Order 2011-6-14 

Served: June 10,2011 

UNITED STATES OF AMERICA 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

Issued by the Department of Transportation 

on the 10'%f June, 2011 

INTRA ALASKA BUSH MAIL RATES Docket OST-2003-14694 

SHOW CAUSE ORDER PROPOSING UPDATED MAIL RATES 

SUMMARY 

By this order, the Department directs all interested parties to show-cause why the proposed 

Intra-Alaska bush sen^ice mail rates set forth below should not be made final. The rates 

currently in effect were tentatively set by Order 2009-11-2, made final by Order 2009-11-19, 

and updated for changes in quarterly fuel prices most recently by Order 2010-9-24. This order 

tentatively modifies the findings of show cause Order 2010-12-28. In response to those 

objections, we propose making significant changes to the structure of the Part 135 rate, and so 

we are issuing this order on a show-cause basis as well. The rates include quarterly fuel costs 

for the QE June 30, 2010, but we anticipate updating fuel costs with more recent data after the 

final order is issued. 

RATE COMPARISONS ' 

Proposed 

Current, Order 2010-9-24 

Percentage Increase 

Part 121, 

per RTM 

$6.0052 

$5.8993 

1.80 

Part 135, 

per RTM 

SII.I2152 

$13.2559 

<16.10> 

Seaplane, 

per RTM 

$32.8944 

$33.4185 

<1.57> 

Terminal Per 

Ton Enplaned 

$716.16 

$745.01 

<3.87> 

' These rates reflect the quarterly fuel updates in Order 2010-9-24, and nonftjel linehaul and terminal costs 

based on YE 6-30-10 costs. When fuel data for more recent quarters become available, we will continue our 

practice of issuing quarterly fuel updates. 

^ The actual rate per RTM will vary by distance because we are proposing ataper. The value of $11.1215 is 

for comparison purposes only and reflects the underlying rate before we apply the taper. See Attachment B, 

Appendix A of this order for the Part 135 calculation. As shown there, the taper rate corresponding to 

$11.1215 per mail ton mile is $371.45 per mail ton enplaned plus $7.4622 per mail ton mile. 
-2-

BACKGROUND 

Order 2010-12-28 proposed annual updates for the Part 121, Part 135, and Seaplane mail 

rate classes, as well as the bush terminal, based on data for the year ended June 30, 2010, 

the most recent data then available. The Department directed parties to show cause by 

January 12 why the order should not be made final. 

Although Order 2010-12-28 did not change its recent historical approach to calculating the 

various class rates from the preceding year, the underlying Part 135 operations changed 

significantly from prior periods because Peninsula Airways, Inc., (PenAir) began operating 

a number of its Metro aircraft under Part 135; previously all of those operations had been 

conducted under Part 121. Reflecting those new operations by PenAir, Order 2010-12-28 

tentatively assigned three quarters of those Metro operations to the Part 135 cost pool, 

thereby increasing PenAir's share of Part 135 mail volumes from 7 to 27 percent.^ The 

increased volume of PeaAir*s new Part 135 operations coupled with the much lower costs 

of those operations produced the significant 10 percent drop in costs and rates shown in 

Order2010-12-28 for the Part ]35c]ass.4 

After the order issued and the magnitude of the effect on the rates of PenAir's decision to 

operate its Metros under Part 135 became known, we received a timely-filed request from 

the Consolidated Carriers (CC) to extend the deadline for objections until January 27, and 

by notice dated January 11 we granted that request. We received objections on January 25 

from Ryan Air, Inc., formerly Arctic Transportation Services, and on January 27 from CC^ 

as well as Frontier Flying Sen'ice, Inc. (Frontier).^ We also received comments from the 

Postal Service supporting the tentative conclusions of Order 2010-12-28. On February 4 

and 7, PenAir and the Postal Service, respectively, requested an additional extension of the 

comment period so that they could rebut the arguments of the three objectors. By notice 

dated February 11, we granted an extension until February 22, but indicated we anticipated 

granting no future extensions. On February 22 we received comments from the Postal 

Service and from PenAir. There have been subsequent late filings from CC and PenAir, 

discussed on pages six and seven. 

^ PenAir had announced it would be taking this action in the previous year, and Order 2009-11-2 took note of 

this anticipated development. However, there were no objections at the lime. 

"* By the same token, this reclassification decreased the share of mail transported by PenAir's Metro aircraft 

for the Part 121 rale from 56 percent to 29 percent. 

^ The Consolidated Carriers represent nine bush carriers: Air Excursions, Inc.; Bering Air, Inc.; 

Bid^y Ta Hot 'Aana, Inc., d/b/a Tanana Air Service; Flight Alaska, Inc., d/b/a Yute Air; 

Grant Aviation, Inc.; /liamna Air Taxi, Inc.; Redemption Inc., d/b/a Island Air; Seaport Airlines, (nc, dVa 

Wings of Alaska; and Servant Air. 

" Frontier is under common ownership with Era Alaska, Arctic Circle Air Service, and Hageland Air Service. 

By most measures, Hageland and Era are comparable in size to PenAir, which itself is one of the largest intraAlaska bush operators. 
- 3 -

INITIAL OBJECTIONS, JANUARY 27 DEADLINE 

Ryan Air Service 

Ryan notes that while the aircraft classes used to determine the four intra-Alaska class 

rates'^ are clearly defined under the law, both PenAir and Frontier, the two biggest bush 

operators, have "the flexibility to operate the same aircraft type under either Part 121 or 

Pan 135 because of their ability to select a seating configuration" for their various Metro, 

Saab, Dash 8, and Beech 1900 aircraft, which can be configured to either 19 or more seats. 

"The fiexibility to select an aircraft classification in various authorized operations further 

confuses the rate making methodology." Ryan asserts that the majority of PenAir's Metro 

mail RTMs used in Order 2010-12-28 to compute the Part 135 rate were generated between 

Anchorage and Dutch Harbor, a city-pair market having a stage length of almost 800 miles, 

in contrast to the average Part 135 stage length of only 72 miles. Ryan maintains that the 

Anchorage to Dutch Harbor market should be excluded from the calculation of the mail 

rate because it "does not refiect the real cost of Part 135 operations and negatively impacts" 

the Part 135 rate for carriers operating under very different operating conditions." Ryan 

further urges that any Part 135 operation with Metro III, Beech 1900, or Saab 340 aircraft 

should be excluded from the calculation of the Part 135 rate. 

Consolidated Carriers 

CC indicates that the rate in Order 2010-12-28 is inconsistent with the Rural Service 

Improvement Act (RSIA) and 

"with the Department's long established practice of establishing class rates related 

to the economics of operation of a particular class of carrier or aircraft. Most 

particularly offensive is the methodology of rate calculation which allows carriers 

to gain unfair competitive advantage by manipulating the operating rules of flight^ 

for particular markets. In this way, the basic economic structure of mail 

transportation in bush Alaska is undermined, with the effect of threatening mail 

[and passenger] service at smaller rural Alaskan villages." (Page 2) 

CC argues that whether 

"set by regulation or the free market, all evidence shows there is a significant 

difference in operating costs depending on the size of aircraft used." [Page 6], 

"There is no logical or rate-making basis to include aircraft with three times the 

payload, six times the average hop, and twice the block speed of the rest of the 

aircraft in the class. Regardless of operating rules, aircraft certificated for 19 or 

more passengers have significantly different operating economics and must not be 

' The four classes consist of mainline rate for aircraft having more than 7,500 poimds payload; the Part 121 

rate for aircraft operating under Part 121 and certificated for 19 or more seats but with less than 7,500 pounds 

of payload; the Seaplane rate for aircraft with float or amphibious capability; and Part 135, for all other 

aircraft operating under either Part 135 or Part 121, but with aircraft certificated for fewer than 19 seats. 

° CC is referring to the flexibility afforded to carriers to add or take out seats thereby determining whether an 

aircraft operates under Part 121 or Part 135. 
- 4 -

included in the Part 135 class rate." (Page 16) "The average Part 135 cost per ton 

mile excluding 19-seat aircraft is $12.2338 per ton mile and is 60 percent higher 

than the Metroliner's linehaul cost [for PenAir]. The only methodology of 

computing bush mail rates that is consistent with the intent and legislative histoo' 

of the RSIA and long established class rate structure is to assign all aircraft 

certificated with a maximum of 19 or more passenger seats to the Part 121 rate 

pool [regardless of which Part they operate under], and all aircraft certificated 

with a maximum of 9 passenger seats [or less] to the Part 135 rate." (Page 18). 

"The rate structure proposed by the Consolidated Carriers raises the relatively 

insignificant issue of adding 19-seat aircraft operated by Part 135-only operators 

in bush service to the Part 121 rate pool." (Page 19). [The rate in 

Order 2010-12-28] "directly transfers compensation for carriers serving small 

high-cost villages with the smallest aircraft to carriers operating the lowest-cost 

aircraft in the highest volume markets." (Page 20). 

Frontier Flying Service' 

Frontier notes that the very long haul Anchorage-Dutch Harbor market is one of PenAir's 

biggest markets and consfitutes a large portion of PenAir's Part 135 operations. The Postal 

Service pays PenAir the Part 121 rate on that route, not the much higher Part 135 rate, 

because there happens to be a limited amount of service with Part 121 aircraft in that 

market.'^ 

To adjust for this result, Frontier argues that the Department should modify its historical 

costing methodology and include only those segments in the Part 135 cost pool where the 

Postal Service, in fact, pays the higher Part 135 rate. Frontier notes that this is consistent 

with the Department's treatment of mainline mail routes. Under that procedure, when 

calculating any of the three bush mail rates, the Department first excludes the traffic and 

costs of any segment where seven or more mainline flights operated in the last quarter of 

the annual period at issue. (See Appendix E of Order 2010-12-28). 

Frontier's second choice would be for the Department to reintroduce a Taper for the 

Part 135 bush rate. 

"While Frontier has consistently argued that the Part 121 rates have not been 

compensatory, PenAir has clearly benefited from the blending of [higher] Frontier 

costs and [lower] PenAir costs [due, at least in part, to PenAir's longer average 

stage length]. In an [earlier] attempt to address the disparity between Frontier and 

" The carrier's filing was listed as being from Era Alaska, but in the filing always refers to Frontier Flying 

Service/Frontier. 

'" Under the Department's equalization policy, in markets served by more than one class of carrier, the 

Postal Service pays the lowest applicable mail rate. Carriers unwilling to equalize down to the lower rate 

would get no mail in that market. 
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PenAir stage lengths, the Department created a "Taper"." We would reluctantly 

support the reintroduction of a Taper for the Bush 135 rate if the Department 

elects to accept the PenAir reclassification [of its Metros from Part 121 to 

Part 135 without any adjustment]." 

Postal Service, January 27 

The Postal Service indicated it does not support Ryan Air's position, filed on January 25, 

of excluding specific equipment from the rate class that it legally operates within. "All 

equipment operating under Part 121 or Part 135 bush operations should be included in the 

appropriate rate class established in the Department's ratemaking methodology." 

REPLIES, FEBRUARY 22 

PenAir 

PenAir argues in its reply that there "is simply no basis in law or policy for carving the 

operations [of PenAir's long-haul Metro aircraft] out of the calculation of the Part 135 rate 

simply because of their stage length or [aircraft size] by artificially labeling them as 

ineligible routes as Ryan Air and Frontier urge." (Page 4). PenAir notes that Hageland, 

Warbelow, and Bering curtently operate Beech 1900 aircraft that are similar to the PenAir 

Metro aircraft at issue here. Those B-1900 aircraft have long been a part of the calculation 

of the Part 135 rate, so it would be inconsistent for the Department to include those aircraft 

but to exclude PenAir's Metros. 

Postal Service 

In support of Order 2010-12-28, the Postal Service added these further comments 

rebutting the January 27 submission by the Consolidated Carriers. 

'The Rural Service Improvement Act (RSIA) states that the Department should 

establish rates for both Part 121 operations and Part 135 operafions. The two 

objectives of the RSIA are to 1) maximize incentives for bush carriers to convert 

to Part J2I operations to benefit passengers and shippers, and 2) minimize costs 

for the Postal Service. The fundamental principle that a single class rate for Part 

121 operations and a single class rate for Part 135 operations is the optimum 

means for achieving both of these objectives is well established. Only by using a 

single class rate for equipment that falls within that class will carriers be 

incentivized to control costs and make strides towards efficiency. As the 

Consolidated Carriers mentioned in its filing, the purpose of the class rate 

structure is to reward those carriers within a class that are efficient by providing a 

larger profit margin and to motivate carriers that are less efficient to become more 

efficient. 

Therefore, the Postal Service reiterates that it objects to the notion of excluding 

specific equipment from the rate class that it legally operates within. All 

' ' The Department introduced a mileage taper into the Part 121 rate for several years, but Order 2006-3-5 

eliminated that taper because PenAir and the Postal Service opposed it, and no party directly affected by the 

taper supported it. 
- 6 -

equipment operafing under Part 121 or Part 135 bush operations should be 

included in the appropriate rate class established in the Department's ratemaking 

methodology. The Department's methodology was put in place with the 

acceptance of the industry and the Postal Service and there is no reasonable basis 

on which to change the methodology at this time." 

LATE-FILED RESPONSES 

We received comments after the February 22 deadline from the CC, PenAir, and the Postal 

Service.'2 

On March 1 CC characterized PenAir's actions as being merely a "ploy" to take advantage 

of carriers serving smaller, more expensive markets. On March 2, the Postal Service noted 

that it wished to have further opportunity to comment if we accepted CC's motion to file an 

unauthorized document. On March 10 PenAir noted that it was proposing to make no 

significant change to the structure of mail rates, but rather a straightforward update of the 

rates. On March 14, CC reiterated its position that DOT had the authority to include all of 

PenAir's Metro costs in the calculation of the Part 121 rate, even if PenAir operated those 

aircraft under Part 135. 

DISCUSSION 

CC urges the Department to place all aircraft that can be configured with up to 19 seats in 

the Part 121 cost pool, regardless of whether those aircraft are operated under Part 121 or 

Part 135. This would make both the Part 121 rate pool and the Part 135 rate pool more 

internally consistent in terms of aircraft types constituting the pool. Part 121 would then 

consist of 19-seat and larger aircraft, and Part 135 would largely consist of 9-seat or 

smaller aircraft. However, this position is not consistent with our reading of the law, as 

discussed in Order 2003-10-10, page 12. 

"39 U.S.C. 5402(h)(2)(B), as amended by RSIA, establishes minimum standards 

for three tender and cost pools, with one pool for "aircraft type certificated to 

carry at least 19 passengers; [another] for operations under part 135, [requiring 

aircraft type certificated to carry at least 5 passengers; and [thirdly], for operations 

under Part 135 [requiring] aircraft type certificated to carry at least 3 passengers" 

for amphibious aircraft. We read this provision as establishing minimum aircraft 

standards for participation in each pool. In other words, an aircraft must meet all 

of the criteria of a class to be included in that class: the 19-seat certificated seat 

minimum with passenger aircraft is the standard for the Part 121 class. If an 

aircraft meets all of those standards except one, then it is placed in the Part 135 

class.'''3 

''^ CC and PenAir filed motions to accept late-filed documents. We will grant those motions to 

have as full a record as possible, and because It does not delay our processing of the case. 

