2012 1 1 3 2 6 2012 2 3 0 1 4 2012 2 17 6 1 24 2012 2 20 6 2 28 2012 3 1 0 1 2 2012 3 4 1 1 6 2012 3 5 1 2 8 2012 4 2 0 1 3 2012 4 2 1 1 4 2012 4 4 1 2 7 6 1 4 11 24 10 4 38 30 11 8 49

2013 1 0 0 1 1 2013 1 3 2 3 8 2013 1 3 2 4 9 2013 2 5 0 1 6 2013 2 1 3 2 6 2013 2 6 3 3 12 2013 3 8 1 1 10 2013 3 23 1 3 27 2013 3 31 2 4 37 2013 4 2 1 1 4 2013 4 8 1 1 10 2013 4 10 2 2 14 15 2 4 21 35 7 9 51 50 9 13 72

2014 1 6 0 1 7 2014 1 10 3 1 14 2014 1 16 3 2 21 2014 2 1 0 1 2 2014 2 1 2 2 5 2014 2 2 2 3 7 2014 3 1 0 1 2 2014 3 9 1 1 11 2014 3 10 1 2 13 2014 4 3 0 1 4 2014 4 6 0 1 7 2014 4 9 0 2 11 11 0 4 15 26 6 5 37 37 6 9 52 Origination Destination Origin and Destination

1 Source: Bureau of Transportation Statistics; Schedule T-100. PEQs: Passenger Equivalents. Every 200 pounds of freight or mai l is the equivalent of one passenger.

### Appendix B Page 9 of 11



## West Point, Alaska 1

Year Quarter Pax Freight PEQ Mail PEQ Total Year Quarter Pax Freight PEQ Mail PEQ Total Year Quarter Pax Freight PEQ Mail PEQ Total 2012 1 1 0 1 2 2012 1 2 0 1 3 2012 1 3 0 2 5 2012 2 4 0 1 5 2012 2 3 1 1 5 2012 2 7 1 2 10 2012 3 35 0 1 36 2012 3 1 0 1 2 2012 3 36 0 2 38 2012 4 3 0 1 4 2012 4 3 1 1 5 2012 4 6 1 2 9 43 0 4 47 9 2 4 15 52 2 8 62

2013 1 4 0 1 5 2013 1 2 1 1 4 2013 1 6 1 2 9 2013 2 9 0 1 10 2013 2 4 0 1 5 2013 2 13 0 2 15 2013 3 26 0 1 27 2013 3 16 1 1 18 2013 3 42 1 2 45 2013 4 13 0 1 14 2013 4 10 1 1 12 2013 4 23 1 2 26 52 0 4 56 32 3 4 39 84 3 8 95

2014 1 2 0 1 3 2014 1 1 1 1 3 2014 1 3 1 2 6 2014 2 16 0 1 17 2014 2 2 0 1 3 2014 2 18 0 2 20 2014 3 31 0 1 32 2014 3 12 1 1 14 2014 3 43 1 2 46 2014 4 8 1 1 10 2014 4 2 0 0 2 2014 4 10 1 1 12 57 1 4 62 17 2 3 22 74 3 7 84 Origination Destination Origin and Destination

1 Source: Bureau of Transportation Statistics; Schedule T-100. PEQs: Passenger Equivalents. Every 200 pounds of freight or mai l is the equivalent of one passenger.

### Appendix B Page 10 of 11



## Ugnik, Alaska 1

Year Quarter Pax Freight PEQ Mail PEQ Total Year Quarter Pax Freight PEQ Mail PEQ Total Year Quarter Pax Freight PEQ Mail PEQ Total 2012 1 0 0 0 0 2012 1 0 0 1 1 2012 1 0 0 1 1 2012 2 4 0 1 5 2012 2 4 3 0 7 2012 2 8 3 1 12 2012 3 16 0 1 17 2012 3 22 0 1 23 2012 3 38 0 2 40 2012 4 3 0 1 4 2012 4 3 0 0 3 2012 4 6 0 1 7 23 0 3 26 29 3 2 34 52 3 5 60

2013 1 5 0 1 6 2013 1 2 0 0 2 2013 1 7 0 1 8 2013 2 2 0 1 3 2013 2 4 1 1 6 2013 2 6 1 2 9 2013 3 19 0 1 20 2013 3 22 2 1 25 2013 3 41 2 2 45 2013 4 7 0 1 8 2013 4 6 2 1 9 2013 4 13 2 2 17 33 0 4 37 34 5 3 42 67 5 7 79

2014 1 4 0 1 5 2014 1 0 0 0 0 2014 1 4 0 1 5 2014 2 5 0 0 5 2014 2 5 3 1 9 2014 2 10 3 1 14 2014 3 17 0 1 18 2014 3 9 1 1 11 2014 3 26 1 2 29 2014 4 4 0 1 5 2014 4 4 3 1 8 2014 4 8 3 2 13 30 0 3 33 18 7 3 28 48 7 6 61 Origination Destination Origin and Destination

1 Source: Bureau of Transportation Statistics; Schedule T-100. PEQs: Passenger Equivalents. Every 200 pounds of freight or mai l is the equivalent of one passenger.

