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Order 2006-3-2 - EAS at Adak, Atka and Nikolski, AK - Requesting Proposals


Essential Air Service at Adak, Atka and Nikolski, Alaska

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

Order Requesting Proposals

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


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