' 3 In order to be included in the Part 121 cost pool, aircrafl must be able to be configured to at least 19 seats, and 

they must be operated under Part 121. In this instance, although PenAir's Metros could be configured to 19 seats, 

it has chosen to take out a sufficient number of seats to operate them under Part 135. 
- 7 -

While RSIA did not take away our authority to establish new rates, as discussed when we 

created a special Part 121 rate for Short Take-off and Landing (STOL) capable aircraft, the 

law is clear: merging the costs and traffic of the Beech 1900s of Hageland, Warbelow, 

Bering, and any other carrier/aircraft such as PenAir's Metro's operating under Part 135 

into the 19-seat Part 121 rate is not permitted.'^ 

The proposals of Ryan and Frontier would have us exclude operations from the calculation 

of the Part 135 bush rate that are currently included. Ryan would have us exclude the costs 

of all 19-seat aircraft from the Part 135 rate; ^5 Frontier would exclude from the Part 135 

rate all of the costs and traffic of any segment where the Postal Service pays the Part 121 

rate, regardless of the type or class of aircraft operating on that segment. This information 

is not currently available and the Consolidated Cartiers indicate it would complicate 

ratemaking and reporting by carriers. A Part 135 rate constructed under either Ryan's or 

Frontier's proposal would be higher than that proposed by Order 2010-12-28 because it 

would exclude the costs of PenAir's very low-cost Metro aircraft. 

Regarding Frontier's argument that there is precedent for excluding the costs of aircraft 

operating on routes where the Postal Service pays the Part 121 rate, the Department does 

indeed exclude from the calculation of the bush rate the traffic and costs of those segments 

where mainline aircraft also operate, because that result is dictated by statute. However, 

DOT is not required to exclude from the Part 135 rate the costs and traffic of segments 

operated under Part 135 where the Postal Service pays the Part 121 rate (because of 

equalization.) CC argues, and we agree, that it would be very burdensome to collect data 

sufficient to determine which of thousands of segments were paid the Part 121 or Part 135 

rate. 

DECISION 

In brief, CC's proposal is not a viable option because it is contrary to law. Frontier's 

proposal would require additional reporting, because the Department does not have 

information as to which rates the Postal Service pays on any particular segment. As CC 

indicates, collecting such data and making this adjustment would be very burdensome. 

Ryan's proposal is not supported by Frontier, presumably because it would exclude 

Frontier's Beech 1900s from the calculation of the rate. Both have the fVirther disadvantage 

that the Postal Service opposes them. 

However, CC, Frontier, and Ryan are correct to note that there are problems with merging 

PenAir's Metros into a class of carriers with distinctly different operating characteristics. 

CC indicates the problems with merging PenAir's data with those of other Part 135 

operators are payload, speed, and the average stage length of those operations, but it mainly 

''+ Order 2003-10-10 addressed the difficulty of the Postal Service and other carriers tracking the operations 

of a carrier that operated 19-seat aircraft, some of which operated under Part 121 and some of which operated 

under Part 135. This is the first instance of this happening, and we will monitor the ability of the parties to 

monitor PenAir's aircraft movements, and will take further action if necessary to make sure that the 

appropriate rates are being paid. 

'^ Ryan would exclude Frontier's 19-seat aircraft from the Part 135 rate. 
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focuses on aircraft size. The focus on aircraft operating size and payload is misplaced, 

because average stage length appears to have the greatest effect on unit costs. The 

Beech 1900s of Frontier, Bering, and Warbelows are similar in operating characteristics 

but not length of haul to PenAir's Metros and are currently in the Part 135 rate, but their 

unit costs per RTM are much higher than PenAir's Metros.'^ In addition, we agree with 

the Postal Service that defining a class rate too narrowly could unnecessarily lessen 

competition within that class. Our goal in setting mail rates is to have the rates accurately 

reflect the cost to the Postal Service of moving the mail consistent with relevant statutes. 

We believe the primary advantage that PenAir's Part 135 Metro operations have over other 

operators is its average length of haul. PenAir's Part 135 Metro has a 515-mile average 

stage length. The average for other Part 135 carriers is less than 70 miles. Such longer 

average stage length markets give PenAir a unit cost advantage. ^^ The problem ultimately 

derives from the fact that linehaul costs are primarily incurred on an hourly basis, but the 

Postal Service pays carriers on a mileage basis, ignoring the higher cost of short haul 

operations. We believe having a Part 135 rale without a Taper, when there are such 

disparate average stage lengths among carriers, works against our goal of setting mail rates 

that accurately reflect the cost of moving the mail. In brief, adding a Taper provides a 

closer fit to actual costs than the prior methodology that ignored stage lengths. 

This higher cost for short-haul service is demonstrated and measured by the mileage 

regression we have run for the eligible expenses of the Part 135 carriers against distance, 

including PenAir's Metro aircraft. The construction of the regression corresponds in 

structure to the one earlier used in for the Part 121 class rate in Order 2005-1-18, 

Appendix A-2. We show the Part 135 regression in Appendix B of Attachment B. The 

regression has a very good fit, with an Adjusted R-square of 72.62 percent. The T-Statistic 

for the fixedcost element is 28.85, and the distance variable has a T-Statistic of 58.80, both 

of which are highly significant. The regression result is $369.31 + $7.4192 x Distance. ^^ 

For the linehaul element of the rate, the only element at issue, moving a ton of mail 100 

miles, the Postal Service would pay $1,111.23 under the "Taper," and $1,110.571 

without. ^^ Obviously, for distances shorter than 100 miles, the Postal Service would pay 

more and for longer distances, less. Based on all eligible mail for Part 135 segments, we 

have calculated that the Postal Service would pay virtually the same with or without a 

Taper given the current mix of traffic- $29,344,631 vs. $29,517,146, and we will make 

that calculation available upon request. Likewise, because the regression was based on 

' ^ The unit costs per RTM for one of those carriers' Beech 1900s are somewhat jess than those of the 

Part 135 average, while those for the other two are somewhat higher. 

' ^ We note, as shown in Attachment B, that the block hour costs of Warbelow's Beech J 900s and PenAir's 

Metros are very similar, but PenAir's costs per RTM are much lower. The difference is not any greater 

efficiency by PenAir than Warbelow but, rather, that PenAir has an average stage length of 515 miles while 

Warbelow's is 144 miles. 

'° This result is before an inflation adjustment has been applied to the proposed Part 135 rate. 

'^Taper:S369.3l +100 x $7.4192; without taper, 100 miles x $11.0571. Both sets of rales are before an 

inflation factor has been added. 
- 9 -

1,304 observafions of costs and distance, we have only included a sample of those 

calculations in the appendix. We will make all of the calculations available upon request. 

The Postal Service was concerned that we not arbitrarily exclude aircraft from our 

calculation of the rate. On that basis, there is no difference between the Taper and the 

unitary linehaul rate. The Postal Service was also concerned that we not discourage 

competition. We tentatively believe the Taper will encourage real competition. With a 

Taper, carriers operating smaller aircraft and PenAir's 19-seat aircraft will be able to 

compete on more equal terms. 

Other Matters 

Upon review, our staff discovered an error they had made using PenAir's data. Portions of 

PenAir's Freight Revenue Ton Miles were mistakenly excluded. As a result, we have 

recalculated the Part 135 and Part 121 rates, as shown. Both the overall Part 135 and 

Part 121 rates are slightly lower as a result. Obviously PenAir, as a very long-haul 

operator, will not secure as high a rate from the Postal Service as it would without a Taper. 

However, we note that the proposed Part 135 Taper reflects a higher rate than the proposed 

Part 121 rate that PenAir would receive had it not taken its Metro III out of Part 121. 

These rates do not include the most recent quarterly fuel expenses. When we issue a final 

order, we will update the rate for those results. 

The Taper reflects a significant change in our calculation of the rates, and no party has had 

an opportunity to object. Therefore we will give all parties ten days to object to our 

proposed methodology and results. Order 2005-1-18 most recently used a Taper in setting 

the Part 121 rale, but Order 2006-3-5 abandoned the Taper. As discussed in that order, 

PenAir vehemently opposed the Taper and only one carrier, Hageland, supported a Taper. 

Because Hageland did not operate Part 121^0 equipment, it was not as directly affected as 

PenAir. That is not the case here. We note that Frontier expressed support for a Taper in 

its January 27, 2011, filing. 

Finally, no parties objected to the terminal rate or the Seaplane linehaul rate proposed in 

Show Cause Order 2010-12-28. Therefore, we will finalize those rates. 

^^ The earlier taper was applied to the Part 121 rate rather than the Part 135. 
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ACCORDINGLY, 

1. We direct all interested persons to show cause, no later than ten (10) days after the date 

of service of this order, why the Department should not adopt the foregoing tentative 

findings and conclusions and set mail rates as follows: Part 121, $6.0052 per mail revenue 

ton mile (M-RTM); and Part 135, $7.4622 per M-RTM and $371.45 per mail ton enplaned. 

These rates would be final (subject to quarterly fuel updates), until the next annual update, 

which we anticipate would occur approximately one year from when the rates are finalized. 

Vague or unsupported objections that do not include all proposed adjustments and backup 

data will not be accepted; 

2. The Terminal rate and Seaplane linehaul rates tentatively set by Order 2010-12-28, 

$716.16 per mail ton enplaned and $32.8944 per mail revenue ton mile will be effective the 

second Saturday after the service date of this order; 

3. We will grant the motions of the Consolidated Carriers and Peninsula Airways, Inc., and 

accept their late-filed comments; 

4. If no objection is filed within the designated time, or if no timely-filed objection raises 

material issues of fact, we hereby delegate authority to the Director, Office of Aviation 

Analysis, to make the above rates final; 

5. This docket shall remain open until further order of the Department; and 

6. We will serve this order upon all parties on the Service List for this Docket. 

By: 

Susan Kurland 

Assistant Secretarj' for 

Aviation and International Affairs 

(SEAL) 

An electronic version of this document is available on the World Wide Web at 

http://www.regulations.gov 
Attachment A 

Linehaul, Pan 121 

Appendix A 

Unit Cost per 

Revenue Ton-Mile 

Fuel 

Nonfuel 

Total 

(0 

Year Ended 

6/30/10 1/ 

$1.2913 

$4.3850 

$5.6763 

(2) 

Average 

Annual Change 

YE 6/30/04 

to YE 6/30/10 2/ 

0.00% 

4.92% 

(3) 

Midpoint to 

Midpoint 

Chanse 

0.00% 

7.50% 3/ 

(4) 

Estimated 

Unit Cost at 

7/1/11 4/ 

$1.2913 

$4.7139 

$6.0052 

(5) 

Current Rate, 

Order 2010-9-24 

$1.3854 

$4.5139 

$5.8993 

(6) 

Change from 

Current 5/ 

-6.79% 

4.43% 

1.80% 

1/Fuel, Appendix C-2A. page 1 ("actual" annual); total. Appendix C-IA, page 1. Nonfuel, $1.2913 from C-2A, is the difference. 

Note that the total here is $5.6763, NOT $5.8518. which is only used for determining the trend. 

2/ Fuel increases we assume will be zero. For nonfuel, .see "predicted annual increase" in Appendix B, Page 1. 

3/ Reflects the fact thai from the midpoint of the reporting period to the midpoint of the prospective rate is I and 1/2 years. 

1.0492 X 1.0246, where 4.92 is the average annual unit cost increase projected for a 6-month period. 

4/Fuel reflects QE6/30/10.Order 2010-9-24. for illustrative purposes. Nonfuel is column (I) multiplied by column (3). The total 

is the sum of the two. The fmal order will reflect the most recent quarterly fuel costs available at the time. 

5/ Column 4 •=- Column 5 less 1. 
Attachment A 

Linehaul. Fart 121 

Appendix B 

Page I of 2 

1/ 

YE 6/30/ 

2004 

2005 

2006 

2007 

2008 

2009 

2010 

$/RTM 

Non-Fuel 

Linehaul 

$3.4924 

$3.4511 

$3.4450 

$3.6835 

$4.1265 

$4.1315 

$4.5669 

Actual Y 

Natural Log 

$/ATM 

Non-Fuel 

Linehaul Predicted Y 

1.250589 

1.238693 

1.236924 

1.303863 

1.4 J 7430 

1.418641 

1.5188346 

1.1965886 

1.2446293 

1.29267 

1.3407107 

J. 3887513 

1.436792 

1.4848327 

Residuals 

0.0540004 

-0.005936 

-0.055746 

-0.036848 

0.0286787 

-0.018151 

0.0340019 

EXPfYl 

3.3088101 

3.4716477 

3.642499 

3.8217585 

4.00984 

4.2071776 

4.4142268 

Predicted 

Annual 

Increase 

4.92% 

SUMMARY OUTPUT 

Regression Statistics 

Multiple R 0.9323073 

R Square 0.8691969 

Adjusted RSq 0.8430362 

Standard Erroj 0.0441015 

Observations 7 

ANOVA 

Regression 

Residual 

Total 

df SS MS F Significance F 

1 0.0646214 0.0646214 33.225379 0.0022074 

5 0.0097247 0.0019449 

6 0.0743461 

Coefficients Std Error 1 Stat 

Intercept -95.07693 16.727141 -5.683991 

X Variable I 0.0480407 0.(X)83344 5.764146 

P-value Lower 95% Upper 95% 

0.0023486 -138.0754 -52.07844 

0.0022074 0.0266164 0.0694649 

1/ For 2004 through 2009, see Order 2009-11-2, Attachment A, Appendix B, Page I. 

For 2010, see Appendix C- IB and C-2 of this order: 

$5.8518 total linehaul expense per RTM, Appendix C-IB, less $ 1.2849 fuel expense per RTM, Appendix C-2B. 

In order to get a more realistic trend, we have used $5.8518, which is Part 121 computed 

in the prior way. i.e., the total includes all of PenAir's Metros and Saabs. 

Note: The revised number from Order 2010-12-28 was due to corrections to PenAir's eligible Freight RTMs, 

which affected the carrier's Total RTMs. 
Attachment A 

Linehaul, Part 121 

Appendix B 

Page 2 of 2 

Nonfuel Linehaul, Unit Cost per RTM, Actual vs. 

