Essential Air Service at Adak, Alaska

Order 04-06-24
OST-00-8556 - EAS at Adak, AK

Issued and Served June 25, 2004

Order Reselecting Carrier

We have decided to reselect Alaska Airlines, although we are concerned by the high level of subsidy required by Alaska's proposal. Alaska's proposal is significantly more expensive than Peninsula's. Peninsula has provided reliable EAS in Alaska, especially in the Aleutians, for a number of years. Normally this level of subsidy-difference would be decisional. However, there are special considerations dictating Alaska Airlines' reselection. First, the current EAS definition for Adak as set by Order 80-1-167, requires service with aircraft exceeding 60-seat capacity. Peninsula's proposal with 30-seat Saabs does not meet that criterion. Moreover, as we have noted in earlier Adak proceedings, the very long distance of 1,200 miles to Anchorage, coupled with the very severe and unpredictable weather, almost dictate the use of large aircraft. In addition, Alaska's large jet provides greater overall lift and should better accommodate Adak's cargo needs than Peninsula's Saabs. Finally, we are required by statute to give great weight to community preferences. In this case, the community is unanimous in its support for Alaska Airlines' service.

Nonetheless, we remain concerned about the high level of subsidy required to support Adak's air service. After one‑year of reliable service by Alaska Airlines, it is clear that the need for subsidy has not declined significantly. The community and the carrier have argued that within the next two‑year period there will be significant expansion of Adak traffic, which should reduce the need for subsidy. The Department will follow these traffic numbers closely.

By: Karan Bhatia