Home | Search | Help
OST by Number | OST by Order | OST by Carrier | OST by Subject | OST by Day
OIA by Carrier/Subject | OIA by Day | FAA by Number | FAA by Subject | FAA by Day
Carrier Financials | Charter Office


OST-2000-6773 - EAS at Kalaupapa, HI

http://hawaii.gov/lup - Kalaupapa Airport


EAS Docket


Essential Air Service at Kalaupapa, Hawaii

OST-2000-6773 January 10, 2000 Re:  Notice to Terminate Thirty-Days Notice to Terminate Essential Air Service at Kalaupapa, Molokai, Hawaii

By:  Pacific Wings, Myron Caplan



OST-00-6773 January 28, 2000 Answer of the State of Hawaii Thirty-Days Notice to Terminate
Essential Air Service at Kalaupapa,
Molokai, Hawaii
    Service List  

Counsel:  Shaw Pittman, Nathaniel Breed, 202.663.8078



Order 00-2-11
OST-00-6773
Issued February 7, 2000
Served February 10, 2000
Order Permitting Suspension of Service  30-Days Notice to Terminate Essential Air Service at Kalaupapa, Molokai, Hawaii

Order 2000-2-11 is granting Pacific Wings, d/b/a Air Nevada, Inc., permission to terminate its air service at Kalaupapa at the end of its 30-days notic

By:  Bradley Mims



OST-00-6773 February 17, 2000 Re:  State of Hawaii  30-Days Notice to Terminate EAS at Kalaupapa, Molokai, Hawaii

Counsel: Shaw Pittman, Nathaniel Breed, 202.663.8078



Order 00-2-24
OST-00-6773
Issued February 18, 2000
Served February 24, 2000
Order Selecting Carrier and Setting Final Rate  30-Days Notice to Terminate Essential Air Service at Kalaupapa, Molokai, Hawaii
    Appendix A:  Map   
    Appendix B:  Annual Subsidy Need  
    Appendix C:  EAS  

Order 2000-2-24 designates Kalaupapa, Hawaii, as a community eligible to receive subsidized small community air service under 49 U.S.C 41736(a), and selects Air Nevada, Inc., d/b/a Pacific Wings, to provide subsidized air service at the community for a two-year period. 



OST-00-6773 February 28, 2000 Re: Request for EAS of Office of the Mayor, County of Maui 30-Days Notice to Terminate EAS at Kalaupapa, Molokai, Hawaii
    Service List  

By:  Mayor, James Apanar



OST-00-6773 April 5, 2000 Re:  EAS Eligibility of Kalauppa, Hawaii

Scanned Copy

Essential Air Service at Kalaupapa, Hawaii
    Service List  

The right of Pacific Wings to terminate its mandated essential air service to Kalaupapa unilaterally and without prior authorization by the Department by giving 30 days notice to the Department and the community of its intent to terminate that service is no longer applicable. Since Kalaupapa is now defined as an "eligible place", the continuation and termination of subsidized essential air service at Kalaupapa is now governed by the mandatory notice and authorization requirements of Section 41734, and, in particular, the requirement that such service may not be terminated unless and until another air carrier is providing the mandated level of essential air service at the community "on a continuing basis" (Section 41734(c)). Although the foregoing amendments are now effective as a matter of law, based on enactment of the AIR-21 Act, the State of Hawaii believes that it is appropriate and desirable for the Department to provide official notice of the revised status of Kalaupapa under the Essential Air Service Program to the community of Kalaupapa, the U.S. National Park Service and Pacific Wings. To accomplish that purpose, Hawaii respectfully requests the Department to issue an Order amending Order 2000-2-24 as soon as possible.

Counsel:  Shaw Pittman, Nathaniel Breed, 202.663.8078



Order 00-4-18
OST-98-4409
OST-00-6773
Issued April 18, 2000
Served April 18, 2000
Order Eliminating Requirement To Pay a Portion of Compensation for Small Community Air Service Essential Air Service at Kalaupapa, Molokai, Hawaii and Show Low, Arizona- Phoenix Sky Harbor
    Appendix A:  Summary of Service to be Provided  

Order 2000-4-18 eliminates the requirement for the communities of Show Low, Arizona, and Kalaupapa, Hawaii, to pay 50 percent of the compensation for small community air service. 

By:  Bradley Mims



OST-00-6773 May 18, 2000 Letter of Pacific Wings Thirty-Days Notice to Terminate Essential Air Service at Kalaupapa, Molokai, Hawaii

By:  Pacific Wings, Myron Caplan



OST-97-2833
OST-99-6502
OST-00-6773
April 2, 2002 Request for Proposals Essential Air Service Proposals for Kamuela, Hawaii and Hana, Hawaii; and Notice to Terminate Essential Air Service at Kalaupapa, Molokai, Hawaii

I know you have talked over the phone with Kevin Adams about Pacific Wings submitting a proposal, but time has elapsed and we wanted to put something on the record. As we advised you by e-mail on January 22, 2002, your rates at Hana, Kalaupapa, and Kamuela were then due to expire soon. One of your rates has now expired, and two are due to expire soon. Specifically, your rates were set to expire at Kalaupapa on February 28, at Hana on March 31, and at Kamuela on April 30, 2002.

You did mention your need to clear up some loose ends on the expense side before submitting proposals, and although we said that was fine, we did not anticipate that it would take this long. We recognize that the subsidized routes represent a significant percentage of your total operation, and so would normally anticipate you not wanting to endure any time without having a rate in place so that you could be subsidized while being required to continue providing service. ' In addition, for many sound reasons we do not like setting retroactively adjustable rates for more than a minimum time, unless absolutely necessary.

By:  Dennis DeVany



OST-00-6773 April 2, 2002
Docketed April 9, 2002
Letter of Pacific Wings Airlines Limited 30-Days Notice to Terminate EAS at Kalaupapa, Molokai, Hawaii

By:  Pacific Wings, Greg Kahistorf



Order 02-5-19
OST-97-2833
OST-99-6502
OST-00-6773
Issued May 22, 2002
Served May 28, 2002
Setting Final Rates and Requesting Proposals EAS Proposals for Kamuela, Hawaii and Hana, Hawaii; and Notice to Terminate EAS at Kalaupapa, Molokai, Hawaii
    Exhibits:  Map, Annual Compensation, EAS to be Provided  

By this order we are setting a short-term final subsidy rate, retroactive to October 1, 2001, until the rate was set to expire (February 28, 2002) for Pacific Wings' essential air service (EAS) at Kalaupapa in the amount of $283,644 annually. At Hana and Kamuela, the carrier agreed to no changes from the original rates set by Orders 2000-5-2 and 2000426. We are also setting new final rates for all three communities, effective when the prior rates expired until further Department action. Finally, we are also requesting proposals for long-term service at these communities.

By:  Read Van de Water



OST-99-6502
OST-00-6773
OST-97-2833
June 14, 2002
Docketed July 5, 2002
Proposal of Pacific Wings

Essential Air Service at Hana, Kalaupapa, and Kamuela, Hawaii

We respectfully submit our EAS proposal for Cessna Caravan (CE208) service for the three communities of Kalaupapa, Kamuela, and Hana, Hawaii. The proposed subsidy need is detailed in the attached appendix and is based on our historical service. Kevin and I reached agreement on the numbers after many hours of analysis.

By:  Franklin Ford



OST-00-6773 July 26, 2002 Request for Community Comments

Essential Air Service at Hana, Kalaupapa, and Kamuela, Hawaii

As you are probably aware, Pacific Wings currently operates a fleet of several

Cessna 402s that the carrier plans to phase out in favor of factory-new Cessna Caravan aircraft. The Caravan is a single-engine, prop-jet aircraft that Pacific Wings would operate with one pilot. The carrier proposes to continue to operate the same service patterns at both Hana and Kalaupapa that it has operated historically, i.e., Kalaupapa would continue to receive two nonstop round trips a day to Honolulu, and Hana would continue to receive two nonstop round trips a day to Honolulu and two nonstop round trips a day to Kahalui.

For your information, I have enclosed summaries of the subsidy computations for Hana and Kalaupapa, as well as for Kamuela which Pacific Wings serves under the EAS program, that show revenue and expense estimates based on the carrier's experience, adjusted for the new aircraft type. Regarding the fares in the appendix, carriers have the discretion to charge fares they deem appropriate, and the passenger fares presented here have been developed for subsidy rate computation purposes only. We make every effort, though, to negotiate average passenger fares for ratemaking purposes based on system averages realized by the carrier for markets of comparable distance.

By:  Dennis DeVany



Order 02-8-10
OST-99-6502

OST-00-6773
OST-97-2833
Issued August 12, 2002
Served August 12, 2002 
Order Selecting Carrier and Setting Final Subsidy Rates

Essential Air Service at Hana, Kalaupapa, and Kamuela, Hawaii

Pacific Wings has made a corporate decision to upgrade its fleet from its current, piston-engine Cessna 402 aircraft to factory-new, prop jet Cessna Caravans. The communities are fully supportive of Pacific Wings' service, especially the introduction of its new Cessna Caravan aircraft. In the short term, the Caravans require significantly more subsidy, $2,323,918 compared to the current rates of $1,728,127, due largely to the higher ownership costs. We are optimistic that the new aircraft will be well received by the communities, in terms of passenger acceptance and increased operational reliability, both of which should result in more passenger usage and thus lower subsidy. In that regard, we note that the carrier was willing to forecast significantly more passengers in the second year of Caravan service. Based on the above, we find the proposed service and subsidy levels to be reasonable. We strongly encourage all three communities to work closely with Pacific Wings to increase ridership and ultimately to reduce the amount of subsidy required to support the service.

