The U.S. Department of Transportation has reopened bids for the Essential Air Service route between Anchorage and Unalakleet, citing poor performance by the current provider, Kenai Aviation Operations, LLC.
Ravn Alaska suspended service of the route in late April. Kenai immediately began flying the route without a contract in hand. It was the only carrier to submit an unsubsidized bid, leading the DOT to formally select Kenai on July 7.
Two other airlines, Sterling Airways, doing business as Aleutian Airways, and Alaska Central Express submitted subsidized bids. The subsidies would’ve cost the government millions of dollars a year.
The proposal from Kenai drew criticism from the community long before the DOT formally awarded the route. Locals cited concerns over Kenai’s small King Air plane, which lacks a bathroom and seats just nine passengers, as well as the carrier’s reliability.
The community’s initial concerns were later validated following days-long cancellations and last-minute plane swaps to Kenai’s smaller and slower Tecnam P2012 Traveller.
On Aug. 1, Unalakleet resident, Paul Ivanoff, sent a letter to the DOT outlining the community’s ongoing troubles. He said between July 6 and July 28, just 45 percent of Kenai’s twice-daily flights were performed as promised in its initial EAS bid.
Kelsi Ivanoff has been an outspoken advocate for her home of Unalakleet. She said Kenai’s operations have not met the requirements of the EAS contract, nor the community’s needs.
“The majority of people are definitely very frustrated and very ready for a carrier that can provide us with our needs,” Kelsi Ivanoff said.
Sen. Donald Olson and Rep. Neal Foster subsequently co-signed a letter dated Aug. 13 calling for the DOT to review its agreement with Kenai.
The apparent last straw for the DOT was Kenai cancelling all flights to Unalakleet through the end of August. Kenai’s CEO, Jacob Caldwell, said in an Aug. 13 Facebook post that a “mechanical issue” was to blame for the cancellations.
“I had to make the call as the CEO, and let me tell you, this was a tough one. I know this route matters. Groceries, medical visits, family events, work. A pause like this ripples through all of it,” Caldwell said.
Caldwell wrote in the Facebook post that Kenai was working with Bering Air and Alaska Air to reroute passengers with existing reservations.
“Thank you for the grace you have already shown our crews at the counter and on the ramp. I knew that the decision to pause our flights temporarily wouldn’t be very popular, and that social media would have something to say about that. But safety comes first, even when the timing is lousy,” Caldwell said.
Caldwell did not respond to a request for comment.
Aleutian alternative
Back in March, 10 entities in Unalakleet signed onto a letter supporting Aleutian Airways’ initial subsidized proposal. One option favored by the consortium would’ve cost the DOT $4,090,724 a year, with round trip tickets running just $465 – $30 less than a one-way fare on Kenai. The option would’ve provided Unalakleet with 10 less round trips per week, but with larger Saab 2000 aircraft.
“Everyone that I’ve talked to, anyone, any Facebook posts I see, or anything, is like, ‘we wish we had Aleutian. Aleutian should have got the bid in the first place’,” Kelsi Ivanoff said.
In an email to KNOM, a spokesperson for Aleutian said the airline was aware of the community’s “unhappiness with the level of service.” The representative confirmed Aleutian planned to submit a bid for the contract if it reopened.
Kelsi Ivanoff said that while residents are frustrated, they were also ready to participate in the new review process.
“It just feels like all our concerns that last go-around were left unheard, and we were left with this service that’s very subpar,” Ivanoff said. “I really hope that they listen to our concerns this next go-around.”
The Anchorage to Unalakleet route has seen a number of carriers over the decades, including Alaska Airlines from the ‘50s to ‘70s. MarkAir, Ryan Air, Pen Air and Era Aviation have also serviced the route.
The DOT's Aug. 19 emergency order requested new proposals from air carriers to serve Unalakleet. Kenai also earned a contract for the Anchorage to St. Paul Island EAS route, which is also reopening for bids. The DOT cited similar reliability concerns in its proposal request. Bids for both routes are due Sept. 2.
