McGrath's air service contract expires Nov. 30, and the feds haven't named a carrier

McGrath's federally subsidized air service contract to Anchorage expires Nov. 30, and four weeks out, the U.S. Department of Transportation hasn't announced which of four carriers will fly the route next.

The city asked for an answer in an Oct. 27 letter, saying it "understands that a decision was expected by now, but has not received an update." The uncertainty affects residents planning holiday travel and the current carrier's ability to plan its schedule, the letter says. As of Monday, no order picking a carrier had been posted.

The bids differ widely in price and service. They range from about $529,000 to $2.4 million a year. The current carrier, Alaska Air Transit, is paid about $586,000 this year for five weekly round trips on nine-seat planes. McGrath wants it to keep the route, flying twice as often at several times the cost.

The four carriers bid in July:

• Alaska Air Transit, the current carrier, offered 10 weekly round trips to Merrill Field on Pilatus PC-12s, at about $2 million the first year and $2.4 million the second. Another option adds a third year at about $2.9 million. The carrier cites inflation and tariffs on aircraft parts, and says it already flies nine or more round trips a week while being paid for five.

• Alaska Central Express offered five weekly round trips on nine-passenger Beech 1900Cs, at about $1.8 million and $1.9 million.

• Ryan Air offered five weekly round trips on PC-12s to Ted Stevens Anchorage International Airport, at about $529,000 and $552,000, with a $210 one-way fare.

• Sterling Airways offered three weekly round trips to the international airport on 30-seat Saab 2000s, at about $1.16 million a year.

McGrath's City Council voted unanimously in August to endorse Alaska Air Transit. Mayor W. Michael Tierney wrote that the carrier had picked up freight, including bypass mail for the local store, after McGrath's freight carrier stopped serving the town.

The city's October letter backs the option with a third year. It argues that five round trips on nine-seat planes give the town 45 seats a week each way, which it says falls short of what its original 1980 service determination calls for. "It would be devastating for us to downgrade our flight service to 3 days or 45 passengers per week," the letter says.

Alaska Air Transit also says Merrill Field is closer to Anchorage hospitals and the Alaska Native Medical Center than the international airport the other three would use. McGrath had 5,611 passengers in 2025, Alaska Air Transit's first full year, up from 4,408 in 2024, according to the carrier's proposal.

The department isn't required to take the lowest bid. Federal law tells it to weigh six factors on Alaska routes, including reliability, community preference and total cost.

Bids for seven other Alaska communities whose subsidized air service went out for bid this summer all asked for more money than current contracts pay.