INTRA-ALASKA MAINLINE 

SERVICE MAIL RATES 

Under 49 U.S. C. 41901 et seq. 

Order 2012-9-4 

Served: September 5, 2012 

UNITED STATES OF AMERICA 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

Issued by the Department of Transportation 

on the 5th day ofSeptember, 2012 

Docket OST -2003-14695 

(Docket OST -95-429) 

ORDER TO SHOW CAUSE ESTABLlSHING NEW 

MAINLINE SERVICE MAlL RATES 

Summary 

By this Order, the Department proposes to establish new intra-Alaska mainlinel mail rates 

for the next annual period, beginning on or about October 1, 2012. The rates that are 

currently in effect were established by Order 2011-11-18, adjusted by Order 2012-7-18 for 

the fuel costs for the quarter ended March 31, 2012. The cost pool consists of the mainline 

operations of five carriers: Alaska Airlines (AS), Era Aviation, Inc. (Era),2 Lynden Air 

Cargo (Lynden), Northern Air Cargo (NAC), Tatonduk Outfitters, Ltd., d/b/a Everts Air 

Cargo (Tatonduk), and Peninsula Airways, Inc. (PenAir). Alaska and NAC provide all of 

their service with mainline aircraft; Era and Tatonduk provide most of their service with 

mainline equipment; while PenAir provides most of its service with bush aircraft. As 

shown in the Appendices, we have separated the bush traffic and expenses from the 

mainline for each carrier that provides both mainline and bush services. We note that this 

Order includes Era in the mainline cost pool for the first time.3 

Background 

Because mail rates are made effective on a final, prospective basis, but are based on 

historical unit costs, we project what costs will be in the forthcoming year based on ten 

1 Mainline aircraft are defined as aircraft with more than 7,500 pounds payload, and mainline mail is mail 

transported on mainline aircraft. The Postal Service pays a lower rate for mainline than bush mail to reflect 

the greater efficiency of large aircraft when transporting higher loads. 

2 HoTH, Inc., a/k/a Era Alaska, is a regional airline holding company whose wholly-owned subsidiaries 

include Era Aviation, Inc., Hageland Aviation Services, Inc., and Frontier Flying Service, Inc. Those three 

subsidiaries operate as independent carriers throughout the state of Alaska. Era Aviation, Inc. operates as a 

code share partner with Alaska Airlines, Inc. for some of it destinations within Alaska. 

3 The Dash 8-100 aircraft operated by Era are mainline aircraft, as they have more than 7,500 pounds of 

payload. In prior years, we excluded Era from the calculation o(the mainline mail rate because it transported 

less than one percent of Intra-Alaska mainline mail. 
-2-

years of data- if ten years of data are available. Until Order 2004-8-26 was issued, we 

estimated the long-term cost trend based on a ten-year moving average that included only 

NAC and AS,4 the only two carriers for which we had ten years of data. Order 2004-8-26 

temporarily abandoned the use of a ten-year trend for a five-year trend- the entire period 

for which we had data for the four carriers5 constituting the mainline cost pool-- but added 

a successive year with each new annual update until, as contemplated by Order 2004-8-26, 

we had a full ten years. We propose to maintain the use of a ten-year trend by adding the 

most recent year, March 31, 2012, and excluding the earliest year, March 31, 2002. 

As is our usual practice, the proposed rates, contained in Appendix A, reflect the 

application of cost adjustment factors, developed in Appendix B, to the basic mail rate 

structure established by the Civil Aeronautics Board in Order 82-11-23. We have used the 

carriers' reported operating expenses and traffic for the year ended March 31, 2012. When 

the final Order is issued, we will update fuel expenses for the quarter ended June 30, 2012, 

which have not yet been tiled by the carriers. We have increased the carriers' non-fuel unit 

costs and their terminal unit costs to the mid-point of the new rate period based on the longterm (ten-year) annual change in unit costs for all of the carriers.6 

