08/24/2025
Our planes are grounded for Unalakleet right now. We’ve seen the DOT’s concerns. We’ve heard the community. And yes, we wrote a very detailed letter in response. For Kenai Aviation transparency is key. Here is the whole letter to the DOT, if anyone cares to read it. Later we will tell you the fantastical and hard to believe story of how a tiny scratch led this.
Response Letter to the U.S. Department of Transportation
(Addressing concerns in order 2025-8-11)
August 19, 2025
U.S. Department of Transportation
Office of Aviation Analysis
Essential Air Service Division
To Whom It May Concern,
Alaskans know a thing or two about setbacks. Planes get grounded, the weather rolls in, and sometimes the best-laid plans must wait for the right conditions. What matters is how you respond, and whether you show up when the community needs you.
This August, Kenai Aviation hit one of those rough patches in Unalakleet. A maintenance issue forced us to ground aircraft for several weeks. We chose safety first, even though it meant missed flights. That decision was the right one, and soon the interruption will be behind us.
In the recently released order 2025-8-11, the Department Of Transportation has expressed serious concerns about Kenai’s performance on the Unalakleet route (due to recent service disruptions) and about Kenai’s proposal for St. Paul Island (due to aircraft size and community objections).
It is the aim of this letter to address these concerns and reassure both the DOT and the community that Kenai Aviation is up to this challenge.
Kenai Aviation acknowledges the concerns raised in Order 2025-8-11 regarding our service in Unalakleet and our proposal for St. Paul Island. We also recognize that our communities deserve a clear explanation of where things stand, what steps we are taking, and how we intend to meet and exceed expectations in the future.
Accountability and Performance
First, the short-term challenge: We acknowledge that our July performance in Unalakleet fell short, with roughly half of our scheduled flights canceled due to a critical maintenance grounding. That was unacceptable, and we take full responsibility. The decision to ground the aircraft was made out of an uncompromising commitment to safety, but the impact on service was real.
Since then, we have corrected the issue and put steps in place to ensure it does not repeat: a new Beechcraft King Air is arriving in October, and additional maintenance resources are being secured. We are determined to demonstrate unequivocally that reliable service is our priority.
We also want to speak directly to the people of Unalakleet. We know our missed flights these past weeks have been more than an inconvenience. They’ve disrupted travel plans, delayed medical trips, and made daily life harder in a place where air service is not a luxury, but a lifeline. We don’t take that lightly. We regret the impact it has had, and we are committed to making sure it does not happen again.
As much as we tried, finding other carriers to stand in and provide support for Unalakleet during this disruption has been frustrating because other carriers cannot operate this route at the same low ticket price that we have been. Still, we did not leave our passengers stranded. Kenai Aviation worked to arrange alternative flights with Bering Air and assisted travelers in finding other options to get where they needed to go. These stop-gap measures were not perfect, but they reflected our commitment to standing by our customers even when the unexpected grounded us. Our apology is backed up by action, and we are determined that with new aircraft in the fleet, communities will not face this kind of interruption again.
Restoration and Future Service in Unalakleet
We want to be clear about the EAS process. By the time new contracts are awarded, Unalakleet will already be served at the appropriate level by Kenai Aviation without subsidy. We will continue to serve this community reliably and without needing a subsidy, just as we are committed to doing.
Our hope is that by early September, flights to Unalakleet will be back on schedule. We are an Alaskan airline, rooted here for decades, and our commitment is to be a steady, long-term partner in these communities.
Service for St. Paul Island
St. Paul’s situation is more complex, but here are the facts. Kenai Aviation was the only carrier that submitted a proposal for this route. There is a reason for that. The Federal Aviation Administration has strict requirements for Extended Over-Water Operations. We have met those requirements. Few Part 135 operators in Alaska currently meet these requirements, or they meet them with impractical; solutions such as operating a single Learjet 45. Not only are we the only practicable carrier able to meet the needs of St. Paul, but our forthcoming King Air acquisition will allow us to provide service at the historical number of flights, with a significant improvement: daily frequency for the first time, ever.
A concern during public comments was raised regarding cargo. We know that in rural Alaska, passengers are only half the story. Cargo is a lifeline. While our King Air is smaller than a Dash-8, daily service means goods will move in steady, frequent batches instead of piling up for larger, less-frequent flights. The aircraft has strong payload capacity for its class, and we are already in discussions with freight partners to ensure that in the near future St. Paul’s needs are fully met. Our pledge is simple: no community will be cut off from the supplies that keep it running.