By:  Read Van de Water



OST-99-6502
OST-00-6773
August 2, 2002 Re:  Letter from County of Maui in Support of Pacific Wings Essential Air Service at Hana and Kalaupapa, HI

By:  James Apana, Mayor



Order 04-09-17
OST-99-6502 - EAS at Hana, HI
OST-00-6773 - EAS at Kalaupapa, HI
OST-97-2833 - EAS at Kamuela, HI

Issued September 17, 2004 | Served September 22, 2004

Order Requesting Proposals

By this order, the Department is requesting proposals from carriers interested in providing essential air service at Hana, Kalaupapa, and Kamuela, Hawaii, for a new two-year period, with or without subsidy. The order reflects new, streamlined procedures for processing such proposals.

Pacific Wings has provided service to Hana, Kalaupapa, and Kamuela for a number of years. During the year ended May 2004, the most recent 12‑month period for which traffic data are available, daily enplanements were as follows: Hana, 8.9 to Honolulu and 3.1 to Kahului; Kalaupapa, 5.3 to Honolulu; and Kamuela, 5.7 to Honolulu and 4.7 to Kahului.4 At Hana, applicants should consider an option adding service to Honolulu, the bigger traffic generating hub, and reducing or eliminating service to Kahului, which has generated much less traffic.

By: Karan Bhatia



OST-97-2833 - EAS at Kamuela, HI
OST-99-6502 - EAS at Hana, HI
OST-00-6773 - EAS at Kalaupapa, HI

September 27, 2004

Re: Letter from Part 135 Regulated Operators Partnership

Island Air has already increased the number of operations in and out of Kahului by a substantial number and is reportedly on their way to a five‑fold increase in operations there. Island Air seems to have an operating policy of leaving one engine running on the passenger ramp for protracted periods of time, presumably to save cycles on the engine. This creates a potential hazard to wayward passengers and others as no one monitors the area surrounding this extremely lethal instrument.

Island Air has been offered space at the main terminal, but they have summarily refused it. In the Main Terminal, there are many available gates designed for access to Dash 8 aircraft. The Commuter Terminal was created to handle normal category aircraft with 19 or fewer seats that serve rural Hawaii airports. It seems clear that Island Air has chosen a business model using large transport category aircraft that more appropriately lends itself to operations out of the Main Terminal just like they use at Hilo, Kona, and, Lihue. As you may remember, when Mahalo Airlines began service to Kahului with similar size aircraft they were sent to the main terminal without debate, in the interest of safety.

I struggle to understand why the condition is tolerated that forces commuter passengers to run a gauntlet on a ramp designed for normal category aircraft, especially when a solution that is so intuitively apparent exists. I ask for your assistance to use the Federal Aviation Administration's‑mandate for public safety to launch an investigation to determine some "best practices" before an inevitable tragedy occurs. Thank you for your help with this matter.

By: PROP, Rob McKinney



OST-97-2833 - EAS at Kamuela, HI
OST-99-6502 - EAS at Hana, HI
OST-00-6773 - EAS at Kalaupapa, HI

October 20, 2004

Re: Extension of Time

On October 20, 2004, Corporate Airlines, Inc., requested an extension of time, until November 15, 2004, to file a competitive proposal in response to Order 2004-9-17, served September 22. That order requested competitive proposals be submitted by October 22, 2004, for EAS at three Hawaiian communities: Hana, Kalaupapa, and Kamuela.

This is to advise all parties that we have decided to grant Corporate's request for an extension of time to file. Objections and/or competitive proposals, in response to our actions in Order 2004-9-17, must now be filed no later than November 15, 2004.

By: Dennis DeVany



OST-97-2833 - EAS at Kamuela, HI
OST-99-6502 - EAS at Hana, HI
OST-00-6773 - EAS at Kalaupapa, HI


November 12, 2004

Re: Proposal of Aviation Ventures d/b/a Vision Air

By: William Acor


November 12, 2004

Re: Proposal of Corporate Airlines

By: Fred Breeden


November 12, 2004

Re: Proposal of Pacific Wings

By: R. Franklin Ford, Jr.



OST-97-2833 - EAS at Kamuela, HI
OST-99-6502 - EAS at Hana, HI
OST-00-6773 - EAS at Kalaupapa, HI


December 13, 2004

Re: Request for Comments from Roy Sakata, Airports Division, State of Hawaii, Department of Transportation

I would like to update you on the essential air service situation at each of the above communities, and give you an opportunity to submit any final comments if you wish before we issue a final order selecting a carrier proposal and/or service option for a new two-year period beginning December 1, 2004. We also sent an identical letter to Mayor Kim regarding EAS at Kamuela, and to Mayor Arakawa regarding EAS at Kalaupapa and Hana.

As you know, by Order 2002-8-10, August 12, 2002, we re-selected Pacific Wings Airlines, Ltd., to provide subsidized essential air service at Hana (Docket OST-1999-6502), Kalaupapa (Docket OST-2000-6773), and Kamuela (Docket OST-1997-2833), Hawaii, through November 30, 2004. The carrier was selected to provide each community with service to Honolulu and/or Kahului using 9-seat, single-engine turboprop Cessna 208 Caravans. As is our normal practice near the end of a two-year term, we issued Order 2004-9-17, which solicited proposals from carriers interested in serving each community for a new two-year period, either with or without subsidy. In response to our request, we received three proposals: from the incumbent Pacific Wings; from Aviation Ventures, Inc. d/b/a Vision Air; and from Corporate Airlines, Inc. Since you should have received copies of the proposals from each carrier, we will only briefly summarize them below.

By: Dennis DeVany


December 13, 2004

Re: Request for Comments from Harry Kim, Mayor of the County of Hawaii

By: Dennis DeVany


December 13, 2004

Re: Request for Comments from Alan Arakawa, Mayor of the County of Maui

By: Dennis DeVany



OST-97-2833 - EAS at Kamuela, HI
OST-99-6502 - EAS at Hana, HI
OST-00-6773 - EAS at Kalaupapa, HI


December 21, 2004

Re: Comments of Alan Arakawa, Mayor of County of Maui

It is important that when services are being considered for Hana and Kalaupapa, the amount of flights made available to the residents is of high priority. If residents and visitors alike are aware of air transportation services available to these areas, it is my belief that those services will be utilized.

By: Alan Arakawa


December 29, 2004

Re: Alan Arakawa, Mayor of County of Maui, Letter in Support of Pacific Wings

Pacific Wings is a local company with ties to these communities and is also an employer in these same communities. Pacific Wings' commitment to make air travel readily accessible to those with disabilities is also commendable. Whether providing transportation for a dialysis patient from Hana, or wheelchair‑bound patients with Hanson's disease from Kalaupapa, this company has shown dedication to serve those less fortunate in these communities.

In addition, with rider‑ship on the rise and subsidy request on the decline, Pacific Wings has proven to be a successful business model. As the incumbent air carrier, the service this company provides is a vital transportation link for these remote rural communities. That is why their EAS contract should be renewed for another period.

By: Alan Arakawa



OST-97-2833 - EAS at Kamuela, HI
OST-99-6502 - EAS at Hana, HI
OST-00-6773 - EAS at Kalaupapa, HI


December 27, 2004

Re: Harry Kim, Mayor of the County of Hawaii Letter in Support of Pacific Wings

By: Harry Kim


January 3, 2005

Re: Department of Health, State of Hawaii Letter Commending Pacific Wings

By: Michael McCarten


January 4, 2005

Re: State Senator Kalam English Letter Requesting the Extension of the Deadline for Community Comments

By: Kalam English


January 5, 2005

Re: County Council, County of Maui Letter Requesting the Extension of the Deadline for Community Comments

I am writing to you regarding pubic comment on the federal subsidy for air transportation in East Maui. As the situation stands, the period for public input will be closed on Friday, January 7, 2005. I firmly believe that this is not enough time to gauge public sentiment and response; therefore I request that the Department of Transportation extend the comment process for 30 days after January 7.

By: Bob Carroll


January 5, 2005

Re: Letter Extending the Deadline for Community Comments

At the request of the County Council of the County of Maui, Hawaii, we are extending the deadline for filing community comments for the carrier selection case in the above-listed dockets from January 7, 2005, to February 7, 2005.

By: Dennis DeVany



OST-97-2833 - EAS at Kamuela, HI
OST-99-6502 - EAS at Hana, HI
OST-00-6773 - EAS at Kalaupapa, HI

January 5, 2005

Re: Congressman Ed Case Letter in Support of Pacific Wings

By: Ed Case



OST-97-2833 - EAS at Kamuela, HI
OST-99-6502 - EAS at Hana, HI
OST-00-6773 - EAS at Kalaupapa, HI


January 5, 2005

Re: Opposition of Pacific Wings Airlines to Request for Extension of Time

Earlier today we were notified that your office has received two requests for an extension of time to respond to your letter dated December 13, 2004 sent simultaneously to Mr. Roy Sakata, Mayor Harry Kim, and Mayor Alan Arakawa requesting the views of the affected communities. The requests come on the eve of the January 7, 2005 deadline imposed in the December 13 letter. Because the requests fail to show good cause for an extension of time, and because further delay in making an EAS decision and award will prejudice Pacific Wings, Pacific Wings hereby opposes any extension of time.

Counsel: Patton Boggs, Gregory Walden, 202-457-6135, gwalden@pattonboggs.com


Order 05-01-06

Issued and Served January 7, 2005

Order Granting a 30-Day Extension fro Public Comments | Word

By this order, the Department is granting a 30-day extension for the submission of public comments, until February 7, 2005.

