OST-1998-4574
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OST-1998-4574
OST-1999-6244 - Chisana
Essential Air Service at Chisana, Alaska
| OST-98-4574 | October 13, 1998 |  90-Day Notice of 40-Mile Air Ltd. to Terminate
Essential Air Service at Chisana, Alaska |
|
| Re: Chisana E.A.S. | |||
| 40-Mile Air's Tentative Financial Projection |
Representative: Lief Wilson, General Manager, 40-Mile Air, Ltd.
| Order 98-11-3 OST-98-4574 |
Issued November 4, 1998 Served November 9, 1998 |
Order Prohibiting Suspension of
Service and Requesting Proposals |
EAS - Termination of Service at Chisana, Alaska |
| Appendix A: EAS map | |||
| Appendix B: O&D Traffic for Chisana-Tok Market | |||
| Service List |
By this order, the Department is prohibiting 40-Mile Air Ltd. from suspending service at Chisana, Alaska, at the end of its 90-day notice period and requiring it to maintain service through February 11, 1999. We are also requesting proposals from carriers interested in providing replacement essential air service at Chisana, Alaska.
By: Charles Hunnicutt
| Order 98-12-22 OST-98-4574 |
Issued December 16, 1998 Served December 18, 1998 |
Order Selecting Carrier and Setting Subsidy Rate | EAS - Chisana, Alaska |
By: Charles Hunnicutt
| Order 01-4-23 OST-98-4574 |
Issued April 18, 2001 Served April 18, 2001 |
Order Relying on Carrier To Provide No Subsidized Essential Air Service | Essential Air Service at Chisana, Alaska |
By: Susan McDermott
| Order 01-4-28 OST-98-4574 |
Issued April 20, 2001 Served April 25, 2001 |
Order Relying on Carrier to Provide Nonsubsidized Essential Air Service | Essential Air Service at Chisana, Alaska |
By: Susan McDermott
January 25, 2006
40-Mile Air Notice of Intent to Terminate Unsubsidized Service
40-Mile Air, Ltd. under 49 USC 41734 and 14 CFR 323.3(a)(5) hereby gives notice of its intent to terminate passenger and freight services at Chisana, Alaska effective on or before April 25, 2006.
40-Mile Air, Ltd. currently provides two flights per week with small aircraft between the points of Chisana and Tok, Alaska. The service is operated on Monday and Thursday on the following schedule:
| Depart: TKJ 10:30 AM | Arrive: CZN 11:20 AM |
| Depart: CZN 11:30 AM | Arrive: TKJ 12:20 PM |
40-Mile Air, LTD. has, for the last several years, provided unsubsidized passenger service to Chisana. We were able to do this because of our contract with the US Postal Service. The Postal Service has changed the manner in which they do business in Chisana. It now appears that the majority of our scheduled flights for the Postal Service will be full of mail. This will leave little or no room for passengers or freight traveling between Tok and Chisana, Alaska.
Counsel: 40-Mile Air, Leif Wilson, 907-883-5191
February 8, 2006
Wrangell Ranch Objection to Termination of EAS
Received a letter of intent to terminate most of the passenger and freight service by 40-Mile Air, Ltd. at Tok, Alaska to the community of Chisana, Alaska. Am not sure to whom I should object but they sent you a copy, therefore my, letter to you.
Own 18 1/2 acres in Chisana and have 18 buildings there. Since my husband retired from guiding, have started a Bed and Breakfast there. Clients fly in on their own but I have to use 40-Mile for freight, groceries, some help and myself to go back and forth from Tok to Chisana.
This letter represents my objection to the termination.
By: Gloria McNutt
February 14, 2006
Issued April 11, 2006 | Served April 14, 2006
Order Prohibiting Termination of Service and Requesting Proposals
On February 7, 2006, 40-Mile Air filed a 90-day notice with the Department of its intent to terminate its unsubsidized service at Chisana, Alaska, on or before April 25, 2006.1 40-Mile Air currently provides two round trips per week, on Monday and Thursday, in the Chisana-Tok market, with small aircraft, pursuant to a direct air-taxi contract with the United States Postal Service. Chisana's essential air service definition requires a minimum of one scheduled round trip per week to Cordova year round. With the approval of the community, 40-Mile Air has operated service to and from Tok as an alternate hub to Cordova. 40-Mile Air has, for the last several years, provided unsubsidized passenger service to Chisana and was able to do so because of its contract with the Postal Service. 40-Mile Air now states that it anticipates having little or no room for passengers because the majority of its flights are full of mail. The Postal Service has indicated that its current direct air-taxi contract with 40-Mile Air for Chisana expires in May 2006, and that the new contract will not allow cargo or passengers on the mail flights.
