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The quest to provide safe, reliable passenger air transportation in Alaska is a complex puzzle

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The quest to provide safe, reliable passenger air transportation in Alaska is a complex puzzle


A passenger boards one of Aleutian Airways’ Saab 2000 aircraft in Dutch Harbor on June 1, 2023. (Photo by Scott McMurren)

Providing reliable air transportation in Alaska is a challenging business.

Flying in and out of Anchorage and Fairbanks is one thing. But servicing destinations off the road system is more complicated. Much of the traffic is seasonal. Otherwise, there are not a lot of travelers. The weather often is horrible. Everything is more expensive.

Aleutian Airways started flying one route about four years ago: Anchorage-Dutch Harbor, using a Saab 2000 twin-prop plane.

In many ways, Aleutian, which is owned by Orlando-based Sterling Airways, rose from the ashes of Peninsula Airways, or PenAir. Sterling Airways is owned by Wexford Capital. Wexford’s senior vice president is Wayne Heller, who is CEO of Sterling Airways.

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It was PenAir that worked for a long time to get the Saab 2000 certified to fly out to Dutch Harbor. Many of the aircraft that Aleutian Airways now fly used to be part of the PenAir fleet.

Aleutian Airways has five Saab 2000s in its fleet. According to Brian Whilden, Aleutian’s general manager, the carrier has two more of the planes on order.

Since the carrier started flying to Dutch Harbor four years ago, it has added several new destinations from Anchorage. During the busy crab fishing season, Aleutian can operate as many as four scheduled flights per day. The flights are not cheap: up to $1,039 one-way on the airline’s website.

Part of the equation for flying out to Dutch Harbor is the weather. Recently, storms blew through Dutch Harbor and flights were canceled. Hundreds of travelers were stuck in Anchorage, waiting for the weather to clear. Earlier this week, many of the stranded travelers eventually were able to land safely in Dutch Harbor.

The first additions were other destinations on the Alaska Peninsula: Cold Bay and Sand Point. Also, Aleutian began seasonal flights for the salmon season in King Salmon. Again, on the busiest days, three or four flights were scheduled.

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Anchorage-King Salmon is the one route where Aleutian competes with Alaska Airlines, which flies the route year-round in conjunction with its regional airline subsidiary, Horizon Air.

The next markets Aleutian targeted were on the Kenai Peninsula: Kenai and Homer.

The carrier’s Homer service was interrupted while Alaska’s Department of Transportation and Public Facilities resurfaced the runway. Currently, Aleutian flies between Anchorage and Homer once a day, leaving at 7:30 a.m. Whilden said they plan to add a second daily flight next month. Tickets cost about $200 one-way.

Aleutian also flies to Kenai once each day. By contrast, Grant Aviation flies 27 times per day. There’s a big difference, though. Aleutian flies the route in a 46-passenger ATR42-600 twin-prop. Grant operates nine-passenger Cessna 208s on the route.

Earlier this month, Aleutian Airways took delivery of its first ATR aircraft. This aircraft actually is operated by another air carrier owned by Sterling Airways: Argentum Airways. Aleutian Airways pays Argentum to fly the Anchorage-Kenai and Anchorage-Homer routes using the ATR plane, which is painted in Aleutian Airways’ colors.

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Argentum Airways’ 46-passenger ATR42-600 aircraft sits in the Aleutian Airways hangar in Anchorage, sporting Aleutian Airways’ livery. The aircraft, a twin-prop, wing-over design, had just returned from flying to Kenai and Homer on Jan. 22, 2026. (Photo by Scott McMurren)

This seems like a fancy shell game to me. But the ATR aircraft is on a separate operating certificate, from Silver Airways, a now-defunct Florida-based air carrier acquired by Sterling Airways.

According to Whilden, two more ATR72-600 planes are planned for the Argentum fleet to fly for Aleutian Airways. The ATR72s are larger than the ATR42, with a capacity of as many as 78 passengers.

However, Whilden said there will be “fewer” seats on the aircraft, to avoid setting up TSA screening stations at the carrier’s airports. Both the Saab 200s and the ATR42s are exempt from TSA metal-detector screening at the terminal in Anchorage and at the carrier’s stations around the state.

While the ATR aircraft can operate quickly and easily on routes to the Kenai Peninsula, the plane was essential for Aleutian Airways in its quest to provide service to St. Mary’s in Western Alaska.

