OST-1995-363
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OST-1995-363
http://en.wikipedia.org/wiki/Atka_Airport
Essential Air Service at Atka and Umnak Island (Nikolski), Alaska
Order 98-3-4 | OST-95-363 | Issued March 3, 1998 | Served March 9, 1998
Order Tentatively Selecting Carrier
By this order we are tentatively selecting Peninsula Airways, Inc., to providesubsidized essential air service at Atka and Umnak Island (Nikolski), Alaska, for thetwo-year period December 1, 1997, through November 30, 1999. The annual rates are$9,000 at Atka and $106,329 at Nikolski.
By: Charles Hunnicutt
| Order 00-3-9 OST-95-363 |
Issued March 16, 2000 Served March 20, 2000 |
Order Tentatively Selecting Carrier | Termination at Atka Island & Umnak Island, Alaska |
| Exhibit A: Map | |||
| Exhibit B: Annual Subsidy | |||
| Exhibit C: EAS to be Provided | |||
| Exhibit D: Historical Traffic |
Order 2000-3-9 tentatively reselecting Peninsula Airways, Inc., to provide subsidized
essential air service at Atka and Umnak Island (Nikolski), Alaska, a new two-year period from December 1, 1999 through November 30, 2000. The annual rates are $156,29 at Atka and $45,033 at Nikolski. Objections due April 10,
2000.
By: Bradley Mims
| OST-95-363 | February 11, 2002 | Comments of the City of Atka, Alaska | Termination at Atka Island & Umnak Island, Alaska |
By: City of Atka, Alaska, George Dirks
| OST-95-363 | February 15, 2002 Docketed February 19, 2002 |
Correspondence of U.S. DOT/OST to Statewide Aviation | Termination at Atka Island & Umnak Island, Alaska |
| Appendix A - Average Passenger Fares |
By: Dennis De Vany
| OST-95-363 | March 21, 2002 | Comments of the State of Alaska | Termination at Atka Island & Umnak Island, Alaska |
Regarding
the two Atka proposals, one is for four round
trips per week and the other is for
five round trips per week, The DOT&PF prefers the five round trips per week
option. if all flights were successfully completed,
probably the 4 times per week proposal would work and we understand that the passenger, freight, and mail loads
appear to be serviced by the T-1040
aircraft at this frequency. However, we also know that there are many days that
flights cannot be flown, and there appears to be sufficient historical
data to demonstrate that a
significant number of flights are not successfully
completed. Therefore it is our preference for the more frequent schedule
in hopes that a sufficient number of
flights could be completed to move the people, freight, and mail with a higher probability
of being completed.
By: State of Alaska, Paul Bowers
Essential Air Service at Atka and Umnak Island (Nikolski), Alaska
| Order 02-4-12 OST-95-363 |
Issued April 17, 2002 Served April 17, 2002 |
Order Tentatively Reselecting Carrier and Setting Final Rates | Termination at Atka Island & Umnak Island, Alaska |
| Attachments: Map, Subsidy Need, EAS to be Provided, Historical Traffic |
Peninsula has provided subsidized service to Atka and Nikolski for many years. Order 2000-3-9 last selected Peninsula to serve Atka (five round trips a week to Dutch Harbor) and Nikolski (two round trips a week to Dutch Harbor) and set final annual rates through November 30, 2001, in the amount of $156,299 at Atka and $45,033 at Nikolski. Although the rates expired on November 30, 2001, Peninsula has continued providing the service at the agreed levels.
In response to our inquiry
Peninsula submitted and negotiated a renewal proposal for an . additional
two-year rate term. (See Appendix B to this order for a summary of the subsidy
computations for Peninsula.) Peninsula proposed the historical level of service
at each community: five nonstop round trips each week between Atka and Dutch
Harbor and two nonstop round trips each week between Nikolski and Dutch Harbor,
service to be provided with Piper T-1040 equipment. Peninsula requests $373,017
annual subsidy at Atka and $20,530 annual subsidy at Nikolski for this level of
service--a significant increase at Atka, and a significant decrease at Nikolski
from the prior rates.
