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OST-2004-17563 - EAS at Minto and Manley, Alaska - Notice of Tanana to Terminate Service
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Essential Air Service at Minto and Manley, Alaska April 9, 2004 90-Day Essential Air Service Notice of Bidzy Ta Hot Aana Corp. d/b/a Tanana Air Service of Intent to Terminate Unsubsidized Service | Word Bidzy Ta Hot Aana Corp. d/b/a Tanana Air Service (Tanana), under 49 USC 41734 and 14 CFR 323.3(a)(5) hereby gives notice of its intent to terminate all services at Minto, Alaska and Manley, Alaska, effective on or before July 8, 2004. Additionally, Tanana requests waiver of the 90-day notice requirement to terminate unsubsidized air service. Tanana currently provides three flights a week with small aircraft between the points of Minto and Manley and the hub point Fairbanks, AK. No other scheduled air service is provided at Minto and Manley. The Department of Transportation has determined the level of Essential Air Service at Minto and Manley at two roundtrips per week year around with small aircraft. There are no alternative services available at either of these points. Due to changes in mail distribution under the Rural Service Improvement Act, and the uncertainties about mail dispatch in general, Tanana has suffered significant operating losses across its system and intends to reduce service at several of its hubs, including at Fairbanks. It is Tanana's intention to cease service at these points as soon as a suitable replacement has been approved by the Department. By: Harold Esmailka Essential Air Service at Minto and Manley Hot Springs, Alaska Order 04-04-23 Order Allowing Termination of Service and Granting Exemption | Word By this order, the Department allows Tanana Air Service to terminate all scheduled air service at Minto and Manley Hot Springs, Alaska, and grants the carrier’s request to terminate such service on less than 90 days’ notice. Tanana Air Services’ termination is contingent, however, upon the commencement of suitable replacement service operated by Warbelow’s Air Ventures. Tanana Air Service is the only carrier currently providing service at these communities and currently operates three flights a week (M-W-F) with small aircraft over a FAI-MLY-MNT-FAI routing. Warbelow's Air Ventures of Fairbanks advised the Department that it was willing to offer replacement service at Minto and Manley Hot Springs starting May 1, 2004. Warbelow's stated that it would provide the communities with two weekly round trips over an identical (FAI‑MLY‑MNT‑FAI) routing, with 8‑seat Piper Navajo aircraft. According to Warbelow's, the service would initially be operated without subsidy assistance, but advised the Department that, after a review of the first few months' of operations, the carrier would reevaluate its need for subsidy. By: Karan Bhatia Essential Air Service at Minto and Manley, Alaska OST-04-17563 - EAS at Minto and Manley, AK May 12, 2004 Re: Notice of Intent to Terminate Service (Warbelow's Air Ventures) | Word Warbelow's currently provides three flights a week with small aircraft between the points of Minto and Manley on one hand and the hub point of Fairbanks, Alaska on the other. No other scheduled air service is provided at Minto and Manley. Warbelow's has recently started service to these points after Tanana Air Service withdrew, but based on Tanana's historical revenue in these markets, and Warbelow's early experience, the route is not viable without subsidy. By: Art Warbelow, 907-374-6202 OST-04-17563 - EAS at Minto and Manley, AK May 12, 2004 90-Day Notice of Intent to Terminate Unsubsidized Service Warbelow's currently provides three flights a week with small aircraft between the points of Minto and Manley on one hand and the hub point of Fairbanks, Alaska on the other. The service Is operated on Monday, Wednesday and Friday. There are no alternative services available at either of these points. Warbelow's has recently started service to these points after Tanana Air Service withdrew, but based on Tanana's historical revenue in these markets, and Warbelow's early experience, the route is not viable without subsidy. By: Art Warbelow Essential Air Service at Minto and Manley Hot Springs, Alaska Order 04-06-26 Issued June 18, 2004 | Served July 1, 2004 On May 13, 2004, Warbelow's filed a 90‑day notice of its intent to terminate its unsubsidized air service at Minto and Manley Hot Springs, effective August 12, 2004. The carrier currently provides three flights a week on Monday, Wednesday and Friday, over a FAI‑MLY‑MNT‑FAI routing with 8‑seat Piper Navajo aircraft. No other air carrier provides scheduled air service at these communities. We will request proposals from all carriers interested in providing essential air service to both Minto and Manley Hot Springs for a two‑year period. Because of the directional imbalance of traffic, and because the capacity of the aircraft is shared by both communities, proposals may offer two or three round trips a week year‑round to Fairbanks with small aircraft. By: Karan Bhatia July 30, 2004 Proposal of Warbelow's Air Ventures to Provide Essential Air Service | Word Because of the runway conditions