St. Mary’s, on the banks of the Andreafsky River near the confluence with the Yukon River, is a village of about 500 people. It has a gravel runway. Aleutian Airways’ fleet of Saab 2000s, with its “wing-under” configuration, was not suitable to land on gravel. The ATR42 — and the ATR72 — featured a “wing-over” design and is better-suited for St. Mary’s.

There’s another big factor in Aleutian’s growth plan for its next three markets: St. Paul Island, Unalakleet and St. Mary’s.

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For the first time in Alaska, Sterling Airways has applied for and was approved for Essential Air Service subsidies to serve these markets.

Aleutian Airways already is flying from Anchorage to Unalakleet three times per week, with fares from $199 one-way.

Scheduled service to St. Paul Island and St. Mary’s does not happen overnight.

Particularly to St. Paul Island, there are extensive modifications necessary for the Saab 2000 to operate over water. Seating is limited to 30 passengers. Once the modifications are complete, the FAA must approve them before revenue flights can begin.

In the meantime, travelers in St. Paul are restricted to one of just eight seats on a Learjet operated by Security Aviation two or three times per week. Aside from that, travelers must hire a private charter.

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In St. Mary’s, until the ATR42 is certified to fly there, Ryan Air is operating nonstop flights to Anchorage three times per week.

Aleutian Airways had planned to inaugurate regular scheduled service to all three destinations sooner. But Whilden faults the lengthy government shutdown for the delays.

“People don’t realize how many things were impacted by the shutdown,” he said.

For example, the ATR42 arrived in Anchorage on Jan. 6. But it wasn’t authorized to fly for another two weeks, on Jan. 20.

The Essential Air Service subsidy for St. Paul Island, St. Mary’s and Unalakleet starts at $14.9 million for the first year, increasing to $16.7 million in the fourth year.

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Service to these three markets places Sterling Airways and its brands Aleutian Airways and Argentum Airways as the No. 2 recipient of Essential Air Service money in the state.

The No. 1 recipient of EAS money is Alaska Airlines. Alaska receives more than $17 million per year to fly to Adak, Cordova, Yakutat, Wrangell and Petersburg.

The quest to provide safe, reliable passenger transportation is a complex puzzle. Major players include the EAS program, the FAA, meteorologists, operational navigational aids, pilots, crews and well-maintained aircraft.

The equation also includes certificated aviation operators, including Sterling Airways. Sterling and its subsidiaries are “part 121” air carriers, which means they can operate larger aircraft. They also must adhere to more rigorous safety, maintenance and documentation standards, just as Alaska Airlines does.

Sterling’s larger aircraft offer a level of comfort and convenience to Bush travelers that we in Anchorage take for granted. Safe, reliable passenger transportation is essential to connect Alaska’s far-flung communities for work, for commerce and business, for health care and for family connections. But it’s not cheap.

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Alaska

Over $150K worth of drugs seized from man in Juneau, police say

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Over 0K worth of drugs seized from man in Juneau, police say


JUNEAU, Alaska (KTUU) – An Alaska drug task force seized roughly $162,000 worth of controlled substances during an operation in Juneau Thursday, according to the Juneau Police Department.

Around 3 p.m. Thursday, investigators with the Southeast Alaska Cities Against Drugs (SEACAD) approached 50-year-old Juneau resident Jermiah Pond in the Nugget Mall parking lot while he was sitting in his car, according to JPD.

A probation search of the car revealed a container holding about 7.3 gross grams of a substance that tested presumptively positive for methamphetamine, as well as about 1.21 gross grams of a substance that tested presumptively positive for fentanyl.

As part of the investigation, investigators executed a search warrant at Pond’s residence, during which they found about 46.63 gross grams of ketamine, 293.56 gross grams of fentanyl, 25.84 gross grams of methamphetamine and 25.5 gross grams of MDMA.

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In all, it amounted to just less than a pound of drugs worth $162,500.

Investigators also seized $102,640 in cash and multiple recreational vehicles believed to be associated with the investigation.

Pond was lodged on charges of second-degree misconduct involving a controlled substance, two counts of third-degree misconduct involving a controlled substance, five counts of fourth-degree misconduct involving a substance and an outstanding felony probation warrant.

