The U.S. Department of Transportation announced Friday it has selected Aleutian Airways to provide federally subsidized air service to three Western Alaska communities: St Paul, Unalakleet and St. Mary’s. The decision comes after months of cancellations, charter flights and shifting carriers across the region.
The department’s Essential Air Service program subsidizes air carriers to serve small and rural communities where service would not otherwise be profitable.
John Wayne Melovidov is the tribal council president of the Aleut Community of Saint Paul Island, the tribal government for the Pribilof Island. He says it's common to spend days trying to fly to the island, and flights are commonly turned back when they can’t land.
“You fly all the way out here and you have to turn back and go to Anchorage or go to Bethel,” he said. “All of a sudden you're sitting on a plane for four-and-a-half, six hours.”
The community of about 400 people has been without regular passenger service since late July, when Ravn Alaska pulled out and later shut down operations. For months, the tribal government has been chartering jets and reselling seats for one-way flights to Anchorage for more than $1,300 each.
The community’s four major community organizations — the city and tribal governments, the Native village corporation and the community’s main trade organization — unanimously backed Aleutian’s bid. Dozens of community members filed public comments supporting the carrier.
“As a community, all the entities got together,” Melovidov said. “I am extremely proud of our community’s people, direction and leadership.”
Federal law requires DOT to give “substantial weight” to local views when selecting an EAS carrier. The department cited that unified support as part of their decision.
Under the new award, Aleutian Airways will operate three round trips a week between St. Paul and Anchorage using 30-seat Saab 2000 aircraft. DOT will provide Aleutian $8.4 million in federal subsidies in the first year, with annual increases through the four-year contract.
Local leaders had earlier opposed a proposal from Kenai Aviation, which planned to fly a nine-seat Beechcraft Super King Air. Kenai had been facing reliability problems in Unalakleet this year, where residents reported chronic cancellations and last-minute aircraft swaps.
Aleutian will also serve Unalakleet, St. Mary’s
The new Unalakleet contract closes the book on an earlier attempt to serve the community with unsubsidized flights.
In the spring, Kenai Aviation began flying to Unalakleet after Ravn said it would suspend its service. But residents told DOT that Kenai Aviation struggled to meet its target of two flights a day and frequently canceled trips or substituted smaller planes.
In August, Kenai suspended all Unalakleet flights after its only King Air was grounded for maintenance. Last month, the airline announced it was ceasing all operations, saying in a Facebook post it was “financially insolvent” after pandemic-era debt.
Kenai had served eight Alaska communities and held EAS contracts in Seward and Unalakleet.
DOT has now awarded Unalakleet’s subsidized service to Aleutian Airways, which is using a 30-seat aircraft on three weekly trips.
Aleutian Airways will also begin subsidized flights to St. Mary’s in the Yukon-Kuskokwim Delta. DOT had previously awarded the contract to Alaska Central Express at a cost of just over $3 million per year, but the airline later told the department it would not be able to start service on time and intended to terminate the agreement.
DOT’s order says Aleutian Airway’s contract began in Unalakleet last week. Service to St. Paul and St. Mary’s is scheduled to begin in early 2026.