Results of the Updated Data 

The proposed line-haul and terminal rates differ from the rates currently in effect by the 

amounts shown in the table: 

Order 2012-7-18 Proposed7 Increase (%)8 

Line-haul, $/RTM9 Priority $3.5841 $3.6194 0.98 

Non-priority $2.1698 $2.1912 0.99 

Terminal, $/Pound Enplaned Priority $0.3456 $0.3599 4.14 

Non-priority $0.2970 $0.3092 4.11 

Line-haul expenses, including fuel, experienced a slight year-over-year increase whereas 

the terminal rate underwent a larger year-over-year increase. The combination of changes 

in the line-haul and terminal unit costs results in proposed rates that are 1.96 percent higher 

than those in effect for the current period for a 430-milelO average length of haul. 

General Matters 

Appendix E shows all the mail transported by carriers operating mainline equipment in 

Alaska. Consistent with our longstanding policy, we have tentatively excluded from the 

line-haul calculation the data of aircraft types transporting less than one percent of Intra4 The long-term trend was based on the expenses of Alaska and NAC, even though a total offour carriers-

(Alaska, NAC, Lynden, and Tatonduk) transported sufficient volumes of mainline mail that their traffic and 

expense data were included in calculating annual unit costs. 

5 Alaska, NAC, Everts, and Lynden. 

6 The final rate will rely on fuel expenses for the quarter ending June 30, 2012. 

7 Includes fuel expense for the year ended March 31, 2012. 

8 Any difference between Priority and Non-priority is due to rounding. 

9 The proposed line-haul rates are the sum of the non-fuel line-haul expense, with a 10-year average inflation 

factor applied, and the most recent fuel expense unadjusted for inflation. 

10 22,041,739 mail RTMs divided by 51,204 mail tons enplaned per Appendix D. 
-3-

Alaska revenue ton miles of mail, and from the terminal calculation the data of those 

carriers enplaning less than one per cent of Intra-Alaska mail tons enplaned. In the year 

ended March 31, 2012, Era for the first time met the one percent threshold for both the linehaul and the terminal, and, therefore, we have added Era to the cost pool. 

To determine the long-term trend in non-fuel line-haul and terminal expenses, we propose 

to continue our practice of separately regressing those annual expenses against the 

corresponding years, in this instance, the ten-year period from March 31, 2003, through 

March 31, 2012. The results of both the line-haul and terminal regressions are shown in 

Appendices C-1 and C-2. Order 2011-9-6, the prior annual update Order, included 

PenAir's data for the first time, but only for the most recent annual period. We did not 

adjust the nine preceding years by adding PenAir's data- such an adjustment would have 

had a de minimis effect, because PenAir's transported only slightly more mail than required 

by the 1 percent threshold. For the same reason, we do not propose to develop a separate 

ten-year trend with the addition this year of Era to the most recent annual period. 

Non-fuel Line Haul Results 

Appendix C-1, Non-fuel Line Haul, shows an average annual increase of3.06 percent in unit 

costs over the ten-year period with aT-Value of 5.12, indicating there is a strongly consistent 

upward trend in the non-fuel line haul costs. The average annual increase in the long-term 

trend has increased from 2. 76 percent per Order 2011-9-6, to 3.06 percent this year.11 

The average for all of the carriers in the cost pool shows little change, with the unit costs per 

ATM of some carriers' increasing and others decreasing. The biggest change from the prior 

year is the addition ofTatonduk's DC-9-30 to the cost pool, which transported 9.24% of the 

mail in the year ended March 31, 2012.12 Notably, the DC-9-30 had significantly lower nonfuel unit costs than any other mainline aircraft.13 

Fuel Expense 

Last year, we modified the method for calculating fuel expenses by relying on fuel expenses 

for Alaska, NAC, and Lynden reported on Schedule P12. The current calculations again rely 

on Schedule P12, which shows the costs and gallons for Scheduled Intra-Alaska operations. 