By: Randall Bennett



OST-97-2833 - EAS at Kamuela, HI
OST-99-6502 - EAS at Hana, HI
OST-00-6773 - EAS at Kalaupapa, HI


January 14, 2005

Re: Comments of The County of Hawaii

By: Harry Kim, Mayor


January 14, 2005

Re: Comments of State of Hawaii Department of Transportation

By: Brian Sekiguchi



OST-97-2833 - EAS at Kamuela, HI
OST-99-6502 - EAS at Hana, HI
OST-00-6773 - EAS at Kalaupapa, HI


February 6, 2005

Re: Comments of The County of Hawaii

By: Harry Kim, Mayor


January 31, 2005

Re: Comments of The County of Maui

By: Alan Arakawa, Mayor


February 7, 2005

Re: Comments of Hana Coast Realty

By: Carl Lindquist


February 7, 2005

Re: Comments of The Hotel Hana-Maui

By: Michael Freed


January 14, 2005

Re: The County of Hawaii Letter in Support of Vision Air

By: Harry Kim, Mayor


February 7, 2005

Re: Robert Filippi Letter in Support of Vision Air

By: Robert Filippi


February 8, 2005

Re: William Conner Letter in Support of Vision Air

By: William Conner


February 7, 2005

Re: Letter from Vision Air

By: Warren Kaplan



Order 2005-03-34
OST-99-6502 - EAS at Hana, HI
OST-00-6773 - EAS at Kalaupapa, HI
OST-97-2833 - EAS at Kamuela, HI

Issued March 24, 2005 | Served March 29, 2005

Order Reselecting Carrier and Establishing Subsidy Rates

By this order, the Department is reselecting Pacific Wings Airlines, Ltd., to provide essential air service at Hana, Kalaupapa, and Kamuela, Hawaii, for the period from April 1, 2005, through March 31, 2007, at an annual rate of $1,597,422 for the first year and at an annual rate of $1,501,752 for the second year.

By: Karan Bhatia



Order 2006-10-15
OST-1999-6502 - Hana
OST-2000-6773 - Kalaupapa
OST-1997-2833 - Kamuela

Issued October 26, 2006 | Served October 31, 2006

Order Requesting Proposals

By this order, the Department is requesting proposals from carriers interested in providing essential air service at Hana, Kalaupapa, and Kamuela, Hawaii, for the two-year period beginning April 1, 2007, with or without subsidy.

With respect to each community specifically, we expect proposals at Hana consisting of four well- timed, nonstop round trips a day to Honolulu and/or Kahului (total of 28 weekly round trips); at Kalaupapa, consisting of two nonstop round trips a day to Honolulu (total of 12 weekly round trips); and at Kamuela, consisting of two nonstop round trips a day to Honolulu and/or Kahului (total of 12 weekly round trips). Service should be provided using an appropriate aircraft for each community, i.e., two pilots, single or twin-engine aircraft, capacity of 8 or more passenger seats. We encourage proposals that meet the needs of the communities in an efficient manner. Carriers are also welcome to propose more than one service option, if they choose, and they need not limit themselves in any way if they envision other. potentially more attractive service possibilities -- different hubs or smaller aircraft, for example -- with subsidy requirements that remain competitive.

By: Todd Homan



OST-1999-6502 - Hana
OST-2000-6773 - Kalaupapa
OST-1997-2833 - Kamuela

November 15, 2006

Email Message - Comments of Kalaupapa National Historical Park

It has come to my attention that the contract for airline service to Kalaupapa, Molokai, Hawaii will soon be decided. I would like to state my desire for a change in service both personally and professionally. The current carrier Pacific Wings has provided very poor customer service. It took almost two months to get a response from them when they overcharged a Kalaupapa employee for four extra tickets. Their scheduling does not benefit the consumer and their pricing does not reflect a subsidized fare.

It would be most welcome if you would consider offering the contract to another carrier.

By: Roseann Worley, 808-567-6802, Rose_Worley@nps.gov



OST-1999-6502 - Hana
OST-2000-6773 - Kalaupapa
OST-1997-2833 - Kamuela


November 17, 2006

Proposal of Mokulele Airlines

Pursuant to Order 2006-10-15, Mokulele Flight Service, Inc. d/b/a Mokulele Airlines respectfully submits this proposal to provide essential air service to the communities and residents of Hana, Kamuela, and Kalaupapa, Hawaii, for the two year period beginning April 1, 2007.

Hana will receive two daily roundtrips to Honolulu and two daily roundtrips to Maui (7 days per week). Kamuela will receive two daily roundtrip flights (6 days per week) serving Honolulu and Maui. Kalaupapa will receive two daily roundtrip flights (6 days per week) serving Honolulu.

Mokulele proposes to provide scheduled services using 9-seat Cessna Grand Caravans which is the same aircraft operated by the incumbent carrier in these markets. However, Mokulele’s fleet configuration will represent a significant upgrade as our aircraft will have an all first-class configuration, with two 19” LCD screens providing in-flight news and entertainment.

By: Mokulele, Robert McKinney, 808-326-7070



Order 2006-10-15
OST-1999-6502
- Hana
OST-2000-6773 - Kalaupapa
OST-1997-2833 - Kamuela

Issued October 26, 2006 | Served October 31, 2006 | Corrected November 21, 2006

Order Requesting Proposals - Corrected

Order 2006-10-15 erroneously sited docket number OST-1997-2822 instead of OST-1997-2833.

By: Todd Homan



November 22, 2006

Re: Comments of Hana Health

It is with great pleasure that I write this letter of support for the expansion of Mokulele Airlines into the Hana marketplace. The District of Hana is one of the most remote regions in the state of Hawaii. Although only 52 miles from the Kahului airport, the trip takes approximately 2 hours, at a speed of between 10 and 25 miles an hour, along a single lane road with 617 turns and 56 one-lane bridges. The road winds through tropical rain forests and along steep sea cliffs.

Hana Health is hopeful that Mokulele Airlines will be allowed to enter the Hana marketplace and develop a flight schedule that meets the needs of the health center and the larger community, at a reasonable cost. Please feel free to contact me with any questions, or for additional information. We look forward to the improved services that Mokulele intends to provide for our community.

By: Hana Health, Cheryl Vasconcellos, Executive Director, P.O. Box 807, Hana, Maui HI 96713



OST-1999-6502 - Hana
OST-2000-6773 - Kalaupapa
OST-1997-2833 - Kamuela

November 30, 2006

Proposal of Pacific Wings

Pacific Wings will continue to serve Hana, Kamuela and Kalaupapa, Hawaii at or above levels stipulated by the program for these communities, without further EAS subsidies.

Pacific Wings will offer eight nonstops and two connecting flights a day between Honolulu and Hana,
(including new early morning and late afternoon service) beginning 01 DEC 06. At the same time, we are increasing the number of daily nonstops between Hana and Kahului to 12.

By: Pacific Wings, Greg Kahlstorf



December 1, 2006

Re: Email Message - Comments of Eric Brown

I wanted to address the Pacific Wings fluctuating flight schedule between Kalaupapa and Honolulu, Hawaii. For many months the carrier has been pretty reliable for my business travel. In the past 2 months, however, they have begun to alter their schedule on rather short notice. Sometimes I have called in the morning (e.g. November 19th) to reconfirm an already changed flight (e.g. departure 3:20pm to 5:45pm) to find out that the flight is now departing 4.5 hours earlier (e.g. 5:45pm to 1:20pm). To Pacific Wings credit they have tried contacting me and so far, these changes have not resulted in missing connecting flights or appointments, but it is very inconvenient. I understand that carriers need to change flights occasionally to meet demand and aircraft availability but I cannot keep changing my business schedule on such short notice to accommodate their desires, especially when my flight options are so limited to and from our remote park.

Eric Brown, Ph.D., Marine Ecologist, Kalaupapa NHP, P.O. Box 2222, Kalaupapa HI 96742



Order 2006-12-3
OST-1999-6502 - Hana
OST-2000-6773 - Kalaupapa
OST-1997-2833 - Kamuela

Issued December 4, 2006 | Served December 7, 2006

Order Terminating Carrier-Selection Case

By this order, the Department is terminating the carrier-selection proceeding for essential air service at Hana, Kalaupapa, and Kamuela, Hawaii. The incumbent EAS carrier, Pacific Wings, has proposed to continue to provide all three communities' EAS on a subsidy-free basis beginning April 1, 2007, after the end of the current two-year contract on March 31.

By: Todd Homan



OST-1999-6502 - Hana
OST-2000-6773 - Kalaupapa
OST-1997-2833 - Kamuela

October 22, 2007

Re: Mokulele Airlines Request to Vacate Order 2006-12-3

I write to request the Department vacate Order 2006-12-3, terminating the carrier selection process for Hana, Kalaupapa, and Kamuela, HI and reinstate the selection process for subsidized service to the three Hawaii communities which we believe is in the best interest of the affected communities.

On October 2, 2007, the Department received 15 letters of complaint from residents, business owners and travelers to Hana stating their dissatisfaction, concerns and frustrations with the current air service provider.

In the four months (December, 2006 thru April, 2007) immediately following the DOT’s termination of the carrier selection process, origin and destination (O&D) levels at Hana declined substantially. According to DOT’s Bureau of Transportation Statistics in December, 2006 339 O&D passengers traveled between Honolulu (HNL) and Hana (HNM), 140 O&D passengers between Hilo (ITO) and HNM, and 275 passengers between Kahului (OGG) and HNM.

Conversely, in April of 2007, the BTS reports 217 passengers for the HNL-HNM market, a 36% reduction from December, 2006; 69 passengers for the ITO-HNM market, a 51% decline from December, 2006; and 207 for the OGG-HNM market, a 25% decrease from December, 2006.