Predicted 

1.60 

1.50 -

bO 

s 

2 1.40 -

3 

4 ^ 

Z 

1 1-30 

y = 0.048x-95.077 — 

R^ = 086^3-^^ ^ 

^^^^^ # 

1 t ^^^'^^^ ^ • 

Q 1.20 Ji^^^ ^ 

'E 3 

1.10 -

2004 2005 2006 2007 2008 2009 2010 

Years Ended June 30, 2004, through June 30, 2010 
•System 

1 . Capacity Related Expense (CR) 

2 . Direct Expense, (rtcfudes Fuel 

3 . Indirect Expense 

4 . CR Markup 

5 . Return and Tax Markup 

6 . r-(OOSeg.Skd. Mail RTMs 

7 . T-IOOMkt.Skd. Mail RTMs 

8 . Circuity Markup 

By Aircraft Type 

9 . Direct Expenses, Includes Fuel 

10 1 l^ss Passenger Liability Insurance 

11 . Linehaul Expense Allocable to Mail 

12. CostperBlockHoLjr(Rll-HRl8) 

1 3 . MarkedUpCosts(Rll*R4*R5*R8) 

14 . Eligible Expense (R13*R32-=-R 18) 

15. CosiperRTM (RI4-^R36) 

16 . Perceniage of Eligible Mail RTMs 

17 . Cost. Wld. by Mail RTMs. Includes Fuel 

Scheduled + Nonschedulcd 

18 . Block Hours 

19 . Pax. RTMs 

20 . Freight RTMs @ 0.75 

21 . Mail RTMs 

22 . Total RTMs 

23 . Aircraft Miles 

24 . Available Ton Miles 

25 . Departures Performed 

26 . Weighted Departures (GTOW) 

27 . Ton Load Factor 

28 . Stage Length 

29 . ATMs per Mile 

30 . RTMs per Mile 

31 . RTMs per Hour 

Eligible (See Appendix E 

32 . Block Hours 

33 . Pax. RTMs 

.34 . Freight RTMs @ 0.75 

35 . Mail RTMs 

36 . Total RTMs 

37 . Aircraft Miles 

38 . Available Ton Miles 

39 . Departures Performed 

40 . Weighted Departures (GTOW) 

41 . Ton Load Factor 

42 . Stage Length 

43 . ATMs per Mile 

44 . RTMs per Mile 

45 . RTMs per Hour 

Total 

Total 

$49,582,920 

$1,308,786 

$48,274,134 

$1,324.18 

$59,951,100 

$32,501,469 

$4.5821 

100.00% 

$£.676.^ 

36.456 

10.565.723 

483,587 

1.801.452 

12,850,762 

8.416,072 

23,454,816 

24,788 

570.310 

54.79% 

339.5 

2.79 

1.53 

352.50 

19,764 

5.992.103 

241,969 

858.994 

7,093,066 

4,587.870 

12.339.337 

13,499 

291.656 

57.48% 

339.9 

2.69 

1.55 

358.89 

"Actual" (See Appendix C-J B for "Trend") 

Frontier 

$1,621,209 

532.954,543 

$6,100,819 

104.33% 

109.46% 

374,607 

356.583 

105.05% 

Beech 1900 

405 

$15,035,457 

$457,053 

$14,578,404 

$1,410.59 

$17,489,230 

$11,774,559 

$8.9321 

36.938% 

$3.2993 

10,335 

1.622.352 

94,676 

344.436 

2,061.464 

2.082,419 

3.764.494 

9,717 

163,246 

54.76% 

214.3 

1.81 

0.99 

199.46 

6.958 

925.251 

75.684 

317.294 

1.318.229 

1.336,302 

2,474,049 

7.531 

126.521 

53.28% 

177.4 

1.85 

0.99 

189.46 

PenAir 

$6. .101.705 

597.788.036 

$21.300.124 

105.59% 

109.46% 

2.088,410 

1.915,429 

109.03% 

Metro 23 

455-1 

$717,159 

$48,355 

$668,804 

$839.15 

$842,797 

$324,641 

$3.7829 

1.895% 

$0.0717 

797 

179,473 

6.495 

28.504 

214.472 

198.273 

401.830 

483 

7,970 

53.37% 

4)0.5 

2.03 

1.08 

269.10 

307 

65.030 

4.509 

16,278 

85.817 

80,101 

151.751 

162 

2.673 

56.55% 

494.5 

1.89 

1.07 

279.53 

PenAir 

105.59% 

109.46% 

109.03% 

Metro 23 

455-2 

$703,597 

m 

$703,597 

$795.92 

$886,642 

$855,549 

$3.7541 

22.806% 

SO.8562 

884 

0 

32.638 

205.816 

238.454 

223,305 

423,196 

443 

7,310 

56.35% 

504.1 

1.90 

1.07 

269.74 

853 

0 

3 (.996 

195.902 

227.898 

216,785 

410,699 

422 

6,963 

55.49% 

5 137 

1.89 

1.05 

267.17 

PenAir 

105.59% 

109.46% 

109.03% 

Saab 340 

45fi-| 

$26,958,882 

$716,127 

$26,242,755 

$1,347.72 

$33,069,960 

$18,516,936 

$3.5867 

34.045% 

$1.2211 

19,472 

7,978.394 

191.961 

640.610 

8.810,965 

4.741,971 

16.047,268 

11,363 

329,527 

54.91% 

417.3 

3.38 

1.86 

452.49 

10.903 

4.746.177 

(24.062 

292.446 

5.162,685 

2,777,743 

8,823.826 

4.995 

144,855 

58.51% 

556.1 

3.18 

1.86 

473.51 

Attachment A 

Linehaul. Part 121 

Appendix C-IA 

PenAir 

105.59% 

109.46% 

109.03% 

Saab 340 

459-1 

$3,101,076 

$87,251 

$3,013,825 

$1,471.59 

$3,797,889 

$1,196,113 

$4.3134 

2.022% 

$0.0872 

2.048 

785,424 

10,766 

32,549 

828739 

461.886 

1.474,436 

1.365 

39,585 

56.21% 

338.4 

3.19 

1.79 

404.66 

645 

255.645 

4.2S7 

17,371 

277.303 

152.699 

433,089 

340 

9.860 

64.03% 

449.1 

2.84 

1.82 

429.93 

"Actual" 

PenAir 

105.59% 

109.46% 

109.03% 

Metro 111 

467-2 

$3,066,749 

m 

$3,066,749 

$1,050.26 

$3,864,582 

$129,702 

$6.1371 

2.294% 

$0.1408 

2,920 

80 

147.051 

549.537 

696.668 

708.218 

1,343.592 

1,417 

22.672 

51.85% 

499.8 

1.90 

0.98 

238.58 

98 

0 

1.431 

19703 

21,134 

24.240 

45,923 

49 

784 

46.02% 

494.7 

1.89 

0.87 

215.65 
System 

1 . Capacity Related Expense (CR) 

2 . Direct Expense. Includes Fuel 

3 . Indirect Expense 

4 . CR Markup 

5 . Return and Tax Markup 

6 . T-lOOSeg.Skd. Mail RTMs 

7 . T 100 Mkt.Skd. Mail RTMs 

8 . Circuity Markup 

By Aircraft Type 

9 . Direct Expenses. Includes Fuel 

10 ^ Less Passenger Liability Insurance 

11 . Linehaul Expense Allocable to Mail 

12. Cost per Block Hour(RI!-^R18) 

13. MarkedUpCosts(Rll*R4*R5*R8) 

14 . EligibleExpense(RI3*R.32-HR18) 

15 . Cost per RTM (R14^R36) 

16 . Percentage of Eligible Mai! RTMs 

17 . Cost. Wld. by Mail RTMs, Includes Fuel 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

36 . 

37 

38 

39 

40 

41 

42 

43 

44 . 

45 

Scheduled + Nonscheduled 

Block Hours 

Pax. RTMs 

Freight RTMs @ 0.75 

Mail RTMs 

Total RTMs 

Aircraft Miles 

Available Ton Miles 

Departures Performed 

Weightai Departures (GTOW) 

Ton Load Factor 

Stage Length 

ATMs per Mile 

RTMs per Mile 

RTMs per Hour 

Eligible (.See Appendix E 

Block Hours 

Pax. RTMs 

Freight RTMs @ 0.75 

Mail RTMs 

Total RTMs 

Aircraft Miles 

Available Ton Miles 

Departures Performed 

Weighted Departures (GTOW) 

Ton Load Factor 

Stage Length 

ATMs per Mile 

RTMs per Mile 

RTMs per Hour 

Total 

Total 

$56,315,419 

$1,530,967 

$54,784,452 

$1,411.72 

$0 

$0 

$0.0000 

100.00% 

$?.sfia 

38,807 

10,813,109 

502,786 

2.278.068 

13,593.963 

8,961.563 

25.239.650 

26.359 

611.318 

53.86% 

340.0 

2.82 

1.52 

350..10 

22.933 

6.030,464 

395,202 

1.394.297 

7,819.963 

5,368.208 

13.841.474 

15.095 

317,946 

56.50% 

355.6 

2.58 

1.46 

340.99 

Trend" - Includes All of These Aircraft Types 

Frontier 

$1,621,209 

$32,954,543 

$6,100,819 

104.33% 

109.46% 

374.607 

356,583 

105.05% 

Beech 1900 

405 

$15,035,457 

$457,053 

$14,578,404 

$1,410.59 

$17.489.2.10 

$11774.559 

$8.9321 

22.757% 

$2.0327 

10.335 

1.622.352 

94.676 

344.436 

2,061,464 

2.082,419 

3,764,494 

9717 

163,246 

54.76% 

214.3 

1.81 

0.99 

199.46 

6.958 

925,251 

75.684 

317.294 

1.318,229 

1,336,302 

2,474.049 

7,531 

126.521 

53.28% 

177.4 

1.85 

0.99 

189.46 

PenAir 

$5,891,178 

$48,872,094 

$20,860,380 

109.23% 

109.46% 

2,088,410 

1,915.429 

109.03% 

Metro 23 

455 

$1,420,756 

$48,335 

$1,372,421 

$816.43 

$1,789,084 

$1,234,585 

$3.9354 

15.218% 

$0.5989 

1.681 

179.473 

39.133 

234.320 

452.926 

421.578 

825.026 

926 

15.279 

54.90% 

455.3 

1.96 

1.07 

269.44 

1.160 

65,030 

36,505 

212.181 

313716 

296.886 

562.451 

584 

9,636 

5578% 

508.4 

1.89 

1.06 

270.44 

PenAir 

105.59% 

109.46% 

109.03% 

Saab 340 

456 

$31,370,554 

$830,779 

$30,539,775 

$1,510.60 

$38,484,875 

$20,802,429 

$4.0208 

21.212% 

$0.8529 

20.217 

8.159.162 

196,180 

694.218 

9.049.560 

4.912,003 

16,696,606 

11,910 

345.390 

54.20% 

412.4 

3.40 

1.84 

447.62 

10.928 

4,753.503 

124.381 

295.757 

5.173,641 

2784,976 

8.850,.172 

5,022 

145.638 

58.46% 

554.6 

3.18 

1.86 

473.43 

Attachment A 

Linehaul, Part 121 

Appendix C-IB 

or PenAir 1/ 

PenAir 

105.59% 

109.46% 

109.03% 

Saab 340 

459 

$4,662,943 

$87,251 

$4,575,692 

$1,504.17 

$5,766,085 

$1,273,770 

$4.4243 

1.984% 

$0.0878 

3.042 

785.424 

15.011 

424.405 

1,224.840 

681.318 

2.308.277 

2,039 

59,131 

53.06% 

334.1 

3.39 

1.80 

402.64 

672 

255,645 

4.587 

27,668 

287.900 

158.112 

453.659 

371 

10,759 

63.46%. 

426.2 

2.87 

1.82 

428.42 

"Trend" 

PenAir 

105.59% 

109.46% 

109.03% 

Metro 111 

467 

$3,825,709 

$107,549 

$3,718,160 

$1,052.71 

$4,685,461 

$4,264,937 

$5.8707 

38.829% 

$2.2795 

3.532 

66.698 

157786 

580.689 

805,173 

864.245 

1,645.247 

1,767 

28,272 

48.94% 

489.1 

1.90 

0.93 

227.97 

3,215 

31.035 

154.045 

541.397 

726,477 

791.9.12 

1.500.943 

1,587 

25.392 

48.40% 

499.0 

1.90 

0.92 

225.96 

1/ Previously PenAir's Metro's and Saabs operated under Part 121. Now they operate as either mainline. Part 121. or Part 135. 
Year Ended June 30. 2010. Fuel Expense ("Actual") 

Attachment A 

Linehaul. Part 121 

Appendix C-2 A 

"Actual" 

Carrier 

Aircraft Name 

Aircraft Code Total 

Frontier 

Beech 1900 

405 

PenAir 

Metro 23 

455-J 

PenAir 

Metro 23 

455-2 

• PenAir 

Saab 340B 

456-1 

PenAw 

Saab 340A 

459-1 

PenAir 

Metro III 

467-2 

Fuel E.ipense 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 . 

12 

13 . 

Toi'iil Fuel Expense 

Total Gallons Issued 

Total Block Hours 

Eligible Block Hours 

Eligible Mail RTMs 

Total Eligible RTMs 

Price per Gallon 

Bum per Hour 

Costs per Block Hour 

Eligible Fuel Expense 

Cost per Eligible RTM 

Mail RTMs Percentage 

Cost/RTM. Wtd. By Mail RTMs 

$12.7149,287 

4,398,161 

36.456 

19.764 

858.994 

7.093.066 

$2.91 

120.6 

$350.81 

$7,043,499 

$0.9930 

100.00% 

$1.2?IJ 

$3 .H71,013 

1.389.139 

10.335 

6,958 

317.294 

1.318,229 

$2.79 

1.34.4 

$374.55 

$2,606,145 

$1.9770 

36.938% 

$0.7.103 

$244,175 

70714 

797 

307 

16,278 

85.817 

$3.45 

88.7 

$306.37 

$94,055 

$ 1.0960 

1.895% 

$0.0208 

$248,625 

79,431 

884 

853 

195,902 

227.898 

$3.13 

89.9 

$281.25 

$239,906 

$1.0527 

22.806% 

$0 2401 

$6,854,904 

2.328.45 1 

19,472 

10,903 

292,446 

5.162.685 

$2.94 

119.6 

$352.04 

$3,838,282 

$0.7435 

34.045% 

$0.2531 

S754,S52 

270,069 

2.048 

645 

17,371 

277.303 

$2.80 

131.9 

$368.58 

$237,734 

$0.8573 

2.022% 

$0.0173 

$8157 IK 

260,357 

2.920 

98 

19.703 

21.1.34 

$3.13 

89.2 

$279.36 

$27,377 

$1.2954 

2.294% 

$0.0297 

Quarter Ended June 30. 20JO, per Order 2010-9-24 

QE 6-30-10 

System Parameters for Each Carrier 

Aircraft Name 

Aircraft Codf 

Fuel Expense 

Gallons Issued 

Price per Gallon (RI-^R2) 

Bum per Hour ( R2-^R6) 

Unit Costs per Block Hour(Rl-=-R6) 

6 . System Rev. Blk. Hrs. T-l 00 Segment 

7 . Eligible Block Hours 

8 . Eligible Fuel Expense(RI*R7-;-R6) 

9 . Eligible Pax. RTM 

10 . Eligible Freight RTM @ 75 

1 1 - Eligible Mail RTM 

12 . Total Eligible RTMs 

13 . Unit Cost per Eligible RTM (R8^R 12) 

14 . Percentage of Total Mail RTMs 

15 . Unit Cost, Wld. by Mail RTMs Above 

Totals 

3.506,640 

1.158,465 

$3.03 

135 

$409.37 

8,566 

4.515 

1.844.432 

1,556,885 

31,126 

164.686 

1.752.697 

$1.0523 

100.00% 

iuasi 

Frontier 

B-1900 

405 

$647,736 

240,868 

$2.69 

136 

$366.57 

1.767 

993 

$364,008 

128,153 

10734 

.34.148 

173.035 

$2.1037 

20.74% 

$0.4363 

PenAir 

Meux>23 

455 

$41.707 

10,306 

$4.05 

92 

$372.38 

112 

69 

$25,694 

8719 

600 

9.307 

18,626 

$1..1795 

5.65% 

$0.0779 

PenAir 

Saab 340 

456/459 

$2,817,197 

907.291 

$3.11 

136 

$421.29 

6.687 

3.453 

$1,454730 

1.420.013 

19.792 

1 21.231 

1,561,0.36 

$0.9319 

73.61% 

$0.6860 

PenAir 

Metro III 

467 

$311,985 

96,230 

$3.24 

91 

$296.56 

1,052 

905 

$268,390 

7,377 

19,474 

140.676 

167.527 

$1.6021 

85.42% 

$1.3685 
Year Ended June 30. 2010, Fuel Expense (Trend) 

Attachment A 

Linehaul, Pan 121 

Appendix C-2B 

"Trend" 

2 . 