By: Read Van de Water
Essential Air Service at Adak, Atka, and Nikolski, Alaska
Order 04-3-18
OST-00-8556 - EAS at Adak, AK
OST-95-363 - EAS at Atka Island-Umnak Island
Issued and Served March 17, 2004
By this order, the Department is requesting proposals from carriers interested in providing essential air service (EAS) at Adak, Atka, and Nikolski, Alaska, for a new two‑year period, with or without subsidy. The order reflects new, streamlined procedures for processing such proposals.
Under normal procedures when nearing the end of a subsidy rate term, absent any expected interest from carriers other than the incumbent, we have negotiated a new subsidy rate with the incumbent and issued an order tentatively reselecting it for a new rate term at the agreed rate, while directing 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.
In this instance, however, we expect that other carriers will be interested in providing service at Adak, Atka, and Nikolski. In order to give the communities and ourselves a full array of service/subsidy options for consideration, we have decided to forgo negotiating new rates with Peninsula Airways (for Atka and Nikoiski) and Alaska Airlines (for Adak) at this time and instead proceed directly to a competitive carrier selection case by requesting proposals from all interested carriers, including the incumbents.
By: Karan Bhatia
OST-00-8556 - EAS at Adak, AK
OST-95-363 - EAS at Atka Island-Umnak Island
March 22, 2004
On behalf of Alaska Airlines, Inc., we are requesting a 28 day extension of time, ie., from April 16 to May 14, for the submission of EAS proposals for service to Adak, Atka and Nikolski. This request is occasioned by not only the press of business under which Alaska's Planning staff finds itself, but also by the new "best and final" procedure contemplated by the RFP. The new procedure places far greater emphasis on each applicant carrier at the outset formulating the optimal proposal or series of proposals. The elimination of the negotiation phase under which carriers could previously revise their initial proposals requires immediate consideration of multiple options. Among those considerations unique to the State of Alaska are the variable revenue streams which depend on the routing of mail as well as the category of aircraft used for mail carriage.
Above all else, the extraordinary isolation of the three points under consideration make "getting it right" all the more critical, For all of the above reasons, Alaska believes that a 28 day extension until May 14 is warranted. A copy of this letter is being sent by e-mail to each person served with the RFP. In the event that any such person opposes this request, Alaska would ask that that person promptly notify the Defendants EAS staff.
Counsel: Squire Sanders, Marshall Sinick, 202-626-6651, msinick@ssd.com
OST-00-8556 - EAS at Adak, AK
OST-95-363 - EAS at Atka Island-Umnak Island
May 14, 2004
Essential Air Service Proposal (Peninsula)
PenAir proposes to provide EAS to Adak using PenAir's largest cabin-classed aircraft, the SAAB 340. PenAir will provide Adak with one‑third more frequencies than the current service ‑‑ three weekly flights between Adak and Anchorage via Cold Bay with aircraft appropriately sized for the Adak marketplace. PenAir notes that if it is unable (e.g. due to weather) to operate on a scheduled day, PenAir has the flexibility to operate the flight on the next day. The annual subsidy for PenAir's service for Adak will be $954,855.
EAS for Atka requires a minimum of one round trip a week (allowing up to two intermediate stops) to either Adak, Dutch Harbor or Cold Bay utilizing small aircraft. PenAir proposes to continue to provide four weekly nonstop round trips between Atka and Dutch Harbor using either Piper T-1040 or Grumman Goose aircraft. The annual subsidy for PenAir's EAS service to Atka will be $336,302.07.
EAS for Nikoiski requires a minimum of one scheduled and one flag stop round-trip flight a week to either Dutch Harbor or Cold Bay with small aircraft (allowing up to two intermediate stops). Peninsula proposes to provide two weekly nonstop round-trips between Nikoiski and Dutch Harbor with either Piper T-1040 or Grumman Goose aircraft. The annual subsidy cost for PenAir's EAS service to Nikolski will be $173,601.81.
Counsel: Shaw Pittman, Robert Cohn. 202-663-8060
Essential Air Service at Atka and Nikolski, Alaska
Order 04-06-20
OST-95-363 - EAS at Atka and Nikolski, AK
Issued and Served June 23, 2004
By this order, the Department is re-selecting Peninsula Airways, Inc., to provide essential air service at Atka and Nikolski, Alaska, at annual subsidy rates of $336,303 and $173,603 per year, respectively, for the period ending June 30, 2006.
