Alaska
Flying people and freight around the state is important in building and maintaining connections
Flying is a big part of the Alaska lifestyle.
For many of us, that means out-of-state travel, or even out of the country.
But just as we fly off to Seattle or Frankfurt and other points abroad, airplanes also take travelers to the far reaches of the state.
The big jets go to many destinations around the state. Alaska Airlines flies 737s to Nome, Cordova, Bethel, Juneau, Kodiak and Utqiagvik every day. Also in the mix are the smaller regional jets operated by Horizon Air: the E175s.
The smaller jets fly between Anchorage and Fairbanks, King Salmon and Dillingham, plus other destinations as required.
But there are a bunch of other communities in the state that Alaska Air and Horizon don’t reach. The communities are too small, or the airstrips aren’t big enough, or both.
Air travel to and from most of these communities is restricted to planes that accommodate nine passengers or fewer. A few larger communities in Western Alaska enjoy service with larger planes. Ravn Alaska flies the wing-over twin-engine Dash-8 with 29 to 37 passengers. Aleutian Air operates the 50-passenger Saab 2000.
The air carriers are changing things up — and it affects travelers around the region.
Last December, Ravn Alaska advised the U.S. Department of Transportation that it intended to halt its essential air service flights on April 29 between Anchorage and St. Mary’s, as well as between Anchorage and Unalakleet.
For reference, it’s expensive to fly to either destination, between $450 and $545 one-way, with at least 14 days’ advance notice.
The U.S. DOT put a hold on Ravn’s plan, ordering the carrier to continue flying until another carrier is found. Sterling Airways, the parent corporation for Aleutian Airways, submitted bids to serve the two communities, with a subsidy of at least $5.8 million. ACE Air Cargo also submitted a bid, requesting a subsidy of more than $4.4 million. ACE also does quite a bit of charter passenger flights with its fleet of 19-passenger Beechcraft 1900s.
Kenai Aviation submitted a bit with no subsidy for Anchorage-Unalakleet and was awarded the route. According to Jacob Caldwell, Kenai Aviation’s president, the carrier will fly a nine-passenger King Air twice each day between Anchorage and Unalakleet. Fares start at $495 each way.
There’s been no award yet for the Anchorage-St. Mary’s route. Ravn will continue to fly three times per week until a new carrier is selected.
The essential air service program for small, rural communities started in 1978 when airlines were deregulated. The qualifications for communities has changed over time, but right now there are 65 routes in Alaska that qualify.
[Nonstop flights from around the country and from Bush Alaska are an essential part of Anchorage’s economy]
Prices for travel to Alaska’s smaller communities almost always generate sticker shock for travelers from Anchorage.
Anchorage-Kenai tickets cost $145 each way on either Grant Aviation or Kenai Aviation. Tickets to Homer on Ravn or Aleutian Air cost between $143 and $190 each way.
Fares to Valdez went down when Ravn won a $6 million annual essential air service contract. Today, the one-way fare is $89.
Flights to Dutch Harbor cost $689 one-way on Aleutian Airways, which now is the only carrier that flies there, since Ravn pulled out.
Ravn is the only carrier flying from Anchorage to St. Paul Island and the fare is $770 one-way.
There are many small air carriers providing service between Anchorage and smaller communities around the state. That includes Alaska Air Transit, which flies to the Prince William Sound communities of Chenega and Tatitlek. Iliamna Air Taxi and Lake and Pen Air both fly from Anchorage to communities on the Alaska Peninsula. Many other smaller carriers offer charter service around the state, which makes sense if you have a small group that can fill the plane.
Mike Reeve, grandson of Reeve Aleutian Airways’ founder Bob Reeve, flies all over the state with his fleet of King Airs. His carrier, Reeve Airways, operates two scheduled routes: between Anchorage and Gulkana and between Anchorage and McGrath.
In the summer, Reeve also flies from Anchorage to McCarthy twice each week.
Reeve gets an essential air service subsidy for the Anchorage-Gulkana run. Although he doesn’t receive a subsidy on the flights to McGrath, he continues the daily flights “to develop the market.”