The long-term solution: Kenai Aviation is bringing a new Beechcraft King Air into service in October. This aircraft directly meets the specifications outlined in the original EAS RFP. It will restore service levels for St. Paul and allow us to expand to daily flights for the first time in the community’s history. That means more flexibility, connectivity, and opportunities for residents and visitors alike.
To the people of St. Paul Island: we understand your concerns about switching from the 25-seat Dash-8 you’ve flown for years to our smaller King Air. We want to reassure you that this King Air 350 is purpose-built for the route. It will be equipped with an emergency onboard lavatory for your comfort on longer flights. More importantly, we are planning daily service. Instead of three flights a week, you will have seven, giving you flexibility to travel when you need to, and allowing us to spread out passenger loads and cargo more evenly. Our intention is not just to replace what you had, but to improve on it.
Our pledge is that by October, St. Paul will see daily service for the first time. These improvements are designed not just to restore confidence but to give you more flexibility and options than before. We are committed to providing St. Paul with reliable, comfortable service and to working closely with your community as this new chapter begins.
Operational Investments and Readiness
Kenai Aviation is investing in the infrastructure and resources to meet Essential Air Service standards for the long haul. The new King Air entering service this fall is fully compliant with FAA extended over-water operations, a requirement that few carriers meet, and it will enable us to offer both safe and frequent service to St. Paul.
For Unalakleet, our model of smaller aircraft with more frequent flights not only meets weekly seat capacity but provides the flexibility the community has asked for. We are bolstering our operations with additional pilots, expanded maintenance support, and have developed a backup plan that ensures one grounded airplane never again halts service.
Taken together, these steps demonstrate not only compliance with EAS program requirements but the operational readiness to deliver consistent, long-term service.
Comparisons
A note on comparisons. Some proposals on the table may look viable on paper but fail the test of practicality for rural Alaska. For example, one competing bidder suggested using larger Saab 2000 aircraft but with only a handful of flights per week to meet seat minimums. That trade-off means less flexibility for travelers and longer delays if weather cancels one of those flights. In contrast, Kenai Aviation’s approach offers daily frequency with right-sized aircraft, better matching the community’s actual needs.
It is also important to note that competing proposals relied on federal subsidy to operate, while Kenai Aviation’s service in Unalakleet has been provided subsidy-free. That difference matters: our model saves taxpayer dollars, keeps fares affordable, and ensures the communities are not beholden to costly, less frequent alternatives.
We want to emphasize that these points are not intended as criticism of other carriers, but rather as clear distinctions in approach. Kenai Aviation believes that more frequent flights, sustainable costs, and subsidy-free operations are solutions to long standing problems the community faces.
We also recognize that official comments have been mixed, but we continue to hear from many residents and local businesses that daily service is a game-changer. For them, the ability to travel or ship goods any day of the week, rather than being limited to two or three days, represents true accessibility. If a flight is canceled due to weather, daily scheduling means residents do not have to wait nearly a week for another chance to travel. This direct community benefit has been a consistent point of feedback in favor of Kenai’s approach.
Alaskan Roots and Commitment
Kenai Aviation is not a mainland carrier looking north for contracts. We are Alaska-based, family-owned, and have served this state for generations. Operating in communities like Unalakleet and St. Paul is not something that can be learned overnight. From time sensitive missions to charters, from serving small villages to supporting the Kenai Peninsula, we have flown Alaskans where they needed to go for decades. Our history is here, our families are here, and our future is here. That sets us apart from operators who see these contracts as business opportunities rather than commitments to neighbors.
We have never faced an interruption like the one seen this August, and we are ensuring it does not happen again. With the addition of new aircraft, renewed focus on reliability, and a commitment to daily service, we are positioned to deliver what these communities deserve. We know Alaska. We are Alaskans. We aren’t going anywhere.
Request to the Department
In light of these actions and improvements, we respectfully request that the Department reconsider its decision to seek replacement proposals or at least delay that process while we demonstrate restored reliability.
Partnership with Communities
We also want to make clear that this is not a one-way conversation. As we move forward, we will keep you informed and we will be listening. Your input is vital as we refine schedules, balance cargo needs, and continue to invest in equipment. Our team is committed to being accessible, accountable, and responsive. We are in this for the long term, and that means earning back your trust day by day, flight by flight. The story here is not of an airline exiting markets but of an airline growing, investing, and strengthening its service in rural Alaska.
Respectfully,
Jacob Caldwell
CEO, Kenai Aviation
