Credit: Flickr/Frank Kovalchek

The search for an airline to serve Adak is starting over. On Thursday, the U.S. Department of Transportation rejected the only bid it received for the federally subsidized flight route and reopened the bidding process.

After Alaska Airlines announced in February that it wouldn’t try to renew its Essential Air Service contract this year, the DOT put out a request for proposals. PenAir was the only airline to reply.

It proposed flying a 30-seat Saab turboprop to Adak four times a week in exchange for a $3.4 million subsidy. That would have been the second most expensive EAS subsidy in the nation and double what Alaska Airlines currently receives for flying a Boeing 737 to Adak twice a week.

The DOT wouldn’t comment for this story, but in the order reopening the bidding process, it said, “We are concerned that the level of subsidy PenAir requests is very high.”  

The Essential Air Service program was almost eliminated during federal budget cuts last year and its spending continues to be highly scrutinized. Adak City Manager Layton Lockett says the cost factored into the community’s decision not to support PenAir’s proposal.

“We want to see the program succeed, period. We do know that there’s pressure on the federal budget and we want to do our part to make sure that this program continues.”

Adak’s main concern though is that PenAir doesn’t have sufficient cargo capacity on its planes.

“Unlike other communities, we don’t have regularly scheduled barge service, so everything has to come by air," Lockett says.

The DOT says PenAir’s proposal does meet Adak’s historic cargo requirements, but Lockett counters that those numbers don’t take into account the recently reopened Icicle Seafood plant.

“Fish drive traffic here, and with the fish processing plant running, there’s a lot of traffic moving out of here.”

Lockett is optimistic that the second round of bids will generate proposals that address both the community’s cargo needs and the federal budget’s bottom line

“We’re open," he says. "Obviously we need air service, so we’ll be talking to anybody that calls."

PenAir couldn’t be reached for comment on whether it will be bidding again. Alaska Airlines says it won't be bidding on the route.

Proposals are due to the DOT on June 26th and a decision is expected shortly thereafter. In the meantime, Alaska Air will continue flight service to Adak.