By: Todd Homan
April 28, 2006
Proposal One:
Route TKJ-CZN-TKJ Frequency 2 Round Trips per Week Aircraft Type Cessna 185 (3 seats), 206 or 207 (4 seats) Annual Block Hours 190.7
Proposal Two:
Route TKJ-CZN-TKJ Frequency 3 Round Trips per Week Aircraft Type Cessna 185 (3 seats), 206 or 207 (4 seats) Annual Block Hours 285.5
By: 40-Mile, Leif Wilson
April 18, 2006
Proposal One:
Route Gulkana-Chisana-Gulkana Frequency Once a Week Aircraft Type Cessna 185 and Cessna 206 Annual Block Hours 109
Proposal Two:
Route Gulkana-Chisana-Gulkana Frequency Twice a Week Aircraft Type Cessna 185 and Cessna 206 Annual Block Hours 218
Proposal Three:
Route Gulkana-Chisana-Gulkana Frequency Once a Week in Winter Months (Oct-March) then Twice a Week in Summer Months (Apr-Sept) Aircraft Type Cessna 185 and Cessna 206 Annual Block Hours 164
Proposal Four:
Route Gulkana-Tok-Chisana-Tok-Gulkana Frequency Once a Week in Winter Months (Oct-March) then Twice a Week in Summer Months (Apr-Sept) Aircraft Type Cessna 185 and Cessna 206 Annual Block Hours 288
By: Ellis Air Taxi, Lynn Ellis, 907-822-3368, lellis@alaska.net
Issued May 16, 2006 | Served May 19, 2006
Order Extending Service Obligation
On February 7, 2006, 40-Mile Air filed a 90-day notice of its intent to suspend its unsubsidized service at Chisana. By Order 2006-4-13, April 11, 2006, the Department prohibited 40-Mile Air from suspending service and requested proposals, with subsidy if necessary, from carriers interested in providing replacement service.
This case will not be completed by the end of the current hold-in period. Therefore we will extend 40-Mile Air's service obligation at Chisana for an additional 30 days, through June 7, 2006, until suitable replacement service actually begins, whichever occurs first.
By: Todd Homan
May 24, 2006
Request for Community Comments
I would like to update you on the essential air service situation at Chisana and give you an opportunity to submit any comments if you wish. As you know, by Order 2006-4-13, April 14, 2006, the Department solicited proposals from all interested air carriers to provide service at Chisana, following 40-Mile Air's 90-day notice to terminate its unsubsidized service. In response to that order, we received a total of six proposal options from two carriers for Chisana - 40-Mile Air and Ellis Air Taxi. 40-Mile Air submitted a proposal with two options; Ellis Air Taxi submitted a proposal with four options.
We request that you review each proposal and service option and submit any comments you may have before we submit a recommendation to the Assistant Secretary. Because we may be unable to give your community their preferred option, we request that you provide us with your preferred choice along with more than one additional option, ranked in order of preference. We ask that you submit any comments you may have as soon as possible, but in any case no later than June 23, 2006.
By: Dennis DeVany
Issued June 6, 2006 | Served June 9, 2006
Order Extending Service Obligation
On February 7, 2006, 40-Mile Air filed a 90-day notice of its intent to suspend its unsubsidized service at Chisana. By Order 2006-4-13, April 11, 2006, the Department prohibited 40-Mile Air from suspending service and requested proposals, with subsidy if necessary, from carriers interested in providing replacement service. As required by 49 U.S.C. 41734, we have extended 40-Mile Air's service obligation for additional 30-day periods, the latest through June 7, 2006, by Order 2006-5-13.
Although we have received proposals, this case will not he completed by the end of the current hold-in period. Therefore, in accordance with 49 U.S.C. 41734(c), we will extend 40-Mile Air's service obligation at Chisana for an additional 30 days, or until suitable replacement service actually begins, whichever occurs first.
By this order, the Department of Transportation extends the essential air service obligation of 40-Mile Air at Chisana, Alaska, for an additional 30 days, through July 7, 2006.