In DOT Order Number 1989-12-52, the Department made it clear that:

“. . . if communities are not receiving air service that is as reliable as they expect or demand we anticipate and encourage them to contact us for assistance…”

The representations of Hawaii EAS communities filed with the DOT on October 2, 2007 through the office of Congresswoman Mazie K. Hirono, I believe, satisfy the request for assistance requirement. Hawaii EAS communities, like those on the mainland, are guaranteed a minimal level of service. When essential air service is not provided in a manner consistent with the letter and spirit of the law, the DOT must affirmatively exercise its discretion in the best interest of the communities. We therefore request the carrier selection process be reinstated immediately.

By: Mokulele, William Boyer



OST-1999-6502 - Hana
OST-2000-6773 - Kalaupapa
OST-1997-2833 - Kamuela

November 19, 2007

Re: Response of Pacific Wings

Mokulele is fundamentally dependent on Mesa, particularly for product distribution, and in light of Mesa's legal exposure to Hawaiian and perhaps other airlines, there is significant doubt whether Mesa will continue to serve Hawaii. It appears that Mokulele may be attempting to ensure its future survival by doing anything possible to obtain federal subsidies in the event its business partnership is grounded by Mesa's withdrawal from the Hawaii market.

By: Pacific Wings, Greg Kahlstorf



July 18, 2008

Re: Community Comments Regarding Pacific Wings

At its most recent meeting of the 'Ohana Board of Directors, the community asked that we contact you to help address the transportation problems being experienced because of the new routes and schedules of Pacific Wings, the only regularly scheduled airline serving Kalaupapa. Last year. Pacific Wings changed its routes so there are no longer any direct flights between Honolulu and Kalaupapa. All flights stop first on topside Molokai, which means that most seals get booked by Molokai residents. For Kalaupapa residents, tourists and government officials doing business at Kalaupapa, it's often impossible to secure a reservation.

We are including a petition signed by the residents of Kalaupapa that asks for help in addressing the problems created by the poor service of Pacific Wings. In the past, the State Department of Health and Senator Daniel Inouye, among others, have attempted to get Pacific Wings executives to listen to the community's concerns, but to no avail.

By: Kuulei Bell



OST-1999-6502 - Hana
OST-2000-6773 - Kalaupapa
OST-1997-2833 - Kamuela

July 24, 2009

Re: Comments of Hawaii Department of Transportation

  1. There is no contract between Pacific Wings and USDOT to provide essential air service.
  2. PW is currently deemed to be the essential air service provider for the affected communities because it held the last contract with USDOT to provide essential air service to these communities.
  3. PW is required to provide basic essential air service of 2 daily round trips, six days a week.
  4. There is no limit on the amount of the fare that PW may charge for air service to any of the affected communities.
  5. If another air carrier provided air service that meets or exceeds the basic essential air service requirements (two round trips, six days a week), that carrier would be deemed to be the essential air service provider to the affected communities.

By: Brennon Morioka



OST-1999-6502 - Hana
OST-2000-6773 - Kalaupapa
OST-1997-2833 - Kamuela

September 14, 2009

Re: Comments of DOT to:

Senator Daniel Akaka (D-HI)
Hawaii DOT Director

We appreciate the community comments regarding the recent increase in the fares charged by Pacific Wings. However, as you may know, the Airline Deregulation Act, passed in 1978, gave airlines almost total freedom to determine which markets to serve domestically and what fares to charge for that service. The EAS program was established as part of that Act to ensure that communities that were served by certificated air carriers as of the date of deregulation would maintain at least a minimum level of scheduled air service, with subsidy if necessary. Therefore, the core objective of the EAS program is to provide communities with a link to the National air transportation system, and not necessarily the service that communities might prefer. The Department does not have the authority to dictate fares, whether the carrier is operating under an EAS contract or providing subsidy-free service.

In a recent teleconference with the Hawaii Department of Transportation, the Department explained that, while Pacific Wings held the most recent contract with the Department to receive subsidy for providing EAS at Hana, Kamuela, and Kalaupapa, as of April 1, 2007, it has been providing EAS at all three communities on a subsidy-free basis. Therefore, no contract between the Department and Pacific Wings has existed since then. In response to direct HDOT questions, the EAS staff assured them that it was perfectly appropriate for the state and community to actively seek competition to Pacific Wings' service.

By: Dennis DeVany



December 6, 2010

Notice of Pacific Wings of Termination of Service

We understand it will be necessary to provide a ninety-day notice of intent to terminate service in order to trigger an EAS Request for Proposal by the Department. Through this correspondence. Pacific Wings is providing required notice.

The airline will, of course, continue to serve Kalaupapa without subsidy throughout the RFP and carrier selection case, and if necessary, beyond.

Pacific Wings will also continue to work with the community to ensure economical and responsible investment of any future EAS subsidies in Kalaupapa. The airline will withdraw this notice in the event the business climate proves incompatible with successful re-implementation of subsidies.

By: Pacific Wings, Greg Kahlstorf



Order 2010-12-30
OST-2000-6773

Issued and Served December 23, 2010

Order Prohibiting Suspension of Service and Requesting Proposals

By this order, the Department is prohibiting Pacific Wings from suspending service at Kalaupapa, Hawaii, and requesting proposals from carriers interested in providing essential air service at the community for a two-year period, with or without subsidy. Carriers should file their proposals no later than January 27, 2011.

Pacific Wings’ proposed termination of service would leave Kalaupapa with no scheduled service. Thus, the Department must prohibit the carrier from terminating such service at the end of its 90-day notice period, and require it to maintain 12 nonstop round trips per week to Honolulu using its 9-seat Cessna Caravan aircraft. We will also require Pacific Wings to continue to maintain that level of service at the community for successive 30-day periods until we have completed processing the carrier-replacement case and the selected carrier has actually started full EAS.

By: Susan Kurland



January 14, 2011

Hawaii Office of Hawaiian Affairs in Support of EAS

Given that a majority of Kalaupapa's patients and their descendants have been Native Hawaiians and Hawaiians, OHA takes special interest in advocating for favorable passage of Kalaupapa as a benefactor of the EAS program's goals.

By: Clyde Namu'o




January 24, 2011

Proposal of Schuman Aviation

Estimated Annual Revenue:

Honolulu-Kalaupapa-Honolulu $156,000 $125 per passenger one-way
Kalaupapa-Molokai-Kalaupapa $81,120 $65 per passenger one-way
Total Revenue $237,120

By: Schuman Aviation, 808-834-5813


January 25, 2011

Notice of Pacific Wings of Intent to Withdrawal EAS Subsidy Claim

Pacific Wings hereby withdraws its notice of intent to claim EAS subsidy at Kalaupapa, Hawaii, dated 6 DEC 2010. Pacific Wings will continue to provide the current level of service to Kalaupapa without subsidy, just as it has for approximately four years.

By: Greg Kahlstorf


January 27, 2011

Proposal of SeaPort Airlines

SeaPort proposes for Kalaupapa, two direct round trips day between Kalaupapa and Honolulu, six days a week. This service level will offer more than enough inventory to provide for the historical traffic of the last several years. For Kalaupapa, SepPort will operate a Cessna 208 Grand Caravan. The $59 fares in our proposal is an average fare. Travel will be as low as $49 one way. This fare is far less than the current operator.

By: SeaPort



Order 2011-4-7
OST-2000-6773

Issued and Served April 6, 2011

Order Requesting Proposals

By this Order, the Department is requesting a second round of proposals from carriers interested in providing Essential Air Service at Kalaupapa, Hawaii, for a two-year period, with or without subsidy. Carriers should file their proposals no later than April 22, 2011.

The Department expects proposals that consist of 12 weekly round trips with nine-seat or larger aircraft that meet the community’s unique needs.

By: Susan Kurland



April 13, 2011

Ex-Parte Letter to Iolani Air

I understand you are familiar with the problems experienced by local Molokai and Kalaupapa residents who need air transport access back and forth between the two airports. As a local air carrier under FAR 135, we are keenly interested in any EAS proposals or contracts which might be published in the near future. Can you provide me with the administrative information or the contracting entity in charge of this program.

By: Susan Kurland



April 20, 2011

Comments of Pacific Wings

Pacific Wings hereby responds to the Order Requesting Proposals, served April 6, 2011, from carriers interested in providing Essential Air Service as Kalaupapa, Hawaii, for a two-year period, with or without subsidy. Pacific Wings has provided subsidy-free service since April 1, 2007, and intends to continue to provide subsidy-free service using 9-seat Cessna Grand Caravan aircraft. The Order acknowledges that "[i]n cases where a carrier proposes to provide EAS without subsidy and we determine that service can be provided reliably without subsidy, we typically do not proceed with the carrier-selection case." Notwithstanding Pacific Wings' expressed intention to continue providing subsidy-free service, the Order Requesting Proposals was predicated on two findings: (1) a decrease in enplanements and flight completion percentages; and (2) continuing service complaints "from the community." We believe neither finding is supported by the facts, suggesting that the Order was prompted solely because of complaints over fares, a matter deregulated since 1978, even for EAS routes.

The Order refers in two places to the "unique needs" of the Kalaupapa community. Although the Order does not explain why the Kalaupapa community is unique, we believe it is because the presence of patients suffering from Hansen's disease. There has never been a complaint made that the Cessna Grand Caravan aircraft is inadequate to transport the patients at Kalaupapa. Also, Pacific Wings is unaware of any complaint by a Kalaupapa patient submitted to the Department under the Air Carrier Access Act. If the Department believes these patients are in need of subsidized air service to be able to afford to travel, the Department should know that the airfare for Kalaupapa patients as well as most workers (National Park and Health workers) is paid for by the State of Hawaii or their respective employer. Moreover, we believe there are now few patients, perhaps no more than four, who are able to travel by air and travel on Pacific Wings. This not only explains a lot of the decline in enplanements' over the years, but also refutes any concern that air travel on Pacific Wings is not affordable for these patients.