We did not, however, apply this to Tatonduk because the Schedule P 12 does not differentiate 

fuel expense by aircraft type or between Avgas and JetA. Tatonduk operated various aircraft 

burning significant amounts of each fuel type, with each fuel type differing in price; thus, it 

would be inappropriate to apply an average price per gallon for that carrier.14 For Tatonduk, 

we will continue our practice of relying expenses per aircraft type as reported on 

Schedule P5. 

11 The most recent year-over-year increase in non-fuel line-haul costs of 1.37 percent, $0.63249 in 2012 

divided by $0.62396 per ATM for 2011 as shown in Appendix C, was less than the long-term trend but the 

addition of this year's results marginally increased the ten-year trend in non-fuel from 2.76 percent to 3.06 

percent. This counter-intuitive result is due to the dropping from the ten-year trend the 2002 results. 

12 Tatonduk began operating the DC-9-30 in May of2011. Prior to this year, we excluded the 

DC-9-30 from the calculation of the mail rate under our one percent policy. 

13 $0.379866 per ATM for Tatonduk's DC-9-30 compared to $0.460633 for NAC, the next lowest cost 

aircraft type. 

14 See Appendix C of Order 2012-7-18. 
-4-

Terminal Results 

As shown in Appendix C-2, Terminal, the terminal regression calculated an average annual 

increase of3.32 percent in unit costs over the ten-year period, with aT-Value of6.09, 

indicating there is a strongly consistent upward trend in terminal costs. Year-over-year unit 

terminal costs have increased by 4.84 percent, from $368.85 per ton in 2011 per 

Appendix D of Order 2011-9-6 to $386.70 in 2012, as shown in Appendix D of this Order. 

The increase in year-over-year unit cost is offset by the long-term trend, producing an 

average annual increase of3.02 percent as shown in Appendix B. We note that Era's 

terminal costs were $392.59 per mail ton enplaned, close to the weighted average of all of 

the carriers ($386.70). The effect of Era on the rate was further diminished by the fact that 

it enplaned only 2.23 percent of total mainline mail. 

ACCORDINGLY, 

1. We direct all interested persons to show cause, no later than twenty (20) days after the 

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

findings and conclusions and fix, determine and publish the proposed final annual rates 

specified in Appendix A, to be effective on or about October 1, 2012, subjectto the 

quarterly fuel adjustment, as discussed. Vague or unsupported Answers that do not include 

all proposed adjustments and backup data will not be accepted; 

2. 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; 

3. This docket shall remain open until further Order of the Department; and 

4. We will serve this Order upon all parties on the Service List for this Docket. 

By: 

Susan L. Kurland 

Assistant Secretary for 

Aviation and International Affairs 

(SEAL) 

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

http:/ /www.regulations.gov 
Intra-Alaska Class Service Mail Rates 

Effective: 1/ On or about October l, 2012 

Column ( I) (2) (3) (4) (5) 

Base Year 

Rates 2/ 

Adjustment 

Factors 3/ 

Proposed 

Final Rates 4/ 

Current Rate, 

Order 2012-7-18 

Change from 

Prior Rate 5/ 

Priority 

Non-priority 

Priority 

Non-priority 

$1.1969 

$0.7246 

$0.1697 

$0.1458 

Linehaut Charge per Billing Ton-Mile 

202.40% 

202.40% 

$3.6194 

$2.1912 

Terminal Charge per Pound Originated 

112.07% 

112.07% 

$.3599 

$.3092 

$3.5841 

$2.1698 

$.3456 

$.2970 

I I Both the current and proposed linehaul rates below include fuel expense for the quarter ended March 31, 2012, 

the most current data available at this time. As discussed in the body of the Order, we anticipate including fuel 

expense for the quarter ended June 30, 2012, in the final Order. 