See a spelling or grammar error? Report it to web@ktuu.com

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Alaska

Sand Point teen found 3 days after going missing in lake

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Sand Point teen found 3 days after going missing in lake


SAND POINT, Alaska (KTUU) – A teenage boy who was last seen Monday when the canoe he was in tipped over has been found by a dive team in a lake near Sand Point, according to a person familiar with the situation.

Alaska’s News Source confirmed with the person, who is close to the search efforts, that the dive team found 15-year-old Kaipo Kaminanga deceased Thursday in Red Cove Lake, located a short drive from the town of Sand Point on the Aleutian Island chain.

Kaminanga was last seen canoeing with three other friends on Monday when the boat tipped over.

A search and rescue operation ensued shortly after.

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Alaska Dive Search Rescue and Recovery Team posted on Facebook Thursday night that they were able to “locate and recover” Kaminanga at around 5 p.m. Thursday.

“We are glad we could bring closure to his family, friends and community,” the post said.

This is a breaking news story and will be updated when more details become available.

See a spelling or grammar error? Report it to web@ktuu.com

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Opinion: Homework for Alaska: Sales tax or income tax?

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Opinion: Homework for Alaska: Sales tax or income tax?


iStock / Getty Images

This is a tax tutorial for gubernatorial candidates, for legislators who will report to work next year and for the Alaska public.

Think of it as homework, with more than eight months to complete the assignment that is not due until the November election. The homework is intended to inform, not settle the debate over a state sales tax or state income tax — or neither, which is the preferred option for many Alaskans.

But for those Alaskans willing to consider a tax as a personal responsibility to help fund schools, roads, public safety, child care, state troopers, prisons, foster care and everything else necessary for healthy and productive lives, someday they will need to decide on a state income tax or a state sales tax after they accept the checkbook reality that oil and Permanent Fund earnings are not enough.

This homework assignment is intended to get people thinking with facts, not emotions. Electing the right candidates will be the first test.

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Alaskans have until the next election because nothing will change this year. It will take a new political alignment led by a reality-based governor to organize support in the Legislature and among the public.

But next year, maybe, with the right elected leadership, Alaskans can debate a state sales tax or personal income tax. Plus, of course, corporate taxes and oil production taxes, but those are for another school day.

One of the biggest arguments in favor of a state sales tax is that visitors would pay it. Yes, they would, but not as much as many Alaskans think.

Air travel is exempt from sales taxes. So are cruise ship tickets. That’s federal law, which means much of what tourists spend on their Alaska vacation is beyond the reach of a state sales tax.

Cutting further into potential revenues, state and federal law exempts flightseeing tours from sales tax, which is a particularly costly exemption when you think about how much visitors spend on airplane and helicopter tours.

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That leaves sales tax supporters collecting from tourists on T-shirts, gifts for grandchildren, artwork, postcards, hotels, Airbnb, car rentals and restaurant meals. Still a substantial take for taxes, but far short of total tourism spending.

An argument against a state sales tax is that more than 100 cities and boroughs already depend on local sales taxes to pay for schools and other public services. Try to imagine what a state tax piled on top of a local tax would do to kill shopping in Homer, already at 7.85%, or Kodiak, Wrangell and Cordova, all at 7%, and all the other municipalities.

Supporters of an income tax say it would share the responsibility burden with nonresidents who earn income in Alaska and then return home to spend their money.

Almost one in four workers in Alaska in 2024 were nonresidents, as reported by the state Department of Labor in January. That doesn’t include federal employees, active-duty military or self-employed people.

Nonresidents earned roughly $3.8 billion, or about 17% of every dollar covered in the report.

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However, many of those nonresident workers are lower-wage and seasonal, employed in the seafood processing and tourism industries, unlikely to pay much in income taxes. But a tax could be structured so that they pay something, which is fair.

Meanwhile, higher-wage workers in oil and gas, mining, construction and airlines (freight and passenger service) would pay taxes on their income earned in Alaska, which also is fair.

It comes down to what would direct more of the tax burden to nonresidents: a tax on income or on visitor spending. Wages or wasabi-crusted salmon dinners.

Larry Persily is a longtime Alaska journalist, with breaks for federal, state and municipal public policy work in Alaska and Washington, D.C. He lives in Anchorage and is publisher of the Wrangell Sentinel weekly newspaper.

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