OST-2000-6945 - EAS at Eleven Kodiak Island Bush Commnities
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OST-2000-6945 - EAS at Eleven Kodiak Island Bush Commnities
OST-2004-19342 - EAS at Karluk, Alaska
| OST-2000-6945 - Eleven Kodiak Island Communities | February 15, 2000 | 90-Day Notice of Intent to Terminate Essential Air Service | Terminate EAS at Eleven Kodiak Island Bush Communities |
| Service List |
Counsel: Shaw Pittman, Robert Cohn
| Order 00-2-30 OST-00-6945 |
Issued February 25, 2000 Served March 1, 2000 |
Order Prohibiting Suspension of Service and Requesting Proposals | Terminate EAS at Eleven Kodiak Island Bush Communities |
| Exhibit A: Map | |||
| Exhibit B: Historical Traffic | |||
| Exhibit C: EAS | |||
| Service List |
Order 2000-2-30 is prohibiting Peninsula Airways from suspending service at the 11 Kodiak Bush communities of Alitak/Lazy Bay, Kitoi Bay, Moser Bay, Olga Bay, Port Bailey, Port Williams, Seal Bay, San Juan/Uganik, West Point, and Zachar Bay, Alaska (Kodiak Bush) and requesting replacement service at those communities also submit their proposals, with subsidy if necessary, March 21, 2000 21 days after date of service of this order.
By: Bradley Mims
| OST-00-3-4 OST-00-6945 |
Issued March 13, 2000 Served March 15, 2000 |
Order Setting Final Rate Until Further Department Action | Terminate EAS at Eleven Kodiak Island Bush Communities |
| Exhibit A: Map | |||
| Exhibit B: Annual Subsidies | |||
| Exhibit C: EAS to be Provided |
Order 2000-3-4 is setting a final annual rate for Peninsula Airways' essential air service at Amook Bay, Kitoi Bay, Moser Bay, Olga Bay, Port Williams, Seal Bay, West Point, and Zachar Bay, Alaska until further Department action. The carrier's most recent rate expired January 31, and on February 15, 2000, it filed notice to suspend service at all of the Kodiak Bush communities.
By: Bradley Mims
| OST-00-6945 | April 19, 2000 | Additional Information of Andrew Airways for EAS Contract | Terminate EAS at Eleven Kodiak Island, Bush Communities |
By: Andrew Airways
| OST-00-6945 | April 26, 2000 | Proposal for Essential Air Service of Island Air | Terminate EAS at Eleven Kodiak Island, Bush Communities |
By: Island Air, Robert Standford
| OST-00-6945 | May 2, 2000 Docketed May 22, 2000 |
U.S. DOT/OST - Correspondence | Terminate EAS at Eleven Kodiak Island, Bush Communities |
| Appendix: Annual Subsidy |
By: U.S. DOT/OST, Dennis Devany
| OST-00-6945 | May 31, 2000 | Letter of Munsey's Brown Bear Camp - Support for Andrews | Terminate EAS at Eleven Kodiak Island, Bush Communities |
By: Mike Munsey
| Order 00-6-10 OST-00-6945 |
Issued June 12, 2000 Served June 15, 2000 |
Order Selecting Carrier and Amending Essential Air Service Definitions | 90-Day Notice of Intent to Terminate Essential Air Service at Eleven Kodiak Island Bush Communities in Alaska |
Order 2000-6-10 selecting Redemption Air, Inc., Island Air to provide essential air service (EAS) at Kodiak Bush for $125,774 annually, and modifying the EAS determinations for Moser Bay, Olga Bay, Port Bailey, and Zachar Bay, Alaska.
By: Bradley Mims
| OST-00-6945 | July 18, 2002 Docketed July 26, 2002 |
Proposal of Redemption d/b/a Island Air Service | Essential Air Service at Eleven Kodiak Island Bush Communities in Alaska / Peninsula Airways - 90-Day Notice to Terminate Service |
I would like to update you on the essential air service situation at Hana and Kalaupapa and to give you an opportunity to submit any comments if you wish. As you know, Pacific Wings has been serving Hana and Kalaupapa under the Essential Air Service (EAS) program for several years. The carrier's two-year contract expired on March 31, 2002, for Hana and on February 28 for Kalaupapa, and we recently requested proposals (Order 2002-5-19) from carriers that might be interested in submitting a bid. In response, Pacific Wings was the only carrier to submit a proposal. As you are probably aware, Pacific Wings currently operates a fleet of several Cessna 402s that the carrier plans to phase out in favor of factory-new Cessna Caravan aircraft. The Caravan is a single-engine, prop jet aircraft that Pacific Wings would operate with one pilot. The carrier proposes to continue to operate the same service pattems at both Hana and Kalaupapa that it has operated historically, i.e., Kalaupapa would continue to receive two nonstop round trips a day to Honolulu, and Hana would continue to receive two nonstop round trips a day to Honolulu and two nonstop round trips a day to Kahalui.
For your information, I have enclosed summaries of the subsidy computations for Hana and Kalaupapa, as well as for Kamuela which Pacific Wings serves under the EAS program, that show revenue and expense estimates based on the carrier's experience, adjusted for the new aircraft type. Regarding the fares in the appendix, carriers have the discretion to charge fares they deem appropriate, and the passenger fares presented here have been developed for subsidy rate computation purposes only. We make every effort, though, to negotiate average passenger fares for ratemaking purposes based on system averages realized by the carrier for markets of comparable distance.
By: Robert Stanford
| Order 2002-8-04 OST-00-6945 |
Issued August 7, 2002 Served August 12, 2002 |
Order Tentatively Reselecting Carrier and Setting Final Subsidy Rate | Essential Air Service at Eleven Kodiak Island Bush Communities in Alaska / Peninsula Airways - 90-Day Notice to Terminate Service |
By Order 2000-6-10, June 12, 2000, the Department selected Redemption, Inc., d/b/a Island Air Service (Island Air), to provide essential air service at nine communities on Kodiak Island - Amook Bay, Kitoi Bay, Moser Bay, Olga Bay, Port Bailey, Port William, Seal Bay, West Point and Zachar Bay. Island Air was selected to provide each community with service to Kodiak consisting of two or three round trips per week during the 18-week peak season, and one round trip per week during the 34-week off-peak season, with 4-seat Cessna 206 float-equipped aircraft. Annual subsidy for that service was set at $125,774. The carrier's rate term expired July 31, 2002.
As is our normal custom when nearing the end of a carrier's rate term, we contact the carrier to determine whether it is interested in continuing service at the community and whether it will continue to require subsidy. If the carrier wishes to continue service with subsidy, we usually negotiate a new subsidy rate with the carrier, issue an order tentatively reselecting the carrier for a new two-year rate term at the agreed rate, and direct other parties to show cause why we should not finalize our tentative decision. Other carriers wishing to submit competing proposals are invited to do so in response to the show-cause order. If any such proposals are filed, we process them as a competitive case. Consistent with this practice, we invited Island Air to submit a proposal for continuation of essential air service on Kodiak Island.
