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OST-1998-3621

Essential Air Service at CENTRAL AND CIRCLE, ALASKA

Order 1998-3-29
OST-1998-3621

Issued March 27, 1998 | Served April 1, 1998

pdficon.gif (87 bytes)Order

By:  Charles Hunnicutt



Order 98-3-29 | OST-98-3621 | 42609 | Issued March 27, 1998 | Served April 1, 1998

pdficon.gif (87 bytes)Order Tentatively Reselecting Carrier

By this order we are tentatively reselecting Warbelow's Air Ventures, Inc. to provide subsidized essential air service at Central and Circle, Alaska, for the two-year period beginning April 1, 1998, through March 31, 2000, at an annual subsidy rate of $31,839.

By: Charles Hunnicutt



April 22, 1998

pdficon.gif (87 bytes)Tatonduk Flying Service Proposal to Provide EAS

This proposal is in response to an order tentatively reselecting Warbelow's Air Ventures Inc, to provide essential air service to Central and Circle, Alaska. Tatonduk Flying Service a, k.a. Tatonduk Outfitters Ltd. is tendering the counter proposal contained in this document to provide essential air service for Central and Circle, Alaska. Service would be provided with a PA-32R300 Piper Lance aircraft. This aircraft can provide a maximum passenger seating of 5 or carry loads of up to 900 pounds from Fairbanks to Central and Circle. This offer would provide a schedule of five round trips per week for 52 weeks per year.

By:  Tatonduk, Stephen Hunter, 907-474-4697



May 22, 1998

pdficon.gif (87 bytes)Application of Tatonduk Flying Service

pdficon.gif (87 bytes)Application of Warbleows Air Ventures

Warbelow's is proposing main service with a Cessna 207 and backing it up with a Piper Navajo. Our calculations deem that a Navajo would be used approximately 20% of the time (equivalent to once per week in a Navajo) due to weather and load conditions. As you can see by our projection breakdown, the expense breakdown utilizes this 20/80 aircraft breakdown.



Order 98-6-35 | OST-98-3621 | (42609) | Issued June 29, 1998 | Served July 6, 1998

pdficon.gif (87 bytes)Order Re-selecting Carrier

By this order we are reselecting Warbelow’s Air Ventures, Inc. to provide subsidized essential air service at Central and Circle, Alaska, for the two-year period beginning on July 1, 1998, at an annual subsidy rate of $21,908.

By: Charles Hunnicutt



Order 00-5-7
OST-98-3621
Issued May 9, 2000
Served May 12, 2000
Order Requesting Proposals Essential Air Service at Central and Circle, Alaska
    Appendix A:  O&D Traffic  
    Service List  

By:  Bradley Mims



Order 00-10-5
OST-98-3621
Issued October 3, 2000
Served October 6, 2000
Order Selecting Carrier and Setting Final Rate Essential Air Service at Central and Circle, Alaska

By:  Francisco J. Sanchez



Order 02-7-25
OST-98-3621
Issued July 17, 2002
Served July 22, 2002
Order Requesting Proposals

Microsoft Word File
Essential Air Service at Central and Circle, Alaska

By:  Read Van de Water



OST-98-3621 August 8, 2002
Docketed November 12, 2002
Proposal of Warbelow's Air Ventures Essential Air Service at Circle, Alaska

Proposal of Warbelow's Air Ventures to provide Essential Air Service at Central and Circle, Alaska for the period July 1, 2002 to June 30, 2004.

By: Art Warbelow

OST-98-3621 November 6, 2002
Docketed November 12, 2002
Revised Proposal of Servant Air Essential Air Service at Circle, Alaska

Revised Proposal of Servant Air, Inc. for Circle and Central, Alaska Essential Air Service.



Order 03-1-25
OST-98-3621
Issued January 23, 2003
Served January 28, 2003
Order Setting Interim Subsidy Rate Essential Air Service at Central and Circle, Alaska

Order 2003-1-25, the Department extends as an interim rate the recently expired subsidy rate for the essential air service (EAS) provided by Warbelow's Air Ventures, Inc., at Central and Circle, Alaska, until a new final rate can be established.