By: Karan Bhatia
Order 2006-3-2
OST-2000-8556 - EAS at Adak, AK
OST-1995-363 - EAS at Atka and Nikolski, AK
Issued and Served March 3, 2006
By Order 2004-6-24, June 25, 2004, the Department re-selected Alaska Airlines, Inc. to provide subsidized EAS at Adak, Alaska, through June 30, 2006. Under that order, Alaska provides service to Adak with two one-stop round trips per week to Anchorage with jet aircraft for an annual subsidy of $1,617,923.
By Order 2004-6-20, June 23, 2004, the Department re-selected Peninsula Airways, Inc. to provide subsidized EAS at Atka and Nikolski, Alaska, through June 30, 2006. Under that order, PenAir provides Atka with four nonstop round trips per week to Dutch Harbor with Piper T-1040 aircraft for $336,603 annual subsidy, and Nikolski with two nonstop round trips per week to Dutch Harbor for $173,603 annual subsidy.
As the end of the current rate terms approach, we are here requesting proposals from carriers interested in providing service at any or all three of the communities, with or without subsidy, for the two-year period beginning July 1, 2006. Carriers should file their proposals within 30 days of the date of service of this order.
At Adak, carriers may propose service corresponding to the historical service pattern. In addition, we will entertain proposals for more frequent, non-jet service from Adak to Anchorage, Dutch Harbor, or Cold Bay. Likewise, carriers may propose service at Atka and Nikolski to either Dutch Harbor or Adak. We note that if Atka and/or Nikolski connected at Adak instead of Dutch Harbor, all their traffic flowing over Adak to Anchorage would defray the expense of Adak's subsidized jet service. In determining which carrier(s) to select at these three communities, we intend to focus on the overall subsidy request at all three communities. We here make Alaska Airlines and all other carriers that may submit Adak proposals, aware of the possibility of additional feed from Atka and/or Nikolski, so that they can prepare options that anticipate additional, connecting revenue from Atka and Nikolski.
By: Todd Homan
OST-2000-8556 - EAS at Adak, AK
OST-1995-363 - EAS at Atka and Nikolski, AK
April 3, 2006
Proposals of Peninsula Airways to Provide EAS
PenAir excels in each of these categories. PenAir is among the largest and most reliable commuter airlines in the state of Alaska and has had decades of experience in providing subsidized essential air service to Alaska small communities, including experience at each of the communities at issue. In addition, PenAir has a marketing arrangement (interline and codeshare) to/from PenAir's hub at Anchorage which offers seamless service to PenAir's customers to the national air transportation system. In addition, PenAir's subsidy proposals in this case represent highly cost-efficient essential air service appropriately sized to meet the needs of the communities on an economically efficient basis.
Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999
OST-1995-363 - EAS at Atka and Nikolski, AK
OST-2000-8556 - EAS at Adak, AK
April 11, 2006
Re: Request for Final Comments
As you know, by Order 2006-3-2 the Department requested "best and final" proposals to serve Adak, Atka, and Nikolski, Alaska. The Department is currently paying Alaska Airlines an annual subsidy of $1,617,923 to provide two one-stop round trips a week between Adak and Anchorage. For Peninsula Airways, we set annual subsidy of $336,603 for four nonstop round trips per week to Atka and $173,603 for two nonstop round trips per week to Nikolski, with all service to Dutch Harbor. In response to our request, two carriers submitted proposals -- PenAir and Alaska Airlines. PenAir proposed service to all three communities; Alaska Airlines to Adak only.
My purpose in writing you at this time is to request any final comments you might have on the carriers' service and subsidy proposals before we submit a recommendation on the carrier selection issue to the Assistant Secretary for Aviation and International Affairs for decision.
We request that you review this information and submit any comments you may have by April 21, 2006.
By: Office of Aviation Analysis, Dennis DeVany
OST-1995-363 - EAS at Atka and Nikolski, AK
OST-2000-8556 - EAS at Adak, AK
April 17, 2006
State of Alaska Request for Comment Period Time Extension
We would like to request that you keep the comment period open until May 1, 2006.