By: Read Van de Water
Order 2004-09-15
OST-00-6945 - Amook Bay, Kitoi Bay, Moser Bay, Olga Bay, Port Bailey, Port William, Seal Bay, West Point, and Zachar Bay, AK
Issued September 14, 2004 | Served August 17, 2004
Order Tentatively Reselecting Carrier and Setting Final Subsidy Rate
By this order, the Department is tentatively reselecting Island Air to continue providing essential air service at the nine Kodiak Island, Alaska, communities in the caption above, and setting an annual subsidy rate of $196,782 for the carrier for such service.
By: Karan Bhatia
October 5, 2004
90-Day Notice of Redemption d/b/a Island Air Service to Terminate Essential Air Service | Word
Island Air currently provides roundtrip service between Kodiak and Karluk three days a week with Piper PA-325-passenger aircraft. The flights operate on Monday, Wednesday and Friday, departing Kodiak at 0915 and arriving in Karluk at 1005. The return flight departs Karluk at 1010 and arrives in Kodiak at 1055. The Department made the most recent EAS determination for Karluk in Order 95-5-2. Editor's note: Order 95-5-2 is for Stockton, CA
Declines in general economic activity and commercial fishing have reduced the traffic to and from Karluk, particularly during the winter. Island Air can no longer provide air service to Karluk without substantial subsidy.
By: Robert Stanford, 907-486-6196
October 13, 2004
Re: Request of Servant Air for Extension of Time
Per our phone conversation, Servant Air, Inc., is respectfully requesting a two week extension to October 31, 2004 in order to provide a bid proposal on the essential air service outlined in Order 2004-9-15, Docket OST-2000-6945. If you are unable to extend two weeks, please notify me ASAP with a date that is acceptable to the Department.
By: Servant Air, Howard Holman
October 14, 2004
Servant Air, Inc. has requested an extension of time, until October 31, 2004, to file a competitive proposal in response to Order 2004-9-15. That order tentatively reselected Island Air to continue providing EAS at nine communities on Kodiak Island, Alaska, for a new two-year period. The order was issued on September 14, 2004, and objections or competitive proposals were due to be filed by October 14, 2004.
This is to advise all parties that we have decided to grant Servant Air's request for an extension of time to file. Objections and/or competitive proposals, in response to our actions in Order 2004-9-15, must now be filed no later than November 1, 2004.
By: EAS & Domestic Analysis, Dennis DeVany
October 15, 2004
Comments of Carl Siebe, Airports Engineer, on Essential Air Service Proposals | Word
We had only one question related to the proposal. On Appendix C, page 1 under the column Direct Operating Expenses, the expenses listed are for a pilot and copilot. This seems odd to us as most single engine float planes operate with a single pilot. To answer this question, we called Island Air for clarification. They confirmed that the routes are flown with a single pilot. The person we talked to on the phone said a consultant had prepared the EAS proposal.
We are concerned with the block hour costs listed in the proposal. If the pilots costs are based on single pilot paid a fixed salary plus flight pay per hour flown plus a multiplier to cover FICA, training, insurance, etc., we would expect billable block hour costs in the $60 to $80 range. We would like to see some justification from the applicant to support the $116 per block hour cost in the proposal.
By: Carl Siebe
November 9, 2004
Re: Letter from Zachar Bay Lodge in Support of Servant Air
By: Denise May
November 12, 2004
Re: Letter from The Village of Akhiok in Support of Servant Air
By: The Village of Akhiok
November 15, 2004
Re: Letter from Native Village of Port Lions in Support of Expansion of Essential Air Service
By: Denise May
November 16, 2004
Re: Letter from Senator Gary Stevens, Alaska State Legislature, in Support of Servant Air
By: Gary Stevens
November 16, 2004
Re: Letter from Old Harbor Tribal Council in Support of Servant Air
By: Old Harbor Tribal Council
By: Steven Sudyam
Re: Native Village of Ouzinkie, Environmental Programs
By: Native Village
Re: Letter from John Riley Morton
By: John Morton
Re: Letter from Oluf and Celeste Omled
November 13, 2004
By: Robert Stanford and Dean Andrews
October 20, 2004
By: Servant Air
November 17, 2004
Re: The Native Village of Ouzinkie, Environmental Programs Letter in Support of Servant Air
By: Katherine Ellanak
November 15, 2004
Re: Old Harbor Native Corporation Letter in Support of Servant Air
By: Emil Christiansen
November 16, 2004
Re: Kodiak Air Service Letter in Support of Servant Air
By: Willie Hall
November 19, 2004
Re: Letter in Support of Island Air by Senator Gary Stevens, Alaska State Legislature
By: Gary Stevens, 907-465-4925
December 3, 2004
Re: Kodiak Seaplane Points EAS - Comments of Island Air
There have been three E.A.S. proposals presented to the Department for consideration. Only one proposal, the one originally presented by Island Air Service meets all requirements of the E.A.S. run and described in Order 2004-9-15. After Servant Air, Inc. filed its competing proposal, a second proposal was submitted by Island Air. Servant Air's proposal did not meet the specific requirements of the E.A.S. findings for all of the points involved, while Island Air's provided additional lift in the busy season by using larger aircraft. The proposal from Servant Air is entirely deficient and does not address either the needs of the market nor the realistic flying conditions of the routes involved. The Servant proposal is only to reduce the subsidy available to Island Air while proposing an entirely inadequate and unrealistic service for the run involved. We therefore believe that with obvious cost escalations occurring, the original order selecting Island Air should stand while we implement the larger aircraft covering the peak season under our operational control.
By: Redemption d/b/a Island Air Service, Robert Stanford
December 2, 2004
Re: Letter in Support of Island Air by Andrew Airways
By: Teresa Harnish
December 2, 2004
By: Jimmy Johnson
December 6, 2004
Re: Letter in Response to Alleged Deficiencies of Servant Air's Proposal
Servant Air, Inc., a native owned corporation, has shown the ability to grow with its recent move into the Kodiak market. We began operations in Kodiak in 2002 under a single pilot 135 operating certificate. In January of 2004, we purchased the assets of Servant Air, Inc. (Formerly based in Fairbanks, Alaska) and moved this 401‑certificated operation to Kodiak. Since January we have added supplemental aircraft building our fleet to its current level of 5 wheel aircraft based at the Kodiak State Airport, and one floatplane to be based at the Trident Seaplane Basin. We have recently completed revisions to our operating and training manuals adding float operations to our operations specifications, and have completed the FAA's conformity inspection for the Cessna 185 we purchased for this contract. We are proud of our company, its continued success, and look forward to the challenges of this business as we continue to grow.
We ask that you continue to consider our bid proposal. Please be assured that if awarded this contract we will treat this part of our business just as we have the rest of our operation ‑customer service second only to safe travel for our customers. We look forward to a long‑standing relationship with the Department of Transportation and anxiously await your decision. If you should have any questions regarding this letter, please feel free to contact us at the numbers listed below. Thank you for your time and consideration.