21 Per Order 82-ll-23. 

31 See Appendix B. 

41 Column (I) increased by Column (2). 

51 Any differences due to rounding. 

0.98% 

0.99% 

4.14% 

4.11% 

Appendix A 
Intra-Alaska Class Service Mail Rates Cost Adjustment Factors 

Unit Cost per Available Ton-Mile 

Fuel 

Nonfuel 

Total 

Unit Cost per Ton Enplaned 

(l) 

Base Year 

Ended 

9130180 11 

$0 .. 399469 

$191.54 

(2) 

Year Ended 

3131112 21 

$0.54616 

$0.63249 

$1.17865 

$386.70 

1/ Per Order 82-11-23, updated most recently in Order 97-12-24. 

(3) 

Average Annual 

Change 

YE 3131103 

to YE 3131112 31 

na 

3.06% 

3.32% 

(4) 

Midpoint to 

Midpoint 

Change 41 

na 

4.64% 

5.04% 

(5) 

Estimated 

Unit Cost at 

411113 51 

$0.546160 

$0.661838 

$1.207998 

$406.19 

2/ See Appendix D-1. For nonfuel, we used YE March 31, 20 12; for fuel expense, we used Order 2012-7-18, App. C. 

3/ See the regression results in Appendix C. · · 

4/ Reflects the fact that from the mid point of the reporting period to the midpoint of the prospective rate is l and I 12 years. 

1.0306 x 1.0153, where 1.0153 is the average annual unit cost increase projected for a 6-month period. 

1.0332 x 1.0166 where 1.0166 is the average annual unit cost increase projected for a 6-month period. 

51 Column (2) multiplied by column (4), except for fuel. As indicated in Order 97-9-37, we will rely on the 

most recent fuel costs, with no inflation factor. Fuel for the QE 3/31 I 12 is the most recent available at this time, 

but we anticipate in the final order adding fuel for the QE 6130/12. 

61 $1.146492 in preceding column divided by $.399469 in the base period, and $390.13 in the 

preceeding column divided by $191.54 in the base period. 

Appendix B 

(6) 

Percent 

Change 1980 

Base Year to 

4/1/13 6/ 

202.40% 

112.07% 
Appendix C-1 

Linehaul 

Page I of 2 

Calculation of the Linehaul Portion of the I 0-Year Trend: TOL, LAC. NAC, PenAir, and Alaska 

Actual Y 

Natural Log 

$/ATM $/ATM Predicted 

Order Non-Fuel Non-Fuel Annual 

Number YE 31311 Linehaul Linehaul Predicted Y Residuals EXP(Y} Increase 

2004-8-26 2003 0.4697 -0.755661 -0.735887 -0.019774198 0.4790804 3.06% 

2004-8-26 2004 0.5225 -0.649130 -0.705745 0.056615359 0.4937404 

2005-9-16 2005 0.5312 -0.632617 -0.675604 0.042986916 0.508849 

2006-9-23 2006 0.5312 -0.632617 -0.645462 0.012845473 0.52442 

2007-8-26 2007 0.4924 -0.708464 -0.615321 -0.09314297 0.5404674 

2008-9-3 2008 0.51562 -0.662385 -0.58518 -0.077205632 0.5570058 

2009-9-1 2009 0.57542 -0.552655 -0.555038 0.002383074 0.5740504 

2010-8-7 2010 0.61927 -0.479214 -0.524897 0.045682787 0.59161-65 

2011-9-6 2011 0.62396 -0.471669 -0.494755 0.023086243 0.6097201 

New 2012 0.63249 -0.458091 -0.464614 0.006522947 0.6283777 

ANOVA 

df ss MS E Significance F 

Regression I 0.074952 0.074952 26.16844 0.000912224 

Residual 8 0.022914 0.002864 

Total 9 0.097865 

Coefficients Std. Error T Stat P-value Lower 95% UQQer 95% 

Intercept -61.1092 11.82854 -5.166251 0.000857 -88.3858552 -33.83254 

X Variable I 0.030141 0.005892 5.11551 0.000912 0.01655408 0.043729 

Regression Statistics 

Multiple R 0.875138 

R Square 0.765866 

Adj. R Square 0.736599 

Standard Error 0.053518 

Observations I 0 
Appendix C-l 

Linehaul 

Page 2 of 2 

------·-~-~--- --·-·---------·------, 

Nonfuel Linehaul, Unity Cost per ATM, Actual vs. Predicted 

-0.50 ' 

~ = -0.55 ~ ::l 

.... 