By: John Torgerson
Issued and Served April 18, 2006
By letter dated April 11, 2006, we requested comments by April 21 regarding the essential air service carrier selection at Adak, Atka, and Nikolski, Alaska. On April 17, the State of Alaska requested an extension until May 1, 2006. We hereby grant that request, and extend the deadline for comments to May 1, 2006.
By: Todd Homan
Order 2006-5-21
OST-2000-8556 - EAS at Adak
OST-1995-363 - EAS at Atka and Nikolski
Issued and Served May 23, 2006
Order Reselecting Carriers - Bookmarked
Order 2004-6-24 reselected Alaska Airlines to provide two one-stop round trips a week between Adak and Anchorage, for the two-year period ending June 30, 2006, at the annual rate of $1,617,923. Order 2004-6-20 reselected Peninsula Airways to provide Atka with four nonstop round trips per week to Dutch Harbor with Piper T-1040 aircraft for $336,603 annual subsidy, and Nikolski with two nonstop round trips per week to Dutch Harbor for $173,603 annual subsidy. through June 30, 2006. By Order 2006-3-2 we requested proposals at all three communities, and received timely tiled proposals from Alaska and PenAir. We requested comments from the communities on April 11. On April 18, at the request of the State, we extended the deadline for comments to May 1. We have received comments, and the issues are ripe for decision.
By this order the Department is reselecting Alaska Airlines to provide essential air service at Adak, Alaska, at an annual subsidy rate of $1,393,384, and Peninsula Airways for $449,605 at Atka and $314,694 at Nikolski. The three rates extend through June 30, 2008.
By: Michael Reynolds
Order 2008-1-24
OST-2000-8556 - Adak
OST-1995-363 - Atka and Nikolski
Issued and Served January 24, 2008
By this order, the Department is requesting proposals by February 29, 2008, from carriers interested in providing essential air service at Adak, Atka, and Nikolski, Alaska, for a new two-year period, beginning July 1, 2008, with or without subsidy.
At Adak, carriers may propose service corresponding to the historical service pattern. In addition, we will entertain proposals for more frequent, non-jet service from Adak to Anchorage, Dutch Harbor, or Cold Bay. Likewise, carriers may propose service at Atka and Nikolski to either Dutch Harbor or Adak. We note that if Atka and/or Nikolski connected at Adak instead of Dutch Harbor, all their traffic flowing over Adak to Anchorage would defray the expense of Adak’s subsidized jet service. In determining which carrier(s) to select at these three communities, we intend to focus on the overall subsidy request at all three communities. We hereby make Alaska Airlines and all potential applicants aware of the possibility of additional feed from Atka and/or Nikolski, so that they can prepare options that anticipate additional, connecting revenue from Atka and Nikolski. Carriers should file their proposals by February 29.
By: Todd Homan
OST-2000-8556 - Adak
OST-1995-363 - Atka and Nikolski
March 3, 2008
Re: DOT Granting Extension of Time to File of Alaksa Airlines
On February 21, 2008, Alaska Airlines, Inc., requested by email an extension of time, until March 4, 2008, to file a competitive proposal in response to Order 2008-1-24, served January 24. That order requested competitive proposals be submitted by February 29, 2008, for EAS at Adak, Atka, and Nikolski, Alaska.
We have decided to grant Alaska Airlines' request for an extension of time to file. Objections and/or competitive proposals, in response to Order 2008-1-24 must now be filed no later than March 4, 2008.
By: Dennis DeVany
OST-2000-8556 - Adak
OST-1995-363 - Atka and Nikolsi
February 29, 2008
Proposals of Alaska Central Express
Pursuant to the Order 2008-1-24, Alaska Central Express, Inc. hereby submits its proposal to provide essential air service, with subsidy, between Atka and Nikolski, Alaska, on the one hand, and Dutch Harbor, on the other. The service will be provided with Beech 1900 aircraft configured with 9 passenger seats. Assuming the acceptance by the Department and receipt of all required authority, Alaska Central will commence its service beginning July 1, 2008.