By: Servant Air, Robert Holman and Terry Cratty
December 10, 2004
Explanation of EAS Bid of Redemption d/b/a Island Air Service
Since the bid was prepared for 2002‑2004 there have been significant changes in the costs and revenue associated with the operation. Most of the points are commercial fishing sites, and fishing is very cyclic. Since 2001, traffic has dropped significantly for all categories of traffic. At the same time, operating expenses have escalated. The most obvious example is AvGas which has increased by over 50% since 2002. Somewhat mitigating these trends is the increase in mail rates for seaplanes.
By: Redemption
November 30, 2004
Re: LeDoux & LeDoux Letter in Support of Servant Air
By: Gabrielle LeDoux
December 14, 2004
Re: Comments of Kitoi Bay Hatchery
I have received a letter from our current essential air service provider (Island Air) in Kodiak, Alaska regarding potential changes with the service provider. I am getting information from them that the service may be changing to Servant Air and they would be using a smaller aircraft for the mail flight. They are also saying that this future service with Servant Air, who underbid them, will be more costly to us and be less efficient. I am unsure about the information that I am receiving because of its biased source and feel that someone from your office should be contacting us on this matter rather than a competing source for the service.
While I have no specific problems with the present essential air service and am satisfied for the most part with their performance, I feel that the other carriers option is not presented to us in a fair manner. In this letter it states that your department wants our opinions on who should be given the contract. Without an established proposal from the competing source, I find it difficult to effectively do this.
By: Drew Aro, Manager
January 6, 2005
Re: Comments of The State of Alaska Department of Transportation | Word
We sent a letter to the docket on October 14, 2004 questioning the block pilot hour costs in the Island Air proposal. Island Air has not responded to our concern. The Servant Air proposal is in line with what we would expect for this line item. We do acknowledge that Island Air dropped the total price of their proposal, but they did not detail where these cost savings would occur over the initial proposal.
Several items in the docket related to the two types of aircraft proposed, the Cessna 206 vs. the Cessna 185. We agree that the Cessna 206 is a better aircraft for loading and unloading, but restate the fact that the Cessna 206 is effectively a one‑door aircraft for egress during emergencies if the flaps are blocking the rear doors. With special training these doors can be opened with the flaps down, but we doubt the average passenger can perform this operation. We note the addition to the proposal by Island Air to supplement their fleet with a chartered turbine DHC‑2. We do not see this addition as a make or break item.
The Alaska DOT&PF is working closely with the FAA to try and improve the overall safety record of aviation in Alaska. During various business trips to Kodiak Island we have ridden with all of the air carriers and watched carefully air operations around the Island. On a recent trip we decided the weather was not safe to fly, but watched several Island Air aircraft operating in spite of the adverse weather. Many consumers want an air carrier that will fly through any weather and reinforce these bad practices with continued patronage, but we want to reinforce an air carrier that respects the weather and waits to fly until conditions meet FAA weather minimums.
By: Carl Siebe
December 29, 2004
Re: Shawna & Steve Rittenhouse Letter in Support of Island Air
By: Shawna & Steve Rittenhouse
December 29, 2004
Re: Quartz Creek Lodge Letter in Support of Island Air
By: David & Pam Pingree
January 6, 2005
Re: Ron Dunlap Letter in Support of Island Air
By: Ron Dunlap
January 14, 2005
Re: Jerry and NaLane Johnson Letter in Support of Island Air
By: Jerry and NaLane Johnson
January 4, 2005
Re: Rolan Ruoss & Jo Murphy Letter in Support of Island Air
By: Rolan Ruoss & Jo Murphy
January 14, 2005
Reply of Redemption d/b/a Island Air to Comments of The Alaska Department of Transportation and Public Facilities | Word
Island Air vigorously disputes the allegations made in the DOT&PF letter, but believes that the Commissioner should be allowed the opportunity of reviewing this document. Island Air wants a clear, factual and complete record in this docket, particularly when it comes to such disputed issues as aircraft capacity, expense and safety. The short delay involved in allowing the Commissioner or his delegate the opportunity to review the January 6 letter will not have any adverse impact on either of the applicants, the communities or the State of Alaska.
By: Robert Stanford
December 21, 2004
Re: Afognak Wilderness Lodge Letter in Support of Island Air
By: Shannon Randall
December 21, 2004
Re: Edsom Fodcoft Letter in Support of Island Air
By: Edsom Fodcoft
January 17, 2005
Re: James Goodwin Letter in Support of Servant Air
By: James Goodwin
December 21, 2004
Re: Michael Horton, MS, CDC II Letter in Support of Island Air
By: Michael Horton, MS, CDC II
January 18, 2005
Re: Kim Peterson Letter in Support of Island Air
By: Kim Peterson
December 17, 2004
Re: Port Bailey Wild Enterprises Letter Requesting Aircraft Size
I am the owner of the Port Bailey canning facility on Kodiak Alaska. I am the mail Deposit site for the surrounding community. I understand that the Essential Air Service contract is out to bid and that some consideration is being given to downsizing the service capacity to our venue Le., the utilizing a Servant Cessna 185 in lieu of a 206 or better. I am certain such a move would dramatically effect the efficiency and dependability of mail service to this venue. I am in the process of developing a lodge here. The service demands for Port Bailey and the Dry Spruce Bay community are certain to increase with the number of guests and onsite employees alone, not to mention the increasing activity in the bay that are equally reliant on adequate dependable mail service. It is my sound opinion that anything less than a Cessna 206 would fall well short of servicing the demands prevailing and approaching in the coming years.
By: Robert Shane II
January 16, 2005
Re: Joel Wattum Letter in Support of Island Air
By: Joel Wattum
January 17, 2005
Re: Letter from Servant Air Clarifying Comments Made by Island Air
By: Robert Holman
January 19, 2005
Re: Freddie Antonson Letter in Support of Servant Air
When Island Air was the sole provider for the villages, they raised prices to a point that travel between the villages was no longer affordable for people, let alone freight. We were told that when Penn Air pulled out of Kodiak, there would be no price increase, if any was required it would be a small increase. When Penn Air was still in Kodiak the price to Larsen hay was about 60.00 dollars one way.
By: Freddie Antonson
January 17, 2005
Re: Charles Harter Letter about the Cessna 185
I don't care who reall v get this contract since it will go to whom ever tells the biggest tails or blows the thickest smoke but when someone whom has not worked the on aircraft that you are looking at and slams me. It does not set well with me at all.