~ 

z 

'i !;;: -0.60 ,_ 

Q) 

a. 

t;:; 

8 ·2 -0.65 

::l 

-0.70 

2004 2005 2006 2007 2008 

y = 0.0301x- 61.109 

R2 = 0.7659 

2009 2010 

-0.75 Years Ended March 31,2003, thru March 31,2012 

·----~~---------------

2011 

• 
Calculation of the Terminal Portion of the 10-Year Trend: AS. L2, 3Z,NC.KS, 7H 

Order 

Number YE 3/31 

2004-8-26 2003 

2004-8-26 2004 

2005-9-16 2005 

2006-9-23 2006 

2007-8-26 2007 

2008-9-3 2008 

2009-9-1 2009 

2010-8-7 2010 

2011-9-6 20LI 

New 2012 

ANOVA 

elf 

Regression I 

Residual 8 

Total 9 

Coefficients 

Intercept -59.76544 

X Variable I 0.032684 

Regression Statisti.cs 

Multiple R 0.90699 

R Square 

Adj.R Square 

Std. Error 

Observations 

0.&2263 

0.800459 

0.048737 

10 

Actual Y 

Nattiral Log 

$/Ton Enp. $/Ton Enp. 

Terminal Terminal Predicted Y Residuals 

$299.92 5.703516 5.700851 0.002664745 

$302.64 5.712544 5.733535 -0.020991376 

$304.91 5.720017 5.766219 -0.046202497 

$318.30 5.762994 5.798904 -0.035909618 

$368.53 5.909522 5.831588 0.077934261 

$363.29 5.895201 5.864272 0.030929139 

$386.29 5.956588 5.896956 0.059632018 

.• $384.09 5.950877 5.92964 0.021236897 

$368.85 5.910390 5.962324 -0.051934224 . 

$386.70 5.957649 5.995008 -0.037359345 

ss MS .E Significance F 

0.088131 0.088131 37.10352 0.000292272 

0.019002 0.002375 

0.107133 

Std Error T Stat P-value Lower95% 

10.77173. -5.548363 0.000542 -84.60508666 

0.005366 6.091266 0.000292 0.020310713 

Appendix C-2 

Terminal 

Page 1 of2 

Annual 

EXP (Y} Increase 

299.1219 3.32% 

309.0600 

319.3282 

329.9376 

340.8995 

352.2256 

363.9280 

376.0192 

388.5121 

401.4200 

Ugger 95% 

-34.9258 

0.045058 
Terminal, Unit Cost per Ton Enplaned, Actual vs. Predicted 

.9 

~ 

6.00 

5.95 

:::J 10 5.90 

z 

-a' 

CIJ 

c 

.!2 

g. 5.85 1.1.1 

c 

~ ... 

CIJ 

a. 

t; 5.80 

8 

.... 

'2 

:::). 

5.75 

5. 70 r:•-----,,----

2003 2004 2005 

·.~ 

2006 2007 2008 

y = 0.0327x - 59.765 

R2 = 0.8226 

2009 2010 

Years Ended March 31, 2003, thru March 31, 2012 

Appendix C-2 

Terminal 

Page 2 of2 

2011 2012 
Appendix D 

Operating Expenses arid Unit Costs, Intra-Alaska Mainline Operations, Year Ended March 31,2012 