Kenai Aviation’s Joel Caldwell, Jacob’s father, also spoke about developing the market with the increased frequency to Unalakleet. Currently, Ravn flies four times per week in the Dash 8. With Kenai Aviation’s twice-daily flights, Caldwell said travelers could fly back and forth to Anchorage in one day.
Both Reeve Airways and Kenai Aviation submitted proposals to fly between Anchorage and Seward, supported by an essential air service subsidy.
Air carriers in Alaska have a multitude of issues to consider before starting a new route. Many carriers only fly freight and mail. Evert’s Air Service and Ryan Air both fly freight and mail almost exclusively. Still, Ryan flies a passenger flight five days a week between Anchorage and Aniak. And Evert’s flies passengers to several villages out of Fairbanks.
If a carrier elects to fly passengers, there’s the mix of passengers, freight and mail to configure on each flight. Also, passengers have their own checked luggage.
Flying the mail is an important contract for rural air carriers. Postal revenue can be a decisive factor in making a route profitable. Another important factor for passenger air carriers is medical travel, often paid by insurance or Medicaid.
Matt Atkinson is one of the owners of Wright Air Service in Fairbanks. On the tarmac in Utqiagvik, Atkinson was unloading a Cessna 208 that just arrived from Nuiqsut and Deadhorse. Next to him was a pallet of boxes and other freight that needed to go to Wainwright, 86 miles west of the airport. There were foodstuffs, Amazon packages and a young girl’s bicycle crammed into the plane.
“Passengers are important,” said Atkinson. “But you win the hearts and minds of our people with mail and freight.”
[Recent events put aviation safety at the front of mind for travelers]
Next weekend, Alaska’s air carriers will get together for their annual convention. At the top of the agenda is aviation safety, which was brought in to crystal focus following the crash of the Bering Air flight last month. But there’s also a seminar of dealing with the U.S. Postal Service, which is an important partner in Alaska aviation.
Flying people and freight around the state never has been easy. But those companies and individuals dedicated to that mission play an important role in connecting people around the state.
Alaska
Travel prices are going up, up and away. Here’s what to watch.
Up, up and away … that’s where most travel prices are going.
It’s true. Not only are our nation’s geopolitical thrusts in the Mideast affecting the cost of your fill-ups, every component of your trip from airfares to car rentals and hotel stays are subject to price hikes.
Imagine filling up a jetliner with jet fuel that’s doubled in price. It’s enough to melt your credit card, regardless of the number of points you get for every dollar spent!
Because the price of oil affects everything, higher prices are eating away at your travel budget in many ways.
Bag fees
There’s lots of press on this. All airlines are increasing their checked-bag fees because of the jump in fuel prices.
Back in 2009, Alaska Airlines instituted a $15 fee for the first checked bag and $25 for the second bag. At the time, there was no charge for the first bag and a second bag was $25.
Last week, Alaska Airlines, along with other major airlines, increased its fees to $45 for the first checked bag and $55 for the second bag. Delta Air Lines charges the same.
Even if the cost of oil comes down, I don’t expect bag fees will ever be reduced.
Travelers who live in Alaska are somewhat insulated from the new hikes because both Delta and Alaska Airlines offer two free checked bags, with conditions:
1. Alaska offers two free checked bags for travelers flying to or from Alaska who are enrolled in Club 49. This does not affect other flights on Alaska. Separately, ATMOS credit card holders can get a free checked bag. Also, elite members of the ATMOS scheme get one or two free checked bags systemwide.
2. Delta offers two free checked bags for travelers flying to or from Alaska who are SkyMiles members who live in Alaska. Again, this does not apply to other Delta flights. Separately, Delta American Express cardholders can get a free checked bag.
3. Elite-level travelers with the oneworld airline cartel, including Alaska Airlines, can get one or two checked bags on American, British Airways, Japan Airlines, Qantas or other oneworld carriers.
[Anchorage’s international airport rolls out self-driving wheelchairs]
Main Cabin vs. Basic Economy
The spread between the lowest available price, Basic Economy, and a more flexible ticket, Main Cabin, has increased. While the difference used to be $20-$30 each way when the Basic Economy scheme was introduced in 2018, the round-trip upcharge now can exceed $100.