By: Charles Harter
January 19, 2005
Re: Chris Kinter Letter in Support of Servant Air
By: Chris Kinter
January 19, 2005
Re: Maine Safety Unit Letter in Support of Servant Air
I am writing to you in regards to the Essential Air Service to the float points around Kodiak Island. It has come to my attention that Servant Air has filed a competitive bid for this contract and it is my intention to support Servant Air in their bidding efforts. Servant Air's pilots are experienced and have substantial knowledge of the particulars involved in Kodiak flying; they have shown a consistent willingness to extend every possible courtesy to Old Harbor Department of Public Safety during prisoner transports, and by carrying official documents between my office and the Alaska State Troopers. Last year during a substantial search and rescue effort being conducted by my office in conjunction with The Alaska State Troopers arid The United States Coast Guard, Servant Air donated a minimum of six flight hours conducting aerial searches at no cost to the State, Or the Community of Old Harbor.
By: Valent Maxwell
January 5, 2005
Re: Ocean Beauty Seafood Letter in Support of Island Air
At present, Island Air has the mail contract and they utilize a Cessna 206, which manages our significant quantity of mail. To my understanding, the times that there is too much to fit in the 206, Mr. Bob Stanford has opted to make up an additional flight(s) on his own and/or recruited another carrier to accommodate our needs (once again on his own), Speaking from the experience of over two decades in this remote site, a smaller capacity aircraft would have a difficult time keeping up with the plant's daily volume of mail.
By: Woody Knebel
January 19, 2005
Re: John Rhines Letter in Support of Servant Air
Having lived on Kodiak most of my life. (40+ years) and being a licensed A&P for most of that time, I've been involved in local Aviation for thirty some years. I've also had the privilege of knowing Terry Crony of Servant Air and his family for all of that time. Terry is an Alaskan Native, born here and has flown Kodiak, since he was a young lad. I can remember him wandering the hangar and hitching rides in the bow of the Gooses, long before he could drive a car. His father, Al (Pappy) Cratty was one of the most respected and loved pilots Kodiak has ever known, starting his flying career here in the very early Fifties. (Pappy is dearly missed these days) I truly believe that Terry inherited his father's, Professionalism, Talent, integrity, Honesty, Concern for the People, and above all, his Concern for the Safety of the people flying with him. Terry's main goal is to provide safe dependable and reliable service, to not only the "waterstop" residents of Kodiak, but anyone who desires travel to and from the villages. Now that Servant Air has acquired a Cessna 206 to compliment their fleet, this gives them a primary and secondary float plane to guarantee mail delivery. The DOT's main purpose here, concerns the U.S. Mail, correct? Not passengers, freight and "a couple cases of beer". Could this be a reason for Island Air's higher bid, because they are having to sub contract many of their flights to accommodate both.
By: John Rhines
December 10, 2004
Re: Request for Comments from The Alaska Department of Transportation and Public Facilities
I would like to update you on the essential air service situation on Kodiak Island and give you an opportunity to submit any comments if you wish.
As you know, by Order 2004-9-15, issued September 14, 2004, the Department tentatively re-selected Island Air to continue providing essential air service at nine communities on Kodiak Island. In accordance with our regulations, other carriers were then afforded a period of 30 days following the September 17 service date of the order in which to file competing proposals. In response to that order, we received a competing proposal from Servant Air, and a revised proposal from Island Air.
Under the terms of its competing proposal, Servant Air would operate over the same routes as Island Air with a Cessna 185 aircraft on floats, with a maximum passenger capacity of 5. The service would be provided for an annual subsidy rate of $149,595.
It its revised proposal, Island Air proposes to operate the same service as it was selected to provide in Order 2004-9-15, but has reduced it subsidy requirement from $196,782 per year to $169,000 per year. As noted in the order, Island Air will operate its service with a Cessna 206 floatplane with a maximum passenger capacity of 4.
By: Dennis DeVany
Order 2005-03-04
OST-2000-6945 - Amook Bay, Kitoi Bay, Moser Bay, Olga Bay, Port Bailey, Port William, Seal Bay, West Point, and Zachar Bay, AK
Issued March 3, 2005 | Served March 8, 2005
By this order, the Department is selecting Servant Air, Inc., to provide essential air service at Amook Bay, Kitoi Bay, Moser Bay, Olga Bay, Port Bailey, Port William, Seal Bay, West Point, and Zachar Bay, Alaska, at the annual subsidy rate of $ 149,595 per year for the two-year period beginning with its inauguration of service.
By: Karan Bhatia
May 20, 2005
Counsel: Island Air, Robert Stanford, 907-486-6196
Order 2005-7-21
OST-2000-6945 - Terminate EAS at Eleven Kodiak Island Bush Communities
Issued July 25, 2005 | Served July 28, 2005
By this order, the Department is prohibiting Redemption, Inc., d/b/a Island Air Service from suspending its unsubsidized essential air service at San Juan/Uganik, Alaska, and requesting proposals from carriers interested in providing replacement air service for a two-year period, with or without subsidy.
By: Karan Bhatia
August 19, 2005
90-Day Notice of Redemption, Inc. d/b/a Island Air Service of Intent to Terminate Essential Air Service | Word
Redemption, Inc. d/b/a Island Air Service gives 90-days notice of its intent to terminate all air service to Alitak, AK on or before November 18, 2005. Island Air also requests waiver of the provisions of 14 C.F.R. 323 so that it may terminate services as soon as possible.
By: Redemption, Inc., Robert Stanford, 907-486-6196
August 22, 2005
Proposal of Servant Air Inc. - Bookmarked
Option A:
This option would provide for two round trips per week during the six month peak season and one round trip a week during the six month off-peak season as outlined in the Department's request for proposal. Annual subsidy requested is $29,086.18.
Option B:
This option would incorporate San Juaaganik into Servant Air Inc’s current water stop EAS Contract on Kodiak Island. Servant Air Inc was selected to provide essential air service to nine different water stops on Kodiak Island under Order 2005-3-4. Servant Air is willing to add San Juan/Uganik to this existing contract at our current subsidy rate of $1 2.25 per departure. Under this option, we would only provide this service through the remaining term of our existing contract, and in line with that contract being 2 trips per week for an 18 week peak season, and 1trip per week on the 34 week off season. Total subsidy request under this option would be $15,715.00 annually. Additionally, under this option, the subsidy contract would end April 11, 2007.
By: Servant Air
August 31, 2005
Request for Final Comments of Alaska DOT and Public Facilities
In response to our request, Servant Air was the only carrier to submit a proposal.
The carrier proposes two service options. Option A would provide for two nonstop round trips a week routed Kodiak-San Juan/Uganik-Kodiak during the six-month peak season and one round trip a week during the six-month off-peak season, at an annual subsidy rate of $29,086. Under Option B, the carrier proposes to incorporate service to San Juan/Uganik into its currently subsidized essential air service at Port Bailey and West Point, providing two round trips a week during the 18-week peak season and one round trip a week during the 34-week off-peak season routed Kodiak-Port Bailey-West Point-San Juan/Uganik-Kodiak. The carrier proposes to provide the service described under Option B through the end of its current contract for the other Kodiak Bush points, through April 2007, at an annual subsidy rate of $15,715. Under both options, Servant Air would provide service with Cessna 185 aircraft on floats, with a maximum capacity of five passengers.