In sum, there is no legitimate reason - whether under the law, longstanding Department policy, or the facts - to reopen the Kalaupapa EAS proceeding to solicit bids for subsidized service when Pacific Wings currently provides the community more flights and travel options than the statute requires, and does so without Federal subsidy

Counsel: Patton Boggs, Gregory Walden, 202-457-6135



April 20, 2011

Proposal of Makani Kai Air Charters

Service Profile Details/Frequency Annual Subsidy
Year One
Honolulu-Kalaupapa 2 daily round-trips
Monday-Saturday
Kalaupapa-Molokai 3 daily round-trips
Monday-Saturday
$932,771.18
Year Two
Honolulu-Kalaupapa 2 daily round-trips
Monday-Saturday
Kalaupapa-Molokai 3 daily round-trips
Monday-Saturday
$923,508.92

By: Richard Schuman


April 22, 2011

Proposals of Molokai Air & Iolani Air

We could provide and would be committed to doing two round trips per day between Honolulu PHNL and Kalaupapa LUP. We will also provide two round trips between Molokai PHMK and LUP.

The cost for the above services would be $686.400.00 dollars per year for the term of the contract. We presently are an On Demand Charter Carrier but are in the process of submitting for scheduled carrier Operation Specifications as is Makani Kai.

By: RD Stewart


April 22, 2011

Proposal of Pacific Wings

Please accept this correspondence as notice of Pacific Wings' intent to continue serving Kalaupapa subsidy-free.

Some communities appear to recognize and accept that it is preferable to have a self-sufficient provider operating at its own expense (albeit with higher fares) than to lose service altogether in the event Congress significantly curtails or eliminates the EAS program; or, in the event per-passenger subsidy levels reach a threshold which disqualifies them from the program.

Members of Hawaii's Congressional delegation, however, began applying political pressure on USDOT to intervene in Pacific Wings' deregulated pricing and service almost immediately after the airline adjusted fares to a level necessary to make formerly-subsidized EAS communities self sufficient.

Pacific Wings has provided Kalaupapa with 75% more service than the statutory EAS requirement - at its own expense since 2007. This includes greater frequency and more destinations than Kalaupapa is entitled to under the EAS program, at absolutely no cost to US Taxpayers.

It is our hope that USDOT will not allow Hawaii politics or political influence to unnecessarily increase costs to US Taxpayers or undermine our business during this time of ballooning federal deficits and economic crisis.

By: Greg Kahlstorf


April 22, 2011

Proposal of Sovereign Air

Sovereign Air, Inc. is planning to use the Cessna 414A as its primary aircraft for this Essential Air Service route. It will be configured with seven passenger seats, and seats may be added as needed.

Sovereign Air is proposing the aircraft for the exclusive use (up-Iine service to Molokia) of the proposed EAS route. Our flights will service only Kalaupapa and Molokia to the indicated Hub (Honolulu). Sovereign Air believes that with right aircraft, good schedules, proper pricing and a recovering economy, the load factors will increase. In proposal #1 SAl will base its aircraft, crews and maintenance personnel, in Kaunakakai. We anticipate relocating at least 3 families to the Kaunakakai area to operate this run.

By: Jon Payne



May 20, 2011

DOT Request for Community Comments

We request that you submit any comments you may have as soon as possible, but in any case no later than June 15, 2011.

The proposals:

Pacific Wings would continue to serve Kalaupapa on a subsidy-free basis with 9-seat Cessna Grand Caravans and provide at least two round trips a day, six days a week. The carrier currently provides two daily nonstop round trips (14 a week) to Honolulu and one daily nonstop round trip (7 a week) to Molokai (topside).

Above It All submitted a proposal to provide two nonstop round trips a day, six days a week, between Kalaupapa and Honolulu and two nonstop round trips a day between Kalaupapa and Molokai (or "topside"), for an annual subsidy rate of $686,400. Above It All would provide service utilizing 9-seat Piper Chieftains and provide backup service utilizing 8-seat Gippsland Airvans. The carrier does not currently have the requisite operating authorities from either the DOT or the FAA to provide scheduled air service, although it states that it is in the process of submitting applications.

Makani Kai proposes to provide two daily nonstop round trips between Kalaupapa and Honolulu and three daily nonstop round trips between Kalaupapa and Molokai (or "topside"), utilizing 9-seat Cessna Grand Caravans, for a first-year subsidy rate of $932,711, and a second-year for $932,509. The DOT has found the carrier fit to provide scheduled passenger service operating as a commuter air carrier. However, the carrier has not yet provided the necessary information to make its commuter authority effective, including a copy of the Air Carrier Certificate and Operations Specifications from the FAA (See Order 2010-8-1, issued August 6, 2010).

Sovereign's proposal comprises two options, both with a Kalaupapa-Molokai-Honolulu routing and utilizing 7-seat Cessna 414 aircraft. The first option consists of 22 round trips a week for an annual subsidy of $618,831. The second option consists of two round trips a day Monday-Saturday (12 round trips a week with no Sunday service) for an annual subsidy of $452,886. The carrier notes that 2 round trips on Sundays can be added to Option #2 for an additional $124,566 in annual subsidy (or for $577,452 in total annual subsidy). By Order 2011-2-3, February 3, 2011, the Department dismissed the application of Sovereign for Commuter Air Carrier Authorization and therefore the earner does not currently have the requisite operating authorities to provide scheduled air service from either DOT or FAA.

By: Dennis DeVany



May 25, 2011

Comments of Hawaii DOT

The EAS program is essential to meet the needs for air service to temote and isolated communities such as Hana, Kalaupapa and Kamuela. As a public organization, the State of Hawaii, DOT can make reasonable suggestions, recommendations and comments on expected levels and quality of service by the current EAS provider. DOT-A fully supports the Order requesting proposals to provide Essential Air Service to Kalaupapa. Competition should result in the proper and needed level of service to this unique community.

By: Glenn Okimoto



June 14, 2011

Comments of US Department of the Interior

We strongly encourage you to select a commercial air carrier that will provide affordable air fare and regular service between Topside Molokai, Honolulu and Maui much like the schedule that the current commercial air carrier provides, i.e. two round-trip flights per day from Honolulu to Kaluapapa and one round-trip flight per day from Maui to Kalaupapa. However, unlike the current commercial carrier schedule, the new carrier should provide for morning departures and late afternoon arrivals.

By: Stephen Prokop



July 21, 2011

Ex-Parte Letter to Senator Daniel Inouye (D-HI)

By: Ray LaHood



Order 2011-11-27
OST-2000-6773

Issued and Served November 22, 2011

Order Selecting Carrier and Setting Subsidy Rates

By this Order, the Department of Transportation selects Schuman Aviation Company Ltd. d/b/a Makani Kai Air Charters to provide subsidized Essential Air Service with nine-seat Cessna Grand Caravans at Kalaupapa, Hawaii,1 for the two-year period beginning when the carrier begins full EAS, for a first-year subsidy rate of $932,772, and a second-year subsidy rate of $923,509.

By: Susan Kurland



December 21, 2011

Petition for Reconsideration of Pacific Wings

Pacific Wings hereby petitions the Department to reconsider Order 2011-11-27, in which the Department selected Schuman Aviation Company Ltd. d/b/a Makani Kai Charters to provide subsidized Essential Air Service at Kalaupapa, Hawaii, for a two-year period, over the objection of Pacific Wings, which since April 1, 2007 has provided subsidy-fee service.

The Order selecting Makani Kai relies, as it must, on the Department's interpretation and application of a provision in the EAS statute that defines "basic essential air service" to include "flights at reasonable times considering the needs of passengers with connecting flights at the airport and at prices that are not excessive compared to generally prevailing prices of other air carriers for like service between similar places.', Notwithstanding Pacific Wings' expressed intention to continue providing subsidy-free service at Kalaupapa, the Order Requesting Proposals was predicated on two findings: (1) a decrease in enplanements and flight completion percentages; and (2) continuing service complaints "from the community." The Order selecting Makani Kai is more narrowly predicated on the Department's finding that Pacific Wings' fares are too high.

The Order is flawed in two major respects. First, the subsidy calculations include several glaring mistakes, the most notable of which is that the rates for Makani Kai ($932,772 for the first year and $923,509 for the second year) include a profit margin of 31 %, a margin that violates the EAS limit of a 5% margin set forth in Part 271. Second, the Department's unprecedented foray into fare regulation, while in furtherance of statutory direction, is provided without meaningful standards, and is flawed. In its consideration of what are the "generally prevailing prices of other carriers for like service between similar places," the Department erred by failing to recognize the stark differences between Kalaupapa and the other Hawaiian markets.

Counsel: Patton Boggs, Gregory Walden, 202-457-6135



Issued and Served December 27, 2011

Notice of Petition for Reconsideration and Deadline for Answers

By this Notice, the Department is informing all interested persons of Pacific Wings, LLC’s petition to reconsider Order 2011-11-27, in which Schuman Aviation Company Ltd. d/b/a Makani Kai Air Charters was selected to provide subsidized Essential Air Service at Kalaupapa, Hawaii. Pacific Wings filed its petition for reconsideration on December 22, 2011.

Pursuant to 14 CFR § 302.14(a)(2), any party to this proceeding may file an answer in support of or in opposition to a petition for reconsideration within ten days after such petition has been filed. In light of the holiday season and significant community interest in Order 2011-11-27, the Department requests that all answers be submitted by Thursday, January 19, 2012.

