Wings, Chapter 2

Posted: Friday, September 29, 2000

Regarding Karla Hart's response to a My Turn I wrote, our (Wings of Alaska Airlines) expenses are accrued based on revenue flight hours and charged to the month the flights actually occur. All aircraft expenses for downtown and other summer operations are accrued by Sept. 30 even though the actual maintenance, insurance, lease and capital costs may occur during the winter. The winter cash outlay exceeds well over $1 million, but only the $460,000 loss stated is associated with winter operations.

The $2.50 is not charged on the lodge flights, but the Juneau airport is funded based on enplanements, not whether the segment fee is charged. A segment fee is charged for Haines flights but not for Skagway flights because of how the law was written.

With respect to Ms. Hart's questions concerning jobs, they are not necessarily tied to one source of revenue or the other. The reduction in staff and pilots would relate to the service we are able to provide to the communities. We would still fly the morning mail but have to cut other flights during the day. This would result in a reduction in staffing needs; a reduction in the hours worked by the remaining staff and a reduction in service to the communities.

Our point-to-point travel between communities will be impacted by the flightseeing initiative.

John Lucas


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