3 . 

4 

5 . 

Carrier 

Aircraft Name 

Aircraft Code 

Total Fuel Expense 

Total Gaiions Issued 

Total Block Hours 

Eligible Block Hours 

Eligible Mail RTMs 

6 . Total Eligible RTMs 

7 . Price per Gallon 

8 . Bum per Hour 

9 . Costs per Block Hour 

10 Eligible Fuel Expense 

11 . Cost per Eligible RTM 

12 Mail RTMs Percentage 

13 . Cosl/RTM. Wtd. By Mail RTMs 

To;al 

$14,488,131 

4,961,355 

38.807 

22,933 

1.394,297 

7,819,964 

$2.92 

127.8 

$373.34 

$8,410,653 

$1.0755 

100.00% 

£1.2842 

Frontier 

Beech 1900 

405 

$3,871,013 

(.389,1.39 

10.335 

6.958 

317,294 

1.318.229 

$2.79 

134.4 

$374.55 

$2,606,145 

$1.9770 

22.757% 

$0.4499 

PenAir 

Metro 23 

455 

PenAir 

Saab 340B 

456 

Fuel Expense 

$472,800 

150,145 

1,681 

1.160 

212.181 

313716 

$3.15 

89.3 

$281.26 

$326,263 

$1.0400 

15.218% 

$0.1583 

$7,992,214 

2.703.503 

20,217 

10,928 

295757 

5,173.642 

$2.96 

1337 

$395.32 

$4,320,073 

$0.8350 

21.212% 

$0.1771 

PenAir 

Saab 340A 

459 

$1,161,658 

402.591 

3.042 

672 

27,668 

287,900 

$2.89 

132.3 

$381.87 

$256,619 

$0.8913 

1.984% 

$0.0177 

PenAir 

Metro III 

467 

$990,446 

315.977 

3,532 

3,215 

541.397 

726.477 

$3.13 

89.5 

$280.42 

$901,553 

$1.2410 

38.829% 

$0.4819 
Attachment A 

Linehaul. Part 121 

Appendix D 

Determination of Which Carriers Are Included in the Linehaul Calculation, YE 6-30-10 

Eligible Part 121 Mail RTMs. YE 6-30-10 

Carrier 

Frontier 

PenAir 

PefiAir 

PenAir 

PenAir 

PenAir 

Era 

PenAir 

PenAir 

PenAir 

A/C Tvpe 

405 

456-1 

455-2 

467-2 

459-1 

455-1 

405 

456-2 

467-1 

459-2 

Mail RTMs 

317,294 

292,446 

195,902 

19,703 

17.371 

16,278 

2,447 

864 

0 

0 

862,305 

%of 

Total 

36.80% 

33.91% 

22.72% 

2.28% 

2.01% 

L89% 

0.28% 

0.10% 

0.00% 

0.00% 

100.00% 

Cumulative 

Total 

36.80% 

70.71% 

93.43% 

95.71% 

97.72% 

99.61% 

99.89% 

99.99% 

99.99% 

99.99% 

Intra-Alaska Traffic Excluded from the Bush Calculations 

Alaska Airlines Inc. 

Alaska Central Express 

Federal Express Corporation 

Lynden Air Cargo Airlines 

Northern Air Cargo Inc. 

Northwest Airlines Inc. 

United Parcel Service 

ATS 

Empire 

Tatonduk 

Reason for 

Exclusion 

Mainline Only 

All-Cargo, No Pax 

All Cargo, No Pax, 

All Cargo. No Pax, 

All Cargo, No Pax, 

Mainline Only 

All Cargo 

All Cargo. No Pax. 

Mainline Only 

Either Mainline or Part 135 equipment 
Attachment A 

Linehaul 

Appendix E 

Determination of Segments Ineligible for Calculating Bush Rates, 

Scheduled Intra-Alaska Departures performed with Mainline Equipment 

T-lOO Segment Report, QE 6-30-10, Seven or More Departures Performed 

Oriein 

ADK 

ADQ 

AKN 

AKN 

ANC 

ANC 

ANC 

ANC 

ANC 

ANC 

ANC 

ANC 

ANC 

ANC 

ANC 

ANC 

ANC 

ANC 

ANC 

ANC 

ANC 

ANC 

ANC 

ANC 

ANC 

ANC 

ANC 

ANI 

ANI 

BET 

BET 

BRW 

BRW 

BRW 

CDV 

CDV 

DLG 

DLG 

DLG 

EMK 

Dest. 

ANC 

ANC 

ADQ 

ANC 

ADK 

ADQ 

AKN 

ANI 

BET 

BRW 

CDV 

DLG 

EMK 

ENA 

FAI 

GAL 

HOM 

ILI 

JNU 

KSM 

MCG 

OME 

OTZ 

RDB 

sec 

UNK 

VDZ 

ANC 

MCG 

ANC 

EDF 

ANC 

FAI 

sec 

ANC 

YAK 

AKN 

ANC 

ILI 

ANC 

T510 

Dens. 

26 

524 

20 

86 

26 

509 

85 

49 

566 

27 

109 

123 

47 

328 

841 

17 

73 

16 

337 

58 

7 

251 

313 

38 

93 

46 

163 

33 

14 

504 

32 

152 

101 

67 

103 

91 

28 

85 

7 

49 

Oriein 

ENA 

FAI 

FAI 

FAI 

GAL 

GST 

HOM 

ILI 

JNU 

JNU 

JNU 

JNU 

JNU 

JNU 

KSM 

KTN 

KTN 

KTN 

MCG 

OME 

OME 

OME 

OTZ 

OTZ 

OTZ 

PSG 

PSG 

RDB 

sec 

see 

see 

SIT 

SIT 

SIT 

UNK 

VDZ 

WRG 

WRG 

YAK 

YAK 

Dest. 

ANC 

ANC 

BRW 

see 

ANC 

JNU 

ANC 

ANC 

ANC 

GST 

KTN 

PSG 

SIT 

YAK 

ANC 

JNU 

SIT 

WRG 

ANC 

ANC 

OTZ 

UNK 

ANC 

FAI 

OME 

JNU 

WRG 

ANC 

ANC 

BRW 

FAI 

ANC 

JNU 

KTN 

ANC 

ANC 

KTN 

PSG 

CDV 

JNU 

T510 

Peps. 

331 

765 

105 

119 

15 

18 

74 

25 

321 

18 

87 

91 

216 

90 

64 

102 

153 

91 

21 

297 

109 

8 

223 

10 

171 

91 

91 

38 

64 

187 

33 

12 

244 

92 

47 

163 

91 

91 

90 

91 
Attachment B 

Linehaul, Part 135 

Appendix A 

INTRA-ALASKA CLASS SERVICE MAIL RATES COST ADJUSTMENT FACTORS 

" ' • 

Unit Cost 

per RTM 

Fuel 

Nonfuel 

(1) 

Year Ended 

6/30/10 1/ . 

$2.8032 

$8.2539 

(2) 

Average 

Annual Change 

YE 6/30/04 

to YE 6/30/10 2/ 

0.00% 

0.52% 

(3) 

Midpoint to 

Midpoint 

Chanee 

0.00% 

0.78% 3/ 

(4) 

Estimated 

Unit Cost at 

7/1/11 4/ 

$2.8032 

$8.3183 

Total $11.0571 $11.1215 

(5) (6) (7) 

Current Rate, Change from Inflation 

Order 2010-9-24 Current Rate 5/ Factor 6/ 

$3.3031 

$9.9528 

$13.2559 

-15.13% 

-16.42% 

-16.10% 0.58% 

Fixed Cost 

per Ton 

Enplaned 

Variable Cost 

per RTM 

Taper From 

Appendix B 

S369.3] 

$7.4192 

Inflation 

Factor 

0.58% 

0.58% 

Proposed 

Rates 

$371.45 

$7.4622 

1/Fuel, Appendix C-2. page 1 ("actual" annual): total, Appendix C-1. page 1. Nonfuel is the difference. 

Note that the total here is $11.3756, NOT $12.3389 (both in Appendix C-1), which is only used for determining the trend. 

2/ Fuel increases we assume will be zero. For nonfuel, see "predicted annual increase" in Appendix B, Page 1. 

3/Reflects the fact that from the midpoint of the reporting period to the midpoint of the prospective rate is 1 and 1/2 years. 

1.0052 X 1.0026, where 0.0026 is the average annual unit cost increase projected for a 6-month period. 

4/Fuel reflectsQE6/30/10. Appendix C-2, Order 2010-9-24, for illustrative purposes. Nonfuel is column (1) multiplied 

by column (3). Total 'is the sum of the two. The final order will reflect the mo.si recent quarterly fuel costs available at the time. 

5/ Column 4 -r Column 5 less 1. 

6/$l 1.1215 (Column4)-r $11.0571 (Column I). 
Atlachment B 

Linehaul, Pari 135 

Append! 51 B 

Page 1 of 3 

$7,000 -

$6,000 -

$5,000 

S4,Q00 • 

4-1 

Vt 

O 

u 

$3,000 -

$2,000 -

$1,000 

$0 ? 

c 

Costs vs. Great Circle Miles, Eligible Segments with 28 or More Departures in YE 6-30-10 

y = 7.4192X + 369.31 

R2 = 0.7264 

^ ^ ^ 

•il-^" ' 

JKP^ w^^" 

•'•'•• < 

) 100 200 300 400 500 600 700 

Great Circle Miles 

^ 

• • 

' 

800 

•—— ] 

900 

SUMMARY OUTPUT 

Regression Statistics 

Multiple R 

R Square 

Adj.R Sqr. 

Std Error 

Observations 

0.852319354 

0.726448281 

0.72623818 

318.3514287 

1,304 

ANOVA 

df SS MS F Significance F 

Regression 

Residual 

Total 

1 

1302 

1303 

350420772.2 350420772.2 3457.611833 

131954617.1 101347.6322 

482375389.2 

0 

Coefficients Standard Error tStat P-value Lower 95% Upper 95% 

Intercept 369.3109864 12.79991662 28.85260875 6.1946E 142 344.2002584 394.4217044 

X Variable! 7.41918241 0.126173436 58.80146114 0 7.171656924 7.666707895 
Aliachment B 

Linehaul, Part 1.15 

Appendix B 

Page 2 of 3 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

)4 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

(1) 

Origin 

OME 

WAA 

A LK 

TNK 

AUK 

0 0 K 

HCR 

KOT 

KSM 

EGX 

IGG 

KLL 

KYU 

WNA 

KPC 

SMK 

KOT 

SMK 

VAK 

GAM 

KU3 

SKK 

BKC 

SHG 

WAA 

CFA 

DLG 

WSN 

CYF 

GNU 

(2) 

Dpst 

WAA 

SHH 

KOT 

NME 

KOT 

BET 

ANV 

KSM 

EMK 

BSZ 

AKN 

AKIV 

FAI 

ATT 

KTS 

OME 

BET 

OME 

SCM 

OME 

R S H 

UNK 

DRG 

OTZ 

KTS 

EGX 

TWA 

AKN 

KKH 

EEK 

(3) 

Carrier 

Bering 

Bering 

Grant 

Grant 

Hageland 

Hageland 

Hageland 

Hageland 

Hageland 

PenAir 

PenAir 

PenAir 

Warbelow 

Yule 

Bering 

Bering 

Grant 

Hageland 

Hageland 

Hageland 

Hageland 

Hageland 

Hageland 

Hageland 

Hageland 

PenAir 

PenAir 

PenAir 

Yute 

Yute 

(4) 

pisT^nce 

109 

72 

41 

19 

41 

113 

34 

68 

63 

2 

52 

i\ 

290 

13 

12 

126 

165 

126 

22 

197 

37 

32 

46 

148 

51 

5 

63 

13 

46 

78 

(5) 

Type 

194 

416 

416 

416 

35 

35 

416 

416 

416 

79 

416 

416 

194 

35 

416 

416 

416 

194 

194 

405 

416 

416 

417 

417 

417 

79 

79 

416 

35 

35 

(6) 

Deps. 

28 

28 

28 

28 

28 

28 

28 

28 

28 

28 

28 

28 

28 

28 

29 

29 

29 

29 

29 

29 

29 

29 

29 

29 

29 

29 

29 

29 

29 

29 

(7) 

Pax, 

45 

102 

65 

73 

67 

23 

85 

54 

150 

37 

47 

50 

117 

35 

58 

131 

112 

77 

67 

116 

96 

103 

48 

73 

82 

33 

46 

60 

63 

57 

(8) (9) 

Pounds 

£3. 

3.051 

1,416 

235 

331 

79 

0 

1.915 

0 

2,655 

1124 

315 

877 

49 

156 

3,155 

586 

188 

185 

461 

189 

1,413 

1.784 

3i 

343 

962 

1071 

624 

906 

24 

24 

Mail 

i 1.960 

7,696 

3,615 

3.487 

42 

142 

10.234 

560 

9.785 

127 

1633 

1(84 

248 

1,884 

1 1.999 

134 

30 

1.908 

5,028 

578 

19.832 

392 

^,696 

666 

3,603 

680 

11437 

569 

1,268 

207 

(10) 

Blk. 

Min. 

1,135 

764 

584 

282 

961 

1,884 

731 

1,087 

1,026 

181 

662 

4S6 

2,877 

333 

288 

1,331 

2.009 

1.583 

623 

1.759 

802 

789 

754 

1.508 

792 

199 

986 

406 

777 

1.239 

til ) 

Pax. 