Alaska Era Lynden NAC PenAir Tato.nduk 

AS 7H L2 NC KS 3Z 3Z 3Z 

#617 #483 #556 #620 #456 #218 #461 #640 

Total 737-400 Dash 8 Hercules 737-200 Saab 3408 DC-6 8msilia DC-9-30 

Fuel $211,238,000 $6,586,304 $19,112,498 $19,358,170 $9,834,620 $11, 182,038 $497,830 $3,599,836 

N-Fuel ~256,999,000 $11,962,3Ql $38,493,632 $15,19Q,2.22 $20,~~1.215 $12,026,698 ~1,814,463 $2,483,896 

r Domestic 1/ $468,237,000 $18,548,605 $57,606,130 $34,548,429 $30,165,835 $23,208,736 $2,312,293 $6,083,732 

lntra-AK Skd. 8H 21 25,129 13,334 1,550 5,233 4,785 4,310 708 1,076 

l: Domestic 3/ 82,498 14,961 7,610 6,534 22,133 5,638 776 1,099 

lntra-AK Fuel $64,343,374 $5,870,047 $3,892,822 $15,503,720 $2,126,176 $8,548,170 $454,206 $3,524,498 

lntr;!-AK N-Fuel $78,282,236 $10,66 !,408 $7,840,359 $12,16j,(l91 $4,395,467 $9,193,875 $1,655,464 $2,431,913 

Total $142,625,610 $16,531,455 $11,733,181 $27,669,411 $6,521,643 $17 '7 42,045 $2,109,670 $5,956,411 

Intra-AK S-ATMs 2/ 131 ,524,005 9,649,965 9,960,717 26,410,797 4,081,225 12,793,555 608,496 6,402,027 

$/ATM, Fuel $0.489214 $0.608297 $0.390817 $0.587022 $0.520965 $0.668162 $0.746440 $0.550528 

$/ATM, N-Fuel $0.595194 $1.10481~ .$0,78712~ $0.46Q!l33 $1.076997 $0.718633 $2.120583 $0.319866 

Total $1.084408 $1.713110 $1.177945 $1.047655 $1.597962 $1.386795 $3.467023 $0.930394 

IntraAK Mail RTMs 21 22,041,739 4,698,359 352,715 3,612,121 6,250,512 291,076 4,553,219 246,126 2,037,611 

RTM% of Total 100.01% 21.32% 1.60% 16.39% 28.36% 1.32% 20.66% 1.12% 9.24% 

$/ATM, Fuel $0.54871 $0.10430 $0.00973 $0.06405 $0.16648 $0.00688 $0.13804 $0.00836 $0.05087 

$/ATM, N-Fuel $0.6.,'249 $0.12690 $0.01768 $0.12901 $0.13064 $0.01422 $0.14841 $0.03047 $0.03510 

Wtd. $/ATM, Total $1.18120 $0.231200 $0.027410 $0.193060 $0.297120 $0.021100 $0.286510 $0.038830 $0.085970 

AS 7H L2 NC KS 3Z 

Terminal Expense 4/ $17,217,982 $16,615,420 $11, 148,090 $11 ,434,822 

Tons Enplaned 5/ 43,857 35,713 28,632 34,968 

lntra-AK Skd. Svc. Exp. 6/ $48,415,834 $4,698,496 

!ntra-AK Skd. Svc. Tons 6/ 150,256 10,531 

$/Ton Enplaned $322.22 $392.59 $446.16 $465.25 $389.36 $327.01 

lntra-AK Mail Tons 7/ 51,204 10,158 1,141 7,484 15,080 862 16,479 

Mail Tons o/o of Total 100.00% 19.84% 2.23% 14.62% 29.45% 1.68.% 32.18% 

Wtd. $/Ton Enplaned $386.70 $63.93 $8.75 $65.23 $137.02 $6.54 $105.23 

1/ Form 41, Schedule P5 for AS, L2, NC, and 3Z; Form 298C, Schedule F-2 forKS and ?H. Excludes Alaska Latin operation, and PenAir's Hawaii and New England operations. 