By: Susan Kurland




January 12, 2012

Kalaupapa Federal Advisory Commission in Support of Makani Kai Air Charters

The Commission wholeheartedly supports the EAS contract awarded to Schuman Aviation Company Ltd. d/b/a Makani Kai Air Charters. Since Makani Kai began regular service to Kalaupapa in December it has been like a welcomed breath of fresh air and it has brought a renewed sense of life to the community to have accessible contact with the outside world. Makani Kai's service has contributed to the overall well-being of the community and has made the outside world more accessible and affordable to the residents of Kalaupapa.

By: David Kaupu



January 19, 2012

Comments of Makani Kai Air Charters

Pac Wings is correct that they did not receive much of the tourist Damien Tour business but it had little to do with my company and more to do with their flight time schedule and pricing strategy.

Seems comical that Pac Wings would think they can feed the DOT so much miss information believing the department will gobble it up like ice-cream on a hot summer day.

This whole situation that Pac Wings now brings up is even more comical because it was they who sent a notice to DOT wanting to suspend schedule service to Kalaupapa which triggered this EAS proposal. It was they who decided not to bid on this sen/ice given two separate opportunities and now they claim foul.

As far as them slapping themselves on the back for saving the taxpayers lots of money by suspending the EAS contract when in fact patients. Federal, State, & County personnel, government contracts for support and or any business that had to be conducted in Kalaupapa was eventually paid by the tax payers thru reimbursements for travel at the State and Federal level.

It is for these reasons I believe the Department of Transportation should deny Pacific Wings petition of reconsideration.

By: Schuman Aviation, Richard Schuman


January 19, 2012

Comments of State of Hawaii Department of Health

In terms of median household income, Kalaupapa County is the poorest county in the entire United States of America, according to the 2010 US Census. It is also one of the most isolated. There is no commercial sea transportation to Kalaupapa and the only ground option is by mule, which is not appropriate for many of the residents. Thus, air services are vitally important to this community.

The Essential Air Services subsidy has greatly benefited the residents of this low-income county. The State of Hawaii vigorously advocates for maintaining the EAS subsidy and affordable flights in the strongest possible way. On the other hand, the State has no interest in who provides the air sen/ices as long as the carrier meets the needs of the community. Hence, the State respectfully asks that any decision reached, furthers the prospects of preserving the EAS for the people of Kalaupapa.

By: Loretta Fuddy


 

February 16, 2012

Re: Pacific Wings Reply to Schuman Aviation

In our Petition, we explained that the Order is flawed in two major respects: (1) the subsidy calculations include several glaring, material mistakes, and (2) the Department's unprecedented decision to award a subsidy where another air carrier is currently providing essential air service, solely on the basis that the existing carrier's fares are considered to be "excessive," is provided without meaningful standards, and is flawed even on its own terms, as Pacific Wings fares are not excessive in comparison with comparable service within and outside of Hawaii.

In this Reply, Pacific Wings shows that Makani Kai has not corrected the errors in its bid (and the Department's Order), while its Answer confirms the characteristics of the Kalaupapa market that, as Pacific Wings explained, account in major part for the fares it has charged in this market. Pacific Wings also explains how the Order represents an unwarranted and unexplained break with the Department's longstanding position not to proscribe or prescribe fares in EAS markets.

Counsel: Patton Boggs, Gregory Walden, 202-457-6135


 

Order 2013-10-3
OST-2000-6773

Issued and Served October 4, 2013

Order Requesting Proposals

By this Order, the Department is soliciting proposals from air carriers interested in providing Essential Air Service at Kalaupapa, Hawaii, for a new contract term, beginning January 1, 2014, with or without subsidy. Air carriers should file their proposals no later than October 31, 2013.

During the calendar year ended 2012, the most recent calendar year period for which data are available, Kalaupapa enplaned 3209 passengers, or 10 a day.

By: Todd Homan


 

October 31, 2013

Proposal of Boutique Air

Our bid would be flown in nineseat Cessna Caravan (208B) aircraft.

We are offering two round trip one-stop flights to Honolulu, two round trip onestop flights to Kahului, and four round trip nonstops to Kaunakakai each service day. Depending on the community’s desires and passenger demand, we may move flights from OGG to HNL or vice versa.

We are only proposing a two year contract. Because carriers are able to file a 90-day notice to stop service at anytime in the contract period, we really see no benefit to the community in selecting any carrier for four years. It commits the community, with no commitment from the airline.

By: Shawn Simpson


October 4, 2013

Proposal of Mokulele Airlines

Weekly frequencies: 12
Average fare: $36.28
Subsidy requirement: $108.271.27
Equipment: Cessna Grand Caravan

By: Ron Hansen


October 31, 2013

Proposal of SeaPort Airlines

12 weekly RTs: Kalaupapa-Kaunakakai
18 weekly RTs: Kalaupapa-Honolulu
Equipment Cessna Caravan
Subsidy requirement: $952,018

By: Timothy Sieber, 971-340-1716


October 30, 2013

Proposal of Schuman Aviation Company d/b/a Makani Kai Air Charters

The proposal is for a two year and four year service agreements. This proposal is for 12 nonstop round trips between Honolulu and Kalaupapa and 18 nonstop round trips between Kalaupapa and Molokai Airport, servicing the community seven days a week.

Two-year proposal:

Year one:
Honolulu-Kalaupapa
Kalaupapa-Molokai
Annual subsidy: $787.386

Year two:
Honolulu-Kalaupapa
Kalaupapa-Molokai
Annual subsidy: $771,232

Four-year proposal:

Year one:
Honolulu-Kalaupapa
Kalaupapa-Molokai
Annual subsidy: $$751,040

Year two:
Honolulu-Kalaupapa
Kalaupapa-Molokai
Annual subsidy: $730,848

Year three:
Honolulu-Kalaupapa
Kalaupapa-Molokai
Annual subsidy: $710,656

Year four:
Honolulu-Kalaupapa
Kalaupapa-Molokai
Annual subsidy: $690,463

By: Richard Schuman


 

October 21, 2013

United States Department of the Interior in Support of Makani Kai

Due to the isolated and remote work place at Kalaupapa National Historical Park, our employees often need to fly out of Kalaupapa for work-related travel and Makani Kai has provided timely and effective service under the current EAS contract.

By: Eirka Stein Espindola


October 23, 2013

Hawaii Department of Health in Support of Makani Kai

Makani Kai has provided superior service to the Kalaupapa Settlement for the past 2 years. Makani Kai worked closely with the community to provide optimum service and allowed a resident rate for travel that has allowed and encourage connection to both topside Molokai and Honolulu. Both locations are vital links to medical services, normal government services and other shopping and entertainment activities.

Previously, FAA has awarded this EAS route to Pacific Wings since they said they would provide EAS at no extra cost to the government. Their service was a disaster for Kalaupapa, and basically was a ploy to gain access to the service that within short order raised prices by from $30 to $503 dollars for a round trip to Honolulu. No one could afford to travel under that tyranny and EAS service was severely degraded.

Makani Kai has provided EAS service to Kalaupapa with a subsidy, but they have maintained and exceeded all their promises to provide affordable services and this has brought trip numbers back to pre-Pacific Wings levels as the EAS is expected to provide.

By: Mark Miller

 

October 23, 2013

Kalaupapa Settlement in Support of Makani Kai

Previously, FAA has awarded this EAS route to Pacific Wings since they said they would provide EAS at no extra cost to the government. Their service was a disaster for Kalaupapa, and basically was a ploy to gain access to the service that within short order raised prices by from $30 to $503 dollars for a round trip to Honolulu. No one could afford to travel under that tyranny and EAS service was severely degraded.

Makani Kai has provided EAS service to Kalaupapa with a subsidy, but they have maintained and exceeded all their promises to provide affordable services and this has brought trip numbers back to pre-Pacific Wings levels as the EAS is expected to provide.

Makani Kai has done everything they promised and done so very well for residents and visitors to Kalaupapa.

By: Mark Miller





October 28, 2013

Comments of Ka'Ohana O Kalaupapa

Ka 'Ohana O Kalaupapa is a 501-c-3 nonprofit organization made up of Kalaupapa residents, family members, descendants and longtime friends of the community. Our mission is to advocate for the needs of residents, develop educational programs for the public, help descendants learn about their ancestors at Kalaupapa and work in collaboration for the preservation of this important history.

Dependable and affordable air travel is essential for those of us at Kalaupapa where we live in a peninsula accessible only by a horse trail down a steep, 3-mile cliff or by small airplanes. We rely on air travel for medical appointments, personal business trips, family visits and general shopping.

During the past two years, I can't remember a single complaint about Makani Kai Airlines- an amazing accomplishment in the air industry.

Please grant the Essential Air Service for Kalaupapa commencing January 1, 2014, to Makani Kai Airlines to enable them to continue providing this important service to the Kalaupapa community and those who wish to visit.

By: Clarence Kahilihiwa

 





November 4, 2013

DOT Request for Community Comments

In response to Order 2013-10-3, we received four proposals: Makani Kai, Mokulle Airlines, SeaPort Airlines and Boutique Air. want to give you an opportunity to submit any formal comments for the record before submitting a recommendation to the Assistant Secretary for Aviation and International Affairs. We request that you submit any comments you may have as soon as possible, but in any case no later than November 29, 2013.

By: Scott Faulk, 202-366-9721





November 18, 2013

Request of Pacific Wings for Hold-In Compensation

Aircraft type: Cessna 208B
Seats per departure: 9
Annual subsidy need @ 98%: $816,177

By: Pacific Wings


 

December 2, 2013

Senator Mazie Hirono in Support of EAS

I am proud to have worked with, and on behalf of, the residents of Kalaupapa during my time in the Hawaii State Legislature, as Lieutenant Governor ofthe State of Hawaii, and as a Member of Congress. I strongly support the Department's decision to continue EAS tor Kalaupapa for it is in the public interest. As you consider the current proposals, I recommend the Department give serious weight and consideration to input offered by the Kalaupapa community. No other group is more affected by the Department's selection, and no other group can attest to the importance of air transportation services that are punctual, reliable, and provided \vith the dignity and respect they are due.