490.50 

734.40 

266.50 

138.70 

274.70 

259.90 

289.00 

367.20 

945.00 

7.40 

244.40 

155.00 

3..193.00 

45.50 

69.60 

1,650.60 

1,848.00 

970.20 

147.40 

2.285.20 

355.20 

329.60 

220.80 

1,080.40 

418.20 

16.50 

289.80 

78.00 

289.80 

444.(SO 

(12) (13) 

Revenue Ton Miles 

Adj. Fn. 

124.71 

38 23 

3.6 J 

2.36 

1.21 

0.00 

24.42 

0.00 

62.72 

0.84 

6.14 

10.20 

5.33 

0.76 

14.20 

27.69 

11.63 

8.74 

3.80 

13.96 

19.61 

21.41 

0.53 

19.04 

18.40 

2.01 

14.74 

4.42 

0.41 

0.70 

Mail 

651.82 

277.06 

74.11 

33.13 

0.86 

8.02 

173.98 

19.04 

.108.23 

0.13 

42.46 

(8.35 

35.96 

12.25 

71.99 

8.44 

2.48 

120.20 

55.31 

56.93 

366.89 

6.27 

i 08.01 

49.28 

91.88 

1.70 

360.27 

3.70 

29.16 

8.07 

(14) 

yRTMs 

1.267.03 

1.049.69 

344.22 

174.19 

276.77 

267.92 

487.40 

386.24 

1,315.95 

8..17 

293.00 

183.55 

3.434.29 

58.51 

155.79 

1,686.73 

1.862.11 

1.099.14 

206.51 

2.356.09 

741.70 

357.28 

329.34 

1,148.72 

528.48 

20.21 

664.81 

86.12 

319.37 

453.37 

1/Columns 1 dirough 10 from iheT-100 Segment Report, or corresponding special repon filed by PenAir. 

2/Columns 11-(4 computed from the first ten columns. Pa.n. weighted at 2(X) poimds. freight adjusted lo 75%. 
Attachment B 

Linehaul, Pan 135 

Appendix B 

Page 3 of 3 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

I I 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

(11) 

Segment 

Costs 

14.001.47 

12.546.41 

7.765.10 

3.749.58 

4.649.32 

9.114.79 

8.311.18 

12,358.76 

11,665.21 

1,790.29 

13.036.70 

9.570.75 

28,062.55 

2.026.17 

4,729.54 

21,857.68 

26,712.47 

17,704.91 

6,967.88 

48,824.56 

9,118.42 

8.970.61 

14.260.78 

28.521.56 

14,979.49 

1,968.33 

9,752.62 

7.995.32 

4,727.73 

7.538.82 

(12) 

ATMs 

2,685.76 

2,923.20 

1,607.20 

744.80 

642.88 

1,771.84 

1.218.56 

2.437.12 

2.257.92 

30.80 

2.620.80 

1.562.40 

6,820.80 

214.76 

504.60 

5,298..10 

6.699.00 

2.484.72 

433.84 

10.169.14 

1.373.44 

1,187.84 

1,960.98 

6,309.24 

2,174.13 

79.75 

1.004.85 

678.60 

787.06 

1,334.58 

(13) 

RTMs 

1,273.32 

1,160.22 

610.58 

282.95 

292.70 

806.72 

551.15 

1.102.31 

1,021.26 

12.77 

981.75 

585.28 

3,389.94 

97.80 

200.28 

2,102.90 

2,544.95 

1.478.91 

258.22 

4.129.69 

621.21 

537.26 

676.15 

2.175.43 

749.64 

33.07 

416.71 

254.20 

358.43 

607.77 

(14) 

Costs 

per RTM 

11.00 

10.81 

12.72 

13.25 

15.88 

11.30 

15.08 

11.21 

11.42 

140.19 

13.28 

16.35 

8.28 

20.72 

23.61 

10.39 

10.50 

11.97 

26.98 

11.82 

14.68 

16.70 

21.09 

13.11 

19.98 

59.52 

23.40 

31.45 

13.19 

12.40 

(15) 

Segment 

Costs 

1,199.00 

778.32 

521.52 

251.75 

651.08 

1,276.90 

512.72 

762.28 

719.46 

280.38 

690.56 

506.85 

2.401.20 

269.36 

283.32 

1,309.14 

1.732.50 

1.508.22 

593.56 

2,328.54 

543.16 

534.40 

970.14 

1.940.28 

1.018.98 

297.60 

1,474.20 

408.85 

606.74 

967.20 

' 1/ Column 1 I: block minutes (column 10) • expense per block minute by earner/aircraft type (from Appendix C-l). 

2/Column 12: ATMs per mile (from Appendix C-1) * distance (column 4) * departures (column 6). 

3/Column 13: ATMs (Column 12) * load factor(from Appendix C-1). 

4/ Column 14: Segment costs (Column 11) ^ Revenue Ton Miles (Column 13). 

5/'Column 15: Distance (Column 4) * Costs per RTM (Column 14). 
Attachment B 

Linehaul, Pan 135 

Appendix C 

Page I of 2 

1/ 

YE fi/.-^O/ 

2004 

2005 

2006 

2007 

2008 

2009 

2010 

$/RTM 

Non-Fuel 

Linehaul 

9.5218 

8.5699 

8.4039 

8.6708 

8.6853 

9.6160 

9.1547 

Actual Y 

Vaturai Log 

$/ATM 

Non-Fuel 

Linehaul Predicted Y 

2.253584 

2.148256 

2.128696 

2.159961 

2.I6I632 

2.263428 

2.214267 

2.1744428 

2.1796098 

2.1847768 

2.1899437 

2.J95M07 

2.2002776 

2.2054446 

Residuals 

0.079(412 

-0.031354 

-0.056081 

-0.029983 

-0.033479 

0.0631504 

0.0086044 

EXP (Y) 

8.7972821 

8.842855 

8.8886639 

8.9347102 

8.980995 

9.0275196 

9.0742852 

Predictec 

Annual 

Increase SUMMARY OUTPUT 

0.52% Regression Statistics 

Multiple R 

R Square 

Adj R Square 

Std Error 

Observations 

0.2083475 

0.0434087 

-0.14791 

0.057399 

7 

ANOVA 

df SS MS F Significance F 

Regression 1 

Residual 5 

Tot^l 6 

Coefficients 

Intercept -8.180154 

X Variable 1 0.005167 

0.0007475 

0.0164732 

0.0172208 

Std Error 

21.770725 

0.0108474 

0.0007475 

0.0032946 

tStat 

-0.375741 

0.4763324 

0.2268926 

P-value 

0.7225233 

0.6539248 

0.6539248 

Lower 95% 

-64.14358 

-0.022717 

Upper 95% 

47.783275 

0.0330511 

1/ For 2004 through 2009, see Order 2009-1 1-2, Attachment B, Appendix B. Page 

For2010, see Appendix C-1 and C-2 of this order: 

$12.3389 total linehaul expense per RTM less $3.1786 fuel expense per RTM. 

Those numbers exclude PenAir's Metros. 

Note: Trend increase is slightly less than in Order 2010-12-28, 0.53% vs. 0.52 % above, to reflect corrections in 

PenAir's data for its Piper Cherokee and Cessna Caravan aircraft. 
Attachment B 

Linehaul, Part 135 

Appendix C 

Page 2 of 2 

Nonfuel Linehaul, Unit Cost per RTM, Actual vs. 

Predicted 

2.28 

2.26 

OD 

o 

re 

Q . 

C 

3 

2.24 

2.22 

2.20 

o 2.18 

2.16 

2.14 

2.12 

y = 0.0052x-8.227 

R^ = 0.0438 

2003 2004 2005 2006 2007 2008 2009 2010 2011 

Years Ended June 30, 2004, through June 30, 2010 
System Parameters for Eayh Carrier 

1 . Capacity Related Expense (CR) 

2 . Direct Expense. Include Fuel 

3 . Indirect Expense 

4 . CR Mafkup 

5 . Return and Tax Markup 

6 . T-lOO Mail RTMs. Segment. F& G 

7 . T-lOOMailRTMs. .Mkr.. FAG 

8 . Circuity Markup 

Aircraft Type 

Aircraft Code 

9 . Direct Expenses. Includes Fuel 

10 ^ t-ess Passenger Liability Insurance 

11 . Linehaul Expense Allocable to Mail 

12. Cost per Block Hoiir(RllrRI8 ) 

1 3. MarkedUpCosts(Rll*R4*R5*R8) 

14 . Eligible E.npense(RI?*R32-=-RI8) 

15. Cost per RTM (RI4-^R36) 

"Trend " 

"Actual" PenAir 

105.59% 

109.46% 

109.03% 

\6n . Percentage of Eligible Mail RTMs 

I7n Cost, Wtd. by Mail RTMs. Includes Fuel (RI5'R16a) 

"Actual" 

16b 

17b 

i* 

1^ 

20 

21 

22 

2:1 

24 

25 

26 

27 

2? 

29 

30 

31 

32 . 

33 

34 

3 5 . 

36 . 

37 . 

38 . 

39 . 

40 

41 . 

42 . 

43 . 

44 

45 

Percentage of Eligible Mail RTMs 

Cost, Wld. by Mail RTMs. Includes FueURI5*R16b) 

Scheduled + Nonschetjulpd 

. System Blk. Hr^.,T-100 Segment 

. Pax. RTMs 

. Freight RTMs Wtd. @ 0.75 

. Mail RTMs 

. Total RTMs 

. Aircraft Miles 

. Available Ton Miles (ATMs) 

. Departures Performed 

. Wtd. Departures (GTOW) 

. Ton Load Factor 

. Stage Length 

. ATMs per Mile 

. RTMs per Mile 

. RTMs per Hour 

EliEible (See Appendix E for basis of calculation) 

Block Hours 

Pax. RTM 

Freight RTM. Wtd. @ .75 

Elifiible Mail RTM 

Total RTM 

Aircraft Miles 

Available Ton Miles (ATMs) 

Departures Performed 

Wtd. Departures (GTOW) 

Ton Load Factor 

Avg. Stage Length 

ATMs per Mile 

RTMs per Mile 

RTMs per Hour 

PenAir 

105.59% 

109.46% 

109.03% 

Metro 

467-1 

$758,960 

$107,549 

$651,411 

$1,062.66 

$820,879 

$599,925 

$8.4505 

Metro 

467-2 

$3,066,749 

m 

$3,066,749 

$1,050.26 

$3,864,582 

$3,532,387 

$5.5685 

100.00% 

* l 1.0571 

2.669.528 

1.115% 

$0.0942 

613 

66,619 

10.735 

31.153 

108,507 

156.027 

301.655 

350 

5,600 

35.97% 

446 

1.93 

0.70 

177.01 

448 

30,955 

10.271 

29.767 

70,993 

115,878 

220.158 

272 

4,352 

32.25% 

426 

1.90 

0.61 

158.47 

18.427% 

$1.0261 

2,920 

80 

147.051 

549.537 

696.668 

708,218 

1,343.592 

1,417 

22.672 

51.85% 

500 

1.90 

0.98 

238.58 

2.669 

80 

142.343 

491.927 

634.350 

651.814 

1.234,862 

1,266 

20.256 

51.37% 

515 

1.89 

0.97 

237.67 

Attachment B 

Linehaul, Pan 135 

Appendix D-l 

Page 1 of 5 

Trend" 

100.00% 

$12.331.^ 

2.170,597 

A.Circle 

$3.34,712 

$4,663,861 

$456,836 

106.99% 

109.46% 

56.397 

54.229 

104.00% 

Shons 330 

4^7 

$1,850,567 

$13.815 

$1,836,752 

$2.3.36.83 

$2,237,085 

$2,037,854 

$17.5426 

2.166% 

$0.3800 

1.761% 

$0.3089 

786 

0 

76,955 

48.156 

125.111 

129.965 

454,878 

695 

15.916 

27.50% 

187 

3.50 

0.96 

159.17 

716 

0 

69.147 

47.019 

116,166 

I 18.400 

414.400 

633 

14.496 

28.03% 

187 

3.50 

0.98 

162.24 

"**Actual Eligible Mail RTMS = 2,170.597 (trend) +29,767 (PenAir 467-1) 

+491.927 (PenAir 467-2) less 22,763 (Warbelow #416) 
1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

II 

12 

13 

14 

15 

16a 

17a 

16b 

17b 

18 

19 

20 

2i 

22 

23 

24 

25 

26 

27 

28 

29 

30 

31 

32 . 

33 

34 

35 , 

36 . 

37 . 

38 

39 . 

40 

41 . 

42 . 

43 . 

44 

45 

System Parameters for Each Carriir 

Capacity Related Expense (CR) 

Direct Expense, Include Fuel 

Indirect E.xpense 

CR Markup 

Return and Tax Markup 

T-100 Mail RTMs. Segment. F& G 

T-IOO Mail RTMs. Mkt.. F&G 

Circuity Markup 

Aircraft Type 

Aircraft Code 

Direct Expenses, Includes Fuel 

Less Passenper Liahiliiv In.surani'p 

Linehaul Expense Allocable to Mail 

Cost per Block Hour (RI l+RIS) 

Marked Up Costs (R11 *R4*R5*R8) 

Eligible Expense (R13*R32^R 18) 

CosiperRTM (RM^R.36) 

"Trend " 

Percentage of Eligible Mail RTMs 

Cost, Wld. by MaiJ RTMs, InchOcs Fuel (R I5"R 16a) 

"Actual" 

Percentage of Eligible Mail RTMs 

Cos), Wrd. by Mai) RTMs, Includes Fuel (R15*R 16b) 

Scheduled + Nonscheduled 

. System Blk. Hrs. T-IOO Segment 

. Pax. RTMs 

. Freight RTMs Wtd. <a 0.75 

. Mail RTMs 

. Total RTMs 

. Aircraft Miles 

. Available Ton Miles (ATMs) 

. Departures Performed 

. Wtd. Departures (GTOW) 

. Ton Load Factor 

. Stage Lengih 

, ATMs per Mile 

. RTMs per Mile 

. RTMs per Hour 

Eligible (See Aooendix E for biisis of calculation) 

Block Hour^ 

Pax. RTM 

Freight RTM, Wtd. @ .75 

Elieibie lUail RTM 

Total RTM 

Aircraft Miles 

Available Ton Miles (ATMs) 

Departures Performed 

Wtd. Departures (GTOW) 

Ton Load Factor 

Avg. Stage Length 

ATMs per Mile 

RTMs per Mile 

RTMs per Hour 

Berins 

$1,.349.823 

$.34,186,727 

55.189,612 

103.55% 

109.46% 

375,332 

357.158 

105.09% 

Navajo 

194 

$2,723,914 

$54,442 

$2,669,472 

$621.39 

$3,179,745 

$2,124,271 

Sn.5646 

1.984% 

.$0.2294 

1.613% 

50.1865 

4.296 

200.101 

9,532 

43.164 

252,797 

674.302 

590,014 

8,385 

62,049 

42.85% 

80 

0.87 

0.37 

58.84 

2.870 

133,556 

7.065 

43.067 

183,688 

442,801 

387,451 

6.163 

45.606 

47.41% 

72 

0.88 

0.41 

64.00 

Bering 

103.55% 

109.46% 

105.09% 

B-1900 

405 

$2,878,335 

$63.2.59 

$2,815,076 

$1,859.36 

$3,353,182 

$2,017,668 

$12.0377 

3.402% 

50.4095 

2.766% 

$0.3330 

1.514 

189,653 

10.391 

73.849 

273,893 

352,282 

880,705 

2.085 

35.028 

31.10% 

169 

2.50 

0.78 

180.91 

911 

86.150 

7.616 

73,K47 

167,613 

205.182 

512.955 

1,497 

25.150 

32.68% 

137 

2.50 

0.82 

183.99 

Berinp 

103.55% 

109.46% 

105.09% 

Casa212 

4(2 

$954,25 1 

$18,310 

$935,941 

$1,742.91 

$1,114,847 

$589,603 

.$13.5354 

1.613% 

50.2)83 

1.311% 

SO.) 774 

537 

723 

28,620 

35.008 

64.351 

86.754 

227,729 

681 

11,577 

28.26% 

127 

2.62 

0.74 

119.83 

284 

0 

8,552 

35.008 

43.560 

45.877 

120.427 

398 

6,766 

.36.17% 

n5 

2.62 

0.95 

153.38 

Berinp 

103.55% 

109.46% 

105.09% 

Caravan 

4(6 

$6,690,454 

$127,464 

$6,562,990 

$827.20 

$7,817,514 

$6.662,721 

$JI.94S5 

9.439% 

SI.1278 

7.675% 

$0.9170 

7,934 

375.786 

34.812 

205.086 

615.684 

1.144,983 

1,662,691 

16.142 

143.664 

37.03% 

71 

1.45 

0.54 

77.60 

6.762 

324.406 

28.3.37 

204.879 

557,622 

967.579 

1,404.815 

14,553 

129,522 

39.69% 

66 

1.45 

0.58 

82.46 

Attachment B 

Linehaul. Part (35 

Frontier 

$1,621,209 

$.32,954,543 

56,100.819 

104.33% 

109.46% 

374.607 

356,583 

105.05% 

Navajo 

194 

$1,441,814 

$56,589 

$1,385,225 

$932.18 

$1,661,809 

$ 1,535,440 

$18.9828 

1.389%. 