at Manley and Minto, service has historically been provided with single engine aircraft. Warbelow’s is currently providing service with Cessna 206/207 aircraft, and bases this proposal on three days per week service with single engine aircraft with three insured seats, with the balance of the capacity reserved for mail and freight. Analysis of the traffic data in these markets provided by the Department in Order 204-6-26 shows a significant and consistent downward trend over the previous four and one half years. This is apparently a result of declining demand, we speculate because of declining population and/or improved surface transportation options to these villages. There is no indication that the previous operator, Tanana Air Service, was a factor in the declining traffic, and in fact the villages served expressed regret at their departure from the market. Therefore we do not expect that even continued excellent service will reverse the declines in demand. In preparing our subsidy proposal, we have modeled the data using a linear regression, and forecast demand over the next two years. All the revenue data therefore has been based on a two year proposal to capture these revenue trends, but we have then reduced that to an annual subsidy request By: Art Warbelow August 9, 2004 I would like to update you on the essential air service situation at Minto and Manley Hot Springs and give you an opportunity to submit any comments if you wish. As you know, by Order 2004-6-26, June 28,2004, the Department solicited proposals from all interested air carriers to provide service at Minto and Manley Hot Springs. In response to that order, we received a proposal only from Warbelow’s Air Ventures, the incumbent carrier. By: Dennis DeVany
August 23, 2004 Re: Comments of The Alaska Department of Transportation and Public Facilities Our Statutes and Regulations allow us to evaluate the fitness of the air carrier applicants. We have done such, and find Warbelow’s Air Ventures, Inc. to be fit. We am not aware of any extenuating circumstances that would prevent the applicant from fulfilling the requirements of the EAS proposal. By: Carl Siebe Essential Air Service at Minto and Manley Hot Springs, Alaska Order 04-09-06 Issued September 7, 2004 | Served September 10, 2004 Order Selecting Carrier and Setting Final Subsidy Rate | Word By this order, the Department is (1) selecting Warbelow’s Air Ventures to continue providing essential air service at Minto and Manley Hot Springs for a two-year period, and (2) establishing a subsidy rate of $49,536 per year for service consisting of three flights per week over a Fairbanks-Manley-Minto-Fairbanks routing with 3-seat Cessna 206/207 aircraft. By: Karan Bhatia
Order 04-09-07 Issued September 7, 2004 | Served September 10, 2004 Order Extending Service Obligation | Word By this order, the Department of Transportation extends the service obligation of Warbelow’s Air Ventures , Inc., at Manley Hot Springs and Minto, Alaska, for an additional 30 days, through October 1 2, 2004. By: Karan Bhatia Order 2006-4-21 Issued April 21, 2006 | Served April 26, 2006 By Order 2004-9-6, September 7, 2004, the Department re-selected Warbelow's Air Ventures, Inc. to continue providing subsidized EAS at Minto and Manley Hot Springs, Alaska, through August 31, 2006. Under that order, Warbelow's operates three flights each week routed Fairbanks-Manley Hot Springs-Minto-Fairbanks with a three-passenger Cessna 206/207, at an annual subsidy rate of $49,536. As the end of the current rate term approaches, we are here requesting proposals from carriers interested in providing service at Minto and Manley Hot Springs, with or without subsidy, for the two-year period beginning September 1, 2006. Carriers should file their proposals within 30 days of the date of service of this order. With specific respect to Minto and Manley Hot Springs, we expect proposals consisting of service with small aircraft (e.g. Cessna 206/207) and offering each community three round trips a week to Fairbanks or any other suitable hub. Further, flights meeting EAS guidelines at Alaskan communities must provide sufficient capacity to accommodate passenger, freight and mail demand. Such service is generally consistent with what the communities currently receive, and fully satisfies their EAS requirements. We encourage proposals that meet those requirements in an efficient manner. Carriers are also welcome to propose more than one service option, if they choose; they need not limit themselves to those requirements if they envision other, potentially more attractive service possibilities -- different hubs, for example -with subsidy requirements that remain competitive. By: Todd Homan May 26, 2006 Warbelow’s herby submits its proposal to continue subsidized service to Manly and Minto, Alaska beginning September 1, 2006. Because of the runway conditions at Manley and Minto, service has historically been provided with single engine aircraft. Warbelow’s is currently providing service with Cessna 206/207 aircraft, and bases this proposal on three days per week service with single engine aircraft with three insured seats, with the balance of the capacity reserved for mail and freight.