### Appendix B Page 11 of 11



## Zachar Bay, Alaska 1

Year Quarter Pax Freight PEQ Mail PEQ Total Year Quarter Pax Freight PEQ Mail PEQ Total Year Quarter Pax Freight PEQ Mail PEQ Total 2012 1 0 0 0 0 2012 1 2 0 1 3 2012 1 2 0 1 3 2012 2 4 0 1 5 2012 2 1 157 1 159 2012 2 5 157 2 164 2012 3 7 0 1 8 2012 3 7 1 1 9 2012 3 14 1 2 17 2012 4 7 0 1 8 2012 4 6 0 1 7 2012 4 13 0 2 15 18 0 3 21 16 158 4 178 34 158 7 199

2013 1 2 0 0 2 2013 1 2 0 1 3 2013 1 4 0 1 5 2013 2 0 0 1 1 2013 2 1 3 1 5 2013 2 1 3 2 6 2013 3 5 0 1 6 2013 3 0 1 1 2 2013 3 5 1 2 8 2013 4 4 0 1 5 2013 4 2 1 1 4 2013 4 6 1 2 9 11 0 3 14 5 5 4 14 16 5 7 28

2014 1 0 0 1 1 2014 1 3 5 1 9 2014 1 3 5 2 10 2014 2 6 1 1 8 2014 2 0 1 1 2 2014 2 6 2 2 10 2014 3 8 2 1 11 2014 3 10 5 6 21 2014 3 18 7 7 32 2014 4 2 0 1 3 2014 4 1 0 1 2 2014 4 3 0 2 5 16 3 4 23 14 11 9 34 30 14 13 57 Origination Destination Origin and Destination

1 Source: Bureau of Transportation Statistics; Schedule T-100. PEQs: Passenger Equivalents. Every 200 pounds of freight or mai l is the equivalent of one passenger.

### Appendix C

Example of General Terms and Cond itions for Eassential Air Service

The air carrier understands that it may forfeit its compensation for any flights that it does not operate in conformance with the terms and stipula tions of the rate Order, including the service plans outlined in the Order and an y other significant elements of the required service, without prior approval. The air carrier understands that an aircraft take-off and landing at its scheduled destination constitutes a completed flight; absent an explanation supporting subsidy eligibility for a flight that has not been completed, such as certain weather cancellations, only completed flights are considered eligible for subsidy. In addition, if the air carrier does no t schedule or operate its flights in full conformance w ith the Order for a significant period, it may jeopardize its entire subsidy claim for the period in question. If the air carrier contemplates any such changes beyond the scope of the Order during the appl icable period of these rates, it must first notify the Office of Aviation Analysis in writing and receive written a pproval from the Department to be ensured of full compensation. Should circum stances warrant, the Departme nt may locate and select a replacement air carrier to provide service on thes e routes. The air carr ier must complete all flights that can be safely operated; flights that overfly points for lack of traffic will not be compensated. In determining whether subsidy paym ent for a deviating flight should be adjusted or disallowed, the Department will consider the ex tent to which the goals of the program are met and the extent of access to the national air tr ansportation system provided to the community.

If the Department unilaterally, either partially or completely, terminates or reduces payments for service or changes service require ments at a specific location provi ded for under this Order, then, at the end of the period for whic h the Department does make paym ents in the stipulated amounts or at the stipulated service levels, the air carr ier may cease to provide se rvice to that specific location without regard to any requirement for no tice of such cessation. T hose adjustments in the levels of subsidy and/or service that are mutually agreed to in writing by the Department and air carrier do not constitute a total or part ial reduction or cessation of payment.

Subsidy contracts are subject to, and incorporate by reference, relevant statutes and Department regulations, as they may be amended from time to time. However, any such statutes, regulations, or amendments thereto shall not operate to controvert the foregoing paragraph.

Funds may not be available for perfor mance under this Order beyond [DATE]. The Government’s obligation for performance under this Order beyond [DATE], is subject to the availability of funds from which payment for services can be made. No legal liability on the part of the Government for any payment may ar ise for performance under this Order beyond [DATE], until funds are made available to the De partment for performance. If sufficient funds are not made available for performance beyond [D ATE], the Department will provide notice in writing to the carrier.

All claims for payment, including any amended claims, must be submitted within 90 days of the last day of the month for which compensation is being claimed. For example, claims for service provided in July must be filed by October 31 st 

### ; August claims must be submitted by November 30 th 

### , and so on.