50.2637 

1.129%. 

$0.2143 

1.486 

5 2..384 

3.500 

.10,171 

86,055 

202,884 

134,929 

1.510 

11,174 

63.78% 

134 

0.67 

0.42 

57.91 

1,373 

48.127 

2,614 

.30,(45 

80,886 

186.797 

125.634 

1.397 

10.338 

64.38% 

1.34 

0.67 

0.43 

58.91 

Appendix D-1 

Page 2 of 5 

Grant 

$2,794,865 

$32,165.8.10 

56,6.34,803 

107.76% 

109.46% 

275.755 

259.325 

106.34% 

C-206 

31 

$4,993,058 

$210,812 

$4,782,246 

$460.94 

$5,998,485 

$5,053,182 

SI9.439) 

3.729% 

$0.7249 

3.032% 

$0.5894 

10,375 

197,974 

6,817 

82.400 

287.191 

1,144.105 

686.547 

24,970 

92.389 

4'l .83% 

46 

0.60 

0.25 

27.68 

8,740 

172.599 

6.411 

80.940 

259.950 

985.968 

591,664 

21.216 

78.499 

43.94%. 

46 

0.60 

0.26 

29.74 
5>'Siem parameters for Each Cafrier 

1 . Capacity Related Expense (CR) 

2 , Direct Expense, Include Fuel 

3 . Indirect Expense 

4 . CR Markup 

5 . Return and Tax Markup 

6 . T-100MailRTMs.Segment,F&G 

7 . T-IOOMailRTMs, Mkt., F&G 

8 . Circuity Markup 

Aircraft Type 

Aircraft Code 

9 . Direct Expenses. Includes Fuel 

10 i Less Passenger Liability Insurance 

11 . Linehaul Expense Allocable to Mail 

12. Cost per Block Hour (RI I^R18) 

13 . Marked Up Costs (R11 *R4''R5*R8) 

14. Eligible Expense(R13*R32-=-R18) 

\5 . Cost per RT\1 (RM^R36> 

16a . 

17a 

"Trend" 

Percentage of Eligible Mail RTMs 

Cost, Wtd. by Mail RTMs. Includes Fuel (RI5*R16a) 

"Actual" 

16b Percentage of Eligible Mail RTMs 

17b . Cost, Wtd. by Mail RTMs, Includes Fuel (R15*RI6b) 

Scheduled + Nonscheduled 

18 . System Blk. Hrs..T-lOO Segment 

19 . Pax. RTMs 

20 . Freight RTMs Wtd. © 0.75 

21 • Mail RTMs 

22 . Total RTMs 

23 . Aircraft Miles 

24 . Available Ton Miles (ATMs) 

25 . Departures Performed 

26 . Wtd. Depanures (GTOW) 

27 . Ton Load Factor 

28 . Stage Length 

29 . ATMs per Mile 

30 . RTMs per Mile 

31 . RTMs per Hour 

Eligibly (See Appendix E for basis of calculation) 

32 . Block Hours 

33 Pax. RTM 

34 . Freight RTM, Wtd. @ .75 

35 , Eligible Mail RTM 

36 . Total RTM 

37 . Aircrafl Miles 

3 8 . AvailableTon Miles (ATMs) 

39 . Depanures Performed 

40 Wld. Depanures (GTOW) 

41 . Ton Load Factor 

42 . Avg. Stage Length 

43 . ATMs per Mile 

44 RTMs per Mile 

45 RTMs per Hour 

Grant 

107.76% 

109.46% 

106.34% 

Navajo 

194 

S4.168.544 

$112,896 

$4,055,648 

$728.91 

$5,087,096 

$4,013,722 

$10.7938 

2.919% 

$0.3151 

2.37.3% 

$0.2561 

5.564 

372,637 

7.758 

64.340 

444,735 

964.289 

867,864 

10.107 

74.792 . 

51.24% 

95 

0.90 

0.46 

79.93 

4,390 

301,449 

7.043 

6.3.361 

371,853 

756.300 

680,674 

7.987 

59,104 

54.63% 

95 

0.90 

0.49 

84.70 

Gran\ 

107.76% 

109.46% 

106.34% 

Caravan 

416 

$6,217,262 

$180,719 

$6,036,543 

$636.03 

$7,571,780 

$3,786,289 

SI 1.5366 

6.047% 

$0.6976 

4.917% 

$0.5673 

9.491 

484.016 

1 1.492 

133.410 

628,918 

1,231.716 

1.724,402 

18,427 

164.000 

• .16.47% 

67 

1.40 

0.51 

66.26 

4.746 

187,51.3 

9.438 

ni.24 8 

328.199 

617.052 

863,873 

9.386 

83,5.35 

37.99% 

66 

1.40 

0.53 

69.15 

• " 

Haeeland 

$2,264,323 

$63,938,147 

$12,294,723 

103.06% 

109.46% 

1.067,309 

1,009.922 

105.68% 

C-206 

31 

$6,162,243 

$.352,867 

$5,809,376 

$243.49 

$6,925,767 

$5,412,833 

S 14.9474 

5.013% 

$0.7493 

4.076% 

$0.6093 

23.859 

307,294 

13.252 

108.808 

429.354 

1.836,099 

1.038,899 

38.936 

144,063 

41.33% 

47 

0.57 

0.2.3 

18.00 

18.647 

244,580 

8,738 

108.8D8 

362.126 

1.413,544 

795.357 

31.403 

116,191 

45.53% 

45 

0.56 

0.26 

19.42 

Haaeland 

103.06% 

109.46% 

105.68% 

Navajo 

194 

$3,149,200 

$118,018 

$3,031,182 

$562.89 

$3,61.3,686 

$3,194,270 

$13.5496 

3.524% 

$0.4775 

2.866% 

$0.3883 

5,385 

175.728 

6,979 

76.634 

259,341 

672,069 

455.606 

7,446 

55.100 

56.92% 

90 

0.68 

0.39 

48.16 

4,760 

152.785 

6,462 

76.499 

235.746 

582.278 

396.102 

6,685 

49.469 

59.52% 

87 

0.68 

0.40 

49.53 

Attachment B 

Linehaul, Part 135 

Hapeland 

103.06% 

109.46% 

105.68% 

B-1900 

405 

$2.239.1.32 

$37,514 

$2,201,618 

$1,396.97 

$2,624,704 

$834,376 

$13.4004 

2.078% 

$0.2785 

1.689% 

SO. 2 263 

1,576 

9,728 

49,434 

195.528 

254.690 

311,892 

586.414 

1.347 

22,630 

43.43% 

232 

1.88 

0.82 

161.61 

501 

9.252 

7,912 

45,101 

62,265 

86,260 

153.321 

658 

1 1.054 

40.61% 

131 

1.78 

0.72 

124.28 

Appendix D-1 

Page 3 of 5 

Hapeland 

103.06% 

109.46% 

105.68% 

Caravan 

416 

$15,202,127 

$400,117 

$14,802,010 

$572.21 

$17,646,520 

$15,737,110 

SI 0.4458 

25.709% 

$2.6855 

20.904%. 

$2.1836 

25,868 

996,629 

70.487 

558.142 

1,625.258 

2,918,802 

3,748,851 

375.556 

3.14,248 

43.35% 

8 

1.28 

0 56 

62.83 

23,069 

888.031 

60.481 

558.040 

1.506.552 

2,593.487 

3.330,781 

33,849 

.101,256 

45.23% 

77 

1.28 

0.58 

65.31 
9 

-10 

II 

12 

13 

14 

13 

I6it 

!7y 

16b 

17b 

IS 

ly 

20 

11 

22 

23 

24 

2-5 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

36 

37 

38 

39 

40 

41 

42 

43 

44 

45 

System Parameters for Each Carrier 

Capacity Related Expense (CR) 

Direct Expense, Include Fuel 

Indirect Expense 

CR Markup 

Return and Tax Markup 

T-lOO Mail RTMs, Segment, F& G 

T-IOOMailRTMs, Mkt.. F&G 

Circuity Markup 

Aircrafl Type 

Aircraft Code 

Direct Expenses. Includes Fuel 

Less Passenger Liability Insurance 

Linehaul Expense Allocable to Mail 

Cost per Block Hour (Rll+RI 8) 

Marked Up Costs (R11 •'R4*R5*R8) 

Eligible Expense (R13*R32+R 18) 

CosiperRTM (R14-^R36) 

"Trend" 

Percentage of Eligible Mail RTMs 

Cost, Wld. by Mail RTMs. Includes Fuel (RI5*R 16a) 

"Actual" 

Percentage of Eligible Mail RTMs 

Cost, Wtd. by Mail RTMs. Includes Fuel (R15*RI6b) 

Scheduled + Nonscheduled 

System Blk. Hrs., T-100 Segment 

Pax. RTMs 

Freight RTMs Wtd. @ 0.75 

Mail RTMs 

Total RTMs 

Aircraft Miles 

Available Ton Miles (ATMs) 

Departures Performed 

Wtd. Departures (GTOW) 

Ton Load Factor 

Stage Length 

ATMs per Mile 

RTMs per Mile 

RTMs per Hour 

Eligible (See Appendix E for basis of calculation) 

BloL'k Hours 

Pax. RTM 

Freight RTM, Wtd. @ .75 

EHgible Mail RTM 

Total RTM 

Aircraft Miles 

AvailableTon Miles (ATMs) 

Departures Performed 

Wtd. Departures (GTOW) 

Ton Load Factor 

Avg. Stage Length 

ATMs per Mile 

RTMs per Mile 

RTMs per Hour 

Haeeland 

103.06% 

109.46% 

105.68% 

C406 

417 

$5,183,706 

5110.143 

$5,073,563 

$951.89 

$6,048,552 

$4.963,671 

$14.9436 

5.906% 

$0.8826 

4.802% 

$0.7176 

5.330 

259,585 

9,283 

128.196 

397.064 

812.841 

1.195,977 

7,898 

78,190 

33.20% 

103 

1.47 

0 49 

74.50 

4,374 

195.169 

8,806 

128.186 

332.161 

653.929 

963,222 

6,404 

63.400 

34.48% 

102 

1.47 

0.51 

75.94 

PenAir 

$6,301,705 

$97,788,036 

$21,300,124 

105.59% 

109.46% 

2,088.410 

1,915.429 

109.03% 

PA-32 

79 

$2,475,229 

S 138.40) 

$2,336,828 

$470.94 

$2,944,767 

$2,601,152 

$24.5832 

1.490% 

$0.3663 

1.211% 

$0.2977 

4.962 

76,266 

7,093 

3? 548 

115.907 

529.483 

289,362 

12.220 

43,992 

40.06% 

43 

0.55 

0.22 

23..36 

4,383 

66.869 

6,603 

.32.338 

105.810 

466.912 

255,167 

11,201 

40.324 

41.47% 

42 

0.55 

0.23 

24.14 

PenAir 

105.59% 

109.46% 

109.03% 

Caravan 

416 

$3,920,642 

$1.35.392 

$3,785,250 

$937.64 

$4,770,005 

$4,266,655 

$13.2365 

5.679% 

$0.7517 

4.618% 

$0.6113 

4.037 

200.359 

2 2..102 

123.447 

.346.108 

535.820 

964,250 

7,255 

64.570 

35.89% 

74 

1.80 

0.65 

85.73 

3,611 

178.658 

20.416 

171266 

3 22,.340 

478.963 

860.581 

6,696 

59,594 

37.46% 

72 

1.80 

0.67 

89.27 

Warbelow 

$781,563 

$17,041,166 

$2,207,318 

104.2.3% 

109.46% 

157,868 

141,598 

111.49% 

Navajo 

194 

$5,410,155 

$90.46S 

$5,319,687 

$460.10 

$6,766,595 

$6.491.5.10 

$9.7595 

4.394% 

$0.4288 

3.571% 

$0.3487 

11.562 

550,177 

35.583 

95,38^ 

681.142 

1.657,555 

1,388,184 

13.076 

96.762 

49.07% 

127 

0.84 

0.41 

58.91 

11.092 

535.304 

34.461 

95.382 

665.147 

1,596.013 

1.338,270 

12,636 

93,506 

49.70% 

126 

0.84 

0.42 

,59.97 

Attachment B 

Linehaul, Pan 135 

Warbelow 

104.23% 

109.46% 

1 11.49% 

B-1900 

405 

$1,397,093 

$26,024 

$1.-371.069 

$1,121.07 

$1,743,988 

$1,481,606 

$10.4231 

1.654% 

$0.1724 

l..345%| 

$0.1402| 

1,223 

114.360 

13.901 

35.898 

164,159 

222,868 

401,093 

1.457 

24,478 

40.93% 

153 

J.80 

0.74 

134.23 

1.039 

92.987 

13,262 

35,898 

142.147 

185.463 

334,030 

1.289 

21.655 

42.56% 

144 

1.80 

0.77 

136.81 

Appendix D-1 

Page 4 of 5 

Warbelow 

104.23% 

109.46% 

1 1 1.49% 

Caravan 

416 

$894,229 

SI 1.700 

$882,529 

$618.02 

$1,122,569 

$1,072,258 

$10.4520 

1.049% 

$0.1096 

^ ^ H 

^ ^ " 

1,428 

75,677 

7.698 

2^,763 

106.138 

204.844 

240,270 

1.530 

13.617 

44.17% 

134 

i.n 

0.52 

74.33 

1.364 

73.156 

6.670 

2? 763 

102,589 

195,345 

228.265 

1,465 

13.039 

44.94% 

133 

1.17 

0.53 

75.21 
9 . 