My purpose in writing to you at this time is the request any final comments you might have on the carrier's subsidy proposal before we submit a recommendation to the Assistant Secretary on the carrier selection issue.
By: Dennis DeVany
Issued September 8, 2005 | Served September 13, 2005
Order Extending Service Obligation
Although we have received a proposal, his case will not be completed before the end of the current hold‑in period. Therefore, in accordance with 49 U.S.C. 41734(c), we will extend Island Air's service obligation at San Juan/Uganik for an additional 30 days, or until the carrier selection ease is completed, whichever occurs first.
We require Redemption, Inc., d/b/a Island Air Service to maintain essential air service at San Juan/Uganik, Alaska, for an additional 30-day period, through October 19, 2005, or until replacement service actually begins, whichever occurs first. We will require the carrier to maintain service consisting of two nonstop round trips a week to Kodiak, until off-peak season, on or about October 1, 2005, when we would require the carrier to provide one nonstop round trip a week to Kodiak.
By: Randall Bennett
September 23, 2005
Letter Requesting Final Comments
As you know, by Order 2005-7-21, issued July 25, 2005, the Department prohibited Island Air from suspending its unsubsidized service at San Juamganik and requested proposals from carriers interested in providing replacement service at the communities.
In response to our request, Servant Air was the only carrier to submit a proposal, described briefly below. The carrier proposes two service options. Option A would provide for two nonstop round trips a week routed Kodiak-San Juan/Uganik-Kodiak during the six-month peak season and one round trip a week during the six-month off-peak season, at an aruiual subsidy rate of $29,086. Under Option B, the carrier proposes to incorporate service to San Juan/Uganik into its currently subsidized essential air service at Port Bailey and West Point, providing two round trips a week during the 18-week peak season and one round trip a week during the 34-week off-peak season routed Kodiak-Port Bailey-West Point-San Juan/Uganik-Kodiak. The carrier proposes to provide the service described under Option B through the end of its current contract for the other Kodiak Bush points, through April 2007, at an annual subsidy rate of $15,715. Under both options, Servant Air would provide service with Cessna 185 aircraft on floats, with a maximum capacity of five passengers.
My purpose in writing to you at this time is the request any final comments you might have on the carrier’s subsidy proposal before we submit a recommendation to the Assistant Secretary on the carrier selection issue.
By: Dennis DeVany
Order Extending Service Obligation
We require Redemption, Inc., d/b/a Island Air Service to maintain essential air service at San Juan/Uganik, Alaska, for an additional 30-day period, through November 18, 2005, or until replacement service actually begins, whichever occurs first. We will require the carrier to maintain service consisting of two nonstop round trips a week to Kodiak, until off-peak season, on or about October 1, 2005, when we would require the carrier to provide one nonstop round trip a week to Kodiak.
By: Todd Homan
Order 2005-10-17
OST-2000-6945
Issued October 19, 2005 | Served October 24, 2005
Order Requesting Proposals | Word
By this order, the Department is prohibiting Redemption, Inc., d/b/a Island Air Service from suspending its unsubsidized essential air service at Alitak, Alaska, and requesting proposals from carriers interested in providing replacement air service for a two-year period, with or without subsidy.
By: Michael Reynolds
Issued November 4, 2005 | Served November 9, 2005
Order Extending Service Obligation | Word
By this order, the Department of Transportation extends the service obligation of Redemption Inc d/b/a Island Air Service, at San Juan/Uganik, Alaska, for an additional 30 days, through December 19, 2005.
Since December 18th is a Sunday, this hold-in period will end on Monday, December 19th.
By: Michael Reynolds
November 17, 2005
In the letter sent to my attention on September 23, 2005, two options we outlined for potential air service for the San Juan/Uganik area. Based on my research on the use and population of the areas, I believe that either option would adequately serve the area.
By: Kodiak Island Borough, Mary Myers Ogle
http://www.kib.co.kodiak.ak.us/ - Kodiak Island Borough
Order 2005-11-18
OST-2000-6945
Issued November 29, 2005 | Served December 2, 2005
Order Selecting Carrier and Establishing Subsidy Rate - Bookmarked
The Department selects Servant Air, Inc., to provide essential air service at San Juan/Uganik, Alaska, as described in Appendix A, for the period beginning on the date the carrier inaugurates service, through April 30, 2007.
The Department sets the final rate of compensation for Servant Air, Inc., for the provision of essential air service at San Juan/Uganik, Alaska, as described in Appendix A, for the period set forth in ordering paragraph, payable as follows: for each calendar month during which essential air service is provided, the amount of compensation shall be subject to the weekly ceiling set forth in Appendix A, and shall be determined by multiplying the subsidy-eligible arrivals and departures performed at San Juan/Uganik during the month by $112.25.
By: Todd Homan
November 18, 2005
Proposed Scheduling
The Exhibit “A”, attached, is a financial spreadsheet showing the calculations for Servant Air’s proposed subsidy requests. It is our intention to seek community input to assure our daily schedule will best fit the community needs.
Option A:
This option would provide for three round trips per week during the six month peak season and two round trips per week during the six month off-peak season as outlined in the Departments request for proposal. Annual subsidy requested is $ 105,970.73.
Flight 101 Total flight time per route = 2.0 (hours)
Kodiak - Alitak - Kodiak
Peak season - Monday, Wednesday, Friday
Off-peak season - Tuesday, Thursday
To accomplish this goal, Servant Air, Inc. will use a float equipped aircraft with a seating capacity of not less than 4 seats. Servant Air currently uses a Cessna 185 on floats for existing EAS contracts, and will begin this proposed service with this same aircraft with the intention of upgrading to a larger aircraft if load requirements dictate.
| Annual Subsidy | Subsidy per Departure | Max Weekly Compensation |
| $105,970.73 | $407.58 | $2,445.48 |
By: Servant Air
December 2, 2005
Letter to Mary Ogle - Comments Request
I would like to update you on the essential air service situation at Alitak and give you an opportunity to submit any comments if you wish.
As you know, by Order 2005-10-17, issued October 19, 2005, the Department prohibited Island Air Service from suspending its unsubsidized service at Alitak and requested proposals from carriers interested in providing replacement service at the community.
In response to our request, Servant Air was the only carrier to submit a proposal, described briefly below:
The carrier proposes to provide three round trips per week during the six-month peak season and two round trips per week during the six-month off-peak season at an annual subsidy rate of $105,971. All service would be provided to Kodiak, using 4-seat Cessna 185 aircraft.
Please note that the schedules the carrier submitted are illustrative and the carrier may make schedule changes to reflect changing conditions, e.g., to better connect with flights at Kodiak.
My purpose in writing to you at this time is the request any final comments you might have on the carrier's subsidy proposal before we submit a recommendation to the Assistant Secretary on the carrier selection issue.
We request that you review this information as expeditiously as possible and submit any comments you may have on the carrier selection case as soon as possible, but in any case no later than December 22, 2005.