By: Randall Bennett



September 17, 2003

Request from the Essential Air Service Division to Alaska Statewide Aviation

As you know, Order 2002-7-25, July 17, 2002, requested proposals for Essential Air Service (EAS) at Central and Circle, Alaska. In response to our request we received proposals from and have negotiated service/subsidy agreements with two carriers: Servant Air, Inc., and the incumbent, Warbelow's Air Ventures, Inc. Each carrier's contract would extend for a two-year period after issuance of a Department order. The proposals are summarized as follows.

Servant Air, Inc.

Servant would provide five round trips per week routed Fairbanks-Central-CircleFairbanks. All service would be provided with 5-seat Piper Lance, PA-32 aircraft. Servant would require $128,787 annual subsidy for this service.

Warbelow's Air Ventures, Inc.

Warbelow's would provide the same frequency and service pattern as Servant, five round trips per week routed Fairbanks-Central-Circle-Fairbanks. All service would be provided with 8-seat Piper Navajo, PA-31 aircraft. Warbelow's would require $56,932 annual subsidy for this service.

We request that you review this information and submit any comments you may have by October 1, 2003, on the carrier selection decision. 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 03-10-9
OST-98-3621 - EAS at Central and Circle, AK

Issued October 7, 2003 | Served October 10, 2003

Order Setting Final Rates

As discussed in Order 2002-2-13, the Department authorized emergency EAS payments to subsidized carriers because of the losses suffered by them in the face of generally lower revenue and higher costs after the terrorist attacks of September 11, 2001, combined with the fact that the EAS carriers are paid on a pre-agreed, fixed rate per flight. That order provided for immediate increases to the final rates then in place on an ad hoc, interim basis, along with authority to re-negotiate new final rates retroactive to October 1 until the end of the carriers' selection term as provided in the order. By Order 2003-1-25 we extended that rate as an interim beyond the end of the carrier selection term, June 30, 2002, until further Department action.

By: Michael Reynolds



September 29, 2003

Correspondence of State of Alaska Department of Transportation and Public Facilities

Correspondence from State of Alaska Department of Transportation and Public Facilities in response to the Department's September 17, 2003 request letter for any State comments. The State of Alaska DOT finds both Servant Air and Warbelow's Air Ventures in compliance with the Alaska statute requirements for insurance coverage and therefore finds no compelling reason to recommend one company over the other.

By: Kip Knudson



Order 03-11-1
OST-98-3621 - EAS at Central and Circle, AK

Issued November 3, 2003 | Served November 6, 2003

Order Selecting Carrier and Setting Final Rate

After careful review of this matter, including the comments submitted by the State DOT, we have decided to reselect Warbelow' s to continue to provide essential air service to Central and Circle. We will set a final subsidy rate of $56,932 per year for this service for the period beginning November 1, 2003, through October 31, 2005. The subsidy requested by Warbelow's appears reasonable.

We have decided to select Warbelow's Option A for several reasons. First, and foremost, that option is favored by the carrier because of its historical experience in serving the communities, and is also strongly supported by the Circle Village Council. Second, for a small increase in subsidy, the communities will receive increased capacity with a majority of the flights operated with the larger Piper aircraft, and an increased level of reliability and safety that operation with a larger multi-engine aircraft provides.

As suggested by the Circle Village Council, we will structure Warbelow's subsidy rate to permit the carrier some flexibility to offer a lower level of service during the winter season when demand is less. We will establish separate rates for flights operated with specific aircraft, subject to a compensation ceiling per week. During the winter period October 1 through April 30, Warbelow's may operate as many as four round trips per week with the smaller Cessna aircraft. Completed flights will be compensated in accordance with the rates set forth below.

By: Francisco Sanchez



Order 2005-7-18
OST-1998-3621

Issued July 19, 2005 | Served July 22, 2005

Order Requesting Proposals

Since we are approaching the end of the current rate term, we will request proposals from all carriers interested in providing EAS at Central and Circle for a new two-year period. We wish to point out, however, that we have instituted new procedures for conducting carrier selection cases. In the past, we have accepted initial carrier proposals, reviewed them, and then negotiated final proposals with each applicant before formally presenting the proposals to the communities and asking for their final comments.

By: Karan Bhatia



August 15, 2005

Proposal of Warbelow's Air Ventures, Inc. - Bookmarked

Enclosed please find our proposal for Essential Air Service to Central and Circle for the period December 1, 2005 to November 30, 2007.