10. 

11 . 

12 . 

13 . 

14 . 

15 . 

16a 

17a 

System Parameters for Each Camer 

Capacity Related Expense (CR) 

Direct Expense, Include Fuel 

Indirect Expense 

CR Markup 

Return and Tax Markup 

T-100 Mail RTMs. Segment, F& G 

T-IOO Mail RTMs, Mkt.. F&G 

Circuity Markup 

Aircraft Type 

Aircraft Code 

Direct Expenses, Includes Fuel 

Less Passenger Liability Insurance 

Linehaul Expense Allocable to Mail 

Cost per Block Hour (Rll+RI 8) 

Marked Up Costs (RI I *R4*R5*R8) 

Eligible Expense (R13*R32-f-R 18) 

CosiperRTM (R14+R36) 

"Trend" 

Percentage of Eligible Mail RTMs 

Cost, Wtd. by Mail RTMs. Includes Fuel (RI5'R16a) 

"Actual" 

16b Percentage of Eligible Mail RTMs 

17b . Cost. Wtd. by Mail RTMs, Includes Fuel (R15*RI6b) 

Scheduled + Nonscheduled 

18 

19 

20 

2i 

22 

23 

24 

25 

26 

27 

28 

29 

30 

31 

32 . 

33 

34 . 

35 . 

36 . 

37 . 

38 . 

39 . 

40 

41 . 

42 . 

41 . 

44 

45 

System Blk. Hrs., T-IOO Segment 

Pax. RTMs 

Freight RTMs Wtd. @ 0.75 

Mqil RTMs 

Total RTMs 

Aircrafl Miles 

AvailableTon Miles (ATMs) 

Departures Performed 

Wtd. Departures (GTOW) 

Ton Load Factor 

Stage Length 

ATMs per Mile 

RTMs per Mile 

RTMs per Hour 

Eligible (See Appendix E For basis of calculation) 

Block Hours 

Pax. RTM 

Freight RTM, Wtd. @ .75 

Elipible Mail RTM 

Total RTM 

Aircraft Miles 

AvailableTon Miles (ATMs) 

Departures Performed 

Wtd. Departures (GTOW) 

Ton Load Factor 

Avg. Stage Lengih 

ATMs per Mile 

RTMs per Mile 

RTMs per Hour 

Wines 

$2,182,560 

$24,121,552 

$5,805,234 

107.87% 

109.46% 

38.223 

37.311 

102.44% 

C-208 

416 

$1,921,863 

$21,425 

$1,900,438 

$610.09 

$2,298,685 

$2,151,097 

$10.3852 

1.323% 

$0.1374 

1.075% 

$0.1116 

3.115 

170.541 

16.252 

28,983 

215.776 

376,641 

564,962 

6,282 

55.910 

38.19% 

60 

1.50 

0.57 

69.27 

2,915 

163.961 

14.461 

28.710 

207,132 

354.998 

532,497 

5,836 

51,940 

38.90% 

61 

1.50 

0.58 

71.06 

Attachment B 

Linehaul, Part 135 

Wripht 

$757,426 

$12,.553.940 

$2,111,525 

105.45% 

109.46% 

126.188 

116.397 

108.41% 

Caravan 

416 

$4,422,505 

$133,863 

$4,288,642 

$441.99 

$5,366,500 

$4,583,897 

$6.6441 

5.654% 

$0.3757 

4.597% 

$0.3054 

9,703 

493.235 

159.081 

123.090 

775.406 

1.436,615 

2.155.122 

10,389 

92.462 

35.98% 

138 

1.50 

0.54 

79.91 

8.288 

453,917 

1.13,284 

122.718 

689.919 

1,221.608 

1.832,611 

9.225 

82.102 

37.65% 

132 

1.50 

0.56 

83.24 

Appendix D-l 

Page 5 of 5 

Yute 

$452,094 

$8,199,900 

$1,667,873 

104.80% 

109.46% 

83.374 

78.471 

106.25% 

C-206 

35 

$4,099,950 

SI 20.749 

$1,979,201 

$299.53 

$4,849,998 

$4,450,973 

$14.3108 

3.841% 

$0.5497 

1.1237c 

$0.4469 

13,285 

219,836 

22.145 

83.374 

325 ..355 

1,243.082 

734.424 

33.201 

122.844 

44..30% 

37 

0.59 

0.26 

24.49 

12.192 

206,615 

21,032 

83,374 

311.021 

1,149,753 

683.037 

30.295 

112.092 

45.54% 

38 

0.59 

0.27 

25.51 
Attachment B 

Linehaul, Part 135 

Appendix D-2 

Page I of 5 

Year Ended June 30. 2010, Fuel Expense 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 . 

12a 

1.3a 

12b 

13b . 

Carrier 

Aircraft Code 

Scheduled + Nonscheduled 

Total Fuel Expense 

Total Gallons Issued 

Total Block Hour^ 

Eligible Block Hours 

Eligible Mail RTMs 

Total Eligible RTMs 

Price per Gallon 

Bum per Hour 

Costs per Block Hour 

Eligible Fuel Expense 

Cost per Eligible RTM 

"Trend " 

Mail RTMs Percentage 

Cost/RTM. Wtd. By Mail RTMs 

"Actual" 

Mail RTMs Percentage 

Cost/RTM. Wtd. By Mail RTMs 

"Actual" Total 1/ 

2.669,528 

^^^ ^ 

^^^^^^H 

100.00% 

iz.mz 

PenAir 

Metro 

467-1 

5)74,728 

55,620 

613 

448 

29.767 

70.993 

$3.14 

90.7 

$285.04 

$127,697 

$1.7987 

^^^^1 

1.12% 

$0.0201 

PenAir 

Metro 

467-2 

5815.7)8 

260.357 

2.920 

2.669 

491.927 

634.350 

$3.13 

89.2 

$279.36 

$745,600 

$1.1754 

^^^1 

18.43% 

$0.2166 

"Trend " Total 1/ 

2.170,597 

100.00% 

$J.176fi 

Ar. Circle 

SD-330 

487 

$.341,674 

134.501 

786 

716 

47.019 

116.166 

$2.54 

171.1 

$434.70 

$311,245 

$2.6793 

2.166% 

$0.0580 

1.76% 

$0.0472 

1/ "Actual" Tola! excludes Warbelows Caravan aircraft; Trend Total excludes 

PenAir's Metro aircraft. 

QE June 30, 2010. per Order 2010-9-24 

Aircraft Name 

Aircrnfi Code 

1 . Total Fuel Expense 

2 . Tolal Gallons Issued 

3 . Total Block Hours 

4 Eligible Block Hours 

5 . Eligible Mail RTMs 

6 . Toial Eligible RTMs 

7 . f^ce per Gallon 

8 . Bum per Hour 

9 . Cost? per Block Hour 

10 Eligible Fuel Expense 

11 . Cost per Eligible RTM 

12 Mail RTMs Percentage 

13 . $/RTM, Wtd. By Mail RTMs 

Totals 

$7,052,407 

1,442.235 

39,932 

33,278 

525,235 

1.821.729 

$4.89 

36 

$176.61 

$5,802,210 

$3.1850 

100.002% 

Ar. Circle 

SD-3.30 

487 

$85,983 

34.147 

201 

178 

9.426 

27.417 

$2.52 

170 

$427.78 

$76,144 

$2.7773 

1.795% 

$0.0499 
Attachment B 

Linehaul, Part 135 

Appendix D-2 

Page 2 of 5 

Year Ended June 30. 2010. Fuel Expense 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 . 

12a 

13a . 

12b 

1.3b . 

Carrier 

Aircraft Code 

Scheduled + Nonscheduled 

Total Fuel Expense 

Total Gallons Issued 

Total Block Hours 

Eligible Block Hours 

Eligible .Mail RTMs 

Total Eligible RTMs 

Price per Gallon 

Bum per Hour 

Costs per Block Hour 

Eligible Fuel Expense 

Cost per Eligible RTM 

"Trend " 

Mail RTMs Percentage 

Cost/RTM. Wtd. By Mail RTMs 

"Actual" 

Mail RTMs Percentage 

Cosi/RTM, Wtd. By Mail RTMs 

Bering 

Navajo 

194 

$1,089,271 

185,289 

4.296 

2.870 

43,067 

183,688 

$5.88 

43.1 

$253.55 

$727,702 

$3.9616 

1.984% 

$0.0786 

1.61% 

$0.0638 

Bering 

B-1900 

405 

$1,090,047 

221,129 

1,514 

911 

73,847 

167,613 

$4.93 

146.1 

$719.98 

$655,900 

$3.9132 

3.402% 

$0.1331 

2.77% 

$0.1084 

Bering 

Casa2l2 

412 

$346,002 

70,244 

537 

284 

.35.008 

43.560 

$4.93 

130.8 

$644.32 

$182,988 

$4.2008 

1.613% 

$0 0678 

1.31% 

$0.0550 

Bering 

Caravan 

416 

$2,167,648 

442,537 

7.934 

6.762 

204.879 

557,622 

$4.90 

55.8 

$273.21 

$1,847,446 

$3.3131 

9.439% 

$0.3127 

7.67% 

$0.2541 

Frontier 

Navajo 

194 

$292,184 

70.872 

1.486 

1,373 

30,145 

80.886 

$4.12 

47.7 

$196.62 

$269,965 

$3.3376 

1.189% 

$0.0464 

1.13% 

$0.0377 

Grant 

C-206 

35 

$1,180,639 

219.232 

I0,.375 

8,740 

80.940 

259.950 

$5.39 

21.1 

$113.80 

$994,582 

$3.8261 

3.729% 

$0.1427 

3.03% 

$0.1159 

QuanerEndedJune.lO, 2010. per Order 2010-9 24 

1 . 

2 . 

3 . 

4 

5 . 

6 . 

7 . 

8 . 

9 . 

10 

II . 

12 

13 . 

Aircrafl Name 

Aircraft Co^le 

Total Fuel Expense 

Total Gallons Issued 

Total Block Hours 

Eligible Block Hours 

Eligible Mail RTMs 

Total Eligible RTMs 

Price per Gallon 

Bum per Hour 

Costs per Block Hour 

Eligible Fuel Expense 

Cost per Eligible RTM 

Mail RTMs Percentage 

$/RTM. Wtd. By Mail RTMs 

Bering 

Navajo 

194 

%309.9i3 

52,097 

1,231 

821 

12.914 

52,550 

$5.95 

42 

$251.76 

$206,693 

$3.9333 

2.459% 

$0.0967 

Bering 

B-1900 

405 

$202,875 

46.955 

338 

238 

18.775 

4.3,794 

$4.32 

1.39 

$600.22 

$142,853 

$3.2619 

3.575% 

$0.1166 

Bering 

Casa212 

412 

$83,039 

19.219 

153 

63 

7.190 

8,581 

$4.32 

126 

S542.74 

$14,193 

$3.9847 

1.369% 

$0.0546 

Bennp 

Caravan 

416 

$454,678 

105.235 

2,026 

1,729 

52,730 

143.275 

$4..32 

52 

$224.42 

$388,025 

$2.7083 

10.039% 

$0.2719 

Frontier 

Navajo 

194 

$3,896 

1.188 

21 

7 

111 

351 

$3.28 

57 

$185.52 

$1,299 

$3.7009 

0.021 % 

$0.0008 

Grant 

C206 

35 

$3.30.115 

65,069 

2,9.30 

2.385 

19.174 

71.277 

$5.07 

22 

$112.67 

$268,711 

$3.7700 

3.651% 

$0.1376 
Attachment B 

Linehaul, Part 135 

Appendix D-2 

Page 3 of 5 

Year Ended June 30, 2010. Fuel Expense 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

I I 

12a 

13a . 

12b 

13b . 

Carrier 

Aircraft Code 

Scheduled + Nonscheduled 

Total Fuel Expense 

Total Gallons Issued 

Toial Block HOUR 

Eligible Block Hours 

Eligible Mail RTMs 

Total Eligible RTMs 

Price per Gallon 

Bum per Hour 

Costs per Block Hour 

Eligible Fuel Expense 

Cost per Eligible RTM 

"Trend" 

Mail RTMs Perceniage 

Cost/RTM, Wtd. By Mail RTMs 

"Actual" 

Mail RTMs Percentage 

Cost/RTM, Wld. By Mail RTMs 

Grant 

Navajo 

194 

$1,702,463 

309.529 

5.564 

4,390 

63,361 

371.853 

$5.50 

55.6 

$305.98 

$1,343,245 

$3.6123 

2.919% 

$0.1054 

2..37% 

$0.0856 

Grant 

Caravan 

416 

$2,185,009 

390.547 

9.491 

4.746 

131.248 

328,199 

$5.59 

41.1 

$230.22 

$1,092,620 

$3.3291 

6.047% 

$0.2013 

4.92% 

$0 1638 

Hageland 

C-206 

35 

$1,647,696 

295.754 

23.859 

18.647 

108.808 

.362,126 

$5.57 

12.4 

$69.06 

$1,287,757 

$3.5561 

5.013% 

$0.1783 

4.08% 

$0.1451 

Hageland 

Navajo 

194 

$978.731 

176.952 

5.385 

4,760 

76,499 

235,746 

$5.53 

12.9 

$181.75 

$865,136 

$3.6698 

3.524% 

$0.1293 

2.87% 

$0.1053 

Hageland 

B-1900 

4.05 

$500,255 

151.122 

1.576 

501 

45,101 

62,265 

$3.31 

95.9 

$317.42 

$159,028 

$2.5541 

2.078% 

$0.0531 

1.69% 

$0.0432 

Hageland 

Caravan 

416 

$5,440,824 

1.040.534 

25.868 

23.069 

558.040 

1.506.551 

$5.23 

40.2 

$210.33 

$4,852,110 

$3 2207 

25 709% 

$0.8280 

20.90% 

$0.6731 

Quarter Ended June 30, 2010. per Order 2010 9-24 

3 . 

4 

5 . 

6 . 

7 . 

8 . 

9 . 

10 

II . 

12 

13 . 

