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slides. Patrick requested copies of the graphs. Bertuleit suggested finding a way to get people to local lodging establishments to spend the night. A possible repositioning of NOAA vehicles was suggested.

Kilbride stated that most of the letters to the editor are very favorable to the air service, and he commended Craford for that. He added that his concern is that the Pilatus is the wrong plane in the wrong place because the community cannot support that plane when the subsidy is gone. He reviewed revenues and ticket prices, noting that with five passengers, and no subsidy, the ticket price would be approximately $190 each way. He added that he does not believe there would be community support for that ticket price, and is afraid that at the end of the grant period, SeaPort will go away, and certainly the airplane will. He asked whether Craford has given any thought to utilizing a less expensive airplane. Kilbride added that the only salvation would be a grant renewal from the state. He noted that an airport district is another possibility, but that he would like to see a more economical airplane. Craford stated that it is SeaPort’s assumption that when the money runs out, there is no more left. He added that SeaPort is the smaller part of a larger operation. He stated that his company operates seven unpressurized aircraft in Alaska. He added that when SeaPort got the Memphis routes, it determined to use the Pilatus, because good airplanes are good business. He added that prices on the Pilatus have become more affordable.

Jim Day, from SeaPort, reported that increasing passengers drives the fare up and spreads the expenses over a greater revenue base. He added that the service should be sustainable at the end of the grant period, and at this point, is cumulatively under the cap.

Kilbride asked Day whether he thinks it is realistic for Council to expect that the Pilatus will be economical enough to make the air service sustainable at the end of the grant period. Day stated that he believes it will be.

Patrick asked Craford whether SeaPort owns or leases its airplanes. Craford reported that some are leased and some are on lease/purchases, and that some of the aircraft used in Alaska are owned by SeaPort.

Obteshka asked for the most optimistic projection on e-ticketing. Craford reported that if SeaPort switches to the new reservation system right away, e-ticketing could be ready within 90 days. He explained that the entire company will need to utilize the new reservation system, and it might take more than 90 days to switch the entire company to the new system.

Brusselback asked how much faster the Pilatus flies than the Cessna. Bruce Phillips reported that it flies approximately 120 knots per hour faster.

Patrick asked how SeaPort determined that people will pay $200 each way to and/or from Newport.

Craford reported that some people fly from Pendleton to the coast. He added that costs fluctuate, and some opportunity has gone down. He reported that cancellations exceed expectations, noting that more than 10% of the scheduled flights have been cancelled, and there is no revenue for these flights.

Day reported that the northwest and midwest expansions help spread overhead costs. McConnell asked whether Craford is confident that the interline agreement would be achieved in six months. Craford noted that the plan is to pursue e-ticketing and the interline agreement concurrently. He expressed confidence that once e-ticketing is

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