Alaska Central will be applying to the Department to amend its Certificate of Public Convenience and Necessary to authorize it to engage in scheduled passenger air transportation. Currently, Alaska Central's authority is limited to passenger charter air transportation. See, Order 2007-4-14.
Counsel: Silverberg Goldman, Robert Silverberg
March 3, 2008
Alaska will offer twice weekly round trip service with B737-400 combination passenger-cargo jet aircraft on a year-round basis. Alaska proposes to operate the route on a nonstop basis. However, Alaska requests that the Department permit Alaska the option, should future circumstances warrant, of making an intermediate stop en route to Adak. Alaska previously served King Salmon as an intermediate point en route to Adak, but suspended that one-stop service at the time Alaska transitioned from B737-200 to B737-400 aircraft. In short, even though Alaska currently operates on a nonstop basis to Adak and expects to continue doing so, Alaska would like the option to make an intermediate stop, should Alaska determine that future circumstances warrant that change.
Annual compensation requirement for the period July 1, 2008 forward is estimated at $1,483,122.
By: Alaska, Megan Lawrence
February 29, 2008
PenAir proposes to provide four weekly nonstop round trips between Atka and Dutch Harbor using the Piper T-1040 aircraft. The annual subsidy for PenAir's EAS service to Atka will be $513,803.15 for each year.
Peninsula proposes to provide two weekly nonstop round-trips between Nikolski and Dutch Harbor using the Grumman Goose G-21A Aircraft. The annual subsidy cost for PenAir's EAS service to Nikolski will be $469,786.10 for each year. Exhibit 2. Consistent with Order 2006-5-21, PenAir should continue to be permitted to substitute the Grumman Goose with Piper T1040 or Navajo aircraft. The compensation rate for such aircraft substitution will be at a rate of 4 seats for each operation with the Piper T1040 and 3.3 seats per operation for each Piper Navajo. However, consistent with Order 2006-5-21, this reduced seat assignment will not apply to the first roundtrip aircraft substitution in each monthly billing period.
PenAir proposes to provide four weekly roundtrip flights between Adak and Anchorage using PenAir's flagship, cabin-class Saab 340 aircraft. PenAir's Saab 340 aircraft is appropriately sized for the Adak marketplace. PenAir's proposal will double the number of weekly flights at Adak and significantly reduce the Department's subsidy costs. The annual subsidy for PenAir's four weekly service proposal for Adak will be $845,291.00 for each year.
Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com
OST-2000-8556 - Adak
OST-1995-363 - Atka and Nikolski
March 5, 2008
Withdrawal of Proposal of Alaska Central Express
On February 29, 2008 Alaska Central Express, Inc. submitted a proposal to the Department provide essential air service, with subsidy, to Atka and Nikolski, Alaska. Upon further consideration of the need for additional approvals in order to provide the proposed service and extent to which the other operations of Alaska Central could be impacted by the conduct of scheduled passenger operations, Alaska Central hereby withdrawals its essential air service proposal and asks that it not be considered further by the Department.
Counsel: Silverberg Goldman, Robert Silverberg, 202-944-3300, rsilverberg@sgbdc.com
Request for Community Comments of:
In response to our Request for Proposals, we received proposals for Atka from PenAir and Alaska Central Express, but Alaska Central Express subsequently withdrew its proposal.
PenAir proposes four nonstop round trips per week between Atka and Dutch Harbor with 9-seat Grumman Goose aircraft. PenAir would require $513,803 annual subsidy for this level of service. The Department is currently paying Peninsula Airways, Inc. an annual subsidy of $449,605 for four nonstop round trips per week to Dutch Harbor with Piper T1040 equipment.
While there are no options from which to choose, we nonetheless wanted to give you an opportunity to submit any comments on the record, if you wish, before we present our recommendation to the Assistant Secretary who will make the final decision in this case. We ask that you submit any comments you have as soon as possible, but in any case no later than March 18.
By: Dennis DeVany
Order 2008-3-36
ST-2000-8556 - Adak
OST-1995-363 - Atka and Nikolski
Issued and Served March 31, 2008
By this order, the Department is reselecting Alaska Airlines to provide essential air service at Adak, Alaska, at an annual subsidy rate of $1,483,122, and Peninsula Airways for $513,803 at Atka and $469,786 at Nikolski. The three rates extend through June 30, 2010.