Aircraft Name 

Aircraft Code 

Total Fuel Expense 

Total Gallons Issued 

Total Block Hours 

Eligible Block Hours 

Eligible Mail RTMs 

Total Eligible RTMs 

Price per Gallon 

Bum per Hour 

Costs per Block Hour 

Eligible Fuel Expense 

Cost per Eligible RTM 

Mail RTMs Percentage 

S/RTM. Wld. By Mail RTMs 

Grant 

Navajo 

194 

$494,476 

79,739 

1,.169 

1.049 

14.760 

85.093 

$6.20 

58 

$.361.20 

$378,894 

$4.4527 

2.810% 

SO. 1251 

Grant 

Caravan 

416 

$564,120 

85.797 

2.348 

1,521 

28.368 

95,026 

.$6.58 

37 

$240.26 

$365,429 

$3.8456 

5.401% 

,$0.2077 

Hageland 

C-206 

35 

.$489,692 

78,900 

6.429 

5.128 

27.792 

99,698 

$6.21 

12 

$76. J 7 

$390,596 

$3.9178 

5.291% 

$0.2073 

Hageland 

Navajo 

194 

$293,977 

49,160 

1.474 

1.269 

21.311 

61.819 

$5.98 

33 

$199.44 

$253,091 

.$4.0941 

4.057% 

SO. 1661 

Hageland 

B-1900 

405 

Hageland 

Caravan 

416 

$1,641,796 

274,329 

7.155 

6.473 

149.672 

419,759 

$5.98 

38 

$229.46 

$1,485,303 

$3.5385 

28.496% 

% 1.0083 
Attachment B 

Linehaul, Part 135 

Appendix D-2 

Page 4 of 5 

Year Ended June 30, 2010, Fuel Expense 

1 

t 

3 

4 

5 

6 

7 

8 

9 

iO 

11 

12a 

1.1a . 

12b 

13b 

Carrier 

Aircraft Code 

Scheduled + Nonschmlule^l 

Total Fuel Expense 

Total Gallons Issued 

Total Block Hours 

Eligible Block Hour^ 

Eligible Mail RTMs 

Total Eligible RTMs 

Price per Gallon 

Bum per Hour 

Costs per Block Hour 

Eligible Fuel Expense 

Cost per Eligible RTM 

"Trend " 

Mail RTMs Percentage 

Cosl/RTM, Wtd. By Mail RTMs 

"Actual" 

Mail RTMs Percentage 

Cost/RTM. Wtd. By Mail RTMs 

Hageland 

C-406 

417 

$1,794,539 

380,524 

5,330 

4.374 

128,186 

3.32,162 

$4.72 

71.4 

$336.69 

$1,472,667 

$4.4336 

5.906% 

$0.2618 

4.80% 

$0.2128 

PenAir 

PA-32 

79 

$464,514 

87.792 

4.962 

4,383 

32.338 

105.809 

$5.29 

17.7 

$93.61 

S410.311 

$3.8778 

1.490% 

$0.0578 

1.21% 

$0.0469 

PenAir 

Caravan 

416 

$824,745 

222.555 

4,037 

3.611 

123,266 

322.340 

$3.71 

55.1 

$204.30 

S7.17.715 

$2.2886 

5.679% 

$0.1.300 

4.62% 

$0.1057 

Warbelow 

Navajo 

-194 

$1,705,947 

448.763 

1 1,562 

11.0'>2 

95.382 

665.146 

$3.80 

38.8 

$147.55 

$).6.36.600 

$2.4605 

4.394% 

$0.1081 

3.57% 

$0.0878 

Warbelow 

B-1900 

405 

$319,767 

115.700 

1.223 

1.0.19 

35.898 

142.147 

$2.76 

94.6 

$261.46 

$271,658 

$1.9111 

1.654% 

$0.0316 

I..14%H 

$0.0256 1 

Warbelow 

Caravan 

416 

$200,224 

72.282 

1.428 

1,364 

22.763 

102.588 

$2.77 

50,6 

$140.21 

$191,250 

$1.8643 

1.049% 

$0.0196 

••^•i I^HII 

Quarter Ended June 30, 2010, per Order 2010-9-24 

1 

T 

3 

4 

5 

6 

7 

8 . 

9 

10 

11 . 

12 

13 . 

Aircrafl Name 

Aircraft Code 

Total Fuel Expense 

Total Gallons Issued 

Total Block Hour^ 

Eligible Block Hours 

Eligible Mail RTMs 

Total Eligible RTMs 

Price per Gallon 

Bum per Hour 

Costs per Block Hour 

Eligible Fuel Expense 

Cost per Eligible RTM 

Mail RTMs Percentage 

$/RTM. Wtd. Bv Mail RTMs 

Hqgel,ind 

C-406 

417 

$397,247 

83.568 

1.240 

1,065 

31.129 

80.507 

$4.75 

67 

$320.36 

$341,184 

$4.2379 

5.927% 

$0.2512 

PenAir 

PA.32 

79 

$1.30,920 

24.825 

1.378 

1.179 

8,498 

27,726 

$5.27 

18 

$95.01 

$112,014 

$4.0400 

1.618% 

$0.0654 

PenAir 

Caravan 

416 

$243,556 

70.586 

1.261 

1.107 

33,876 

96,619 

$3.45 

56 

$193.15 

$213,812 

$2.2129 

6.450% 

$0.1427 

Warbelow 

Navajo 

194 

$461,998 

119.807 

2.974 

2.727 

22.593 

163,831 

$3.86 

40 

$155.35 

$423,628 

$2.5858 

4.3027P 

$0.1 I L2 

Warbelow 

B-1900 

4Q5 

$91,1.39 

29,200 

305 

189 

7,352 

27.373 

$3.12 

96 

$298.82 

$56,476 

$2.0632 

1.400% 

$0.0289 
YearEndwJ June 30. 2010, Fuel Expense 

1 

2 

3 

4 

5 

6 

7 

8 

9 . 

10 

11 

12a 

13a . 

12b 

13b . 

Carrier 

Aircraft Code 

Scheduled + Nonscheduled 

Total Fuel Expense 

Total Gallons Issued 

Toial Block Hours 

Eligible Block Hours 

Eligible Mail RTMs 

Total Eligible RTMs 

Price per Gallon 

Bum per Hour 

Cosis per Block Hour 

Eligible Fuel Expense 

Cost per Eligible RTM 

"Trend " 

Mail RTMs Percentage 

COSI/RTM , W|d. By Mail RTMs 

"Actual" 

Mail RTMs Percentage 

Cosi/RTM. Wld. By Mail RTMs 

Wings 

C-208 

416 

$364,419 

1,39.019 

3,115 

2,915 

28.710 

207.132 

$2.62 

44.6 

$116.99 

$341,021 

$1.6464 

1.323% 

$0.0218 

1.08% 

$0.0178 

Wrighi 

Caravan 

416 

$1,231,643 

491,800 

9,703 

8,288 

122.718 

689,919 

$2.50 

50.7 

$126.93 

$1,052,031 

$1.5249 

5.654% 

$0.0862 

4.60%. 

$0.0701 

Yute 

C-206 

35 

$1,103,194 

176,872 

13,285 

12,192 

83.374 

311,021 

$6.24 

13.3 

583.04 

$1,012,431 

$3.2552 

3.841% 

$0.1250 

3.12% 

$0.1016 

Quarter Ended June 30, 2010, per Order 2010-9-24 

I . 

2 

3 . 

4 

5 . 

6 . 

7 . 

8 . 

9 . 

10 

II . 

12 

13 , 

Aircraft Name 

Aircraft Code 

Total Fuel Expense 

Total Gallons Issued 

Total Block Hours 

Eligible Block Hours 

Eligible Mail RTMs 

Total Eligible RTMs 

Price per Gallon 

Bum per Hour 

Costs per Block Hour 

Eligible Fuel Expense 

Cost per Eligible RTM 

Mai) RTMs Perceniage 

$/RTM, Wtd. By Mail RTMs 

Win^s 

C-208 

416 

$135,446 

44.896 

985 

911 

5,909 

64,262 

$3.02 

46 

$137.51 

$125,270 

$1.9494 

l.)25% 

$0.0219 

Wrichi 

Caravan 

416 

$353,217 

131,750 

2.596 

2.085 

30,000 

174,280 

$2.68 

51 

$1.36.06 

$283,689 

$1.6278 

5.712% 

$0.0930 

>'ule 

C-207 

35 

$284,324 

45.768 

3.518 

3,154 

23,655 

78,491 

$6.21 

13 

$80.82 

$254,906 

$3.2476 

4.504% 

$0.1463 

Attachment B 

Linehaul, Part 135 

Appendi,* D-2 

Page 5 of 5 
Aliachment B 

Linehaul, Part 135 

Appendix E 

Determination of Which Carriers Are Included in the Part 135 

Eligible Mail RTMs.YE 6-30-10 

(7arrier 

Hageland 

PenAir 

Bering 

(jrani 

f^agcland 

Wright 

PenAir 

Hageland 

Warbelow 

Vute 

tjrant 

Hageland 

Bering 

Oram 

Ar. Circle 

flageland 

Bering 

Warbelow 

Bering 

PenAir 

Frontier 

PenAir 

Wings 

Warbelow 

Bering 

Tatonduk 

Tatonduk 

Ar. Circle 

Wings 

llianuia 

Bering 

Warbelow 

\Vright 

Tanana 

Island Air 

f^nAir 

Island Air 

Ellis 

Servant 

Homer 

40-Mile 

Smokey Bay 

Servant 

Servant 

Spcmak 

Hiamna 

Tanana 

Wright 

Hiamna 

Wnght 

Hiamna 

Ellis 

Oram 

Warbelow 

Wright 

Tatai 

A/C Tvpe 

416 

467-2 

416 

416 

4)7 

416 

416 

35 

194 

35 

35 

194 

405 

194 

487 

405 

194 

405 

412 

79 

194 

467-1 

416 

416 

406 

416 

79 

125 

35 

35 

35 

35 

194 

79 

131 

478 

79 

35 

35 

35 

35 

35 

131 

79 

35 

479 

195 

35 

194 

10 

10 

194 

406 

476 

34 

Mail RTMs 

558.040 

491,927 

204,879 

131.248 

128.186 

122,718 

123,266 

108.808 

95.382 

83,374 

80.940 

76,499 

73,847 

63.361 

47.019 

45,101 

43.067 

.35.898 

35,008 

32,338 

30.145 

29,767 

28,710 

22,763 

14.1.35 

12.497 

8,499 

8,241 

7.129 

5.839 

3.972 

3.825 

3,404 

3.284 

3.072 

2.006 

1,478 

],255 

1,225 

1.025 

992 

879 

682 

396 

391 

171 

149 

46 

23 

19 

16 

4 

0 

0 

0 

2,776,9-15 

Percent 

20.10% 

17.71% 

7.38% 

4.73%. 

4.62% 

4.42% 

4.44% 

3.92% 

3.43% 

3.00% 

2.91% 

2.75% 

2.66% 

2.28% 

1.69% 

1.62% 

1.55% 

1.29% 

1.26% 

1.16% 

1.09% 

1.07% 

1.03% 

0.82% 

0.51% 

0.45% 

0.31% 

0.30% 

0.26% 

0.21% 

0.14% 

0.14% 

0.12% 

0.12% 

0.11% 

0.07% 

0.05% 

0.05% 

0.04% 

0.04% 

0.04% 

0.03% 

0.02% 

0.01% 

0.01% 

0.01% 

0.01% 

0.00% 

0.00% 

0.00% 

0.00% 

0.00% 

0.00% 

0.00% 

0.00% 

Cumulative 

Percent 

20.10% 

37.81% 

45.19% 

49.92% 

54.54% 

58.96% 

63.40% 

67.32% 

70.75% 

73.75% 

76.66% 

79.41% 

82.07% 

84.35% 

86.04% 

87.66% 

89.21% 

90.50% 

91.76% 

92.92% 

94.01% 

95.08% 

96.11% 

96.9.^% 

97.44% 

97.89% 

98 20% 

98.50% 

98.76% 

98.97% 

99.11% 

99.25% 

99.37% 

99.49% 

99.60% 

99.67% 

99.72% 

99.77%. 

99.81% 

99.85% 

99,89% 

99.92% 

99.94% 

99.95% 

99.96% 

99.97% 

99.98% 

99.98% 

99.98% 

99.98% 

99.98% 

99.98% 

99.98% 

99.98% 

99.98% 

Note: .'Vir £xcur.sion.s evrluded, only 6 months oS data. 

Note: Warbelow's #416 is "on the bubble," i.e., it is included for purposes of calculating the 

trend'line, but excluded For purposes of determining this year's costs. 
Attachment B 

Linehaul 

Appendix F 

Determination of Segments Ineligible for Calculating Bush Rates, 

ScheduletJ Intra-Alaska Departures performed with Mainline Equipment 

T-lOO Segment Report, QE 6-30-10, Seven or More Departures Performed 

T510 T510 

Deps. 

331 

765 

105 

119 

15 

18 

74 

25 

321 

18 

87 

91 

216 

90 

64 

102 

153 

91 

21 

297 

109 

8 

223 

10 

171 

91 

91 

38 

64 

187 

33 

12 

244 

92 

47 

163 

91 

91 

90 

91 

Origin 

ADK 

ADQ 

AKN 

AKN 

ANC 

ANC 

ANC 

ANC 

ANC 

ANC 

ANC 

ANC 

ANC 

ANC 

ANC 

ANC 

ANC 

ANC 

ANC 

ANC 

ANC 

ANC 

ANC 

ANC 

ANC 

ANC 

ANC 

ANI 

ANI 

BET 

BET 

BRW 

BRW 

BRW 

CDV 

CDV 

DLG 

DLG 

DLG 

EMK 

Dest. 

ANC 

ANC 

ADQ 

ANC 

ADK 

ADQ 

AKN 

ANI 

BET 

BRW 

CDV 

DLG 

EMK 

ENA 

FAI 

GAL 

HOM 

ILI 

JNU 

KSM 

MCG 

OME 

0T7 

RDB 

sec 

UNK 

VDZ 

ANC 

MCG 

ANC 

EDF 

ANC 

FAI 

sec 

ANC 

YAK 

AKN 

ANC 

ILI 

ANC 

Deps. 

26 

524 

20 

86 

26 

509 

85 

49 

566 

27 

109 

123 

47 

328 

841 

17 

73 

16 

337 

58 

7 

251 

313 

38 

93 

46 

163 

33 

14 

504 

32 

152 

101 

67 

103 

91 

28 

85 

7 

49 

OriEin 

ENA 

FAI 

FAI 

FAI 

GAL 

GST 

HOM 

ILI 

JNU 

JNU 

JNU 

JNU 

JNU 

JNU 

KSM 

KTN 

KTN 

KTN 

MCG 

OME 

OME 

OME 

OTZ 

OTZ 

OTZ 

PSG 

PSG 

RDB 

sec 

see 

see 

SIT 

SIT 

SIT 

UNK 

VDZ 

WRG 

WRG 

YAK 

YAK 

Dest. 

ANC 

ANC 

BRW 

sec 

ANC 

JNU 

ANC 

ANC 

ANC 

GST 

KTN 

PSG 

SIT 

YAK 

ANC 

JNU 

SIT 

WRG 

ANC 

ANC 

OTZ 

UNK 

ANC 

FAI 

OME 

JNU 

WRG 

ANC 

ANC 

BRW 

FAI 

ANC 

JNU 

KTN 

ANC 

ANC 

KTN 

PSG 

CDV 

JNU