We propose to provide scheduled service 5 days per week with the routing as follows, with no down line points: Fairbanks - Central - Circle - Fairbanks.

The proposed subsidy, based on the data shown in appendix A, is a maximum of $122,841 annually with 100% completion. This figure is based on data from the previous 4 quarters, including calendar year 2004 and the first quarter of 2005. We understand that the proposal does not require 5 flights per week in the multi-engine aircraft, however, we have found that weather and load conditions historically have required the IFR capabilities.

The increase in this proposal is due primarily to the significant increase in the cost of fuel. The decrease in mail revenue is another key factor. The only way to reduce the overall subsidy needs would be to initiate the use of single engine aircraft versus twin engine. Historically we have found that the communities prefer the us' of twin engine aircraft.

By: Art Warbelow



Order 2005-9-19
OST-1998-3621

Issued September 19, 2005 | Served September 22, 2005

Order Selecting Carrier and Establishing Subsidy Rate - Bookmarked

The Department selects Warbelow’s Air Ventures, Inc., to provide essential air service at Central and Circle, Alaska, as described in Appendix A, for the two-year period beginning December 1, 2005, and ending November 30, 2007.

The Department sets the final rate of compensation for Warbelow’s Air Ventures, Inc., for the provision of essential air service at Central and Circle, Alaska, as described in Appendix A, for the period set forth in ordering paragraph (l), 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 subsidyeligible completed round trips performed during the month by $118.12.

By: Karan Bhatia



Order 2007-6-9
OST-1998-3621

Issued June 13, 2007 | Served June 18, 2007

Order Requesting Proposals

By this order, the Department is requesting proposals from carriers interested in providing essential air service at Central and Circle, Alaska, for a new two-year period, beginning December 1, 2007, with or without subsidy. Carriers should file their proposals no later than July 25, 2007.

With specific respect to Central and Circle, we expect proposals consisting of service with small aircraft (e.g., those with 6-8 seats) and offering five round trips a week between each community and Fairbanks. Further, flights meeting EAS guidelines at Alaskan communities should 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, with subsidy requirements that remain competitive.

By: Todd Homan



July 24, 2007

Proposal of Warbelow's Air

Enclosed please find our proposal for Essential Air Service to Central and Circle for the period December 1, 2007 to November 30, 2009. We propose to provide scheduled service 5 days per week with the routing as follows, with no down line points:

Fairbanks -> Central -> Circle -> Fairbanks

The proposed subsidy is a maximum of $171,223 annually with 100% completion.

By: Art Warbelow



July 30, 2007

DOT Request for Community Comments of:

In anticipation of the end of Warbelow’s current contract on November 30, 2007, the Department issued Order 2007-6-9 on June 13, 2006, to solicit proposals from all interested air carriers to provide EAS at Central and Circle for a new, two-year term. In response to that order, the Department received proposals the incumbent EAS provider, Warbelow’s.

We request that you review the proposal and submit any comments you may have before we submit a recommendation to the Deputy Assistant Secretary. We ask that you submit any comments you may have as soon as possible, but in any case no later than August 27, 2007.



October 2, 2007

Comments of Gwichyaa Zhee Gwich'in Tribal Government (Formerly Native Village of Fort Yukon)

Warbelow's Air Ventures, Inc has requested I write a letter regarding our service history to Central and Circle they have offered to Gwichyaa Zhee Gwich'in Tribal Government. I am happy to write this letter in support of their request. Warbelow's has provided us excellent and timely service to these and many other destinations. In addition to excellent air service, the customer service they offer is also exceptional. Warbelow's works with our administrative staff as well as our traveling staff trying to accommodate their needs and provide them with accurate information. I highly recommend Warbelow's for any travel needs you may have.

By: Fiscal Officer, Stefani Dalrymple, 907-662-2581



Order 2007-10-6
OST-1998-3621

Issued October 4, 2007 | Served October 10, 2007

Order Reselecting Carrier | Word

By this order, the Department is reselecting Warbelow’s Air Ventures, Inc. to provide subsidized essential air service at Central and Circle, Alaska, at an annual subsidy rate of $171,223 for the period of December 1, 2007, through November 30, 2009.

By: Michael Reynolds


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