By: Senator Mazie Hirono

 

November 27, 2013

Hawaii Speaker of the House Joseph Souki in Support of Mokulele Airlines

I am writing to support Mokelele Airline's 4 year bid to Kalaupapa to Kahului, Honolulu and Ho'olehua.

By: Joseph Souki




November 27, 2013

Hawaii Geographic Society in Support of Mokulele Airlines

We support your favorable consideration of Mokulele Airlines and its proposals of service.

By: Willis Moore





November 28, 2013

Letter of Mokulele Airlines

I thought i would send you a note about my family and the ties we have at Kalaupapa. You know i support our bid for the EAS but for me it is more than that. When i mentioned that i was working on routes an bids for Kalaupapa to my Uncle Bill he said that my ggg grandfather (my grandmother on my dads side is Bessie Ragsdale) was the first supervisor of the settlement before Father Damian. His name was William (Bill) Ragsdale and in 1866 he was the speaker interpreter ofthe Hawaiian Parliament in Honolulu and then moved to Hila to practice law. It was in Hila that he became inflicted with leprosy and was the one first to "volunteer" to go to Molokai. I recently made the mule trip down from topside to Kalaupapa and made the tour of the peninsula. I found that after speaking with some of the locals that they heard of Bill Ragsdale and on the top side there is still a family there by that name.

I mention this to you because to me and Mokulele every airport and community is important to us. We become involved. On the same trip to Molokai i met with State Senator Kalani English and he informed me that the settlement in Kalaupapa has fewer than 12living patients and the balance of people choose to stay there to supper the settlement until they are gone. Most all ofthe patients are in their 70's and 80's (some 90's) so the disposition of the settlements as it is today may change soon.

Rest assured that should Mokulele get the award that we will perform excellent service and keep local
involvement as our highness priority. We currently sponsor numerous events and local Molokai sports travels to other islands now. For them the connection to Kahului Maui is very important as the county seat is there and support staff from health services, eduction and judicial uses Mokulele for transportation to Molokai every day.

By: Dave Berry

 

October 21, 2013

US Department of the Interior in Support of Makani Kai

Due to the isolated and remote work place at Kalaupapa National Historical Park, our employees often need to fly out of Kalaupapa for work-related travel and Makani Kai has provided timely and effective service under the current Essential Air service contract.

By: Erika Stein Espaniola, 808-567-6802


 

Order 2014-1-22
OST-2000-6773

Issued and Served January 31, 2014

Order Temporarily Setting Subsidy Rate

By this Order, the Department is extending the service period for Schuman Aviation Company Ltd. d/b/a Makani Kai Charters to provide Essential Air Service operations at Kalaupapa, Hawaii, from January 1, 2014, through May 31, 2014. Makani Kai will continue to provide Kalaupapa with 12 round trips a week to Honolulu and 18 round trips a week to Molokai using nine-seat Cessna Grand Caravan aircraft at an annual subsidy rate of $923,509.

In its original proposal, Makani Kai proposed using one of its Piper Chieftains as a substitute aircraft for the Grand Caravan when operational needs required it.

By: Susan Kurland


 

February 11, 2014

Comments of Mokulele Airlines

My goal when I purchased Mokulele in 2011 was to provide safe, affordable interisland travel and it is a goal I continue to be deeply committed to. We are well prepared and well equipped to provide the residents and visitors of Kalauapapa with reliable, cost-effective service on a schedule that makes it convenient for them to complete round-trip, same-day travel to and from Honolulu and Kahului.

We appreciate the opportunity to bid on serving the Kalaupapa essential air service route. We also respect your recent decision to extend Makana Kai' s current contract until May 31st to give you sufficient time to evaluate all of the critical safety, service and reliability factors involved in choosing a carrier.

By: Ron Hansen


 

March 10, 2014

County of Maui in Support of Mokulele Airlines

I am writing in support of Mokulele Flight Services, Inc. with regard to the company's application to provide essential air service to Kalaupapa on the island of Moloka'i.

It is my belief that Mokulele is the ideal carrier to provide essential service to Kalaupapa, as the company is known to offer competitively-priced flights and passenger-oriented schedules that other airlines often do not. Additionally, as a government employee and frequent traveler myself, I can personally attest to the friendly and efficient staff.

By: Mayor Alan Arakawa

 

March 11, 2014

Kalaupapa Settlement in Support of Makanai Kai

As the community has stated previously and would like to state again today, Makani Kai has provided superior service to the Kalaupapa Settlement for the past 2 years. Makani Kai worked closely with the community to provide optimum service and allowed a resident rate for travel that has allowed and encouraged connection to both topside Molokai and Honolulu. Both locations are vital links to medical services, normal government services and other shopping and entertainment activities.

Please give your most serious consideration to Makani Kai's time record operating under the EAS and award the new contract to them for the foreseeable future. It is imperative for the health and welfare of this community that you do so to provide long term security to this community for access to and from Kalaupapa Settlement.

By: State of Hawaii Department of Health, Kalaupapa Settlement Administrator Mark Miller

 

April 9, 2014

Kalaupapa Settlement in Support of Makani Kai Airlines

Just wanted you to know that I held my monthly meeting for the Kalaupapa Settlement today, April 8th, and invited Mokelele and Makani Kai Airlines to do a presentation. Afterwards, to get a feel if our previous letters of support for Makani Kai continue to be relevant I asked for a show of hands.

Of the 78 people present, all but one voted their continual support for Makani Kai Airlines as the EAS provider for Kalaupapa Settlement.

By: Mark Miller, 808-567-6924





April 28, 2014

Community Support Letters for Schuman Aviation

Here are signatures of local people indicating their support for Makani Kai Air to win the Essential Air Service contract for Kalaupapa, Molokai. These people believe that the Kalaupapa community would be better served with Makani Kai.

By: Schuman Aviation, Richard Schuman





April 14, 2014

Comments of Mokulele Airlines

Mokulele Airlines is one of four air carriers that submitted proposals in response to DOT Order 2013-10-3 requesting proposals to provide Essential Air Service at Kalaupapa, Hawaii for a contract term that was set to being on January 1, 2014. The existing contract with the incumbent provider expired on December 31, 2013 and the DOT had not concluded its review of the four proposals submitted in response to DOT Order 2013-10-3. Therefore, by DOT Order 2014-1-22 the contract term for the incumbent provider Schuman Aviation Company, Ltd. d/b/a Makani Kai Charters was extended until May 31, 2014. Makani Kai Charters was also one of the four carriers submitting proposals in response to DOT Order 2013-10-3.

Unfortunately, both Mokulele Airlines and Makani Kai Charters had aircraft in their fleet involved in accidents within the last 7 months. On October 21, 2013 a Mokulele Cessna 208B was forced to make an emergency landing 13 miles south of the Kahului Airport and sustained substantial damage. Fortunately, the two person crew and eight passengers were not injured in the emergency landing. On December 11, 2013 a Cessna 208B operated by Makani Kai Charters lost engine power and crashed into the Pacific Ocean near Kalaupapa, Hawaii. The Makani Kai Charter accident resulted in a fatality, three passengers were seriously injured and five other passengers sustained minor injuries. Both of these accidents are presently being investigated by the National Transportation Safety Board. Copies of the NTSB's preliminary report's relating to these two accidents are attached hereto for your convenience.

The NTSB' s investigation into both accidents is ongoing. The NTSB has not issued either its final factual report or its probable cause determination with respect to either of the accidents. NTSB is an independent Federal agency charged by Congress with investigating every civil aviation accident. The NTSB determines the probable cause of the accidents and issues safety recommendations aimed at preventing future accidents. The results of the NTSB's investigation into the two accidents is likely to provide the Department and general public with significant information relating to the safety of both Mokulele Airlines and Makani Kai Charters. The general public should have the benefit of the results of the NTSB investigation when commenting on the proposals presented. The public perception of each the carrier's may be impacted once the details and conclusions of the NTSB's investigation are publicly released. Therefore, the public should have the benefit of reviewing the NTSB's conclusions before finalizing their comments. Additionally, the Department of Transportation should have the benefit of the NTSB's conclusions when making a determination with respect to each of the carrier's proposals.

For the foregoing reasons, Mokulele Airlines respectfully requests that the Department of Transportation delay further consideration and a determination with respect to the four proposals submitted in response to DOT Order 2013-10-3 until such time as the NTSB completes its investigations and the general public has an opportunity to review the results of the investigations and comment on the proposals.

By: Mokulele Airlines, Ron Hansen


 

November 4, 2013

NTSB Preliminary Aviation Report

On October 21, 2013, at about 1845 Hawaii standard time, a Cessna 208B, N861MA, sustained substantial damage during an emergency landing, about 13 miles south of the Kahului Airport, Kahului, Hawaii. The airplane was registered to Mokulele Flight Service Inc., and operated by Mokulele Airlines as flight number 1770, under the provisions of Title 14 Code of Federal Regulations Part 135. The airline transport pilot, commercial pilot, and eight passengers were not injured. Visual meteorological conditions prevailed and an instrument flight rules flight plan was filed. The scheduled domestic flight originated at about 1830, from OGG with a planned destination of Waimea-Kohala Airport Hawaii.

According to the flight crew, during climb out, at about 8500 feet, mean sea level, a loud bang was heard followed by a loss of engine power. The flight crew turned the airplane and proceeded back towards the island of Maui, about 9 miles south of their position. Emergency checklists were accomplished and the pilots elected to perform an emergency landing on the Piilani highway (state route 31). During the landing roll out, the airplane struck two highway traffic signs that caused substantial damage to the wing.