By: Dennis DeVany
Issued December 15, 2005 | Served December 20, 2005
Order Extending Service Obligation
By this order, the Department of Transportation extends the service obligation of Redemption, Inc., d/b/a Island Air Service, at Alitak, Alaska, for an additional 30 days, through January 18, 2006.
By: Todd Homan
Issued January 11, 2006 | Served January 17, 2006
Order Extending Service Obligation
We require Redemption, Inc., d/b/a Island Air Service to maintain essential air service at Alitak, Alaska, consisting of three nonstop round trips a week to Kodiak for an additional 30-day period, through February 17, 2006, or until suitable replacement service actually begins, whichever occurs first.
By: Todd Homan
December 19, 2006
This letter is written in response to your letter dated December 2, 2005 requesting comment on the Servant Air proposal for air service at Alitak. After reading the proposal, it appears that Servant Air was the only eligible company to submit a proposal for this project. Likewise, Servant Air only submitted on proposal for air service to the area as opposed to different air service scheduling options. Based on this information, it appears that from a community development standpoint, that the proposal submitted meets the service interests of the Alitak area.
By: Kodiak Island Borough, Mary Myers Ogle
Issued February 6, 2006 | Served February 9, 2006
Order Extending Service Obligation
On August 19, 2005, Island Air filed a 90-day notice of its intent to suspend its unsubsidized service at Alitak. By Order 2005-10-17, October 19, 2005, the Department prohibited Island Air from suspending service and requested proposals, with subsidy if necessary, from carriers interested in providing replacement service. As required by 49 U.S.C. 41734, we have extended Island Air's service obligation for additional 30-day periods, the latest through February 17, 2006, by Order 2006-1-6.
By this order, the Department of Transportation extends the service obligation of Redemption, Inc., d/b/a Island Air Service at Alitak, Alaska, for an additional 30 days, through March 20, 2006.
Since March 19th is a Sunday, this hold-in period will end on Monday March 20th.
By: Todd Homan
Issued and Served February 21, 2006
The Department sets the final subsidy rate for Island Air for the provision of essential air service at Alitak/Lazy Bay, Alaska, as described in Appendix B-1, to be payable as follows: for each calendar month during which essential air service is provided, the amount of compensation shall be subject to the weekly ceiling and shall be determined by multiplying the subsidy-eligible flights completed during the month to and from Kodiak by $407.90.
The Department sets the final subsidy rate for Island Air for the provision of essential air service at San Juan/Uganik, Alaska, as described in Appendix B-2, to be payable as follows: for each calendar month during which essential air service is provided, the amount of compensation shall be subject to the weekly ceiling and shall be determined by multiplying the subsidy-eligible flights completed during the month to and from Kodiak by $240.92.
By: Todd Homan
Issued March 7, 2006 | Served March 10, 2006
Order Extending Service Obligation
On August 19, 2005, Island Air filed a 90-day notice of its intent to suspend its unsubsidized service at Alitak. By Order 2005-10-17, October 19, 2005, the Department prohibited Island Air from suspending service and requested proposals, with subsidy if necessary, from carriers interested in providing replacement service. As required by 49 U.S.C. 41734, we have extended Island Air’s service obligation for additional 30-day periods, the latest through March 20, 2006, by Order 2006-2-2.
The carrier-selection process is currently underway; however, this case will not be completed before the end of the current hold-in period. Therefore, in accordance with 49 U.S.C. 41734(c), we will extend Island Air’s service obligation at Alitak for an additional 30 days, or until suitable replacement service actually begins, whichever occurs first.
By this order, the Department of Transportation extends the service obligation of Redemption, Inc., d/b/a Island Air Service, at Alitak, Alaska, for an additional 30 days, through April 19, 2006.
By: Todd Homan
Issued April 5, 2006 | Served April 10, 2006
Order Extending Service Obligation
On August 19, 2005, Island Air filed a 90-day notice of its intent to suspend its unsubsidized service at Alitak. By Order 2005-10-17, October 19, 2005, the Department prohibited Island Air from suspending service and requested proposals, with subsidy if necessary, from carriers interested in providing replacement service. As required by 49 U.S.C. 41734, we have extended Island Air's service obligation for additional 30-day periods, the latest through April 19, 2006, by Order 2006-3-7.
By Order 2006-2-14, February 21, 2006, the Department set final subsidy rates for Island Air's "hold-in" service at Alitak, beginning November 18, 2005, until the carrier selection proceeding is concluded.
The carrier-selection process is currently underway; however, this case will not be completed before the end of the current hold-in period. Therefore, in accordance with 49 U.S.C. 41734(c), we will extend Island Air's service obligation at Alitak for an additional 30 days, or until suitable replacement service actually begins, whichever occurs first.
By this order, the Department of Transportation extends the service obligation of Redemption, Inc., d/b/a Island Air Service at Alitak, Alaska, for an additional 30 days, through May 19, 2006.
By: Todd Homan
Issued and Served May 16, 2006
On August 19, 2005, Redemption, Inc. d/b/a Island Air, filed a 90-day notice to suspend its subsidy-free air service at Alitak/Lazy Bay, Alaska. By Order 2005-10-17, October 19, 2005, we requested proposals for replacement service and required Island Air to continue providing essential air service while we processed a carrier-selection case. By Order 2006-2-14, February 21, 2006, we set a final rate for Island Air’s required service at $106,054 annually, until further Department action, while we processed the carrier selection proceeding.
By this order, the Department is selecting Servant Air, Inc., to provide essential air service at Alitak/Lazy Bay, Alaska, at an annual subsidy rate of $19,749, from the inauguration of service through April 30, 2007.
We expect Servant and Island Air to work together to make a smooth transition. In that regard, before Island Air suspends its service at Alitak/Lazy Bay, we expect it to contact all passengers holding reservations for travel after the suspension date, to notify them of the suspension of service, and to secure alternate air transportation for such passengers or to provide a refund of the ticket price, without penalty, if requested.
By: Todd Homan
Issued May 18, 2006 | Served May 23, 2006
Order Extending Service Obligation
On August 10, 2005, Island Air filed a 30-day notice of its intent to suspend its unsubsidized service at Alitak. By Order 2005-10-17, October 19, 2005, the Department prohibited Island Air from suspending service and requested proposals, with subsidy if necessary, from carriers interested in providing replacement service. As required by 40 U.S.C. 41734, we have extended Island Air's service obligation for additional 30-day periods. the latest through May 19, 2006, by Order 2000-4-3.
By Order 2006-5-1, May 16, 2006, the Department selected Servant Air to provide essential air service at Alitak. However, the transition will not have taken place before the end of the current hold-in period. Therefore, in accordance with 40 U.S.C. 41734(c). we will extend Island Air's service obligation at Alitak for an additional 30 days through June 19, 2006, or until Servant Air actually begins service, whichever occurs first.