By Order 2008-1-24 we requested proposals at all three communities, and received timely filed proposals from Alaska and PenAir. We requested comments from the communities by March 18. We have received comments, and the issues are ripe for decision. All of the proposals are for the two-year period from July 1, 2008, through June 30, 2010.
By: Michael Reynolds
August 12, 2008
Re: DOT Memo Regarding Atka and Nikolski Airport Closing
Peninsula Airways, Inc., d/b/a PenAir, has indicated (see attachment) that it has been unable to operate reliably at Atka and Nikolski, Alaska, since July 12, due to nearby volcanic activity interfering with safe operation of the aircraft.
So that you will know whether a cancellation was related to airport closure, we have instructed PenAir to indicate "Volcano Closure" on its monthly subsidy billings for flights that could not be completed for that reason, and have informed them that they will be fully compensated for such cancellations. Needless to say, if PenAir can provide these communities with access to the national transportation system thru a hub other than Dutch Harbor, such service would be fully eligible.
By: Dennis DeVany
August 19, 2008
Re: City of Atka in Support of Peninsula Airways' Plane Change
Peninsula Airways, who was selected to provide EAS service to Atka Alaska on March 31, 2008 has been unable to fulfill their contractual obligations due to extreme volcanic activity, primarily because the aircraft provided by the contract is not pressurized and cannot fly above the ash cloud.
I have been in touch with Mr. Danny Seybert of Peninsula Airways, who states there is a better aircraft which is the Fairchild Metroliner which is pressurized and can safely fly higher and negotiate around the ash clouds. Mr. Seybert indicates that Peninsula Airways is willing to substitute the larger pressurized aircraft at the same subsidy rate if the DOT will allow it to.
The City of Atka supports Peninsula Airways in this request because it will restore reliable service which is vital, since air travel is our only link to the rest of the world.
By: City of Atka, Kim Clarkson, 907-839-2234
August 26, 2008
Thank you for your recent e-mail requesting clarification from the City of Atka on its EAS service and supporting Peninsula Airw/ays request to restore reliable service during this time of heavy volcanic activity by replacing the current Piper T-1040 with a Fairchild Metroliner.
The City of Atka is aware that this would continue through the duration of our contract and reduce service to Atka by one flight per week. Since the Metroliner is a larger aircraft and will carry more passengers and freight, we do not feel that reducing the flights from four per week to three has any negative impact on our situation. Atka's main concern is for reliable and dependable service to our community with as little interruption to service as possible.
By: City Administrator, Kim Clarkson
August 27, 2008
Re: DOT Memo Adjusting Subsidy Payouts
Order 2008-3-36 selected Peninsula Airways, Inc. to provide 4 nonstop round trips per week between Atka and Dutch Harbor, Alaska, with 9-seat Piper T-1040 aircraft, with annual subsidy of $513,803. It set the payout for this service as $1,235.10 subsidy per flight, with a weekly ceiling of $9,880.80. The community prefers (see attachment) reduced frequency with larger aircraft, i.e., three nonstop round trips per week with 19seat Metro aircraft. Also, because of the Metro's larger capacity, it does not appear that this alternate service would require significantly less subsidy than the service pattern selected by Order 2008-3-36. Therefore, please adjust the payout for PenAir as follows:
Annual Subsidy Rate: $513,803 (unchanged);
Service: Three flights x 2 directions x 52 weeks = 312 annual flights;
Subsidy per Flight: $513,803 -7 312 flights = $1,646.80;
Weekly Ceiling: $1,646.80 * 6 flights = $9,880.80 (unchanged).
As you know, by memo dated August 12, we indicated that, due to volcanic eruptions closing the airport, you should pay PenAir at Atka and Nikolski the weekly ceilings, even if they did not complete any flights in a particular week, so long as the volcano continued interfering with service. Obviously, so long as PenAir indicates that volcanic activity continues to disrupt its service to the Atka, the carrier should continue to receive its full weekly ceiling, regardless of aircraft type, hub, frequency, or intermediate stops. In other words, the adjustment above only applies after the period of volcanic eruption has ceased.
By: DOT, Dennis DeVany
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