By: Todd Homan
June 6, 2006
Comments of Alaska DOT Recommending Economics Form the Basis of Decision
According to the Alaska Community Information Summaries, Chisana has only 9 residents. Due to this and its relative proximity to Tok, we think the most reasonable solution is 40-Mile Air's least expensive option, which still provides ample service at twice weekly For 9 residents this is likely more service than is needed. If there was a once/weekly option from Tok, it's likely we would recommend that option.
Certainly the option that would provide the most service would be Ellis Air's fourth option, which incorporates Tok into its routing (it is also the most expensive). In general, given the small population and therefore demand, we recommend economics form the basis of your decision. Note that there is an interstate highway between Gulkana and Tok/Northway, and most people are used to driving this route when there is a need to go from one community to the other.
By: Judy Chapman
Issued and Served June 23, 2006
Order Selecting Carrier | Word
On February 7, 2006, 40-Mile Air filed a 90-day notice with the Department of its intent to terminate its unsubsidized service at Chisana, Alaska. On April 14, 2006, the Department issued Order 2006-4-13, (a) prohibiting 40-Mile Air from terminating its scheduled, unsubsidized service at Chisana, Alaska, at the end of its 90-day notice period, and (b) requesting proposals from carriers interested in providing EAS at the community, with or without subsidy.
The Department received a total of six service options from two carriers, 40-Mile Air, and Ellis Air Taxi, in response to its solicitation. 40-Mile Air submitted a proposal with two options; Ellis Air Taxi submitted a proposal with four options.
By this order, we are selecting 40-Mile Air Ltd. to provide essential air service at Chisana, Alaska, at a total annual subsidy of $75,743. 40-Mile Air will provide two nonstop round trips to Tok each week using Cessna 185, 206, or 207 aircraft.
By: Michael Reynolds
Order 2008-2-25
OST-1999-6244 - Chisana
OST-1998-3546 - Healy Lake
Issued February 20, 2008 | Served February 25, 2008
By this order, the Department is requesting proposals from carriers interested in providing essential air service at Chisana and/or Healy Lake, Alaska, for a new two-year period, with or without subsidy, beginning June 1, 2008.
By Order 2006-4-11, April 7, 2006, the Department selected 40-Mile Air, Ltd., to provide EAS at Healy Lake for the two-year period through May 31, 2008. That order established an annual subsidy rate of $71,105, for service consisting of two nonstop round trips each week to Fairbanks with 5-seat Cessna 206 or 207 aircraft.
By Order 2006-6-29, June 23, 2006, the Department selected 40-Mile Air to provide EAS at Chisana for the two-year period through June 30, 2008. That order established an annual subsidy rate of $75,743, for service consisting of two nonstop round trips each week to Tok with Cessna 185 (3 seats) or Cessna 206/207 (4 seats) aircraft.
We request proposals for two nonstop round trips a week to between Chisana and Tok, and between Healy Lake and Fairbanks, with small aircraft (10 seats or less).
By: Todd Homan
OST-1998-4574 - Chisana
OST-1998-3546 - Healy Lake
March 5, 2008
First, you will notice that there are two rates for cargo. The extra one is a space available rate. For the last several years, we have offered this rate to the residents of Chisana so they can get fuel into the community at a reasonable cost. Consequently, the bulk of the cargo for the last two years was fuel that was moved at that rate.
Secondly, there is again a large question mark as to what the quantity of mail will be in the future. The post office has recently imposed a large increase in the mail rates. So far this has translated, as you can see in the fourth quarter of 2007 and so far in the first quarter of 2008, into substantially lower mail volumes.
The last thing is that I have again included the Cessna 185 in my proposal for Chisana. We operate this aircraft on sleds in the winter. Occasionally a plowed runway is not available in Chisana and utilizing this aircraft allows us to continue to operate the Essential Air Service.
Route TKJ-CZN-TKJ Frequency 2 Round Trips per Week Aircraft Type Cessna 185 (3 seats), 206 or 207 (4 steats) Annual Block Hours 190.7
By: Leif Wilson, 907-474-0018
Order 2008-4-41
OST-1998-4574 - Chisana
OST-1998-3546 - Healy Lake
Issued April 29, 2008 | Served May 2, 2008
Order Selecting Carrier and Establishing Subsidy Rates
By this order, the Department is (a) selecting 40-Mile Air, Inc. to continue providing essential air service at Chisana and Healy Lake, Alaska, for a new two-year period, through May 31, 2010, and (b) establishing annual subsidy rates of $65,546 for Chisana and $77,683 for Healy Lake.
By: Michael Reynolds
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