By: Michael Reynolds
Issued and Served January 9, 2007
Order to Show Cause Terminating Subsidy
As is our normal practice in dealing with EAS issues in the State of Alaska, we contacted the Alaska Department of Transportation and Public Facilities to discuss the air service at Port Bailey and Zachar Bay, Alaska. (49 U.S.C. 41732 grants the State of Alaska some statutory authority over service levels within the State, and it typically acts as the spokesman for the communities.) After several discussions between the State and Department staff, the State informally indicated that it had conferred with local authorities, and, based upon the extremely low numbers of passengers, would not object to our discontinuing subsidy support for this service. The State also indicated that it retained its right to request the restart of service in the future, should circumstances warrant.
We appreciate the important role that the State plays in EAS matters within Alaska. It has always taken a very practical view of the EAS needs in Alaska, and it has again done that here. Based on the State’s informal comments, we will tentatively discontinue subsidy support for Port Bailey and Zachar Bay. Given the limited historical traffic at these two communities, it appears that it would be inappropriate to continue subsidizing their air service. Nonetheless, in order to give the communities full process, we establish a 20-day period during which they can object to our tentative decision. In order to allow for an orderly shutdown of service, absent any objections, we will continue to subsidize Servant for its service to Port Bailey and Zachar Bay through April 30, 2007, the ending date of the current contract set by Order 2005-3-4.
By: Andrew Steinberg
January 18, 2007
This letter pertains to the proposed elimination of mail service to Zachar Bay and Port Bailey and urges that any such decision be reconsidered.
I object to the termination of the essential mail service for the following reasons:
I certainly believe the government should eliminate waste whenever possible, but I believe removing these two stops from the contract does not accomplish the goal, if that is indeed the goal. Mail is an essential government service for individuals and businesses, especially in remote Alaska where the mail may be the only form of communication.
By: Zachar Bay Lodge, Martin Eaton
January 18, 2007
Comments of Port Bailey Wild Holdings
This letter pertains to the proposed elimination of mail service to Zachar Bay and Port Bailey and urges that any such decision be reconsidered.
I believe the government should eliminate waste whenever possible. I also believe removing Port Bailey and Zachar Bay from the contract indicates a gross oversight on your part as to the value of the mail service to these locations. Mail is an essential government service for individuals and businesses, especially in remote Alaska where the mail may be the only form of communication.
By: Robert Shane
Order 2007-2-18
OST-2000-6945 - Eleven Kodiak Island Communities
OST-2004-19342 - EAS at Karluk, AK
Issued and Served February 16, 2007
Order Requesting Proposals - Bookmarked
By this order, the Department is requesting proposals from carriers interested in providing essential air service at eleven Kodiak Island communities: Alitak, Amook Bay, Kitoi Bay. Moser Bay, Olga Bay. Port Bailey, Port Williams, Seal Bay, Uganik, West Point, and Zachar Bay, Alaska, for a new two-year period beginning May 1, 2007, with or without subsidy. We are terminating our subsidy support for Karluk, Alaska, effective May 31,2007, when the subsidy rate set by Order 2005-3-30 expires. Filially, we are vacating Order 2007-1-5, which tentatively discontinued subsidy support for Port Bailey and Zacliar Bay, Alaska, and including them in the eleven communities for which we are requesting proposals.
We note that there are two airports at Kodiak - the main landing strip and a downtown seaplane base. Carriers should make clear which airport they are proposing service to, or whether they would change the airport in response to community comment.
Appendix B shows the historical traffic at the Kodiak eleven. It also shows the level of service that would be required to accommodate that traffic given seasonality of demand and the directional imbalance of freight and mail, for the last several years, as well as a fifty percent load factor and small (5-seat) aircraft. Proposals should match capacity with demand in a reasonable manner, but we are suggesting a total of two round trips per week in an 18-week peak period and one round trip per week during the rest of the year, given the historical service pattern of intermediate stops. We note that the Kodiak eleven have no landing strips, and seaplane service is required.
By: Andrew Steinberg
OST-2000-6945 - Eleven Kodiak Island Communities
OST-2004-19342 - EAS at Karluk, AK
February 19, 2007
Comments of Karluk IRA Tribal Council
The Karluk IRA Tribal Council is appalled at the way the needs of the community are continually disregarded. At one point you stated that you can not pretend to know what it is like living in the bush of Alaska being that you live in Washington D.C. Well that is true; you don't know what we deal with just as we don't know what you go through there in Washington D.C The only difference is that you don't have to rely on Karluk, Alaska residents for survival. However, we do have to rely on individuals, like yourself, that have the power to make decisions, which can adversely affect our livelihood. The plan to discontinue the essential Air Service to our Community will have a devastating effect on our economy. People in positions such as yourself can help to enhance communities such as ours with services such as EAS, which would in turn contribute to our survival. Unfortunately more often than not, the smaller the community the easier it is to ignore.
We can only ask that you reconsider your decision due to the fact that we DO NOT have scheduled service from Island Air Service.
By: Alicia Reft
Order 2007-3-11
OST-2000-6945 - Eleven Kodiak Island Communities
OST-2004-19342 - EAS at Karluk, AK
Issued and Served March 13, 2007
By this order, the Department is requesting proposals from carriers interested in providing essential air service at Karluk, Alaska, for a new two-year period beginning May 1, 2007, with or without subsidy, and extending the deadline for proposals for eleven other Kodiak Island communities. We are requesting proposals from carriers interested in providing scheduled service, with or Without subsidy, for the two-year period beginning June 1, 2007. Carriers should file their proposals within 30 days of the date of service of this order.
Because of the critical importance of EAS to small Alaska communities. and because it is unclear exactly what service Island Air is providing, as an abundance of caution we have decided to request proposals for EAS at Karluk. In the meantime. we will work with Island Air to ensure that it properly and accurately depicts its service. In cases where a carrier proposes to provide essential air service without subsidy and we determine that service can he reliably provided without such compensation. we do not proceed with the carrier-selection case. Instead, we simply rely on that carrier's subsidy-free service as proposed. Because of the uncertainty regarding Island Air's service, we wish to emphasize that essential air service. whether provided on a subsidized or subsidy-free basis, must he operated on a scheduled basis.
Order 2007-2-18 requested proposals for eleven other Kodiak Island communities, with proposals due March 19. We note that the eleven Kodiak Island communities have no landing strips and seaplane service is required, while service at Karluk can he operated with wheeled aircraft. Nevertheless, carriers proposing service at these communities may be able to propose either better service or service with less subsidy need if the proposals are submitted as a package. We will therefore extend the deadline for proposals for the other eleven Kodiak Island communities, and make the deadline for all twelve Kodiak Island communities 30 days after the service date of this order.
By: Andrew Steinberg
April 4, 2007
Comments of Munsey's Bear Camp
While Servant Air's service over the past few years has been acceptable, and their pilots courteous and professional, our main complaint, as was our concern when the contract was awarded, is that their Cessna 185 is too small for the mail, freight and passenger requirements for the water stops on Kodiak Island. On several instances, our mail was bumped in favor of paying passengers and wasn't delivered until the following week. In one instance we went nearly three weeks without mail delivery and not because of weather delays. Their practice of parking their floatplane out of water also causes delays because they are hesitant to put the plane back in the water if the forecast is poor.