By: NTSB


December 30, 2013

NTSB Preliminary Aviation Report

On December 11, 2013, at 1522 Hawaiian standard time, a Cessna 208B, N687MA, sustained substantial damage following a loss of engine power and ditching into the Pacific Ocean near Kalaupapa, Hawaii. The airline transport pilot and two passengers were seriously injured, one passenger was fatally injured, and five passengers received minor injuries. Makani Kai Air was operating the flight under the provisions of 14 Code of Federal Regulations Part 135. Visual meteorological conditions prevailed for the cross-country flight, which had originated about 2 minutes before the accident. A company flight plan had been filed. The flight departed from the Kalaupapa airport on the island of Molokai, and was en route to Honolulu International airport, on the island of Oahu.

The pilot stated that shortly after takeoff, a loud bang was heard and there was a total loss of power. After a short glide, he performed an open ocean ditching. The airplane floated for approximately 25 minutes and then sank. All the passengers put on their life preservers and exited the airplane. US Coast Guard and Maui Fire and Rescue personnel recovered the passengers approximately 80 minutes later.

By: NTSB


 

Order 2014-6-12
OST-2000-6773

Issued and Served June 19, 2014

Order Re-Selecting Carrier and Setting Subsidy Rates

By this Order, the Department of Transportation re-selects Schuman Aviation Company Ltd. d/b/a Makani Kai Charters to provide subsidized Essential Air Service with nine-seat Cessna Grand Caravan, or nine-seat Piper Chieftain aircraft, at Kalaupapa, Hawaii, for the four-year period from June 1, 2014, through May 31, 2018. That service will continue the current service of 12 nonstop round trips a week to Honolulu, and 18 nonstop round trips a week to Molokai. The first-year subsidy rate will be $751,040, the second year subsidy rate will be $730,848, the third year subsidy rate will be $710,656, and the fourth year subsidy rate will be $690,463.

By: Susan Kurland


 

Order 2017-11-13
OST-2000-6773

Issued and Served November 20, 2017

Order Requesting Proposals

By this Order, the United States Department of Transportation is requesting proposals from air carriers interested in providing Essential Air Service at Kalaupapa, Hawaii, for a new contract, with or without subsidy support, beginning June 1, 2018. Proposals are due by December 20, 2017.

The Department expects proposals consisting of what the community currently receives, a mix of flights to Daniel K. Inouye International Airport, serving Honolulu, and to Molokai Airport, using small aircraft

By: Todd Homan


 

December 18, 2017

Proposal of Mokulele Airlines

6 weekly Kalaupapa-Honolulu

By: Rob McKinney




December 20, 2017

Proposal of Schuman Aviation Company d/b/a Makani Kai

12 weekly Honolulu-Kalaupapa; 18 weekly Kalaupapa-Molokai
Aircraft: Cessna 208B Grand Caravan
Subsidy required: $650,000

By: Richard Schuman




December 20, 2017

Proposal of Servant Air

12 weekly Honolulu-Kalaupapa; 18 weekly Kalaupapa-Molokai
Aircraft: King Air B200
Subsidy required: $2,945,199

By: Eoghan Joyce


 

January 12, 2018

Comments of the National Park Service

Kalaupapa has no road access. Furthermore, not all of our employees are physically fit to hike the steep and arduous trail up the cliff to topside Molokai. Should the cost for air travel substantially increase, the NPS would experience a negative impact to our budget and to mission critical and operational work. For example, staff are required to attend regular mandatory trainings located outside of the physical park to cover such critical topics as hazardous material handling, water and wastewater treatment, firearms, and law enforcement. Government travel is also needed for the many partnerships we have, for which meetings are routinely held outside of the park. Additionally, the investment we put into our employees to enhance and improve their skills through professional training may be affected.

In addition to the potential impact on government travel and the NPS' operational budget, we know from past experiences, that we would have a decline in the visitation to our unique location. This means that less people with low and middle- income backgrounds would have the opportunity to experience Kalaupapa's very special nature, thereby making Kalaupapa a location only accessible to the upper class. Decreased visitation also translates to a decrease in volunteers and professional services at Kalaupapa. As an example, increased cost in air travel may hinder such partners as university scientists who assist with research and data on our numerous nationally significant resources.

By: Erika Stein Espaniola, 808-567-6802 x1100


 

January 22, 2018

Response of Mokulele Airlines

The one consistent theme is that there is a fear that Mokulele will raise fares to a rate that is not affordable by residents or the government employees that rely on air service for their day to day existence. We are cognizant that a previous carrier engaged in this reprehensible behavior, and so the apprehensions expressed are founded on past experience. This carrier, as you are aware, exhibited this same behavior at all three eligible communities in Hawaii as well as nearly a dozen communities on the US mainland. This carrier made ad hominem attacks on State and Federal officials as a tactic to provide the worst service possible. This carrier was eventually shut down by the FAA for failure to even maintain their aircraft and is no longer in business. This carrier never had any affiliation with Mokulele whatsoever.

Mokulele was founded in Hawaii by a native Hawaiian female. Our culture has always been service to all communities in which we operate. Mokulele transports over 22,000 people every month on an unsubsidized basis. We would never be able to stay in business if we made choices like those we are being accused of making. Mokulele’s core values of Aloha, Integrity, and Ohana make a choice to do harm to a community we serve, unthinkable.

As you also know there are no controls over pricing even if a carrier is subsidized. Additionally, there is nothing preventing the incumbent carrier from continuing service. Mokulele offers a superior safety record, infrastructure, and distribution to what Kalaupapa currently experiences.

Mokulele is Fit, Willing, and Able to provide unsubsidized service to Kalaupapa. There is no evidence that we have ever used pricing in a manner inconsistent with ethics, morals, and community interest. We stand by ready to serve this esteemed community.

By: Rob McKinney


 

January 22, 2018

Citizen Petition

We, the Hansen's disease patients of Kalaupapa, the Department of Health staff, the volunteers and staff of the Kalaupapa National Historical Park, and clergy, are very concerned that Mokulele Airlines will be offering passenger air services to Kalaupapa without accepting the Essential Air Services subsidy. We understand that the subsidy is made available to offset operating costs incurred when there are few passengers.

By refusing the subsidy, an air carrier is free to manage price regulation according to its business needs. Without any control, Mokulele Airlines may charge any price they feel necessary. This would allow Mok:ulele Airlines to charge the residents of Kalaupapa an exorbitant amount for flights in and out of Kalaupapa. Our experience in the past with a carrier which did not accept the subsidy validates this concern: a round trip on Pacific Wings continued to rise until the cost for a round trip to Honolulu reached five hundred dollars.

Most of the Hansen Disease patients, are wheelchair bound or have difficulty in ambulation. The staff of Makani Kai has been sympathetic and helpful in this regard. There has been no guarantee from Mokulele Airlines that their staff will assist these patients or will allow members of the Department of Health staff or family members, to assist them through TSA screening or help them onto and off the plane via the tarmac.

We feel as though our situation has not been fully comprehended, and therefore we feel as though further negotiations, including consultation with the people of the Kalaupapa community be undertaken before any decision on the matter of the air carrier for Kalaupapa is made.

By: Alicia Damien Lau




March 8, 2018

Comments of Ka 'Ohana O Kalaupapa

Ka 'Ohana O Kalaupapa is a nonprofit organization with a mission of advocacy, education and preservation. We help descendants of Kalaupapa visit the land of their ancestors, learning the history and visiting graves or other landmarks. These descendants do not come to Kalaupapa for relaxation or recreation, but to reconnect to family members who were sent here. Their visits are emotional and deeply personal.

You are all aware of the extreme difficulties and anxieties caused to our community several years ago when an air carrier offered to service Kalaupapa with no federal subsidy. Airfares ran as high as $500 roundtrip for a 30-minute flight between Kalaupapa and Honolulu. Flights were canceled without notice and the personnel did not communicate with us. It was a most distressing time.

Ka 'Ohana O Kalaupapa is asking the Federal Transportation Department to please consider closely the unique situation here. We request that Mokulele Airlines meet with the Kalaupapa community as Makani Kai has done and answer our many questions before their non-subsidized bid offer is accepted.

Mokulele needs to show us that they can provide the same level of service we now have with Makani Kai, with reasonable airfares and a plan to allow anyone traveling to and from Kalaupapa baggage relief. We need to have input on the flight schedule. If Mokulele cannot do that, we hope that the Federal Transportation Department will see that another airlines requesting a reasonable subsidy is selected.

By: Clarence Kahilihiwa


 



March 8, 2018

Re: Ex-Parte Letter to Senator Mazie Hirono (D-HI)

By: Joel Szabat





Order 2018-3-3
OST-2000-6773

Issued and Served March 16, 2018

Order Terminating Carrier-Selection Case

By this Order, the United States Department of Transportation is: (1) relying on Mokulele Flight Service, Inc. d/b/a Mokulele to provide subsidy-free Essential Air Service at Kalaupapa, Hawaii, and (2) terminating the air carrier-selection case at Kalaupapa, effective May 31, 2018, when the currently effective EAS contract at the community expires.

Mokulele is a reliable EAS carrier, having provided EAS at several communities including El Centro, California, Hana, Hawaii, and Kamuela, Hawaii. Therefore, the Department will rely on Mokulele’s subsidy-free EAS at the end of the existing contract on June 1, 2018. This Order does not preclude other air carriers from providing service at Kalaupapa, should they desire.

By: Joel Szabat

 

 

 

 

Home | Search | Help
OST by Number | OST by Order | OST by Carrier | OST by Subject | OST by Day
OIA by Carrier/Subject | OIA by Day | FAA by Number | FAA by Subject | FAA by Day
Carrier Financials | Charter Office