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Updated: Friday, June 1, 2007 8:25 AM


OST-2004-19342 - EAS at Karluk, Alaska


OST-2000-6945 - EAS at Karluk, AK


Essential Air Service at Karluk, Alaska

OST-2004-19342 - EAS at Karluk, AK

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 1995-5-2. Editor's note: Order 1995-5-2 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



Order 2004-12-04
OST-2004-19342 - EAS at Karluk, AK

Issued and Served December 7, 2004

Order Prohibiting Termination of Service and Requesting Proposals | Word

Since the termination of service by Island Air at Karluk would leave the community with no scheduled air service, we have decided to prohibit the carrier from terminating its service and  require it to maintain its present service pattern of thrice-weekly service to Kodiak for 30 days past the end of the 90-day notice period, through February 3, 2005, or until a replacement carrier inaugurates full EAS, whichever comes first.

Because of the greater demand during the fourteen-week “summer” season, which stretches from about June 1 until about September 15 each year, Island Air schedules 18 weekly round trips between Karluk and Kodiak during this period to accommodate the increased demand.  The “summer” service is also well above the EAS – required minimum level of three weekly round trips provided by Island Air during the remainder of the year.  While the carrier is not required to provide the additional service during the summer, it has routinely done so both to accommodate the increased demand during that period, as well as to generate sufficient revenue to adequately serve the community without subsidy support on a year-round basis.

By: Karan Bhatia



January 6, 2005

Re: Proposal of Servant Air

By: Servant Air


January 21, 2005

Re: Request for Comments of Carl Siebe, Airports Engineer

I would like to update you on the essential air service situation at Karluk and give you an opportunity to submit any final comments if you wish before we issue a final order selecting a service option for a two-year period beginning on or about March 1, 2005. We also sent a similar letter to The Honorable Alecia Reft, President of the IRA Traditional Council at Karluk.

As you know, on October 5, 2004, Redemption, Inc., d/b/a Island Air Service filed a 90-day notice to suspend its unsubsidized scheduled service at Karluk. In response, we issued Order 2004-12-04, December 7, 2004, which prohibited Island Air from suspending service until we selected a carrier to provide replacement service, and, at the same time, requested proposals from carriers interested in providing replacement service at the community. In response to our request, only Servant Air, Inc. submitted a proposal, consisting of three options.

By: Dennis DeVany


January 21, 2005

Re: Request for Comments of The Honorable Alecia Reft, IRA Traditional Council

By: Dennis DeVany



Order 2005-01-25
OST-2004-19342 - EAS at Karluk, AK

Issued and Served January 28, 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 Karluk, Alaska, for an additional 30 days, through March 7, 2005.

By: Karan Bhatia



February 2, 2005

Re: Karluk IRA Tribal Council Letter Opposing Essential Air Service Proposals

We, The Karluk IRA Tribal Council has received and reviewed the Essential Air Service proposal from Sevant Air. First of all we feel it is very unfortunate that Island Air Service was not able to put in a competitive bid on the service for Karluk. Island Air Service has served Karluk for a number of years. Their flight schedule to Karluk was very accommodating. Now we see that we may be served a total of three times a week year round and that is very disappointing. We understand that the plane Servant Air is willing to put on line for this service is a single engine aircraft whereas Island Air Service mainly flew an Islander (twin engine aircraft) into our community This aircraft is much more appropriate for our weather conditions that we deal with here in Karluk. The safety of our community members is our number one priority.

Having said that, we would like it duly noted that we do not agree with the proposals presented. We would like this letter to be part of Karluk's record. We would also like to state that the Tribal Council owns two thirds of the airstrip in Karluk. When you say that Carl Siebe is the owner/operator of the Karluk Airport what are you referring to exactly? Please forward a description of what that title encompasses.

By: Alicia Reft, William Alpiak, Gladys Charliaga, Joyce Jones



March 1, 2005

Re: Comments of the State of Alaska Department of Transportation and Public Facilities

By: Carl Siebe



Order 2005-03-07
OST-2004-19342 - EAS at Karluk, AK

Issued March 7, 2005 | Served March 10, 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 Karluk, Alaska, for an additional 30 days, through April 6, 2005.

By: Randall Bennett



Order 2005-03-23
OST-2004-19342 - EAS at Karluk, AK

Issued March 17, 2005 | Served March 22, 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 Karluk, Alaska, for an additional 30 days, through May 6, 2005.

By: Randall Bennett



Order 2005-03-30
OST-2004-19342 - EAS at Karluk, AK

Issued March 23, 2005 | Served March 28, 2005

Order Selecting Carrier and Establishing Subsidy Rate

By this order, the Department is (a) selecting Servant Air, lnc. to provide essential air service to Karluk, Alaska, and, (b) establishing a subsidy rate of $38,880 per year for service consisting of three trips each week, year-round, over a Kodiak-Karluk-Kodiak routing, with 5-seat Piper PA-32R-300 aircraft.

By: Karan Bhatia



Order 2005-4-15
OST-2004-19342 - EAS at Karluk, AK

Issued April 15, 2005 | Served April 20, 2005

Order Extending Service Obligation

By Order 2005-3-30, March 23, 2005, the Department selected Servant Air, Inc., to provide subsidized essential air service at Karluk for a two-year period. However, the carrier transition process will not be completed by 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 Karluk for an additional 30 days, or until the carrier transition process is complete, whichever occurs first.

By: Randall Bennett



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

Order Requesting Proposals

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



OST-2000-6945 - Eleven Kodiak Island Communities
OST-2004-19342 - EAS at Karluk, AK


April 12, 2007

Proposal of Island Air

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

Proposal of Servant Air

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

Order Setting Final Rates

  1. The Department sets the final subsidy rate for Servant Air, Inc., for the provision of essential air service at Alitak, Arnook Bay, Kitoi Bay, Moser Bay, Olga Bay, Port Bailey, Port Williams, Seal Bay, Uganik, West Point, and Zachar 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 he subject to the weekly ceiling and shall be determined by multiplying the subsidy-eligible flights completed during the month to and from Kodiak by $124.48.
  2. The Department sets the final subsidy rate for Servant Air, Inc., for the provision of essential air service at Karluk, 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 he determined by multiplying the subsidy-eligible flights completed during the month to and from Kodiak by $132.78.
  3. We direct Servant Air to retain all books, records, and other source and summary documentation to support claims for payment and to preserve and maintain such documentation in a manner that readily permits the audit and examination by representatives of the Department. Such documentation shall be retained for seven years or until the Department indicates that the records may be destroyed, whichever occurs first. Copies of flight logs for aircraft sold or disposed of must be retained. The carrier may forfeit its compensation for any claim that is not supported under the terms of this order.

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

Order Selecting Carrier

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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