We run a business here at Munsey's Bear Camp and going two to three weeks without mail service can be disastrous from a business standpoint. So I encourage you to award the contract to Island Air, or, if you do award it to Servant Air, that you require them to use a larger floatplane.
By: Munsey's Bear Camp, Mike P. Munsey, Amook Pass, Kodiak AK 99615
OST-2000-6945 - Eleven Kodiak Island Communities
OST-2004-19342 - EAS at Karluk, AK
April 12, 2007
Island Air's bid is with a Cessna 206 as the primary aircraft. Our experience in previously operating this contract showed a need for a larger aircraft in the summer months or an increased frequency, particularly in the Alitak market. Our bid therefore increases the minimum number of trips to Alitak during the peak months from 2 to 3 trips per week. Although this will increase the capacity, extra sections will still be required and has been the policy of this company during our previous tenure of operation on the water stop contract. In addition, Island Air will still be operating a Beaver in which access during the mid day will be possible for the first 10 weeks of the summer season and at all times during the remainder of the year. This will be especially helpful during the cannery gear up times with passengers and freight during the pre and post summer season. Island Air is the only carrier to operate year round service to the village of Ahkiok, which has a unique advantage of being situated close enough to Alitak that on the days not scheduled on the water stop contract, passengers and freight can still be delivered, providing the cannery is willing to run their boat to the airstrip. Although this is not their preferred method of delivery, it provides them with a backup option for timely delivery of important mail, freight, and passengers during the short busy fishing season. This option will provide two aircraft for the price of one with the needed backup to operate efficiently and safely.
Island Air's proposed service will utilize our twin engine BN-2A Islander which has operational capabilities twice that of a single engine Piper Lance, in both takeoff safety margins (half the distance of a Piper aircraft) and crosswind capabilities (30 knots) almost double that of a Lance. This truly is the safest aircraft to use on this airstrip and the primary motivation in the purchase of all three Islanders in our fleet. (Appendix D) shows this aircraft at our new office across from Alaska Airlines at Kodiak State Airport. We no longer maintain or operate out of Kodiak Municipal Airport.
By: Island Air, Robert Stanford
April 13, 2007
To accomplish intent of this RFP, Servant Air utilize the following aircraft: "Kodiak 11" floatplane service: For this operation, Servant Air proposes to use our Cessna 185 Amphibious aircraft. Additionally, Servant Air has entered into a purchase agreement for a Cessna 206 on Amphibious floats to use as additional support for this contract should the need arise. Primary aircraft will be the Cessna 185, with the option of upgrading to the 206 as the need for additional "Bulk" may arise (The useful load difference between the C-185 vs. C-206 is 50 pounds).
Karluk service: For this operation, Servant Air will continue to use our PA32R-300 retractable gear Piper Lance. This aircraft is capable of carrying a pilot with a maximum of 5 passengers. It has a useful load of 1,050 pounds and cruises at 150 knots. Additionally, if passenger traffic increases, or runway conditions deteriorate, we have the option of upgrading aircraft to our Cessna 207's (6 passenger seats), or our Britten Norman Islander (9 passenger seats) to accommodate larger groups or softer runways without additional subsidy.
Contract compensation is expected based on historical revenue activity and projected cost of operations. This projection is outlined on the attached Exhibits. The "Kodiak 11" (Exhibit A and B) total subsidy requested is $205,142.87 annually. While the Karluk subsidy request (Exhibit C and D) posts at $41,426.07 annually. This Karluk subsidy reflects subsidy free service from June 1st, through September 30th each year. With the total sum of subsidy being requested over the remaining October 1 through May 31 timeframe each year. Additionally as the Kodiak 11 and the Karluk schedules are substantially different in service and aircraft type, these subsidy requests/proposals are being submitted independent of each other. Servant Air, Inc. will be more than happy to serve all or part of the above mentioned communities as requested by the Department of Transportation.
Counsel: Servant Air, Wes Osowski, wosowski@servantair.com
OST-2000-6945 - Eleven Kodiak Island Communities
OST-2004-19342 - Karluk, AK
April 17, 2007
Request for Community Comments of:
As you know, by Order 2007-3-11 the Department requested “best and final” proposals to serve Karluk, Alaska, and eleven communities requiring service with seaplanes: Alitak/Lazy Bay, Amook Bay, Kitoi Bay, Moser Bay, Olga Bay, Port Bailey, Port Williams, Seal Bay, San Juan/Uganik, West Point, and Zachar Bay. The Department is currently paying Servant Air, Inc., annual subsidy of $185,059 at the Kodiak 11, and $38,880 at Karluk, all for service with single-engine piston aircraft. In response to our Request for Proposals, we received proposals from Servant Air, Inc., and Redemption, Inc., d/b/a Island Air Service, for a new, two-year period.
We request that you review this information and submit any comments you may have by May 8, 2007. We know this matter is important to you and we will act as quickly as possible upon receipt of your letter.
By: Dennis DeVany
Order 2007-4-24
OST-2000-6945 - Eleven Kodiak Island Communities
OST-2004-19342 - Karluk, AK
Issued and Served April 23, 2007
By: Todd Homan
OST-2000-6945 - Eleven Kodiak Island Communities
OST-2004-19342 - Karluk, AK
April 27, 2007
Alaska State Senator in Support of Island Air
I am writing this letter at the request of Bob Stanford of Island Air, in Kodiak Alaska. I have known Mr. Stanford for many years and have traveled on his airline many times to Kodiak Island's remote villages. Island Air is a fine company with a reputation of working diligently to meet the needs of our residents.
By: Gary Stevens
OST-2000-6945 - Eleven Kodiak Island Communities
OST-2004-19342 - Karluk, AK
May 15, 2007
Alaska State Senator in Support of Servant Air
I am writing this letter at the request of Terry Cratty of Servant Air, in Kodiak Alaska. I have known Mr. Cratty for several years and have had the opportunity to travel on his airline many times to Kodiak Island's remote villages. Servant Air is a fine company with a reputation of working diligently to meet the needs of its passengers.
By: Gary Stevens
Order 2007-5-18
OST-2000-6945 - Eleven Kodiak Island Communities
OST-2004-19342 - Karluk, AK
Issued and Served May 31, 2007
By this order the Department is selecting Redemption, Inc., d/b/a Island Air Service, to provide essential air service at Alitak, Amook Bay, Kitoi Bay, Moser Bay, Olga Bay, Port Bailey, Port Williams, Seal Bay, Uganik, West Point, Zachar Bay, Alaska, at subsidy rates of $152,534 annually, and at Karluk, Alaska, for $29,481 annually, through June 30, 2009.
By: Andrew Steinberg
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