By: Arthur Warbelow, 907-374-6202, art@warbelows.com May 31, 2006 DOT Letter Requesting Community Comments of:
In anticipation of the end of Warbelow’s current contract on August 31, 2006, the Department issued Order 2006-4-21 on April 21, 2006, to solicit proposals from all interested air carriers to provide EAS at Minto and Manley for a new, two-year term. In response to that order, Warbelow’s, was the only carrier to submit a proposal. We request that you review Warbelow’s proposal and submit any comments you may have before we submit a recommendation to the Assistant Secretary. We ask that you submit any comments you may have as soon as possible, but in any case no later than June 30, 2006. By: Dennis DeVany June 28, 2006 Email Message - Alaska DOT in Support of Warbelow Air I am writing in support of Warbelow Air Ventures, Inc. proposal for continued subsidized service to Minto and Manley Hot Springs, Alaska, submitted under Docket #17563. The base amount of the proposal has risen from the last proposal for this service, but Warbelow Air has justified the increase based upon a projected cost of fuel during the contract period. The Essential Air Service subsidy is necessary for these communities to obtain scheduled air service, which is critical due to the distance and surface travel time between these small remote communities and the medical and other services which must be accessed outside of these communities. By: John Torgerson Issued July 5, 2006 | Served July 10, 2006 By Order 2004-9-6, September 10, 2004, the Department reselected Warbelow’s to provide subsidized EAS at Minto and Manley Hot Springs, through August 31, 2006. Under that order, Warbelow’s operates three flights a week over a Fairbanks-Manley Hot Springs-Minto-Fairbanks routing with 3-seat Cessna 206 or 207 aircraft, at an annual subsidy rate of $49,536. Warbelow’s also serves Rampart as an upline point. In anticipation of the end of the rate term, the Department issued Order 2006-4-21 on April 21, 2006, soliciting proposals to provide efficient EAS, with subsidy support if necessary, at Minto and Manley Hot Springs. Warbelow’s submitted the only proposal to provide EAS at Minto and Manley Hot Springs for a new two-year rate term. By this order, the Department is reselecting Warbelow’s Air Ventures, Inc. to provide subsidized essential air service at Minto and Manley Hot Springs, Alaska, at an annual subsidy rate of $65,808 for the period of September 1, 2006 through August 31, 2008. By: Todd Homan
Order 2008-5-15 Issued May 13, 2008 | Served May 16, 2008 Order Requesting Proposals | Word By this order, the Department is requesting proposals from carriers interested in providing essential air service at Manly Hot Springs and Minto, Alaska, for a new two-year period, with or without subsidy, beginning September 1, 2008. Specifically, we request proposals for three flights a week between the communities and Fairbanks, with small aircraft (10 seats or less). By Order 2006-7-4, July 5, 2006, the Department selected Warbelow’s Air Ventures, Inc. to provide subsidized EAS at Manley Hot Springs and Minto for the two-year period through August 31, 2008. That order established an annual subsidy rate of $65,808, for service consisting of three flights each week over a Fairbanks-Manley Hot Springs-Minto-Fairbanks routing with 3-seat Cessna 206/207 aircraft. Warbelow’s also serves Rampart as an intermediate or upline point. By: Todd Homan
June 3, 2008 Proposal of Warbelow's Air Ventures Warbelow's herby submits its proposal to continue subsidized service to Manly and Minto, Alaska beginning September 1, 2008. Because of the runway conditions at Manley and Minto, service has historically been provided with single engine aircraft. Warbelow's is currently providing service with Cessna 206 aircraft, and bases this proposal on three days per week service with single engine aircraft with four insured passenger seats, with the balance of the capacity reserved for mail and freight. Order 2008-3-28 set new mail rates that we expect will be effective at the start of the proposed subsidy period, and therefore we have used those rates to calculate mail revenue.
Therefore the P-135 rate for Manley will be $0.805/pound and for Minto $0.62/pound. Current passenger fares and cargo rates are used in these calculations. These reflect no change over the current subsidy period. By: Arthur Warbelow, 907-378-7203
June 10, 2008 Request for Community Comments of: As you may know, by Order 2008-5-15, issued May 13, 2008, the Department solicited proposals from all air carriers interested in providing essential air service at the communities in anticipation of the end of the current contract on August 31, 2008. In response to that order, the incumbent, Warbelow's Air Ventures, Inc. was the only carrier to submit a proposal. The carrier proposes to continue to provide its current level of service at both communities, consisting of consisting of three flights each week over a Fairbanks-Manley Hot Springs-Minto-Fairbanks routing with 3-seat Cessna 206/207 aircraft. at an annual subsidy rate of $84,170. 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 June 27, 2008. By: Dennis DeVany
Order 2008-7-20 Issued July 15, 2008 | Served July 18, 2008 Order Selecting Carrier and Establishing Subsidy Rates | Word The Department issued Order 2008-5-15, May 13, 2008, requesting proposals from carriers interested in providing replacement service at the communities, with subsidy support if necessary, for a new two-year period beginning September 1, 2008. By this order, the Department is (a) selecting Warbelow’s Air Ventures, Inc. to continue providing essential air service at Manley Hot Springs and Minto, Alaska, for a new two-year period, through August 31, 2010, and (b) establishing an annual subsidy rate of $84,170. By: Todd Homan |
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