Essential Air Service at Healy Lake, Alaska

Order 2006-4-11
OST-1998-3546

Issued April 7, 2006 | Served April 12, 2006

Order Re-Selecting Carrier

By Order 2004-5-13, May 14, 2004, the Department re-selected 40-Mile Air to provide subsidized essential air service at Healy Lake, Alaska, through May 31, 2006. Under that order, 40-Mile Air operates two nonstop round trips to Fairbanks each week with 5-seat Cessna 206 or 207, at an annual subsidy rate of $51,781. Currently, 40-Mile Air operates an additional unsubsidized round trip to Fairbanks each week.

In anticipation of the end of the rate term, the Department issued Order 2006-2-5 on February 8, 2006, soliciting proposals to provide efficient EAS, with subsidy support if necessary, at Healy Lake.

40-Mile submitted the only proposal to provide essential air service at Healy Lake for a new two-year rate term. The carrier proposes to continue its historical service of two nonstop round trips to Fairbanks each week with 5-seat Cessna 206 or 207 aircraft. 40Mile Air's annual subsidy requirement is $71,105.

By this order, the Department is reselecting 40-Mile Air, Ltd. to provide subsidized essential air service at Healy Lake, Alaska, at an annual subsidy rate of $71,105 for the period of June 1, 2006, through May 31, 2008.

By: Todd Homan