2/Pcr T-1 00 Segment Report, except for PenAir. PenAir's Saab 3408 had both mainline and bush segments and split those operations based on a special report. 

We relied on the data to determine for the Orders setting quarterly fuel updates, and so we have just totaled those four quarter here to determine PenAir's mainline operations. 

3/ Intra-Alaska Schedule only, T-1 00 Segment rt:port. I.e., exclude Alaska Airlines' operations in its Latin region, and PenAir's Hawaiian and New England operations. 

4/ Sources are Schedule Pl2, #6900 for NC, and 3Z, and Schedule F2, Departure Related and Capacity Related for PenAir and Era Aviation. 

51 T -I 00 Market Report, cmTier total. 

6/ Retlects special reports filed by Alaska Airlines and Lynden Air Cargo. 

7/ Appendix E. 
Appendix E 

Exclude Operations Below the One Percent Threshhold, YE 3-31-12 

T-100 Segment, Linehaul Results, Intra-Alaska Mail Revenue Ton Miles (RTMs) 

Carrier Aircraft Intra-AK, 

Code Carrier ~ Mail RTMs Percentage 

NC NAC 620 6,250,512 28.05% 

AS Alaska 617 4,698,359 21.08% 

3Z Tatonduk 218 4,553,219 20.43% 

L2 Lynden 556 3,612,121 16.21% 

3Z Tatonduk 640 2,037,611 9.14% 

7H Era 483 352,715 1.58% 

KS PenAir 456 291,076 1/ 1.31% 

3Z Tatonduk 461 246,126 1.10% 

3Z Tatonduk 150 209,383 0.94% 

AS Alaska 612 18,250 0.08% 

AS Alaska 614 11,674 0.05% 

AS Alaska 634 1,994 0.01% 

EM Empire 441 0 0.00% 

EM Empire 442 0 0.00% 

FX FedEx 740 Q 0.00% 

22,283,040 99.98% 

KS, Saab 340B, Intra-AK, Main Only, per Quarterly Fuel Updates Total 

Order Quarter M-RTMs ATMs Hrs. Hours 

2012-7-18 QE 3-31-12 52,834 827,560 963 4,873 

2012-3-21 QE 12-31-11 81,564 976,334 1,175 4,782 

2011-12-26 QE 9-30-11 73,343 1,094,964 1,291 6,250 

2011-11-18 QE 6-30-ll 83,335 1,182,367 1,356 6,228 

291,076 4,081,225 4,785 22,133 

T -1 00 Market, Terminal Results, Enplaned 

Skd. Intra-AK, 2/ Intra-AK Mail RTMs 3/ Adjusted % of 

Carrier Mail Tons by NC All NC Mail Tons Total 

3Z 17,050 6,836,956 7,074,014 16,479 32.18% 

NC 15,080 6,250,512 6,250,512 15,080 29.45% 

AS 10,227 4,698,359 . 4,730,277 10,158 19.84% 

L2 7,484 3,612,121 3,612,121 7,484 14.62% 

KS 5,689 291,076 1,921,160 862 1.68% 

7H 1,396 352,715 431,501 lJ..:li 2.23% 

Total 56,926 22,041,739 24,019,585 51,204 I 00.00% 

II See quarterly fuel updates below. 

2/ T -I 00 Market Report. 

3i T -1 00 Segment Report. 

Intra-AK, Mail RTMs 

Main+Bush, All NC 

NC 6,250,512 

AS 4, 730,277 

3Z 7,074,014 

L2 3,612,121 

7H 431,501 

KS I,92l,l60 

24,019,585 

Tatonduk 

79 

150 

218 

416 

461 

479 

640 

8,565 

209,383 

4,553,219 

16,627 

246,126 

2,483 

2,037,611 

7,074,014 

Era Aviation 

405 78,786 

483 352,715. 

431,501 

PenAir 

79 29,340 

170 3,006 

416 113,330 

456 817,402 

459 942,851 

46 15,231 

1,921,160