Essential Air Service at Port Alexander, Alaska

Order 2006-4-12
OST-1999-6244

Issued April 7, 2006 | Served April 12, 2006

Order Selecting Carrier and Establishing Subsidy Rates

By Order 2004-4-11, issued April 16, 2004, the Department selected Harris Air to provide EAS at Port Alexander for the two-year period through February 28, 2006, at an annual subsidy rate of $35,206, consisting of two nonstop round trips a week to Sitka with 3-seat Cessna 185 aircraft.

In anticipation of the end of the rate term, the Department issued Order 2005-12-8, December 14, 2005, requesting proposals from carriers interested in providing replacement service at Port Alexander, with subsidy support if necessary, for a new two-year period beginning March 1, 2006.

In response to our request, Harris Air (the only carrier to respond) submitted a proposal offering the following three service options for consideration. All service would be provided to Sitka with 3-seat Cessna 185 aircraft, as follows: Option 1 - two nonstop round trips a week at an annual subsidy rate of $48,746; Option 2 - two nonstop round trips a week mid-September through mid-May, and three nonstop round trips a week mid-May through mid-September, at an annual subsidy rate of$59,525; and Option 3 - two nonstop round trips a week September through May, and five nonstop round trips a week June through August, at an annual subsidy rate of $70,970.

By this order, the Department is selecting Harris Aircraft Services, Inc. to continue providing essential air service at Port Alexander, Alaska, for a new two-year period, through February 29, 2008, at an annual subsidy rate of $48,746 (Option 1).

By: Michael Reynolds