For example, the lowest Basic fare to Portland is $337 round-trip on Alaska Airlines. The upcharge to Main Cabin, with full loyalty points, pre-assigned seats and more flexibility on changes and cancellations, is $447, a 33% upcharge.
This trend is not specifically attributable to the new Iran War. It’s just a cost that continues to rise.
New fees
I’m impressed at the creativity of airline people who dream up new fees. Here are some of my favorites from Alaska Airlines:
1. Phone reservations: $15
2. Partner award booking fee: $12.50
3. Pet travel fee: $100 in the cabin, $200 in the baggage compartment with a kennel
4. Left on board item return fee: $20
On Condor Airlines, operating the only nonstop service from Anchorage to Europe, travelers can choose from four different bundles in economy class. The least-expensive, Economy Zero, from $840 round-trip, features fees for travelers:
1. Carry-on bag fee, up to 8kg: $35; a small bag like a purse always is included for free
2. Checked bag: $75
3. Airport check-in: $30
All three of these fees are included in the next-highest fare bucket, Economy Classic, from $900 round-trip. It’s cheaper to buy the bundle than it is to buy the components a la carte. Seat assignments are additional, from $25 for economy.
Airfares on the rise
There are a few good deals available for travel to select West Coast/Intermountain destinations in May, including:
1. Anchorage-San Francisco on Alaska Airlines, from $307 round-trip. Fly May 15-28 only. Add $90 round-trip for Main cabin.
2. Anchorage-Los Angeles on Alaska Airlines, from $317 round-trip. May 15-25 only. Add $90 round-trip for Main.
3. Anchorage-Phoenix on United, Delta or Alaska, from $267-$287 round-trip. Fly May 8-June 9 only. Add $90-$100 for Main.
4. Anchorage-Denver $357 round-trip on Delta. Fly May 8-June 9 only. Add $90 round-trip for Main.
For travel to other destinations, or later in the summer, be prepared to pay more.
Flying to Hawaii? Alaska Air’s nonstop prices out at $706 round-trip between May 30 and June 6. Add $110 round-trip for Main.
Nonstop flights from Anchorage to Salt Lake City start at $669 round-trip with Delta on May 17. That’s $100 more than the cost for the same flights last month. Add $90 more for Main.
Hotel costs continue to rise, accompanied by pesky resort fees.
The Outrigger on the Beach in Waikiki is a very nice beachfront hotel. It’s not plush, or the nicest property. But it’s solid. The cost is $334 per night.
But there’s more: a $50 per night resort fee, plus a variety of taxes and charges, totaling $112.55 per night.
Down in Seattle, the Sound Hotel in the Belltown neighborhood is marketed by Hilton. The discounted rate for “Honors” members — it’s free to join — is $313.34 per night for a king room in late May. Taxes and fees add an extra $56.40 per night.
There’s no appreciable bump yet for hotel rates as a result of the oil price surge. Yet. But if these hotel rates seem high, they’re in line with hotel rates in Anchorage this summer. At the Sheraton in Anchorage in June, it’s $450 per night, plus $54 in taxes and fees, when booked at Expedia.
Car rentals are not cheap
My go-to site for car rentals is the Costco site, which compares major brands and automatically includes Costco discounts.
In Las Vegas, for a one-day rental in May, Budget charges $67 per day, which includes taxes and fees of $22.77. In Anchorage, the same kind of car, medium SUV, costs $92.97 with Alamo.
The biggest differences so far in car rental rates seems to be the bill you’ll pay when you fill up the tank before returning. There’s no appreciable jump in prices because of the new war.
When it comes to making travel arrangements for the spring and summer, it’s more risky making completely non-refundable arrangements.
I made the decision to purchase most of my summer travel plans in advance, but only after determining I would not need to change the dates. Particularly with airline tickets, it’s expensive to change your dates.
There’s lots of uncertainty regarding travel arrangements, particularly international travel. As fuel prices go up due to oil shortages, travel companies will look for ways to recoup the increased costs. In most cases, those higher costs will be borne by travelers.
Alaska
Murkowski warns decreasing national fuel prices could spell disaster for rural Alaska
ANCHORAGE, Alaska (KTUU) – The reopening of the Strait of Hormuz has led to a decrease in oil prices nationally, but Alaska’s senior senator said the state faces a different situation that could threaten rural communities.
“If you can’t produce power because you don’t have the diesel or you just can’t pay the prices, your little communities can collapse,” Sen. Lisa Murkowski, R-Alaska, said at a Friday press conference at the Arctic Encounter Summit in Anchorage.
The price of oil has been a double-edged sword for Alaska. On one hand, the increased price of North Slope oil brings more revenue to the state, but consumer prices can also rise.
North Slope oil prices were $106.36 a barrel on Thursday.
“This is a very precarious time,” Murkowski said. “Our state has enjoyed a bounty because we have benefited from the higher prices of oil that goes into our treasury, but it’s the Alaskans in … the off-road communities that are threatened to be hit most hard.”
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Alaska
New oil and gas lease sale set for Alaska’s Arctic National Wildlife Refuge, amid litigation
JUNEAU, Alaska (AP) — The U.S. government plans another oil and gas lease sale for Alaska’s Arctic National Wildlife Refuge — following two prior sales that saw no interest from major oil companies and amid ongoing litigation aimed at blocking drilling in a region seen as sacred by the indigenous Gwich’in.
The sale will be held June 5, the U.S. Bureau of Land Management announced Friday. It would be the first in the region under a law passed by Congress last year calling for four lease sales in the refuge’s coastal plain over a 10-year period. But it would be the third in the refuge overall, following one held near the end of President Donald Trump’s first term that has been tangled in litigation and another in early 2025, shortly before then-President Joe Biden left office, that yielded no bids.
Drilling supporters, including Alaska political leaders, argued last year’s sale was too meager an offering to draw interest.
The upcoming sale also would be the third federal oil and gas lease sale this year alone in Alaska under an aggressive push by the Trump administration to expand development in the state. There were no bidders in a sale last month for the aging Cook Inlet basin, while a lease sale in the National Petroleum Reserve-Alaska — where the large Willow oil project is under development — drew hundreds of bids despite pending legal challenges to the sale.
Bill Groffy, the land management agency’s acting director, in a statement said the success of last month’s petroleum reserve sale signaled a “robust and continuing demand for Alaskan energy, underscoring the need for more opportunities like the Coastal Plain sale.”
Leaders from Gwich’in villages near the arctic refuge and conservation groups vowed to continue fighting efforts to open the refuge’s coastal plain to drilling. The Gwich’in consider the coastal plain sacred, as it provides calving grounds for a caribou herd they rely on. The plain, bordering the Beaufort Sea in northeast Alaska and featuring rolling hills and tundra, also provides habitat for wildlife including muskoxen and migratory birds.
“The Trump Administration’s relentless push to auction off this sacred land despite overwhelming public opposition and industry that has already signaled they are not interested makes clear that this administration values corporate interests over the rights and lives of Indigenous peoples,” Galen Gilbert, first chief of Arctic Village Council, said in a statement. “We will continue to fight with every tool available to protect the Coastal Plain for our children and all future generations.”
Debate over drilling in the region spans decades.
Leaders of Kaktovik, an Iñupiaq community within the refuge, consider responsible development key to their region’s economic well-being and have welcomed efforts by the Trump administration to open more lands for drilling.
The Bureau of Land Management has said the coastal plain could contain 4.25 billion to 11.8 billion barrels of recoverable oil, but there is limited information about the amount and quality of oil. Meanwhile, conservation groups see the refuge as the crown jewel of the country’s refuge system and a place that should be off-limits to development. The refuge itself is the largest in the country, covering an area roughly the size of South Carolina.
Andy Moderow, senior director of policy at Alaska Wilderness League, said the planned sale “simply runs counter to common sense.”
“Any oil and gas company that is even thinking about buying these leases should know that, if they do, they will be sending a clear message to the American people that no place in Alaska is too sacred to drill in a quest for corporate profits,” he said in a statement urging companies to sit out the sale.
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